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Economic Espionage Act of 1996

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The Economic Espionage Act of 1996 ( Pub. L.   104–294 (text) (PDF) , 110  Stat.   3488 , enacted October 11, 1996 ) was a 6 title Act of Congress dealing with a wide range of issues, including not only industrial espionage ( e.g. , the theft or misappropriation of a trade secret and the National Information Infrastructure Protection Act ), but the insanity defense , matters regarding the Boys & Girls Clubs of America , requirements for presentence investigation reports , and the United States Sentencing Commission reports regarding encryption or scrambling technology, and other technical and minor amendments.

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117-572: The act makes the theft or misappropriation of a trade secret a federal crime. Unlike the Espionage Act of 1917 (found at 18 U.S.C.   §§ 792 – 799 ), the offense involves commercial information, not classified or national defense information. "Trade secrets" are defined in the act consistent with generally accepted legal definitions such as those used in the Uniform Trade Secrets Act and state laws based on

234-440: A MOSFET chip for use by its engineers. In 1967 Rockwell set up its own manufacturing plant to produce them, starting North American Rockwell MicroElectronics Corp. (called NARMEC). This would later become Rockwell Semiconductor . One of its major successes came in the early 1990s when it introduced the first low-cost 14.4 kbit/s modem chipset , which was used in a huge number of modems. Collins radios were fitted to 80% of

351-567: A Winnipeg newspaper described as "seditious and antiwar statements" and described by Attorney General Gregory as dangerous propaganda. On June 21 seven of the directors, including Rutherford, were sentenced to the maximum 20 years' imprisonment for each of four charges, to be served concurrently. They served nine months in the Atlanta Penitentiary before being released on bail at the order of Supreme Court Justice Louis Brandeis . In April 1919, an appeal court ruled they had not had

468-517: A $ 10,000 fine, with forfeiture of computer equipment seized. Meng was indicted in December 2006, with 36 counts, "for stealing military software from a Silicon Valley defense contractor and trying to sell it to the Chinese military ." The first to be convicted of Economic Espionage (Section 1831), Meng admitted "illegally obtaining a program used for military training from Quantum3D and later using

585-716: A conviction in United States v. Agrawal . On January 24, 2013, § 1831 was amended to increase the maximum fines: On May 11, 2016, in what Forbes called "the single most important intellectual property development since Congress enacted the America Invents Act ," the Defend Trade Secrets Act ( Pub. L.   114–153 (text) (PDF) ) expanded the EEA's reach. In cases filed after that date: This legislation has created much debate within

702-452: A federal enforcement gap in this important area of law. Appropriate discretionary factors to be considered in deciding whether to initiate a prosecution under § 1831 or § 1832 include: The availability of a civil remedy should not be the only factor considered in evaluating the merits of a referral because the victim of a trade secret theft almost always has recourse to a civil action. The universal application of this factor would thus defeat

819-513: A group of Colorado homeowners filed a lawsuit against Rockwell and the Dow Chemical Company , accusing the operators of reducing the value of their properties as a result of plutonium releases from the plant. A $ 375 million settlement was reached in 2016. Rockwell built heavy-duty truck axles and drive-trains in the U.S., along with power windows, seats, and locks. The Rockwell Tripmaster trip recording system for commercial vehicles

936-598: A legal stumbling block for the administration of Franklin D. Roosevelt , when he sought to provide military aid to Great Britain before the United States entered World War II . The law was extended on May 16, 1918, by the Sedition Act of 1918, actually a set of amendments to the Espionage Act, which prohibited many forms of speech, including "any disloyal, profane, scurrilous, or abusive language about

1053-498: A life sentence, after a 'victim impact statement' including a statement by Caspar Weinberger . Larry Wu-Tai Chin , at CIA, was also charged with violating 18 U.S.C.   § 794(c) for selling information to China. Ronald Pelton was prosecuted for violating 18 U.S.C.   § 794(a) , 794(c) , & 798(a) , for selling information to the Soviets, and interfering with Operation Ivy Bells . Edward Lee Howard

1170-683: A more extensive list, see Rocketdyne engines . Rockwell International had a major research laboratory complex in Thousand Oaks , Ventura County, California. It was founded and built by North American Aviation in 1962, as the North American Science Center. In 1973 it became the Rockwell International Science Center. The laboratory did independent contract research for the U.S. Government, and also provided research services for

1287-520: A new model leveraging assets of the profitable seven manufacturing divisions of Rockwell Manufacturing Company into a new business model of a dominant government-serving (NASA, Defense Dept. ) aerospace company, named Rockwell International, which included North American Aviation, of products such as the Space Shuttle . By the end of the 1980s, Rockwell International began to sell-off its prior industrial product manufacturing divisions, starting with

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1404-608: A price tag" on national security, and that with the long sentence for Chung he wanted to send a signal to China to "stop sending your spies here." In April 2012, Chung's conviction was upheld by the United States Court of Appeals for the Ninth Circuit . Most prosecutions under the Economic Espionage Act have been for violation of Section 1832 (Trade Secret Theft). The first such prosecution

1521-464: A prosecution policy relating to enforcement of the Act. In general, it states: The EEA is not intended to criminalize every theft of trade secrets for which civil remedies may exist under state law. It was passed in recognition of the increasing importance of the value of intellectual property in general, and trade secrets in particular to the economic well-being and security of the United States and to close

