Defend Trade Secrets Act of 2016
PL 114-153 (S.1890), enacted 05/11/2016

130 STAT. 376 
PUBLIC LAW 114–153—MAY 11, 2016 
Public Law 114–153 
114th Congress 
An Act 
To amend chapter 90 of title 18, United States Code, to provide Federal jurisdiction 
for the theft of trade secrets, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Defend Trade Secrets Act of 
2016’’. 
SEC. 2. FEDERAL JURISDICTION FOR THEFT OF TRADE SECRETS. 
(a) IN GENERAL.—Section 1836 of title 18, United States Code, 
is amended by striking subsection (b) and inserting the following: 
‘‘(b) PRIVATE CIVIL ACTIONS.— 
‘‘(1) IN GENERAL.—An owner of a trade secret that is mis-
appropriated may bring a civil action under this subsection 
if the trade secret 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 affidavit or verified 
complaint satisfying the requirements of this para-
graph, the court may, upon ex parte application but 
only in extraordinary circumstances, issue an order 
providing for the seizure of property necessary to pre-
vent the propagation or dissemination of the trade 
secret that is the subject of the action. 
‘‘(ii) REQUIREMENTS
FOR
ISSUING
ORDER.—The 
court may not grant an application under clause (i) 
unless the court finds that it clearly appears from 
specific facts that— 
‘‘(I) an order issued pursuant to Rule 65 of 
the Federal Rules of Civil Procedure or another 
form of equitable relief 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 irreparable injury will 
occur if such seizure is not ordered; 
‘‘(III) the harm to the applicant of denying 
the application outweighs the harm to the legiti-
mate interests of the person against whom seizure 
would be ordered of granting the application and 
Defend Trade 
Secrets Act of 
2016. 
18 USC 1 note. 
May 11, 2016 
[S. 1890] 
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130 STAT. 377 
PUBLIC LAW 114–153—MAY 11, 2016 
substantially outweighs the harm to any third par-
ties who may be harmed by such seizure; 
‘‘(IV) the applicant is likely to succeed in 
showing that— 
‘‘(aa) the information is a trade secret; 
and 
‘‘(bb) the person against whom seizure 
would be ordered— 
‘‘(AA) 
misappropriated 
the 
trade 
secret of the applicant by improper means; 
or 
‘‘(BB) conspired to use improper 
means to misappropriate the trade secret 
of the applicant; 
‘‘(V) the person against whom seizure would 
be ordered has actual possession of— 
‘‘(aa) the trade secret; and 
‘‘(bb) any property to be seized; 
‘‘(VI) the application describes with reasonable 
particularity the matter to be seized and, to the 
extent reasonable under the circumstances, identi-
fies the location where the matter is to be seized; 
‘‘(VII) 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 
‘‘(VIII) the applicant has not publicized the 
requested seizure. 
‘‘(B) ELEMENTS OF ORDER.—If an order is issued under 
subparagraph (A), it shall— 
‘‘(i) set forth findings of fact and conclusions of 
law required for the order; 
‘‘(ii) provide for the narrowest seizure of property 
necessary to achieve the purpose of this paragraph 
and direct that the seizure be conducted in a manner 
that minimizes any interruption of the business oper-
ations of third parties and, to the extent possible, 
does not interrupt the legitimate business operations 
of the person accused of misappropriating the trade 
secret; 
‘‘(iii)(I) be accompanied by an order protecting the 
seized property from disclosure by prohibiting access 
by the applicant or the person against whom the order 
is directed, and prohibiting any copies, in whole or 
in part, of the seized property, to prevent undue dam-
age to the party against whom the order has issued 
or others, until such parties have an opportunity to 
be heard in court; and 
‘‘(II) provide that if access is granted by the court 
to the applicant or the person against whom the order 
is directed, the access shall be consistent with subpara-
graph (D); 
‘‘(iv) provide guidance to the law enforcement offi-
cials executing the seizure that clearly delineates the 
scope of the authority of the officials, including— 
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130 STAT. 378 
PUBLIC LAW 114–153—MAY 11, 2016 
‘‘(I) the hours during which the seizure may 
be executed; and 
‘‘(II) whether force may be used to access 
locked areas; 
‘‘(v) set a date for a hearing described in subpara-
graph (F) at the earliest possible time, and not later 
than 7 days after the order has issued, unless the 
party against whom the order is directed and others 
harmed by the order consent to another date for the 
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 applicant who obtained 
the order; and 
‘‘(vi) require the person obtaining the order to pro-
vide the security determined adequate by the court 
for the payment of the damages that any person may 
be entitled to recover as a result of a wrongful or 
excessive seizure or wrongful or excessive attempted 
seizure under this paragraph. 
