IB 
Union Calendar No. 443 
112TH CONGRESS 
2D SESSION 
H. R. 6029 
[Report No. 112–610] 
To amend title 18, United States Code, to provide for increased penalties 
for foreign and economic espionage, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 27, 2012 
Mr. SMITH of Texas (for himself, Mr. CONYERS, Mr. GOODLATTE, Mr. WATT, 
Mr. COBLE, Mr. BERMAN, Mr. WOLF, Mr. SCHIFF, Mr. CHAFFETZ, Mr. 
DEUTCH, Mr. POE of Texas, and Mr. CHABOT) introduced the following 
bill; which was referred to the Committee on the Judiciary 
JULY 19, 2012 
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
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A BILL 
To amend title 18, United States Code, to provide for in-
creased penalties for foreign and economic espionage, 
and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Foreign and Economic 
Espionage Penalty Enhancement Act of 2012’’. 
SEC. 2. PROTECTING U.S. BUSINESSES FROM FOREIGN ES-
PIONAGE. 
(a) FOR OFFENSES COMMITTED BY INDIVIDUALS.— 
Section 1831(a) of title 18, United States Code, is amend-
ed, in the matter after paragraph (5)— 
(1) by striking ‘‘15 years’’ and inserting ‘‘20 
years’’; and 
(2) by striking ‘‘not more than $500,000’’ and 
inserting ‘‘not more than $5,000,000’’. 
(b) FOR OFFENSES COMMITTED
BY ORGANIZA-
TIONS.—Section 1831(b) of such title is amended by strik-
ing ‘‘not more than $10,000,000’’ and inserting ‘‘not more 
than the greater of $10,000,000 or 3 times the value of 
the stolen trade secret to the organization, including ex-
penses for research and design and other costs of repro-
ducing the trade secret that the organization has thereby 
avoided’’. 
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SEC. 3. REVIEW BY THE UNITED STATES SENTENCING COM-
MISSION. 
(a) IN GENERAL.—Pursuant to its authority under 
section 994(p) of title 28, United States Code, the United 
States Sentencing Commission shall review and, if appro-
priate, amend the Federal sentencing guidelines and policy 
statements applicable to persons convicted of offenses re-
lating to the transmission or attempted transmission of 
a stolen trade secret outside of the United States or eco-
nomic espionage, in order to reflect the intent of Congress 
that penalties for such offenses under the Federal sen-
tencing guidelines and policy statements appropriately, re-
flect the seriousness of these offenses, account for the po-
tential and actual harm caused by these offenses, and pro-
vide adequate deterrence against such offenses. 
(b) REQUIREMENTS.—In carrying out this section, 
the United States Sentencing Commission shall— 
(1) consider the extent to which the Federal 
sentencing guidelines and policy statements appro-
priately account for the simple misappropriation of 
a trade secret, including the sufficiency of the exist-
ing enhancement for these offenses to address the 
seriousness of this conduct; 
(2) consider whether additional enhancements 
in the Federal sentencing guidelines and policy 
statements are appropriate to account for— 
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(A) the transmission or attempted trans-
mission of a stolen trade secret outside of the 
United States; and 
(B) the transmission or attempted trans-
mission of a stolen trade secret outside of the 
United States that is committed or attempted 
to be committed for the benefit of a foreign 
government, foreign instrumentality, or foreign 
agent; 
(3) ensure the Federal sentencing guidelines 
and policy statements reflect the seriousness of these 
offenses and the need to deter such conduct; 
(4) ensure reasonable consistency with other 
relevant directives, Federal sentencing guidelines 
and policy statements, and related Federal statutes; 
(5) make any necessary conforming changes to 
the Federal sentencing guidelines and policy state-
ments; and 
(6) ensure that the Federal sentencing guide-
lines adequately meet the purposes of sentencing as 
set forth in section 3553(a)(2) of title 18, United 
States Code. 
(c) CONSULTATION.—In carrying out the review re-
quired under this section, the Commission shall consult 
with individuals or groups representing law enforcement, 
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owners of trade secrets, victims of economic espionage of-
fenses, the United States Department of Justice, the 
United States Department of Homeland Security, the 
United States Department of State and the Office of the 
United States Trade Representative. 
(d) REVIEW.—Not later than 180 days after the date 
of enactment of this Act, the Commission shall complete 
its consideration and review under this section. 
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Union Calendar No. 443 
112TH CONGRESS 
2D SESSION 
H. R. 6029 
[Report No. 112–610] 
A BILL 
To amend title 18, United States Code, to provide 
for increased penalties for foreign and economic 
espionage, and for other purposes. 
JULY 19, 2012 
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
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