1638-660: A result, certain older cases, such as the Rosenberg case, are now listed under Title 50, while newer cases are often listed under Title 18. In 1950, during the McCarthy Period , Congress passed the McCarran Internal Security Act over President Harry S. Truman 's veto. It modified a large body of law, including espionage law. One addition was 793(e) , which had almost exactly the same language as 793(d) . According to Edgar and Schmidt,

1755-589: Is calculated to interfere with the success of ... the government in conducting the war". Postmasters in Savannah, Georgia , and Tampa, Florida , refused to mail the Jeffersonian , the mouthpiece of Tom Watson , a southern populist, an opponent of the draft, the war, and minority groups. When Watson sought an injunction against the postmaster, the federal judge who heard the case called his publication "poison" and denied his request. Government censors objected to

1872-511: Is now found under Title 18 (Crime & Criminal Procedure): 18 U.S.C. ch. 37 ( 18 U.S.C.   § 792 et seq.). It was intended to prohibit interference with military operations or recruitment , to prevent insubordination in the military, and to prevent the support of enemies of the United States during wartime. In 1919, the Supreme Court of the United States unanimously ruled through Schenck v. United States that

1989-437: Is now known as Meritor, Inc. In 1996, Rockwell International sold Graphic Systems (formerly Miehle-Goss-Dexter), an Illinois-based newspaper and commercial printing press manufacturer, to its internal management team Stonington Partners as part of a new corporation for US$ 600 million. In 2001, what remained of Rockwell International was split into two publicly traded companies, Rockwell Automation and Rockwell Collins , ending

2106-589: The European Parliament voted to carry out an investigation into the international surveillance project ECHELON . That same year the French government also began an official investigation into allegations that several collaborating nations may be using the program for illegal purposes. U.S. Central Intelligence Agency documents had been revealed to the British press, showing that the U.S. has been using

2223-684: The Federal Correctional Complex, Butner . Chung worked for Rockwell International from 1973 until its defense and space unit was acquired by Boeing in 1996, and he continued to work for Boeing as an employee and then as a contractor through 2006. Chung's investigation was initially predicated on evidence discovered during an investigation into Chi Mak , a Chinese-American engineer convicted in 2007 of conspiring to export sensitive naval technologies to China and sentenced to more than 24 years in prison. At Chung's sentencing, presiding judge, Cormac Carney, said that he could not "put

2340-642: The US Space Shuttle program and the Delta IV rocket. He spent over 30 years providing U.S. aerospace technologies to China. Chung was convicted on charges related to 350,000 pages of sensitive documents and Chinese Intelligence Service tasking letters found concealed in crawl spaces underneath and inside his home. The trade secrets misappropriated by Chung for China were valued over $ 2 billion. The investigation, led by Special Agent Kevin Moberly of

2457-705: The United States Air Force , as well as it paying a $ 615 million settlement to the US Government. In February 2010, former Boeing engineer Dongfan "Greg" Chung was sentenced to 16 years in prison, following the first ever trial conviction under the 1996 Economic Espionage Act. Chung, a native of China, was convicted by the US District Court for the Central District of California of stealing Boeing trade secrets related to

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2574-595: The United States Army Research Laboratory 's Advanced Displays Federated Laboratory Consortium in the late 1990s. In 2000, the infrared imaging division of the laboratory moved into a new building in Camarillo, California . After Rockwell International's breakup in 2001, the laboratory was spun off as a semi-autonomous company called Rockwell Scientific, half owned by Rockwell Collins and half owned by Rockwell Automation . In 2006,

2691-759: The Venona project decryptions, the Elizabeth Bentley case, the atomic spies cases, the First Lightning Soviet nuclear test, and others. Many suspects were surveilled, but never prosecuted. These investigations were dropped, as seen in the FBI Silvermaster Files . There were also many successful prosecutions and convictions under the Act. In August 1950, Julius and Ethel Rosenberg were indicted under Title 50, sections 32a and 34, in connection with giving nuclear secrets to

2808-589: The automotive industry , printing presses, avionics and industrial products. At its peak, Rockwell International was No. 27 on the Fortune 500 list, with assets of over $ 8 billion, sales of $ 27 billion and 115,000 employees. Rockwell International's predecessor was Rockwell Manufacturing Company , founded in 1919 by Willard Rockwell . In 1968, Rockwell Manufacturing Company included seven operating divisions manufacturing industrial valves, German 2-cycle motors, power tools, gas and water meters. In 1973, it

2925-536: The business intelligence community regarding the legality and ethics of various forms of information gathering designed to provide business decision-makers with competitive advantages in areas such as strategy, marketing, research and development, or negotiations. Most business intelligence (also known as competitive intelligence practitioners) rely largely on the collection and analysis of open source information from which they identify events, patterns, and trends of actionable interest. However, some techniques focus on

3042-456: The "intemperate and impartial trial of which they were entitled" and reversed their conviction. In May 1920 the government announced that all charges had been dropped. During the Red Scare of 1918–19, in response to the 1919 anarchist bombings aimed at prominent government officials and businessmen, U.S. Attorney General A. Mitchell Palmer , supported by J. Edgar Hoover , then head of