‘‘(C) PROTECTION
FROM
PUBLICITY.—The court shall 
take appropriate action to protect the person against whom 
an order under this paragraph is directed from publicity, 
by or at the behest of the person obtaining the order, 
about such order and any seizure under such order. 
‘‘(D) MATERIALS IN CUSTODY OF COURT.— 
‘‘(i) IN GENERAL.—Any materials seized under this 
paragraph shall be taken into the custody of the court. 
The court shall secure the seized material from phys-
ical and electronic access during the seizure and while 
in the custody of the court. 
‘‘(ii) STORAGE
MEDIUM.—If the seized material 
includes a storage medium, or if the seized material 
is stored on a storage medium, the court shall prohibit 
the medium from being connected to a network or 
the Internet without the consent of both parties, until 
the hearing required under subparagraph (B)(v) and 
described in subparagraph (F). 
‘‘(iii) PROTECTION OF CONFIDENTIALITY.—The court 
shall take appropriate measures to protect the con-
fidentiality of seized materials that are unrelated to 
the trade secret information ordered seized pursuant 
to this paragraph unless the person against whom 
the order is entered consents to disclosure of the mate-
rial. 
‘‘(iv) APPOINTMENT OF SPECIAL MASTER.—The court 
may appoint a special master to locate and isolate 
all misappropriated trade secret information and to 
facilitate the return of unrelated property and data 
to the person from whom the property was seized. 
The special master appointed by the court shall agree 
to be bound by a non-disclosure agreement approved 
by the court. 
‘‘(E) SERVICE OF ORDER.—The court shall order that 
service of a copy of the order under this paragraph, and 
the submissions of the applicant to obtain the order, shall 
be made by a Federal law enforcement officer who, upon 
Records. 
Courts. 
Requirement. 
Deadline. 
Notification. 
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130 STAT. 379 
PUBLIC LAW 114–153—MAY 11, 2016 
making service, shall carry out the seizure under the order. 
The court may allow State or local law enforcement officials 
to participate, but may not permit the applicant or any 
agent of the applicant to participate in the seizure. At 
the request of law enforcement officials, the court may 
allow a technical expert who is unaffiliated with the 
applicant and who is bound by a court-approved non-disclo-
sure agreement to participate in the seizure if the court 
determines that the participation of the expert will aid 
the efficient execution of and minimize the burden of the 
seizure. 
‘‘(F) SEIZURE HEARING.— 
‘‘(i) DATE.—A court that issues a seizure order 
shall hold a hearing on the date set by the court 
under subparagraph (B)(v). 
‘‘(ii) BURDEN OF PROOF.—At a hearing held under 
this subparagraph, the party who obtained the order 
under subparagraph (A) shall have the burden to prove 
the facts supporting the findings of fact and conclusions 
of law necessary to support the order. If the party 
fails to meet that burden, the seizure order shall be 
dissolved or modified appropriately. 
‘‘(iii) DISSOLUTION OR MODIFICATION OF ORDER.— 
A party against whom the order has been 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 party who obtained the order. 
‘‘(iv) DISCOVERY
TIME
LIMITS.—The court may 
make such orders modifying the time limits for dis-
covery under the Federal Rules of Civil Procedure as 
may be necessary to prevent the frustration of the 
purposes of a hearing under this subparagraph. 
‘‘(G) ACTION FOR DAMAGE CAUSED BY WRONGFUL SEI-
ZURE.—A person who suffers damage by reason of a wrong-
ful or excessive seizure 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 Trade-
mark Act of 1946 (15 U.S.C. 1116(d)(11)). The security 
posted with the court under subparagraph (B)(vi) shall 
not limit the recovery of third parties for damages. 
‘‘(H) MOTION FOR ENCRYPTION.—A party or a person 
who claims to have an interest in the subject matter seized 
may make a motion at any time, which may be heard 
ex parte, to encrypt any material seized or to be seized 
under this paragraph that is stored on a storage medium. 
The motion shall include, when possible, the desired 
encryption method. 
