" 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. No. 
1695 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
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SEP 17 P 3 :50 
The development of proprietary economic information is an integral pali of a nation's 
commerce. Its development, protection and lawful exchange are essential to the competitiveness 
of critical segments of Philippine business and industry. 
The theft, misappropriation and wrongful use of Philippine proprietary economic 
information by foreign governments and their agents or instrumentalities can cost our economy 
millions of pesos each year. Existing laws do not give adequate protection to proprietary 
economic information. 
This bill seeks to prevent economic espionage. It also seeks to advance the development 
and lawful use of Philippine proprietary economic information by protecting such information' 
from theft, wrongful destruction or alteration, misappropriation and conversion by foreign 
governments and their agents or instrumentalities.' 
• This bill was originally filed during the Thirteenth Congress, First Regular Ses~ion. 
1 


" 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S, No. 
1695 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
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Sf? 17 P 3 :50 
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DEFINING THE CRIME OF ECONOMIC ESPIONAGE AND PROVIDING PENAL TIES 
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THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION I. ShQrt Title. - This Act may be cited as the "Economic Espionage and 
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Protection of Proprietary Information Act." 
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SECTION 2. Statement of Policy. - It is hereby declared the policy of the State to prevent 
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economic espionage and further the development and lawful use of Philippine proprietary 
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economic information, 
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SECTION 3. Definition of Terms. -As used in this Act, the term: 
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(A) 
"Foreign corporation, institution, or instrumentality" means any corporation, 
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agency, component, institution, association, instrumentality, or legal, commercial, or business 
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entity that is substantially owned, controlled, sponsored, commanded, managed, patronized, 
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dominated, or chartered by a foreign goverument or subdivision of a foreign goverument; 
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(B) 
"Foreign agent" means any officer, employee, proxy, servant, delegate, or 
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representative of a foreign nation or government; 
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(C) 
"Person" means a natural person,. corporation, agency, association, institution, or 
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any other legal, commercial, or business entity; 
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(D) 
"Proprietary economic information" means all forms and types of financial, 
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business, scientific, technical, economic, or engineering information including, but not limited to 
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data, plans, tools, mechanisms, compounds, formulas, designs, prototype, processes, procedures, 
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programs, codes or commercial strategies, whether tangible or intangible and whether stored, 
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compiled, or memorialized physically, electronically, graphically, photographically, or in writing 
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provided that the following concur: 
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(E) 
(I) 
(2) 
(3) 
The owner thereof has taken reasonable measure to keep such information 
confidential; 
The information is not available generally to, or accessible by, the public; 
and 
The information is not a matter of public concern. 
"Owner" means my Filipino person or any Philippine Government compound, 
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department, or agency in which, rightful legal, beneficial, or equitable title to, or license in, 
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proprietary economic information is reposes; 
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(F) 
(0) 
"Filipino person" means -
(I) 
(2) 
In the case of a natural person, a Philippine. citizen or a permanent resident 
alien; and 
In the case of artificial person, a Philippine Government or by Filipino 
citizens or permanent resident aliens, or incorporated under Philippine 
laws. 
"Economic Espionage" is committed by any person who: 
(I) 
(2) 
(3) 
Steals, wrongfully appropriates, takes, carries away, or conceals, or by 
fraud, artifice, or deception obtains proprietary economic information; 
Wrongfully copies, duplicates~ sketches, draws, photographs, downloads, 
uploads, alters, destroys, photocopies, replicates, transmits, delivers, 
sends, 
mails, 
communicates, 
or 
conveys 
proprietary 
economic 
information; 
Being entrusted with, or having lawful possession or control of, or access 
to, proprietary economic information, wrongfully copies, duplicates, 
sketches, draws, photographs, downloads, uploads, alters, destroys, 
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photocopies, replicates, transmits, delivers, sends, mails, communicates, or 
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conveys the same; 
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(4) 
Receives, buys, or possesses proprietar_y economic information, knowing _ 
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the same to have been stolen or wrongfully appropriated, obtained, or 
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converted; 
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(5) Attempts to commit any offense described in the preceding 
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subparagraphs (I), (2.1, (3) or (4); 
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(6) 
Wrongfully solicits another to commit any offense described in preceding 
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subparagraphs (1), (2), (3) or (4); or 
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(7) 
Conspires with one or more other persons to commit any offense 
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described in preceding paragraphs (1), (2), (3) or (4), and one or more of 
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such persons do any act to effect the object of the conspiracy, shall, except 
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as provided in the next subsection (B), be fined not more than 50% of the 
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economic value of such proprietary information or imprisoned for a period 
, 
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ranging from 15 or 25 years, or both. 