3159-971: The "peace dividend" perceived after the fall of the Soviet bloc , led the company to sell its defense and aerospace business, including what was once North American Aviation , the Defense Electronics Division and Rocketdyne , to Boeing in December 1996. In the 1990s, the company spun off its semiconductor products as Conexant Technologies (CNXT), later bought by Synaptics in 2017. Rockwell International also spun off its two automotive divisions (light vehicles division and heavy vehicles division) as one publicly traded company, Meritor Automotive, based in Troy, Michigan , which then merged with Arvin Industries to form Arvin Meritor . That company

3276-671: The Act to deny mailing permits to both The Militant , which was published by the Socialist Workers Party , and the Boise Valley Herald of Middleton, Idaho , an anti-New Deal and anti-war weekly. The paper had also criticized wartime racism against African Americans and Japanese internment. The same year, a June front-page story by Stanley Johnston in the Chicago Tribune , headlined "Navy Had Word of Jap Plan to Strike at Sea", implied that

3393-640: The Americans had broken the Japanese codes before the Battle of Midway . Before submitting the story, Johnson asked the managing editor, Loy “Pat” Maloney, and Washington Bureau Chief Arthur Sears Henning if the content violated the Code of Wartime Practices. They concluded that it was in compliance because the code had said nothing about reporting the movement of enemy ships in enemy waters. The story resulted in

3510-486: The Battle of Midway". Attorney General Biddle confessed years later that the final result of the case made him feel "like a fool". In 1945, six associates of Amerasia magazine, a journal of Far Eastern affairs, came under suspicion after publishing articles that bore similarity to Office of Strategic Services reports. The government proposed using the Espionage Act against them. It later softened its approach, changing

3627-565: The Congressional intent in passing the EEA. The Act can be employed to accomplish several purposes: In United States v. Lange , the EEA was used to protect a victim company that had learned that Lange, a disgruntled former employee, had been offering to sell its secret manufacturing processes to third parties. The company reported Lange to the FBI, and Lange was arrested and subsequently convicted and sentenced to 30 months in prison. The case

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3744-626: The Court majority in upholding Schenck's conviction in 1919, he also introduced the theory that punishment in such cases must be limited to such political expression that constitutes a " clear and present danger " to the government action at issue. Holmes' opinion is the origin of the notion that speech equivalent to "falsely shouting fire in a crowded theater " is not protected by the First Amendment. Justice Holmes began to doubt his decision due to criticism from free speech advocates. He also met

3861-476: The Economic Espionage Act which explained how the Economic Espionage Act will not affect legitimate competitive intelligence. The National Law Journal of March 29, 2000, reviewed the Policy Analysis and reported that the Policy Analysis' conclusion was that the EEA's "impact on legitimate competitive intelligence would be negligible" and that "nearly four years" after the EEA's passage, "it appears that

3978-504: The Economic Espionage Act. The Society for Competitive Intelligence Professionals provides training and publications which outline a series of guidelines designed to support business intelligence professionals seeking to comply with both the legal restrictions of the EEA as well as the ethical considerations involved. In 1999, the Society of Competitive Intelligence Professionals published its Policy Analysis on Competitive Intelligence and

4095-409: The Espionage Act in publishing the documents. Ellsberg and Russo were not acquitted of violating the Espionage Act. They were freed due to a mistrial based on irregularities in the government's case. The divided Supreme Court had denied the government's request to restrain the press. In their opinions, the justices expressed varying degrees of support for the First Amendment claims of the press against

4212-647: The Espionage Act of 1917 because they lacked legal authority to publish classified documents that came to be known as the Pentagon Papers . The Supreme Court in New York Times Co. v. United States found that the government had not made a successful case for prior restraint of Free Speech, but a majority of the justices ruled that the government could still prosecute the Times and the Post for violating

4329-592: The Espionage Act or the Sedition Act. By early 1921, the Red Scare had faded, Palmer left government, and the Espionage Act fell into relative disuse. Prosecutions under the Act were much less numerous during World War II than during World War I. The likely reason was not that Roosevelt was more tolerant of dissent than Wilson but rather that the lack of continuing opposition after the Pearl Harbor attack presented far fewer potential targets for prosecutions under

4446-672: The FBI's Los Angeles Field Office, resulted in Chung's arrest in February 2008. Charges included conspiracy to commit economic espionage, six counts of economic espionage to benefit a foreign country, one count of acting as an agent of the People's Republic of China, and one count of making false statements to the FBI. The 16-year sentence was viewed as a life sentence for Chung who was 74 years old. Chung subsequently died in 2020 at age 84 from coronavirus-related complications while incarcerated at

4563-631: The Fourth Amendment. It also commented on the notion of bad faith ( scienter ) being a requirement for conviction even under 793(e); an "honest mistake" was said not to be a violation. Alfred Zehe , a scientist from East Germany , was arrested in Boston in 1983 after being caught in a government-run sting operation in which he had reviewed classified U.S. government documents in Mexico and East Germany. His attorneys contended without success that

4680-934: The Gas Products Division of meters and regulators in Dubois, Pennsylvania , the Municipal Water Meter Division in Uniontown, Pennsylvania , the Power Tool Division in Syracuse, New York , Jackson, Tennessee , Tupelo, Mississippi, and Columbia, South Carolina , the Transportation Division in Atchison, Kansas with a large steel foundry of products for the automotive, railway and rapid-transit industry,

4797-729: The Harvard Law professor Zechariah Chafee and discussed his criticism of Schenck . Later in 1919, in Abrams v. United States , the Supreme Court upheld the conviction of a man who distributed circulars in opposition to American intervention in Russia following the Russian Revolution . The concept of bad tendency was used to justify speech restriction. The defendant was deported. Justices Holmes and Brandeis dissented,