‘‘(3) REMEDIES.—In a civil action brought under this sub-
section with respect to the misappropriation of a trade secret, 
a court may— 
‘‘(A) grant an injunction— 
‘‘(i) to prevent any actual or threatened misappro-
priation described in paragraph (1) on such terms as 
the court deems reasonable, provided the order does 
not— 
Determination. 
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130 STAT. 380 
PUBLIC LAW 114–153—MAY 11, 2016 
‘‘(I) prevent a person from entering into an 
employment relationship, and that conditions 
placed on such employment shall be based on evi-
dence of threatened misappropriation and not 
merely on the information the person knows; or 
‘‘(II) otherwise conflict with an applicable 
State law prohibiting restraints on the practice 
of a lawful profession, trade, or business; 
‘‘(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 conditions 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 mis-
appropriation of the trade secret; and 
‘‘(II) damages for any unjust enrichment caused 
by the misappropriation of the trade secret that is 
not addressed in computing damages for actual loss; 
or 
‘‘(ii) in lieu of damages measured by any other 
methods, the damages caused by the misappropriation 
measured by imposition of liability for a reasonable 
royalty for the misappropriator’s unauthorized disclo-
sure or use of the trade secret; 
‘‘(C) if the trade secret is willfully and maliciously 
misappropriated, award exemplary damages in an amount 
not more than 2 times the amount of the damages awarded 
under subparagraph (B); and 
‘‘(D) if a claim of the misappropriation is made in 
bad faith, which may be established by circumstantial evi-
dence, a motion to terminate an injunction is made or 
opposed in bad faith, or the trade secret was willfully 
and maliciously misappropriated, award reasonable attor-
ney’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 3 years after the date on 
which the misappropriation with respect to which the action would 
relate is discovered or by the exercise 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— 
(1) in paragraph (3)— 
(A) in subparagraph (B), by striking ‘‘the public’’ and 
inserting ‘‘another person who can obtain economic value 
from the disclosure or use of the information’’; and 
(B) 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: 
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130 STAT. 381 
PUBLIC LAW 114–153—MAY 11, 2016 
‘‘(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 knowledge 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 circumstances giving rise 
to a duty to maintain the secrecy of the trade 
secret or limit the use of the trade secret; or 
‘‘(III) derived from or through a person who 
owed a duty to the person seeking relief to main-
tain 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 mistake; 
‘‘(6) the term ‘improper means’— 
‘‘(A) includes theft, bribery, misrepresentation, breach 
or inducement of a breach of a duty to maintain secrecy, 
or espionage through electronic or other means; and 
‘‘(B) does not include reverse engineering, independent 
derivation, or any other lawful means of acquisition; and 
‘‘(7) the term ‘Trademark Act of 1946’ means the Act enti-
tled ‘An Act to provide for the registration and protection of 
trademarks used in commerce, to carry out the provisions of 
certain international conventions, and for other purposes, 
approved July 5, 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 preceding 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 following: 
‘‘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 
Applicability. 
18 USC 1833 
note. 
18 USC 1831 
prec. 
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130 STAT. 382 
PUBLIC LAW 114–153—MAY 11, 2016 
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 amendments made 
by this section shall be construed to modify the rule of construction 
under section 1838 of title 18, 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 construed to be 
a law pertaining to intellectual property for purposes of any other 
Act of Congress. 
SEC. 3. TRADE SECRET THEFT ENFORCEMENT. 
(a) IN GENERAL.—Chapter 90 of title 18, United States Code, 
is amended— 
(1) in section 1832(b), by striking ‘‘$5,000,000’’ and inserting 
‘‘the greater of $5,000,000 or 3 times the value of the stolen 
trade secret to the organization, including expenses for research 
and design and other costs of reproducing the trade secret 
that the organization has thereby avoided’’; and 
(2) in section 1835— 
(A) by striking ‘‘In any prosecution’’ and inserting the 
following: 
‘‘(a) IN GENERAL.—In any prosecution’’; and 
(B) by adding at the end the following: 
‘‘(b) RIGHTS OF TRADE SECRET OWNERS.—The court may not 
authorize or direct the disclosure of any information the owner 
asserts to be a trade secret unless the court allows the owner 
the opportunity to file a submission under seal that describes the 
interest of the owner in keeping the information confidential. No 
submission under seal made under this subsection may be used 
in a prosecution under this chapter for any purpose other than 
those set forth in this section, or otherwise required by law. The 
provision of information relating to a trade secret to the United 
States or the court in connection with a prosecution under this 
chapter shall not constitute a waiver of trade secret protection, 
and the disclosure of information relating to a trade secret in 
connection with a prosecution under this chapter shall not constitute 
a waiver of trade secret protection unless the trade secret owner 
expressly consents to such waiver.’’. 