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SECTION 4. Prohibited Acts; Penalties. - Any natural or juridical person who commits 
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economic espionage as defined in the preceding Section, whether or not in the aid of foreign 
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nations, governments, corporations, institutions, or instrumentalities, shall be fined an amount 
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equivalent to the economic value of such proprietary information The person mentioned in the 
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preceding paragraph is presumed to have acted with intent to injure any owner and benefit any 
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foreign nation, government, corporation, institution, instrumentality, unless proven otherwise. If 
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the offender is a corporation, any officer, director, or manager, or other person occupying a 
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position of authority and responsibility for the acquisition, use or management of proprietary 
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economic information for any corporation or other business or commercial entity who knowingly 
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permitted or failed to prevent the commission of any of the acts which constitute economic 
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espionage. 
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SECTION 5. Forfeiture. - Notwithstanding any provision of law to the contrary, any 
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person convicted of violation of this Act shall forfeit to the Philippine Government any property 
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constituting, or derived from any proceeds the person obtained, directly or indirectly, from the 
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commission of such violations; and any of the person's properly used, or intended to be used, in 
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any manner or part, to commit, or to facilitate the commission of a violation of this Act. The 
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court, in imposing penalty on the offender for a violation of this Act, shall order that the property 
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described in paragraph (A) of this Section be forfeited in favor of the Philippine Government. 
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SECTION 6. Extra-Territoriality. - Notwithstanding any provision oflaw to the contrary, 
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this Act applies to conduct occurring outside the territorial jurisdiction of the Philippines if -
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(A) 
The offender is a Filipino citizen or permanent resident of the Philippines; 
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(B) 
The victim of the offense is an "owner", as defined in Section 3 of this Act, and 
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the offense was intended to have, or had, an effect in the Philippines; or 
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(C) 
The offender foreign corporation is conducting business in the Philippines 
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through agents or subsidiaries and has caused damage to the "owner" in the conduct of its 
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business abroad 
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SECTION 7. Construction with Other Laws. - This Act shall not be construed to preempt 
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or displace any other existing legal remedies, whether civil or criminal, for the misappropriation 
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or proprietary economic information. 
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SECTION 8. Preservation of Corifidentiality. - In any prosecution under this Act, the 
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court shall preserve the confidentiality of alleged proprietary economic information by any 
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reasonable and lawful means including, but not limited to -
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(A) 
The granting or protective orders in connection with discovery proceedings; and 
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(B) 
The holding of in-camera hearing, sealing relevant portions OC the record, and 
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the ordering of any person involved in the proceedings not to disclose the alleged proprietary 
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" . 
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economic information which is the subject of the offense may request the prosecution to seek 
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such protective action. 
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SECTION 9. Non-Applicability of Lawfully Authorized Law Enforcement or Intelligence 
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Activities. - Any act in which information is seized, taken, transported, transmitted, or transferred 
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pursuant to or in furtherance of any lawfully authorized investigative, protective, or intelligence 
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activity of a law enforcement agency of the Philippines or any of its political subdivisions, shall 
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not be deemed a violation ofthis Act. 
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SECTION 10. Separability Clause. - If any provision or part thereof is held invalid or . 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting. 
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SECTION 11. Repealing Clause. - Presidential Decree No. 1602 is hereby amended. Any 
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law, presidential decree or issuance, executive order, letter of instruction, administrative order, 
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rule, or regulation contrary to or inconsistent with the provisions of this Act is hereby repealed, 
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modified, or amended accordingly. 
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SECTION 12. Effectivity Clause. - This Act shall tale effect fifteen (15) days after its 
. 
. 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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