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4914-478: The Japanese changing their codebooks and callsign systems. The newspaper publishers were brought before a grand jury for possible indictment, but proceedings were halted because of government reluctance to present a jury with the highly secret information necessary to prosecute the publishers. In addition, the Navy had failed to provide promised evidence that the story had revealed "confidential information concerning

5031-618: The Justice Department's Enemy Aliens Registration Section, prosecuted several hundred foreign-born known and suspected activists in the United States under the Sedition Act of 1918 . This extended the Espionage Act to cover a broader range of offenses. After being convicted, persons including Emma Goldman and Alexander Berkman were deported to the Soviet Union on a ship the press called the " Soviet Ark ". Many of

5148-499: The March 17, 2000 Wall Street Journal editorial) that if there is collection, it's usually focused on bribery by European companies, not on access to technologies. Woolsey said "most European technology just isn't worth our stealing." As DCI, Woolsey testified before Congress that he was reluctant to engage in economic espionage as the endeavor is "fraught with complexities, legal difficulties (and) foreign policy difficulties." In 2000,

5265-511: The National Counterintelligence Executive publishes an annual report on Foreign Economic Collection and Industrial Espionage mandated by the U.S. Congress which outlines these espionage activities of many foreign nations. The United States does not engage in state-sanctioned industrial espionage. In 2000, in response to European concerns, a former U.S. Director of Central Intelligence, James Woolsy, said (in

5382-540: The Post Office. It made it a crime: The Act also gave the Postmaster General authority to impound or refuse to mail publications the postmaster determined to violate its prohibitions. The Act also forbids the transfer of any naval vessel equipped for combat to any nation engaged in a conflict in which the United States is neutral. Seemingly uncontroversial when the Act was passed, this later became

5499-492: The President", did not urge mutiny or any of the other specific actions detailed in the Act, and that he had targeted molders of public opinion, not members of the armed forces or potential military recruits. The court overturned his conviction in a 5–4 decision. The four dissenting justices declined to "intrude on the historic function of the jury" and would have upheld the conviction. In Gorin v. United States (early 1941),

5616-446: The Sedition Act amendments were repealed, but many provisions of the Espionage Act remain, codified under U.S.C. Title 18, Part 1, Chapter 37. In 1933, after signals intelligence expert Herbert Yardley published a popular book about breaking Japanese codes, the Act was amended to prohibit the disclosure of foreign code or anything sent in code. The Act was amended in 1940 to increase the penalties it imposed, and again in 1970. In

5733-404: The Senate passed a version on February 20, 1917, the House did not vote before the then-current session of Congress ended. After the declaration of war in April 1917, both houses debated versions of the Wilson administration's drafts that included press censorship. That provision aroused opposition, with critics charging it established a system of " prior restraint " and delegated unlimited power to

5850-402: The Soviet Union. Anatoli Yakovlev was indicted as well. In 1951, Morton Sobell and David Greenglass were indicted. After a controversial trial in 1951, the Rosenbergs were sentenced to death. They were executed in 1953. In the late 1950s, several members of the Soble spy ring , including Robert Soblen , and Jack and Myra Soble , were prosecuted for espionage. In the mid-1960s, the act

5967-496: The Standard Steel Spring Company, forming the Rockwell Spring and Axle Company. After various mergers with automotive suppliers, it comprised about 10 to 20 factories in the Upper Midwestern U.S. and southern Ontario , and in 1958 renamed itself Rockwell-Standard Corporation. Pittsburgh -based Rockwell-Standard Corp. then acquired and merged with Los Angeles -based North American Aviation to form North American Rockwell in September 1967. It then purchased Miehle-Goss-Dexter,

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6084-458: The Sterling Faucet Division in Reedsville, West Virginia , and the Engine Division in Pinneberg, Germany (previously ILO-Motorenwerke , founded 1911 and acquired by Rockwell in 1959), manufacturing 2-cycle gas-driven motors for developing nation products including motor tillers , water pumps, sprayers, cement mixers, tampers and mopeds as well as snowmobile and all-terrain vehicle engines for North America. A significantly different direction

6201-453: The Supreme Court ruled on many constitutional questions surrounding the act. The Act was used in 1942 to deny a mailing permit to Father Charles Coughlin 's weekly Social Justice , effectively ending its distribution to subscribers. It was part of Attorney General Francis Biddle 's attempt to close down what he called "vermin publications". Coughlin had been criticized for virulently anti-Semitic writings. Later, Biddle supported use of

6318-485: The Timken-Detroit Axle Company (current Meritor Inc. ) in 1928, rising to become chairman of its board in 1940. Rockwell also drew on the strengths of several of George Westinghouse 's concerns, and Westinghouse is considered a co-founder of the company. In 1945, Rockwell Manufacturing Company acquired Delta Machinery and renamed it the Delta Power Tool Division of Rockwell Manufacturing Company and continued to manufacture in Milwaukee. In 1966, Rockwell invented

6435-564: The UTSA. Specifically it declares: (3) the term "trade secret" means all forms and types of financial, business, scientific, technical, economic, or engineering information, including patterns, plans, compilations, program devices, formulas, designs, prototypes, methods, techniques, processes, procedures, programs, or codes, whether tangible or intangible, and whether or how stored, compiled, or memorialized physically, electronically, graphically, photographically, or in writing if— The United States Department of Justice Criminal Division has issued

