IB 
Union Calendar No. 494 
113TH CONGRESS 
2D SESSION 
H. R. 5233 
[Report No. 113–657] 
To amend chapter 90 of title 18, United States Code, to provide Federal 
jurisdiction for the theft of trade secrets, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2014 
Mr. HOLDING (for himself, Mr. NADLER, Mr. COBLE, Mr. CONYERS, Mr. 
CHABOT, Mr. JEFFRIES, Mr. RICHMOND, and Ms. DELBENE) introduced 
the following bill; which was referred to the Committee on the Judiciary 
DECEMBER 11, 2014 
Additional sponsors: Mr. COLLINS of Georgia, Mr. REED, Mr. SENSEN-
BRENNER, Mr. SMITH of Texas, Mr. HANNA, Mr. MCHENRY, Mr. 
DEUTCH, Mr. SMITH of Missouri, Mr. CONNOLLY, Mr. CHAFFETZ, Mr. 
GUTHRIE, Mr. KING
of Iowa, Mr. MARINO, Mr. BACHUS, Mr. 
NUNNELEE, and Mr. PALLONE 
DECEMBER 11, 2014 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on July 29, 2014] 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
A BILL 
To amend chapter 90 of title 18, United States Code, to 
provide Federal jurisdiction for the theft of trade secrets, 
and for other purposes. 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6652
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
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 ‘‘Trade Secrets Protection 
Act of 2014’’. 
SEC. 2. FEDERAL JURISDICTION FOR THEFT OF TRADE SE-
CRETS. 
(a) IN GENERAL.—Section 1836 of title 18, United 
States Code, is amended by striking subsection (b) and in-
serting the following: 
‘‘(b) PRIVATE CIVIL ACTIONS.— 
‘‘(1) IN GENERAL.—An owner of a trade secret 
may bring a civil action under this subsection if the 
person is aggrieved by a misappropriation of a trade 
secret that is related to a product or service used in, 
or intended for use in, interstate or foreign commerce. 
‘‘(2) CIVIL SEIZURE.— 
‘‘(A) IN GENERAL.— 
‘‘(i) APPLICATION.—Based on an affi-
davit or verified complaint satisfying the 
requirements of this paragraph, the court 
may, upon ex parte application, issue an 
order providing for the seizure of property 
necessary to preserve evidence in a civil ac-
tion brought under paragraph (1) or to pre-
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
vent the propagation or dissemination of 
the trade secret that is the subject of the ac-
tion. 
‘‘(ii) REQUIREMENTS
FOR
ISSUING 
ORDER.—The court may not grant an ap-
plication under clause (i) unless the court 
finds that it clearly appears from specific 
facts that— 
‘‘(I) an order issued pursuant to 
Rule 65(b) of the Federal Rules of Civil 
Procedure would be inadequate to 
achieve the purpose of this paragraph 
because the party to which the order 
would be issued would evade, avoid, or 
otherwise not comply with such an 
order; 
‘‘(II) an immediate and irrep-
arable injury will occur if such seizure 
is not ordered; 
‘‘(III) the harm to the applicant 
of denying the application outweighs 
the harm to the legitimate interests of 
the person against whom seizure would 
be ordered of granting the application 
and substantially outweighs the harm 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
to any third parties who may be 
harmed by such seizure; 
‘‘(IV) the applicant is likely to 
succeed in showing that the person 
against whom seizure would be ordered 
misappropriated the trade secret by 
improper means, or conspired to use 
improper means to misappropriate the 
trade secret, and is in possession of the 
trade secret; 
‘‘(V) the application describes 
with reasonable particularity the mat-
ter to be seized and, to the extent rea-
sonable under the circumstances, iden-
tifies the location where the matter is 
to be seized; 
‘‘(VI) the person against whom 
seizure would be ordered, or persons 
acting in concert with such person, 
would destroy, move, hide, or otherwise 
make such matter inaccessible to the 
court, if the applicant were to proceed 
on notice to such person; and 
‘‘(VII) the applicant has not pub-
licized the requested seizure. 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
‘‘(B) ELEMENTS OF ORDER.—If an order is 
issued under subparagraph (A), it shall— 
‘‘(i) set forth findings of fact and con-
clusions of law required for the order; 
‘‘(ii) provide for the seizure of any 
property in a manner that minimizes any 
interruption of the business operations of 
third parties and, to the extent possible, 
does not interrupt those legitimate business 
operations of the person accused of mis-
appropriating the trade secret that are un-
