EXPLANATORY NOTE
The development of proprietary economic information is an integral part 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,   misapprop`riation  and  wrongful   use  of  Philippine   proprietary  economic
information   by  foreign  governments  and  their  agents  or  instrumentalities  can   cost  our
economy millions and possibly billions, of pesos each year.
Existing  laws do not give adequate protection to proprietary economic information.  It
also  seeks to  advance the  development and  lawful  use  of Philippine  proprietary economic
information  by  protecting  such  information from the theft,  wrongful  destruction  or alteration,
misappropriation     and     conversion     by    foreign     governments    and     their    agents     or
instrumentalities. This bill seeks to prevent economic espionage.
Hence, the immediate approval of this bill is earnestly sought.


NINETEENTH CONGRESS                  )
REPUBLIC OF THE PHILIPPINES    )
First Regular session                           )
HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus B. Rodriguez                              _
House Bi||`No. 53 6 7
AN ACT
DEFINING   THE   CRllvIE   OF   ECONOMIC   ESPIONAGE   AND   PROVIDING   PENALTIES
THEREFOR
Be it ep?ct.ed  by the Senate and  House of Representatives of the  Philippines in Congress
assembled:
SECTION  1.  SAorf  77.I/e.  -This  Act  may  be  cited  as  the  "Economi.c  Espi.onage  and
Protection Of Proprictary Information Act".
SEC  2.  Sfafemenf  of Po/i.ey.  -  It  is  hereby  declared  the  policy  of the  State  to  prevent
economic espionage  and  further the  development and  lawlul  use  of Philippine  proprietary
economic information.
SEC 3. Deffn/.fi.on of Te/ms. -As used in this Act, the term -
1 )   "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;
2)   "Foreign    Agent"    means    any   officer,    employee,    proxy,    servant,    delegate    or
representative of a foreign nation or government;
3)   "Person" means a natural person, corporation, agency, association,  institution or any
other legal, commercial, or business entity;
4)   "Proprietary economic 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,    prototypes,
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:
(a)  the   owner   thereof   has   taken   reasonable   measures   to   keep   such
information confidential;
(b)  the  information  is  not available generally to,  or accessible  by,  the  public;
and
(c) the information is not a matter of "public concern'', as defined by law.
5)     "Owner"   means  any  Filipino   person   or  any  Philippine  Government  department,
agency or instrumentality jn which,  rightful  legal,  beneficial or equitable title to or license
in, proprietary economic information is reposed;
6) "Filipino person" means -
in the case of a  natural  person,  a Philippine citizen or permanent
resident alien; and
in  the  case  of an  artificial  person,  a juridical  entity  substantially
owned  or controlled  by the  Philippine  Government or by  Filipino


citizens   or   permanent   resident   aliens,   or   incorporated   under
Philippine laws.
SEC 4.  Econom/.c Esp/.onage.  -  Engaging  in  economic espionage to  aid  foreign  nations,
governments, corporations, institutions or instrumentalities.
(a) Any person who, with  intent to,  or reason to believe  it will  injure or disadvantage
any owner and  benefit or advantage any foreign nation, government,  corporation,  institution
or instrumentality who -
1 )   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;
5)   attempts to commit any offense described in the preceding paragraphs (1), (2),   (3) or
(4);
6)   wrongfully solicits another to commit any offense described in paragraphs (1), (2), (3)
Or (4);  or
7)   conspires  with  one  or  more  other  persons  to  commit  any  offense  described  in
paragraphs (1),  (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 next subsection (b),  be
fined  by not less than  Five  Hundred Thousand  Pesos (P500,000.00),  or imprisoned
for a period ranging from fifteen (15) to twenty-five (25) years, or both.
(b) Any corporation that commits any offense described in the preceding subsection (a) shall
be fined by not less than One Million Pesos  (P100,000,000.00).
SEC  5.  Vl.car/.ous i/.ab/.//.fy.  .  - Any officer,  director,  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 commercial entity who -
KE
(2)
knows  or  has  reason  to  know  that  agents  or  employees  of  the
corporation    or   entity   have   wrongfully   acquired    or   manipulated
proprietary economic information in violation of Section 4   of this Act;
and
directly  or  indirectly  authorizes,   permits  or  suffers  the  information
wrongfully    acquired    or    manipulated    to    be    used    to    injure    or
disadvantage any owner and benefit or advantage any foreign nation,
government,  corporation,  institution  or  instrumentality  shall  be  fined
by  not  less  than  Five  Hundred  Thousand  Pesos  (P500,000.00)  or
imprisonment for a  period  ranging from ten (10) to fifteen  (15) years,
Or both.


S)EC 6. Forfeiture. -
(a) Notwithstanding any provision of law to the contrary,  any person convicted of a violation
of this Act shall forfeit to the Philippine Government -
(1 ) any property constituting  or derived from  or any proceeds the  person obtained,
directly or indirectly from the commission of such violation; and
(2) any of the  person's  properties  used,  or intended  to  be  used,  in  any  manner or
part, to commit or to facilitate the commission of a violation of this Act.
(b) The court,  in  imposing  penalty on the offender for a violation of this Act,  shall order that
the property described  in subsection (a) of this section  be forfeited  in favor of the Philippine
Government.
Sic I . Extraterritoriality. -
(a) Notwithstanding any provision of law to the contrary, this Act applies to conduct occurring
outside the territorial jurisdiction of the Philippines if -
(1 )  the offender is a Filipino citizen; or
(2) 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.
SEC  8.  Consfrvcf/.on  w71A  other /aws.  -  This  Act  shall  not  be  construed  to  preempt  or
displace any other existing legal remedies, whether civil or criminal, for the misappropriation
of proprietary economic information.
SEC 9. Preseryafi-on of Conf7.der]f7.a/i-fy. - ln any prosecution under this Act, the court shall
preserve  the  confidentiality of alleged  proprietary economic  information  by  any  reasonable
means including, but not limited to -
the    granting    of    protection    orders    in    connection    with    discovery
proceedings; and
the holding of in-camera hearings, sealing relevant portions of the record
and   the  ordering   of  any  person   involved   in   the   proceedings   not  to
disclose the alleged  proprietary economic information without prior court
approval. Any owner of the proprietary economic information which is the
subject  of  the   offense   may   request  the   prosecution   to   seek   such
protective action.
S_E£_ _±!P_-_ Non.-appli?a.bility .tp  .Ia.wfull¥.  aufhorized_  law  enforoement  or  intelligence
acti.yi.fi.es,  -  Any  act  in  which   information   is  seized,   taken,  transported,   transmitted   or
transferred  pursuant to,  or in furtherance of any lawfully authorized  investigative,  protective
or intelligence activity of a law enforcement agency of the Philippines, or of any of its political
subdivisions, shall not be deemed a violation of Sections 4 and 5 of this Act.
SEC   11.   SeparabJ-//.fy   C/ause   -   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.
SEC  12.  Rapea//'ng  C/ause.  -  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.
SEC 13. Effect/.v/.fy C/ause. -This Act shall take effect fifteen (15) days after its publication
in at least two (2) newspapers of general circulation.
Approved'