(b) RICO PREDICATE OFFENSES.—Section 1961(1) of title 18, 
United States Code, is amended by inserting ‘‘sections 1831 and 
1832 (relating to economic espionage and theft of trade secrets),’’ 
before ‘‘section 1951’’. 
SEC. 4. REPORT ON THEFT OF TRADE SECRETS OCCURRING ABROAD. 
(a) DEFINITIONS.—In this section: 
(1) DIRECTOR.—The term ‘‘Director’’ means the Under Sec-
retary of Commerce for Intellectual Property and Director of 
the United States Patent and Trademark Office. 
(2) FOREIGN INSTRUMENTALITY, ETC.—The terms ‘‘foreign 
instrumentality’’, ‘‘foreign agent’’, and ‘‘trade secret’’ have the 
meanings given those terms in section 1839 of title 18, United 
States Code. 
(3) STATE.—The term ‘‘State’’ includes the District of 
Columbia and any commonwealth, territory, or possession of 
the United States. 
18 USC 1832 
note. 
18 USC 1833 
note. 
18 USC 1833 
note. 
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130 STAT. 383 
PUBLIC LAW 114–153—MAY 11, 2016 
(4) UNITED STATES COMPANY.—The term ‘‘United States 
company’’ means an organization organized under the laws 
of the United States or a State or political subdivision thereof. 
(b) REPORTS.—Not later than 1 year after the date of enactment 
of this Act, and biannually thereafter, the Attorney General, in 
consultation with the Intellectual Property Enforcement Coordi-
nator, the Director, and the heads of other appropriate agencies, 
shall submit to the Committees on the Judiciary of the House 
of Representatives 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 General 
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 occurring 
outside of the United States is sponsored by foreign govern-
ments, foreign instrumentalities, or foreign agents. 
(3) The threat posed by theft of trade secrets occurring 
outside of the United States. 
(4) The ability and limitations of trade secret owners to 
prevent the misappropriation of trade secrets outside of the 
United States, to enforce any judgment 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 enforcement efforts available 
and undertaken in each such country, including a list identi-
fying specific countries where trade secret theft, laws, or 
enforcement is a significant problem for United States compa-
nies. 
(6) Instances of the Federal Government working with 
foreign countries to investigate, arrest, and prosecute entities 
and individuals involved in the theft of trade secrets outside 
of the United States. 
(7) Specific progress made under trade agreements and 
treaties, including any new remedies enacted by foreign coun-
tries, to protect against theft of trade secrets of United States 
companies outside of the United States. 
(8) Recommendations of legislative and executive branch 
actions that may be undertaken to— 
(A) reduce the threat of and economic impact caused 
by the theft of the trade secrets of United States companies 
occurring outside of the United States; 
(B) educate United States companies regarding 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 report the theft of trade 
secrets occurring outside of the United States. 
SEC. 5. SENSE OF CONGRESS. 
It is the sense of Congress that— 
Recommenda- 
tions. 
Consultation. 
Public 
information. 
Web posting. 
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130 STAT. 384 
PUBLIC LAW 114–153—MAY 11, 2016 
(1) trade secret theft occurs in the United States and 
around the world; 
(2) trade secret theft, wherever it occurs, harms the compa-
nies that own the trade secrets and the employees of the 
companies; 
(3) chapter 90 of title 18, United States Code (commonly 
known as the ‘‘Economic Espionage Act of 1996’’), applies 
broadly to protect trade secrets from theft; and 
(4) it is important when seizing information to balance 
the need to prevent or remedy misappropriation with the need 
to avoid interrupting the— 
(A) business of third parties; and 
(B) legitimate interests of the party accused of wrong-
doing. 
SEC. 6. BEST PRACTICES. 
(a) IN GENERAL.—Not later than 2 years after the date of 
enactment of this Act, the Federal Judicial Center, using existing 
resources, shall develop recommended best practices for— 
(1) the seizure of information and media storing the 
information; and 
(2) the securing of the information and media once seized. 
(b) UPDATES.—The Federal Judicial Center shall update the 
recommended best practices developed under subsection (a) from 
time to time. 
(c) CONGRESSIONAL SUBMISSIONS.—The Federal Judicial Center 
shall provide a copy of the recommendations developed under sub-
section (a), and any updates made under subsection (b), to the— 
(1) Committee on the Judiciary of the Senate; and 
(2) Committee on the Judiciary of the House of Representa-
tives. 