related to the trade secret that has allegedly 
been misappropriated; 
‘‘(iii) be accompanied by an order pro-
tecting the property from disclosure by re-
stricting the access of the applicant, includ-
ing during the seizure, and prohibiting any 
copies, in whole or in part, of the seized 
property, to prevent undue damage to the 
party against whom the order has issued or 
others, until such parties have an oppor-
tunity to be heard in court; 
‘‘(iv) set a date for a hearing at the 
earliest possible time, and not later than 7 
days after the order has issued, unless the 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
party against whom the order is directed 
and others harmed by the order consent to 
another date for such hearing, except that a 
party against whom the order has issued or 
any person harmed by the order may move 
the court at any time to dissolve or modify 
the order after giving notice to the appli-
cant who obtained the order; and 
‘‘(v) require the person obtaining the 
order to provide the security determined 
adequate by the court for the payment of 
such damages as any person may be enti-
tled to recover as a result of a wrongful or 
excessive seizure or wrongful or excessive at-
tempted seizure under this paragraph. 
‘‘(C) PROTECTION
FROM
PUBLICITY.—The 
court shall take appropriate action to protect the 
person against whom an order under this para-
graph is directed from publicity, by or at the be-
hest of the person obtaining the order, about such 
order and any seizure under such order. 
‘‘(D) MATERIALS IN CUSTODY OF COURT.— 
Any materials seized under this paragraph shall 
be taken into the custody of the court. The court 
shall secure the seized material from physical 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
and electronic access during the seizure and 
while in the custody of the court. 
‘‘(E) SERVICE OF ORDER.—The court shall 
order that service of a copy of the order under 
this paragraph shall be made by a Federal law 
enforcement officer, or may be made by a State 
or local law enforcement officer, who, upon mak-
ing service, shall carry out the seizure under the 
order. 
‘‘(F) ACTION
FOR
DAMAGE
CAUSED
BY 
WRONGFUL
SEIZURE.—A person who suffers 
damage by reason of a wrongful or excessive sei-
zure under this paragraph has a cause of action 
against the applicant for the order under which 
such seizure was made, and shall be entitled to 
the same relief as is provided under section 
34(d)(11) of the Trademark Act of 1946 (15 
U.S.C. 1116(d)(11)). The security posted with 
the court under subparagraph (B)(v) shall not 
limit the recovery of third parties for damages. 
‘‘(3) REMEDIES.—In a civil action brought 
under this subsection with respect to the misappro-
priation of a trade secret, a court may— 
‘‘(A) grant an injunction— 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
‘‘(i) to prevent any actual or threat-
ened misappropriation described in para-
graph (1) on such terms as the court deems 
reasonable; 
‘‘(ii) if determined appropriate by the 
court, requiring affirmative actions to be 
taken to protect the trade secret; and 
‘‘(iii) in exceptional circumstances that 
render an injunction inequitable, that con-
ditions future use of the trade secret upon 
payment of a reasonable royalty for no 
longer than the period of time for which 
such use could have been prohibited; 
‘‘(B) award— 
‘‘(i)(I) damages for actual loss caused 
by the misappropriation of the trade secret; 
and 
‘‘(II) damages for any unjust enrich-
ment caused by the misappropriation of the 
trade secret that is not addressed in com-
puting damages for actual loss; or 
‘‘(ii) in lieu of damages measured by 
any other methods, the damages caused by 
the misappropriation measured by imposi-
tion of liability for a reasonable royalty for 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
the misappropriator’s unauthorized disclo-
sure or use of the trade secret; 
‘‘(C) if the trade secret is willfully and ma-
liciously misappropriated, award exemplary 
damages in an amount not more than 3 times 
the amount of the damages awarded under sub-
paragraph (B); and 
‘‘(D) if a claim of the misappropriation is 
made in bad faith, a motion to terminate an in-
junction is made or opposed in bad faith, or the 
trade secret was willfully and maliciously mis-
appropriated, award reasonable attorney’s fees to 
the prevailing party. 
