Theft of trade secrets

Other Names:
Infringement of proprietary information

Trade secrets are a form of intellectual property. According to the law of most U.S. states, a trade secret may consist of any formula, pattern, physical device, idea, process or compilation of information that both: 1) provides the owner of the information with a competitive advantage in the marketplace, and 2) is treated in a way that can reasonably be expected to prevent the public or competitors from learning about it, absent improper acquisition or theft.

In the U.S., intentional theft of trade secrets can constitute a crime under both federal and state laws. The most significant federal law dealing with trade secret theft is the Economic Espionage Act of 1996 (EEA).


In the USA a growing number of states impose criminal liabilities on thefts of industrial secrets, in addition to the practice of awarding civil damages to plaintiffs whose proven proprietary trade secrets are lost through breach of employee confidentiality. Incidences include Japanese and Russian industrial espionage, in addition to the domestic variety endemic in some industries such as toys, fashion and other consumer goods, and in the high technology and computer related sectors.

Related UN Sustainable Development Goals:
GOAL 16: Peace and Justice Strong Institutions
Problem Type:
D: Detailed problems
Date of last update
04.10.2020 – 22:48 CEST