SEC. 7. IMMUNITY FROM LIABILITY FOR CONFIDENTIAL DISCLOSURE 
OF A TRADE SECRET TO THE GOVERNMENT OR IN A COURT 
FILING. 
(a) AMENDMENT.—Section 1833 of title 18, United States Code, 
is amended— 
(1) by striking ‘‘This chapter’’ and inserting ‘‘(a) IN GEN-
ERAL.—This chapter’’; 
(2) in subsection (a)(2), as designated by paragraph (1), 
by striking ‘‘the reporting of a suspected violation of law to 
any governmental entity of the United States, a State, or a 
political subdivision of a State, if such entity has lawful 
authority with respect to that violation’’ and inserting ‘‘the 
disclosure of a trade secret in accordance with subsection (b)’’; 
and 
(3) by adding at the end the following: 
‘‘(b) IMMUNITY FROM LIABILITY FOR CONFIDENTIAL DISCLOSURE 
OF A TRADE SECRET TO THE GOVERNMENT OR IN A COURT FILING.— 
‘‘(1) IMMUNITY.—An individual shall not be held criminally 
or civilly liable under any Federal or State trade secret law 
for the disclosure of a trade secret that— 
‘‘(A) is made— 
‘‘(i) in confidence to a Federal, State, or local 
government official, either directly or indirectly, or to 
an attorney; and 
‘‘(ii) solely for the purpose of reporting or inves-
tigating a suspected violation of law; or 
Records. 
Deadline. 
28 USC 620 note. 
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130 STAT. 385 
PUBLIC LAW 114–153—MAY 11, 2016 
‘‘(B) is made in a complaint or other document filed 
in a lawsuit or other proceeding, if such filing is made 
under seal. 
‘‘(2) USE OF TRADE SECRET INFORMATION IN ANTI-RETALIA-
TION LAWSUIT.—An individual who files a lawsuit for retaliation 
by an employer for reporting a suspected violation of law may 
disclose the trade secret to the attorney of the individual and 
use the trade secret information in the court proceeding, if 
the individual— 
‘‘(A) files any document containing the trade secret 
under seal; and 
‘‘(B) does not disclose the trade secret, except pursuant 
to court order. 
‘‘(3) NOTICE.— 
‘‘(A) IN GENERAL.—An employer shall provide notice 
of the immunity set forth in this subsection in any contract 
or agreement with an employee that governs the use of 
a trade secret or other confidential information. 
‘‘(B) POLICY DOCUMENT.—An employer shall be consid-
ered to be in compliance with the notice requirement in 
subparagraph (A) if the employer provides a cross-reference 
to a policy document provided to the employee that sets 
forth the employer’s reporting policy for a suspected viola-
tion of law. 
‘‘(C) NON-COMPLIANCE.—If an employer does not 
comply with the notice requirement in subparagraph (A), 
the employer may not be awarded exemplary damages 
or attorney fees under subparagraph (C) or (D) of section 
1836(b)(3) in an action against an employee to whom notice 
was not provided. 
‘‘(D) APPLICABILITY.—This paragraph shall apply to 
contracts and agreements that are entered into or updated 
after the date of enactment of this subsection. 
‘‘(4) EMPLOYEE DEFINED.—For purposes of this subsection, 
the term ‘employee’ includes any individual performing work 
as a contractor or consultant for an employer. 
‘‘(5) RULE OF CONSTRUCTION.—Except as expressly provided 
for under this subsection, nothing in this subsection shall be 
construed to authorize, or limit liability for, an act that is 
otherwise prohibited by law, such as the unlawful access of 
material by unauthorized means.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Section 1838 
of title 18, United States Code, is amended by striking ‘‘This 
Contracts. 
Contracts. 
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130 STAT. 386 
PUBLIC LAW 114–153—MAY 11, 2016 
LEGISLATIVE HISTORY—S. 1890: 
HOUSE REPORTS: No. 114–529 (Comm. on the Judiciary). 
SENATE REPORTS: No. 114–220 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 162 (2016): 
Apr. 4, considered and passed Senate. 
Apr. 27, considered and passed House. 
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2016): 
May 11, Presidential remarks. 
chapter’’ and inserting ‘‘Except as provided in section 1833(b), this 
chapter’’. 
Approved May 11, 2016. 
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