‘‘(c) JURISDICTION.—The district courts of the United 
States shall have original jurisdiction of civil actions 
brought under this section. 
‘‘(d) PERIOD OF LIMITATIONS.—A civil action under 
subsection (b) may not be commenced later than 5 years 
after the date on which the misappropriation with respect 
to which the action would relate is discovered or by the exer-
cise of reasonable diligence should have been discovered. For 
purposes of this subsection, a continuing misappropriation 
constitutes a single claim of misappropriation.’’. 
(b) DEFINITIONS.—Section 1839 of title 18, United 
States Code, is amended— 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
(1) in paragraph (3), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (4), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(5) the term ‘misappropriation’ means— 
‘‘(A) acquisition of a trade secret of another 
by a person who knows or has reason to know 
that the trade secret was acquired by improper 
means; or 
‘‘(B) disclosure or use of a trade secret of 
another without express or implied consent by a 
person who— 
‘‘(i) used improper means to acquire 
knowledge of the trade secret; 
‘‘(ii) at the time of disclosure or use, 
knew or had reason to know that the knowl-
edge of the trade secret was— 
‘‘(I) derived from or through a 
person who had used improper means 
to acquire the trade secret; 
‘‘(II) 
acquired 
under 
cir-
cumstances giving rise to a duty to 
maintain the secrecy of the trade secret 
or limit the use of the trade secret; or 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
‘‘(III) derived from or through a 
person who owed a duty to the person 
seeking relief to maintain the secrecy of 
the trade secret or limit the use of the 
trade secret; or 
‘‘(iii) before a material change of the 
position of the person, knew or had reason 
to know that— 
‘‘(I) the trade secret was a trade 
secret; and 
‘‘(II) knowledge of the trade secret 
had been acquired by accident or mis-
take; 
‘‘(6) the term ‘improper means’— 
‘‘(A) includes theft, bribery, misrepresenta-
tion, breach or inducement of a breach of a duty 
to maintain secrecy, or espionage through elec-
tronic or other means; and 
‘‘(B) does not include reverse engineering or 
independent derivation; and 
‘‘(7) the term ‘Trademark Act of 1946’ means the 
Act entitled ‘An Act to provide for the registration 
and protection of trademarks used in commerce, to 
carry out the provisions of certain international con-
ventions, and for other purposes, approved July 5, 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
1946 (15 U.S.C. 1051 et seq.) (commonly referred to 
as the ‘‘Trademark Act of 1946’’ or the ‘‘Lanham 
Act’’)’.’’. 
(c) EXCEPTIONS TO PROHIBITION.—Section 1833 of 
title 18, United States Code, is amended, in the matter pre-
ceding paragraph (1), by inserting ‘‘or create a private 
right of action for’’ after ‘‘prohibit’’. 
(d) CONFORMING AMENDMENTS.— 
(1) The section heading for section 1836 of title 
18, United States Code, is amended to read as follows: 
‘‘§ 1836. Civil proceedings’’. 
(2) The table of sections for chapter 90 of title 
18, United States Code, is amended by striking the 
item relating to section 1836 and inserting the fol-
lowing: 
‘‘1836. Civil proceedings.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to any misappropriation 
of a trade secret (as defined in section 1839 of title 18, 
United States Code, as amended by this section) for which 
any act occurs on or after the date of the enactment of this 
Act. 
(f) RULE OF CONSTRUCTION.—Nothing in the amend-
ments made by this section shall be construed to modify 
the rule of construction under section 1838 of title 18, 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
United States Code, or to preempt any other provision of 
law. 
