FOURTEENTH CONGRESS OF THE REPUBLIC) 
First Regular Session 
OF THE PHILIPPINES 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The development of proprietary economic information is an integral part of a nation's 
commerce. Its development, protection and lawful exchange is 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 infoimation. 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, nlisappropriation and conversion by foreign governments and 
their agents or instrumentalities.* 
* This bill was originally tiled during the Thirteenth Congress, First Rcgular Session. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
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First Regular Session 
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Introduced by Senator Miriain Defensor Santiago 
AN ACT 
DEFINING THE CRIME OF ECONOMIC ESPIONAGE 
AND PROVIDING PENALTIES TI-IEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act may be cited as the “Economic Espionage and 
Protection of Proprietary Information Act.” 
SECTION 2. Statement ofPolicy. - It is hereby declared the policy of the State to prevent 
economic espionage and further the development and lawful use of Philippine proprietary 
economic inloonnation 
SECTION 3. Dejnition of Terms. -As used in this Act, the term: 
(A) “Foreign corporation, institution, or instrumentality” means any corporation, agency, 
component, institution, association, instrumentality, or legal, commercial, or business 
entity that is substantially owned, controlled, sponsored, commanded, managed, 
patronized, dominated, or chartered by a foreign government or subdivision of a 
foreign government; 
(B) “Foreign agent” means any officer, employee, proxy, servant, delegate, or 
representative of a foreign nation or government; 
(C) “Person” means a natural person, corporation, agency, association, institution, or any 
other legal, commercial, or business entity; 
(D) “Proprietary ecoiioinic information” means all forms and types of financial, business, 
scientific, technical, economic, or engineering information including, but not limited 
to data, plans, tools, mechanisms, compounds, formulas, designs, prototype, 


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processes, procedures, programs, codes or commercial strategies, whether tangible or 
intangible and whether stored, compiled, or memorialized physically, electronically, 
graphically, photographically, or in writing provided that the following concur: 
(1) The owner thereof has taken reasonable measure to keep such information 
confidential; 
(2) The information is not available generally to, or accessible by, the public; and 
(3) The information is not a matter of public concern. 
(E) “Owner” means m y  Filipino person or any Philippine Government compound, 
department, or agency in which, rightful legal, beneficial, or equitable title to, or 
license in, proprietary economic information is reposes; 
(F) “Filipino person” means - 
(1) In the case of a natural person, a Philippine citizen or a permanent resident 
alien; and 
(2) In the case of artificial person, a Philippine Government or by Filipino 
citizens or permanent resident aliens, or incorporated under Philippine laws. 
(G)“Economic Espionage” is committed by any person who: 
(I) Steals, wrongfully appropriates, takes, carries away, or conceals, or by fraud, 
artifice, or deception obtains proprietary economic information; 
(2) Wrongfully copies, duplicates, sketches, draws, photographs, downloads, 
uploads, alters, destroys, photocopies, replicates, transmits, delivers, sends, 
mails, communicates, or conveys proprietary economic information; 
(3) 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, photocopies, 
replicates, transmits, delivers, sends, mails, communicates, or conveys the 
same; 
(4) Receives, buys, or possesses proprietary economic information, knowing the 
same to have been stolen or wrongfully appropriated, obtained, or converted; 
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(5) Attempts to commit any offense described in the preceding subparagraphs (l), 
(2.1, (3) or (4); 
(6) Wrongfully solicits another to commit any offense described in preceding 
subparagraphs (l), (2), (3) or (4); or 
(7) Conspires with one or more other persons to commit any offense described in 
preceding paragraphs (l), (2), (3) or (4), and one or more of such persons do 
any act to effect the object of the conspiracy, shall, except as provided in the 
iiext subsection (B), be fined not more than 50% of the economic value of 
such proprietary information or imprisoned for a period ranging from 15 or 25 
years, or both. 
SECTION 4. Prohibited Acts; Penalties. - Any natural or juridical person who commits 
economic espionage as defined in the preceding Section, whether or not in the aid of foreign 
nations, governments, corporations, institutions, or instrumentalities, shall be fined an amount 
equivalent to the economic value of such proprietary information 
The person mentioned in the preceding paragraph is presumed to have acted with intent to 
injure any owner and benefit any foreign nation, government, corporation, institution 01: 
instrumentality, unless proven otherwise. 
If the offender is a corporation, any officer, director, or manager, or other person 
occupying a position of authority and responsibility for the acquisition, use or management of 
proprietary economic information for any corporation or other business or coinmercial entity 
who knowingly pennitted or failed to prevent the commission of any of the acts which constitute 
economic espionage. 
SECTION 5. Forfeiture. - Notwithstanding any provision of law to the contrary, any 
person convicted of violation of this Act shall forfeit to the Philippine Government any property 
constituting, or derived from any proceeds the person obtained, directly or indirectly, from the 
commission of such violations; and any ofthe person’s properly used, or intended to be used, in 
any manner or part, to commit, or to facilitate the commission of a violation of this Act. 
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The court, in imposing penalty on the offender for a violation of this Act, shall order that 
the property described in paragraph (A) of this Section be forfeited in favor of the Philippine 
Government. 
SECTION 6. Extun-Tervitoviality. - Notwithstanding any provision of law to the 
contrary, this Act applies to conduct occumng outside the territorial jurisdiction of the 
Philippines if - 
(A) The offender is a Filipino citizen or permanent resident of the Philippines; 
(B) The victim of the offense is an “owner”, as defined in Section 3 of this Act, and the 
offense was intended to have, or had, an effect in the Philippines; or 
(C) The offender foreign corporation is conducting business in the Philippines through 
agents or subsidiaries and has caused damage to the “owner” in the conduct of its 
business abroad 
SECTION 7. Constvuction with Other Laws. - This Act shall not be constrned to pre- 
empt or displace any other existing legal remedies, whether civil or criminal, for the 
misappropriation or proprietary economic information. 
SECTION 8. Preservation of Confidentiality. - In any prosecution under this Act, the 
court shall preserve the confidentiality of alleged proprietary economic information by any 
reasonable and lawful means including, but not limited to - 
(A) The granting or protective orders in connection with discovery proceedings; and 
(B) The holding of in-camera hearing, sealing relevant portions OC the record, and the 
ordering of any person involved in the proceedings not to disclose the alleged 
proprietary economic information which is the subject of the offense may request the 
prosecution to seek such protective action. 
SECTION 9. Non-Applicability 
of 
Lawfully Authorized 
Law Eigorcement 
or 
Intelligence Activities. - Any act in which information is seized, taken, transported, transmitted, 
or transleerred pursuant to or in furtherance of any lawfully authorized investigative, protective, 
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or intelligence activity of a law enforcement agency of the Philippines or any of its political 
subdivisions, shall not be deemed a violation of this Act. 
SECTION 10. Separability Clause. - If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 11. Repealing Clause. - Presidential Decree No. 1602 is hereby amended and 
any law, presidential decree or issuance, executive order, letter of instruction, administrative 
order, rule or regulation contrary to, or inconsistent with, the provisions of this Act is hereby 
repealed, modified or amended accordingly. 
SECTION 12. Effectivity Clause. - This Act shall tale effect fifteen (15) days after its 
publication in at least two (2) newspaper o f  general circulation. 
Approved, 
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