6552-403: The Valve Division, leading to the sale of all divisions and the end of the Rockwell names > Rockwell Manufacturing Company, North American Rockwell, and Rockwell International In 1973, North American Rockwell merged with Rockwell Manufacturing, run by Willard Rockwell Jr., to form Rockwell International. In the same year, the company acquired Admiral Radio and TV for US$ 500 million. In 1979,

6669-408: The World War II-era P-51 Mustang fighter and B-25 Mitchell bomber, the Korean War-era F-86 Sabre fighter jet, America's first truly supersonic fighter, the F-100 Super Sabre , and the B-1 Lancer bomber, as well as the Apollo spacecraft , the Space Shuttle orbiter , and most of the Navstar Global Positioning System satellites. Rocketdyne , which had been spun off by North American in 1955,

6786-518: The [Policy Analysis'] predictions were on target." The EEA was developed on the basis of a national philosophy that emphasizes a "level playing field" for all business competitors that arose in no small part due to the size and diversity of the American private sector . Many other nations not only lack such legislation, but actively support industrial espionage using both their national intelligence services as well as less formal mechanisms including bribery and corruption . The United States Office of

6903-435: The act but viewed it as a compromise. The President's Congressional rivals were proposing to remove responsibility for monitoring pro-German activity, whether espionage or some form of disloyalty, from the Department of Justice to the War Department and creating a form of courts-martial of doubtful constitutionality. The resulting Act was far more aggressive and restrictive than they wanted, but it silenced citizens opposed to

7020-608: The act did not violate the freedom of speech of those convicted under its provisions. The constitutionality of the law, its relationship to free speech, and the meaning of its language have been contested in court ever since. Among those charged with offenses under the Act were: Austrian-American socialist congressman and newspaper editor Victor L. Berger ; labor leader and five-time Socialist Party of America candidate Eugene V. Debs , anarchists Emma Goldman and Alexander Berkman , former Watch Tower Bible & Tract Society president Joseph Franklin Rutherford (whose conviction

7137-400: The added section potentially removes the "intent" to harm or aid requirement. It may make "mere retention" of information a crime no matter the intent, covering even former government officials writing their memoirs. They also describe McCarran saying that this portion was intended directly to respond to the case of Alger Hiss and the " Pumpkin Papers ". Court decisions of this era changed

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7254-514: The airliners which were based in first-world countries. Collins designed and built the radios that communicated the Apollo Moon landings and the high-frequency radio network that allows worldwide communication with U.S. military aircraft. Rockwell's Rocketdyne division designed and built the third stage of the Minuteman intercontinental ballistic missile , and the Advanced Inertial Reference Sphere inertial navigation system that provided its navigation. It also built inertial navigation systems for

7371-408: The appliance division was sold to Magic Chef . In 1978, Rockwell released AIM-65 , a one board microprocessor development board based on the MOS Technology 6502 . With the death of company founder and first CEO Willard F. Rockwell in 1978, and the stepping down of his son Willard Rockwell Jr. in 1979 as the second CEO, Bob Anderson became CEO and led the company through the 1980s when it became

7488-414: The authority to bar the importation of such products into the United States. The extent to which trade secrets are covered under § 1832 was expanded in 2012, following the reversal of a conviction in April 2012 by the United States Court of Appeals for the Second Circuit in United States v. Aleynikov . In that case, it was held that the theft of the source code for a proprietary system at Goldman Sachs

7605-403: The bribery of foreign officials, such as French payments to Saudi Defense officials. Espionage Act of 1917 The Espionage Act of 1917 is a United States federal law enacted on June 15, 1917, shortly after the United States entered World War I . It has been amended numerous times over the years. It was originally found in Title 50 of the U.S. Code (War & National Defense) but

7722-507: The charge to Embezzlement of Government Property (now 18 U.S.C.   § 641 ). A grand jury cleared three of the associates, two associates paid small fines, and charges against the sixth man were dropped. Senator Joseph McCarthy said the failure to aggressively prosecute the defendants was a communist conspiracy. According to Klehr and Radosh, the case helped build his later notoriety. Navy employee Hafis Salich sold Soviet agent Mihail Gorin information regarding Japanese activities in

7839-631: The collection of publicly available information that is in limited circulation. This may be obtained through a number of direct and indirect techniques that share common origins in the national intelligence community. The use of these techniques is often debated from legal and ethical standpoints based on this Act. One such example is the collection and analysis of gray literature . The techniques for developing actionable intelligence from limited circulation / limited availability documents such as selected corporate publications can raise difficult legal and ethical questions under both intellectual property laws and

7956-417: The company moved its headquarters four times: from Pittsburgh, Pennsylvania where it had been for decades to El Segundo, California to Seal Beach, California to Costa Mesa, California to Milwaukee, Wisconsin . At the end of the 1980s, the company sold its valve and meter division, formerly Rockwell Manufacturing, to British Tyre & Rubber . Although Rockwell was the #1 Defense and NASA contractor,

8073-400: The company to president Donald R. Beall. The completion of the Space Shuttle program and the completion of the B-1 bomber program had led to a decline in revenues, and Beall sought to diversify the company away from government contracts. The end of the Cold War and the perceived " peace dividend ", however, prompted accelerated divestitures and sweeping management reforms. From 1988 to 2001

