18 U.S.C. § 1832 – Theft of Trade Secrets
The primary federal statute addressing commercial and industrial trade secret theft.
What § 1832 covers.
Section 1832 criminalizes the theft or misuse of trade secrets carried out for personal, competitive, or commercial advantage. Unlike § 1831, this statute does not require any benefit to a foreign government or agent.
The statute applies when the trade secret relates to a product or service used in, or intended for use in, interstate or foreign commerce and the defendant intends to economically benefit someone other than the rightful owner.
Key intent elements.
To secure a conviction, the government must show the defendant:
- Intended to convert the trade secret for economic benefit
- Knew or intended that the conduct would injure the trade secret’s owner
Prohibited conduct.
- Stealing or fraudulently obtaining trade secret information
- Unauthorized copying, downloading, transmitting, or destroying trade secrets
- Receiving or possessing stolen trade secrets with knowledge of their origin
- Attempting or conspiring to commit any of the above acts
Penalties for individuals.
An individual convicted under § 1832 faces:
- Up to 10 years in federal prison
- Fines imposed under federal sentencing provisions
Penalties for organizations.
Organizations convicted under § 1832 may be fined:
- Up to $5,000,000, or
- Three times the value of the stolen trade secret, including avoided development and research costs
How § 1832 differs from § 1831.
Section 1832 addresses domestic and commercial trade secret theft. When the alleged conduct benefits a foreign government or agent, prosecutors typically escalate charges under § 1831, which carries substantially harsher penalties.
Trade secret investigations often move quickly and involve parallel civil and criminal exposure. If § 1832 is implicated, call (314) 900-HELP or contact our federal criminal defense attorneys to evaluate the risks and defense options.
