18 U.S.C. § 1831 – Economic Espionage (Foreign Benefit)
The federal statute aimed at trade secret theft carried out to benefit foreign governments or agents.
What § 1831 covers.
Section 1831 targets the theft or misuse of trade secrets when the defendant acts intending or knowing that the conduct will benefit a foreign government, foreign instrumentality, or foreign agent. It is distinct from domestic trade secret theft and is treated as a national security–level offense.
The statute applies whether the conduct involves direct theft, unauthorized copying or transmission, receipt of stolen trade secrets, or participation in an attempt or conspiracy.
Conduct prohibited under the statute.
- Stealing or unlawfully obtaining trade secrets through fraud or deception
- Unauthorized copying, downloading, transmitting, or destroying trade secret information
- Receiving or possessing trade secrets knowing they were unlawfully obtained
- Attempts or conspiracies to engage in any of the above conduct
Foreign benefit requirement.
A key element of § 1831 is the foreign nexus. The government must show the defendant intended or knew the offense would benefit:
- A foreign government
- A foreign instrumentality
- A foreign agent
This requirement distinguishes economic espionage from related trade secret offenses charged under § 1832.
Penalties for individuals.
An individual convicted under § 1831 faces:
- Up to 15 years in federal prison
- Fines of up to $5,000,000
Penalties for organizations.
Organizations face even steeper exposure, with fines of:
- Up to $10,000,000, or
- Three times the value of the stolen trade secret, including avoided research and development costs
Why § 1831 matters.
Economic espionage cases often involve parallel investigations, classified evidence issues, and aggressive federal enforcement. Charges under § 1831 are frequently paired with conspiracy, wire fraud, export control, or sanctions allegations.
Allegations of economic espionage carry extreme penalties and long-term consequences. If § 1831 is at issue, call (314) 900-HELP or contact our federal criminal defense attorneys to assess the exposure and defense strategy early.