8190-549: The company's business units. It was famous for its research in: advanced materials, particularly ceramics; for its infrared imagers ; for its research in liquid-crystal displays ; and for its high-speed electronics. The laboratory invented Metalorganic vapour-phase epitaxy (MOVPE), also commonly known as Metal Organic Chemical Vapor Deposition (MOCVD). It also achieved fame in selected areas of information science, notably human-computer interaction, augmented reality, multimedia systems, and diagnostics. Rockwell Science Center led

8307-518: The death penalty. Senator Arlen Specter proposed a comparable expansion of the use of the death penalty the same year. In 1994, Robert K. Dornan proposed the death penalty for the disclosure of a U.S. agent's identity. Progressive Era Repression and persecution Anti-war and civil rights movements Contemporary Much of the Act's enforcement was left to the discretion of local United States Attorneys , so enforcement varied widely. For example, Socialist Kate Richards O'Hare gave

8424-593: The earth demand of peace-loving men the sacrifice of themselves and their loved ones and the butchery of their fellows, and hail it as a duty demanded by the laws of heaven." The officers of the Watchtower Society were charged with attempting to cause insubordination, disloyalty, refusal of duty in the armed forces and obstructing the recruitment and enlistment service of the U.S. while it was at war. The book had been banned in Canada since February 1918 for what

8541-535: The enforcement of the Act. He held his position because he was a Democratic party loyalist and close to the President and the Attorney General. When the Department of Justice numbered its investigators in the dozens, the Post Office had a nationwide network in place. The day after the Act became law, Burleson sent a secret memo to all postmasters ordering them to keep "close watch on ... matter which

8658-655: The first individual sentenced under the Economic Espionage statute. Meng was the first person convicted of both the Economic Espionage Act of 1996 and the Arms Export Control Act . He received a 24-month sentence and $ 10,000 fine, which included a sentencing departure for cooperation, according to news reports. The International Trade Commission has used the EEA's definition of misappropriation to support its enforcement of US trade laws that prohibit "unfair methods of competition and unfair acts in

8775-536: The fleet of ballistic missile submarines. In addition to the manufacture of nuclear missiles and bombers, Rockwell also produced key components of the bombs they carried, including plutonium triggers at the Rocky Flats Plant in Colorado. Rockwell ran the weapons plant from 1975 to 1990, and was one of the subjects of the investigation of Special Grand Jury 89-2 into mismanagement of the plant. In 1990,

8892-519: The form of government of the United States ;... or the flag of the United States, or the uniform of the Army or Navy". Because the Sedition Act was an informal name, court cases were brought under the name of the Espionage Act, whether the charges were based on the provisions of the Espionage Act or the provisions of the amendments known informally as the Sedition Act. On March 3, 1921,

9009-440: The former arguing "nobody can suppose that the surreptitious publishing of a silly leaflet by an unknown man, without more, would present any immediate danger that its opinions would hinder the success of the government arms or have any appreciable tendency to do so". In March 1919, President Wilson, at the suggestion of Attorney General Thomas Watt Gregory , pardoned or commuted the sentences of some 200 prisoners convicted under

9126-463: The government's "heavy burden of proof" in establishing that the publisher "has reason to believe" the material published "could be used to the injury of the United States or to the advantage of any foreign nation". The case prompted Harold Edgar and Benno C. Schmidt Jr. to write an article on espionage law in the 1973 Columbia Law Review . Their article was entitled "The Espionage Statutes and Publication of Defense Information". Essentially, they found

9243-399: The headline "Civil Liberty Dead". In New York City, the postmaster refused to mail The Masses , a socialist monthly, citing the publication's "general tenor". The Masses was more successful in the courts, where Judge Learned Hand found the Act was applied so vaguely as to threaten "the tradition of English-speaking freedom". The editors were then prosecuted for obstructing the draft, and

9360-593: The importation of articles ... in the United States." In Tianrui Group Company Limited LLC v International Trade Commission , the United States Court of Appeals for the Federal Circuit held that the manufacture abroad of products using a process that was developed in the United States, protected under domestic trade secret law, and misappropriated abroad, violated section 337 of the Tariff Act of 1930 , 19 U.S.C.   § 1337 . The ITC therefore had

9477-523: The indictment was invalid, arguing that the Espionage Act does not cover the activities of a foreign citizen outside the United States. Zehe then pleaded guilty and was sentenced to 8 years in prison. He was released in June 1985 as part of an exchange of four East Europeans held by the U.S. for 25 people held in Poland and East Germany, none of them American. One of Zehe's defense attorneys claimed his client

9594-469: The jailed had appealed their convictions based on the U.S. constitutional right to the freedom of speech. The Supreme Court disagreed. The Espionage Act limits on free speech were ruled constitutional in the U.S. Supreme Court case Schenck v. United States (1919). Schenck, an anti-war Socialist, had been convicted of violating the Act when he sent anti-draft pamphlets to men eligible for the draft. Although Supreme Court Justice Oliver Wendell Holmes joined

9711-468: The jurisdiction of the United States, on the high seas, and within the United States" 18 U.S.C.   § 791 . He said the need for the Act to apply everywhere was prompted by Irvin C. Scarbeck , a State Department official who was charged with yielding to blackmail threats in Poland . In 1989, Congressman James Traficant tried to amend 18 U.S.C.   § 794 to broaden the application of

