HR 5233 · 113th Congress 2013โ€“2015, ended

Trade Secrets Protection Act of 2014

Latest action · Dec 11, 2014 Placed on the Union Calendar, Calendar No. 494.

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

  1. IntroducedJul 29, 2014
  2. Passed HouseNot reached
  3. Passed SenateNot reached
  4. To the PresidentNot reached
  5. Became lawNot reached

Summary

Trade Secrets Protection Act of 2014 - (Sec. 2) Amends the federal criminal code to authorize an owner of a trade secret related to a product or service used in interstate or foreign commerce, who is aggrieved by a misappropriation of such trade secret, to bring a civil action to obtain appropriate relief. Grants U.S. district courts original jurisdiction of such actions, subject to a five-year statute of limitations beginning when the misappropriation is or should have been discovered.

Authorizes the court, upon ex parte application, to issue an order providing for the seizure of property necessary to preserve evidence in such civil action or to prevent the propagation or dissemination of the trade secret, if it finds that:

  • a temporary restraining order would be inadequate because the restrained party would evade or otherwise not comply with it;
  • immediate and irreparable injury will occur if such seizure is not ordered;
  • 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 and the harm to any third parties who may be harmed by such seizure;
  • 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 it, and is in possession of the trade secret;
  • the application reasonably describes the matter to be seized and its location;
  • the person against whom seizure would be ordered would destroy or otherwise make such matter inaccessible to the court if the applicant were to proceed on notice to such person; and
  • the applicant has not publicized the requested seizure.

Sets forth required elements of such an order, including providing for: (1) seizure in a manner that minimizes any interruption of the business operations of third parties; and (2) protection of the property from disclosure. Directs the court to take seized material into its custody. Grants a person who suffers damage by reason of a wrongful or excessive seizure under this Act a cause of action against the applicant for the order and entitles such person to appropriate relief.

Sets forth remedies that a court may grant for such misappropriation, including granting injunctive relief, awarding damages for losses or unjust enrichment caused, and awarding exemplary damages and attorney fees for willful and malicious misappropriation.

Defines "misappropriation" to mean: (1) 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 (including theft, bribery, misrepresentation, breach of a duty to maintain secrecy, or espionage); or (2) disclosure or use of a trade secret of another without consent.

(Sec. 3) Directs the Attorney General, one year after this Act's enactment and biannually thereafter, to submit to the House and Senate Judiciary Committees and make publicly available on the Department of Justice (DOJ) website a report on:

  • the scope of the theft of trade secrets of U.S. companies occurring outside of the United States;
  • the extent to which such theft is sponsored by foreign governments, instrumentalities, or agents;
  • the threat posed by such theft;
  • the ability and limitations of trade secret owners to prevent such theft, to enforce any judgment after foreign entities for such theft, and to prevent imports based on such theft;
  • a breakdown of the trade secret protections afforded U.S. companies by each country that is a U.S. trading partner and enforcement efforts available and undertaken in each such country;
  • instances of the federal government working with foreign countries to investigate, arrest, and prosecute entities and individuals involved in such theft;
  • specific progress made under trade agreements and treaties to protect against such theft; and
  • recommended legislative and executive actions to reduce the threat of and economic impact caused by such theft, to educate U.S. companies regarding the threats to their trade secrets when taken outside of the United States, to provide assistance to U.S. companies to reduce the risk of such theft, and to provide a mechanism for U.S. companies to confidentially or anonymously report such theft.

Cosponsors 23

Members who signed on, in the order they did. Signatures ran from Jul 29, 2014 to Nov 12, 2014; 7 are original cosponsors, there from the day it was introduced.

SeatCosponsorSigned on
D-LACedric L. RichmondOriginalJul 29, 2014
D-NYHakeem S. JeffriesOriginalJul 29, 2014
R-NCHoward CobleOriginalJul 29, 2014
D-NYJerrold NadlerOriginalJul 29, 2014
D-MIJohn Conyers, Jr.OriginalJul 29, 2014
R-OHSteve ChabotOriginalJul 29, 2014
D-WASuzan K. DelBeneOriginalJul 29, 2014
R-GADoug CollinsJul 31, 2014
R-WIF. James Sensenbrenner, Jr.Jul 31, 2014
R-TXLamar SmithJul 31, 2014
R-NYRichard L. HannaJul 31, 2014
R-NYTom ReedJul 31, 2014
R-MOJason SmithAug 1, 2014
R-NCPatrick T. McHenryAug 1, 2014
D-FLTheodore E. DeutchAug 1, 2014

Committees 1

Where it was sent and what each committee and subcommittee did with it, in order.

ChamberCommitteeWhat it did
HouseJudiciary Committee
Referred Jul 29, 2014Markup Sep 17, 2014Reported Dec 11, 2014
Courts, Intellectual Property, Artificial Intelligence, and the Internet Subcommittee
Referred Jul 30, 2014Discharged Sep 9, 2014

Actions 8

Everything that happened, newest first.

  1. Dec 11, 2014Reported (Amended) by the Committee on Judiciary. H. Rept. 113-657.
  2. Dec 11, 2014Placed on the Union Calendar, Calendar No. 494.
  3. Sep 17, 2014Committee Consideration and Mark-up Session Held.
  4. Sep 17, 2014Ordered to be Reported (Amended) by Voice Vote.
  5. Sep 9, 2014Subcommittee on Courts, Intellectual Property, and the Internet Discharged.
  6. Jul 30, 2014Referred to the Subcommittee on Courts, Intellectual Property, and the Internet.
  7. Jul 29, 2014Introduced in House
  8. Jul 29, 2014Referred to the House Committee on the Judiciary.

Research

What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.

Committee report

Congressional Budget Office cost estimate

  1. Nov 26, 2014H.R. 5233, Trade Secrets Protection Act of 2014As ordered reported by the House Committee on the Judiciary on September 17, 2014

Constitutional authority

Congress has the power to enact this legislation pursuant to the following: Article I, Section 8, Clause 3 of the United States Constitution; and, Article I, Section 8, clause 8 of the United States Constitution, in that the legislation exercises legislative power granted to Congress by that clause ``to promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries'' and Article III.

The sponsor’s statement, as printed in the page H7040.

Related bills 1

Companion bills and other measures the record links to this one.

BillTitleRelationshipLatest action
S 2267Defend Trade Secrets Act of 2014Related billApr 29, 2014

Titles 3

Every title it has carried, official and short, at each stage.

Official Title as Introduced
To amend chapter 90 of title 18, United States Code, to provide Federal jurisdiction for the theft of trade secrets, and for other purposes.
Short Titles as Introduced
Trade Secrets Protection Act of 2014
Short Titles as Reported to House
Trade Secrets Protection Act of 2014

Subjects

Assigned by the Library of Congress. Policy area: Crime and Law Enforcement.

Text 2

Each version as it was printed, newest first.

  1. Dec 11, 2014Reported in House
  2. Jul 29, 2014Introduced in House

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Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.