Trade Secrets & Confidential Information

8. Extraterritorial Provisions of The Economic Espionage Act of 1996

Canadians could be subject to prosecution under the Act. It applies to conduct occurring outside the United States if (1) the offender is a natural person who is a citizen or permanent resident alien of the United States; or (2) an organization organized under the laws of the United States ; (3) or an act in furtherance of the offence was committed in the United States. In other words, if the confidential business information was improperly acquired at a trade show in the United States, but the information was utilized in Canada only, the U.S. Courts have been given the power to take jurisdiction over the prosecution of foreign nationals involved in the taking of the trade secrets.

Anyone doing business in the United States or with individuals or organizations originating from the United States will be well advised to ensure that they have protected themselves against the potential of receiving the trade secrets of others and to ensure that they minimize the risk of criminal prosecution under the Act.