9828-622: The largest U.S. defense contractor and largest NASA contractor. Rockwell acquired the privately held Allen-Bradley Company for US$ 1.6 billion in February 1985 – US$ 1 billion of which was cash – and became a producer of industrial automation hardware and software. During the 1980s, Anderson, his CFO Bob dePalma, and the Rockwell management team built the company to #27 on the Fortune 500 list. It boasted sales of US$ 12 billion, roughly US$ 32 billion in 2019, and assets of over US$ 8 billion, roughly US$ 21 billion in 2019. Its workforce of over 115,000

9945-581: The largest supplier of printing presses , and in 1973, acquired Collins Radio , a major avionics supplier. In 1968, Sterling Faucet Company was bought by Rockwell Manufacturing Co. and it became a subsidiary of the company. Michael W. Hodges (who had also served as Corporate Director Manufacturing and later as CEO and 'Geschäftsführer' (Managing Director) of the German-based Engine Division) joined Rockwell Manufacturing Company in 1968 as Corporate Director Quality Assurance. He

10062-406: The late 1930s. Gorin v. United States (1941) was cited in many later espionage cases for its discussion of the charge of "vagueness", an argument made against the terminology used in certain portions of the law, such as what constitutes "national defense" information. Later in the 1940s, several incidents prompted the government to increase its investigations into Soviet espionage. These included

10179-403: The late 1940s, the U.S. Code was re-organized and much of Title 50 (War) was moved to Title 18 (Crime). The McCarran Internal Security Act added 18 U.S.C.   § 793(e) in 1950 and 18 U.S.C.   § 798 was added the same year. In 1961, Congressman Richard Poff succeeded after several attempts in removing language that restricted the Act's application to territory "within

10296-459: The law and whether the information was "related to national defense". The defendant received a 3-year sentence. In 1979–80, Truong Dinh Hung (aka David Truong ) and Ronald Louis Humphrey were convicted under 793(a), (c), and (e) as well as several other laws. The ruling discussed several constitutional questions regarding espionage law, "vagueness", the difference between classified information and "national defense information", wiretapping and

10413-469: The law poorly written and vague, with parts of it probably unconstitutional. Their article became widely cited in books and in future court arguments on Espionage cases. United States v. Dedeyan in 1978 was the first prosecution under 793(f)(2) (Dedeyan 'failed to report' that information had been disclosed). The courts relied on Gorin v. United States (1941) for precedent. The ruling touched on several constitutional questions, including vagueness of

10530-578: The law. Associate Justice Frank Murphy noted in 1944 in Hartzel v. United States : "For the first time during the course of the present war, we are confronted with a prosecution under the Espionage Act of 1917." Hartzel, a World War I veteran, had distributed anti-war pamphlets to associations and business groups. The court's majority found that his materials, though comprising "vicious and unreasoning attacks on one of our military allies, flagrant appeals to false and sinister racial theories, and gross libels of

10647-492: The notions of obtaining or delivering information relating to "national defense" to a person who was not "entitled to have it". The Espionage Act law imposed much stiffer penalties than the 1911 law, including the death penalty. President Woodrow Wilson , in his December 7, 1915 State of the Union address, asked Congress for the legislation. Congress moved slowly. Even after the U.S. broke diplomatic relations with Germany, when

10764-745: The original Espionage Act was left intact. Between 1921 and 1923, Presidents Warren G. Harding and Calvin Coolidge released all those convicted under the Sedition and Espionage Acts. The Espionage Act of 1917 was passed, along with the Trading with the Enemy Act , just after the United States entered World War I in April 1917. It was based on the Defense Secrets Act of 1911 , especially

10881-483: The part of British soldiers during the American Revolution would undermine support for America's wartime ally. The producer, Robert Goldstein, a Jew of German origins, was prosecuted under Title XI of the Act and received a ten-year sentence plus a fine of $ 5000. The sentence was commuted on appeal to three years. Postmaster General Albert S. Burleson and those in his department played critical roles in

10998-506: The president. After weeks of intermittent debate, the Senate removed the censorship provision by a one-vote margin, voting 39 to 38. Wilson still insisted it was needed: "Authority to exercise censorship over the press....is absolutely necessary to the public safety", but signed the Act without the censorship provisions on June 15, 1917, after Congress passed the act on the same day. Attorney General Thomas Watt Gregory supported passage of

11115-727: The program in a demonstration to the People's Liberation Army Navy after he no longer worked for the firm; he attempted to sell the fighter-pilot training software programs to the Royal Thai Air Force , the Royal Malaysian Air Force and the Navy Research Center in China." He paid $ 500,000 bond, for temporary liberty, until August 18 when he begins serving sentence. On June 18, 2008, Meng was

11232-516: The publication folded when denied access to the mails again. Eventually, Burleson's vigorous enforcement overreached when he targeted supporters of the administration. The president warned him to exercise "the utmost caution", and the dispute proved the end of their political friendship. In May 1918, sedition charges were laid under the Espionage Act against Watch Tower Bible and Tract Society president "Judge" Joseph Rutherford and seven other Watch Tower directors and officers over statements made in

11349-457: The run of what had once been a massive and diverse conglomerate. The split was structured so that Rockwell Automation was the legal successor of the old Rockwell International, while Rockwell Collins was the spin-off. In the end, the result had been four spin-offs and three sales combined from Rockwell's nine divisions. The various Rockwell companies list a large number of technological firsts and historic developments in their histories, including

