c 
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%E tu ATE 
THIRmENTH CONGRESS OF 
OF THEPHILIPPINES 
FIRST REGULAR SESSION 
- 
Introduced by SENATOR LUISA “LOI” P. EJERCITO ESTRADA 
EXPLAhTATORY NOTE 
The development of proprietary economic infbrmation 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, misappropriation 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 
idormation 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. 
LUISA “LOP’ NEJERCITO 
ESTRADA 
Senator 


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c 
TmTFJENTH CONGRESS OF THE REPUBLIC ) 
FIRST REGULAR SESSION 
OF THE PHILIPPINES 
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Introduced by SENATOR LUISA “LOI” P. EJERCITO ESTRADA 
AN ACT 
DEFINING THE CRIME OF ECONOMIC ESPIONAGE AND PROVIDING 
PENALTIES THEREFOR 
Be it enucted by the Senate and the 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” 
Sec. 2. 
Statement of Policv. - It is hereby declared the policy of thk State to 
prevent economic espionage and kither the development and lawful use of Philippine 
proprietary economic information. 
Sec. 3. Definition of Terms. - As used in this Act, the term - 
“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. 
“Foreign Agent” means any officer, employee, proxy, servant, delegate or. 
representative of a foreign nation or government. 
“Person” means a natural person, corporation, agency, association, 
institution or any other legal, commercial, or business entity. 
“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 memoi-ialized 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; 
the information is not available generally to, or accessible by, the 
public; and 
the information is not a matter of “public concern”, as defined by 
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(b) 
(c) 
law. 
(5) 
“Owner” means any Filipino person or any Philippine Government 
department, agency or instrumentality in which, rightful legal, beneficial 
or equitable title to or license in, proprietary economic information is 
reposed. 
(6) 
“Filipino person” means - 
(a) 
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. 
(b) 
Sec. 4. Economic EsDionave. - 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, wrongfidly 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; 
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; 
receives, buys or possesses proprietary economic idormation, 
knowing the same to have been stolen or wrongfully appropriated, 
obtained, or converted; 
(3) 
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(4) 
(5) 
attempts to commit any offense described in the preceding 
pW3raphs (0, (2), (3) or (4); 
(6) 
wrongfully solicits another to commit any offense described in 
paragraphs (11, (21, (3) or (4); or 
conspires with one or more other persons to commit ady offense 
described in paragraphs (l), (2), (3) or (4) and one or more of such 
persons do any act to effect the object of the conspiracy, shall, 
(7) 
except as provided in the next subsection (b), be fined not less than 
Five Hundred Thousand Pesos (P500,000.00), or imprisoned for a 
period ranging from fiReen (1 5) to twenty-five (25) years, or both. 
(b) 
Any corporation that commits any offense described in the preceding 
subsection (a) 
shall be fined not less than One Million Pesos 
(P100,000,000.00). 


See. 5. 
Vicarious Iiabilitv. - 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 - 
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 not less than Five Hundred Thousand. Pesos 
(P500,OOO.OO) or imprisonment for a period ranging from ten (1 0) 
to fifieen (1 5 )  years, or both. 
Sec. 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 
any of the person’s property used, or intended to be used, in any 
manner or part, to commit or to facilitate the commission of a 
violation of this Act. 
(2) 
(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. 


Sec. 7. 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) 
(2) 
the offender is a Filipino citizen; or 
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. 
Construction with other laws. - 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. Preservation of confidentialitv. - In any prosecution under this Act, the 
court shall preserve the confidentiality of alleged proprietary economic information by 
any reasonable and l a f i l  means including, but not limited to - 
(1) 
the granting of protection orders in connectidn with didcoverqr 
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. 
(2) 
See. 10. 
Non-applicability to lawfullv authorized law enforcement or 
intelligence activities. - Any act in which information is seized, taken, transported, 
transmitted or transferred pursuant to, or in htherance 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. 


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Sec. 11. SeDarabilitv Clause - If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not othenvise affected shall 
remain valid and subsisting. 
Sec. 12. 
ReDealine Clause. - 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 a&ended 
accordingly. 
See. 13. Effectivitv Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved,