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Section 1832 of Title 18 of the United States Code legally defines the federal crime of theft of trade secrets, including some of the most valuable intellectual property owned by a company or person. In 1997, the Economic Espionage Act took effect.
Under New York law, misappropriation consists of use or disclosure of a trade secret that was acquired through a relationship of trust (such as employment), or through fraud or other improper means, such as theft, bribery, or hacking.
Under §1832(a) of the Economic Espionage Act, misappropriating a trade secret used in interstate commerce or foreign commerce may result in fines or imprisonment.
Canada has criminalised trade secret misappropriation under the Criminal Code of Canada. It's a criminal offense to knowingly obtain, communicate or make available a trade secret by means of deceit, falsehood or other fraudulent means.
This important new legislation creates a federal, private, civil cause of action for trade-secret misappropriation in which ?[a]n owner of a trade secret that is misappropriated may bring a civil action . . . if the trade secret is related to a product or service used in, or intended for use in, interstate or foreign ...
New York State Law In New York, a trade secret can be any formula, pattern, device or compilation of information. However, the information must be used in business and provide an advantage over competitors who do not know or use it.
Misappropriation occurs when a trade secret is improperly acquired or disclosed. If a person or entity discloses or publishes a trade secret while knowing it was improperly obtained, or by inducing someone to improperly obtain it, misappropriation exists.
Trade secret misappropriation occurs when a trade secret has been wrongfully taken or disclosed without consent. A trade secret is defined as information (1) that derives independent economic value from not being generally known, and (2) which has been the subject of reasonable efforts to be kept a secret.