(g) APPLICABILITY TO OTHER LAWS.—This section 
and the amendments made by this section shall not be con-
strued to be a law pertaining to intellectual property for 
purposes of any other Act of Congress. 
SEC. 3. REPORT ON THEFT OF TRADE SECRETS OCCURRING 
ABROAD. 
(a) REPORTS.—Not later than 1 year after the date 
of the enactment of this Act, and biannually thereafter, the 
Attorney General, in consultation with the Intellectual 
Property Enforcement Coordinator, the Director, and the 
heads of other appropriate agencies, shall submit to the 
Committees on the Judiciary of the House of Representa-
tives and the Senate, and make publicly available on the 
Web site of the Department of Justice and disseminate to 
the public through such other means as the Attorney Gen-
eral may identify, a report on the following: 
(1) The scope and breadth of the theft of the 
trade secrets of United States companies occurring 
outside of the United States. 
(2) The extent to which theft of trade secrets oc-
curring outside of the United States is sponsored by 
foreign governments, foreign instrumentalities, or for-
eign agents. 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
(3) The threat posed by theft of trade secrets oc-
curring outside of the United States. 
(4) The ability and limitations of trade secret 
owners to prevent the misappropriation of trade se-
crets outside of the United States, to enforce any judg-
ment against foreign entities for theft of trade secrets, 
and to prevent imports based on theft of trade secrets 
overseas. 
(5) A breakdown of the trade secret protections 
afforded United States companies by each country 
that is a trading partner of the United States and en-
forcement efforts available and undertaken in each 
such country, including a list identifying specific 
countries where trade secret theft, laws, or enforce-
ment is a significant problem for United States com-
panies. 
(6) Instances of the Federal Government working 
with foreign countries to investigate, arrest, and pros-
ecute entities and individuals involved in the theft of 
trade secrets outside of the United States. 
(7) Specific progress made under trade agree-
ments and treaties, including any new remedies en-
acted by foreign countries, to protect against theft of 
trade secrets of United States companies outside of the 
United States. 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
(8) Recommendations of legislative and executive 
branch actions that may be undertaken to— 
(A) reduce the threat of and economic im-
pact caused by the theft of the trade secrets of 
United States companies occurring outside of the 
United States; 
(B) educate United States companies re-
garding the threats to their trade secrets when 
taken outside of the United States; 
(C) provide assistance to United States 
companies to reduce the risk of loss of their trade 
secrets when taken outside of the United States; 
and 
(D) provide a mechanism for United States 
companies to confidentially or anonymously re-
port the theft of trade secrets occurring outside of 
the United States. 
(b) DEFINITIONS.—In this section: 
(1) DIRECTOR.—The term ‘‘Director’’ means the 
Under Secretary of Commerce for Intellectual Prop-
erty and Director of the United States Patent and 
Trademark Office. 
(2) 
FOREIGN
INSTRUMENTALITY, 
ETC.—The 
terms ‘‘foreign instrumentality’’, ‘‘foreign agent’’, and 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
‘‘trade secret’’ have the meanings given those terms in 
section 1839 of title 18, United States Code. 
(3) STATE.—The term ‘‘State’’ includes the Dis-
trict of Columbia and any commonwealth, territory, 
or possession of the United States. 
(4) 
UNITED
STATES
COMPANY.—The 
term 
‘‘United States company’’ means an organization or-
ganized under the laws of the United States or a 
State or political subdivision thereof. 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6203
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS
Union Calendar No. 494 
113TH CONGRESS 
2D SESSION 
H. R. 5233 
[Report No. 113–657] 
A BILL 
To amend chapter 90 of title 18, United States 
Code, to provide Federal jurisdiction for the theft 
of trade secrets, and for other purposes. 
DECEMBER 11, 2014 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Sep 11 2014 
22:49 Dec 11, 2014
Jkt 049200
PO 00000
Frm 00018
Fmt 6651
Sfmt 6651
E:\BILLS\H5233.RH
H5233
ebenthall on DSK5SPTVN1PROD with BILLS