11466-735: The same speech in several states but was convicted and sentenced to prison for five years for delivering her speech in North Dakota. Most enforcement activities occurred in the Western states where the Industrial Workers of the World was active. Finally, a few weeks before the end of the war, the U.S. Attorney General instructed U.S. Attorneys not to act without his approval. A year after the Act's passage, Eugene V. Debs , Socialist Party presidential candidate in 1904, 1908, and 1912

11583-491: The society's book, The Finished Mystery , published a year earlier. According to the book Preachers Present Arms by Ray H. Abrams, the passage (from page 247) found to be particularly objectionable reads: "Nowhere in the New Testament is patriotism (a narrowly minded hatred of other peoples) encouraged. Everywhere and always murder in its every form is forbidden. And yet under the guise of patriotism civil governments of

11700-409: The standard for enforcing some provisions of the Espionage Act. Though not a case involving charges under the Act, Brandenburg v. Ohio (1969) changed the "clear and present danger" test derived from Schenck to the " imminent lawless action " test, a considerably stricter test of the inflammatory nature of speech. In June 1971, Daniel Ellsberg and Anthony Russo were charged with a felony under

11817-456: The technology to monitor European business communications. The French and European allegations centered on the suspicion that such information was being passed to U.S. firms. The U.S. stated that monitoring was focused on the participation of European firms in supplying foreign WMD (weapons of mass destruction) programs, such as the Iran nuclear program, on evading sanctions in Iran and Libya, and on

11934-452: The war. Officials in the Justice Department who had little enthusiasm for the law nevertheless hoped that even without generating many prosecutions it would help quiet public calls for more government action against those thought to be insufficiently patriotic. Wilson was denied language in the Act authorizing power to the executive branch for press censorship, but Congress did include a provision to block distribution of print materials through

12051-613: The world's first power miter saw. In 1981, Rockwell's power tool group was acquired by Pentair and re-branded Delta Machinery . Pentair's Tools group was acquired by Black & Decker in 2005. Since 2011, Delta has been a subsidiary of Chang Type Industrial Co., Ltd. of China. In 1956, Rockwell Manufacturing Co. bought Walker-Turner from Kearney and Trecker . In 1957, Walker-Turner operations were closed down in Plainfield, New Jersey and moved to Bellefontaine, Ohio and Tupelo, Mississippi . Timken-Detroit merged in 1953 with

12168-428: Was an ex-Peace Corps and ex-CIA agent charged under 17 U.S.C.   § 794(c) for allegedly dealing with the Soviets. The FBI's website says the 1980s was the "decade of the spy", with dozens of arrests. Rockwell International Rockwell International was a major American manufacturing conglomerate . It was involved in aircraft, the space industry, defense and commercial electronics, components in

12285-763: Was appointed member of the Board of Directors of Rockwell GmbH Germany and Dikkers Valve Products LLC Netherlands. Prior to Rockwell, Michael Hodges was a physicist with NASA and aerospace management with Martin-Marietta Corp. in Orlando, Florida . During Hodges' seven years with Rockwell there were approximately 90,000 employees in seven divisions: the Valve Division with products for the gas and oil industry with plants located in Barberton, Ohio , Raleigh, North Carolina , Sulphur Springs, Texas , and Kearney, Nebraska ,

12402-439: Was arrested and sentenced to 10 years in prison for making a speech that "obstructed recruiting". He ran for president again in 1920 from prison. President Warren G. Harding commuted his sentence in December 1921 when he had served nearly five years. In United States v. Motion Picture Film (1917), a federal court upheld the government's seizure of a film called The Spirit of '76 on the grounds that its depiction of cruelty on

12519-435: Was combined with the aerospace products and renamed Rockwell International. It was split into various companies beginning in the 1980s, including its final split in 2001 into Rockwell Automation and Rockwell Collins . Boston-born Willard Rockwell (1888–1978) made his fortune with the invention and successful launch of a new bearing system for truck axles in 1919. He merged his Oshkosh, Wisconsin -based operation with

12636-504: Was never intended to be placed in interstate or foreign commerce. As Goldman had no intention of selling or licensing its system, § 1832 (as it was written at that time) did not apply. The provision was promptly amended on December 28, 2012 with the passage of the Theft of Trade Secrets Clarification Act of 2012, so that it now applies to products or services that are used or intended for use in interstate or foreign commerce. The amendment led to

12753-686: Was of Daniel and Patrick Worthing, maintenance workers at PPG Industries in Pennsylvania who stole blueprints and diskettes. Both pleaded guilty in early 1997. For another example, see the first conviction in California, that of David Brian Kern. After an August, 2007 plea of guilt for (one count) of violating the Economic Espionage Act and one count of violating the Arms Export Control Act , San Jose U.S. District Court Judge Jeremy Fogel sentenced Canadian citizen Xiaodong Sheldon Meng, 44, to 24 months in federal prison , 3 years of parole and

12870-490: Was organized into nine major divisions – Space, Aircraft, Defense Electronics, Commercial Electronics, Light Duty Automotive Components, Heavy Duty Automotive Components, Printing Presses, Valves and Meters, and Industrial Automation. Rockwell International was a major employer in southern California , northern Ohio, northern Georgia, eastern Oklahoma, Michigan, western Texas, Iowa, Illinois, Wisconsin and western Pennsylvania. Anderson stepped down as CEO in February 1988, leaving

12987-460: Was overturned on appeal), communists Julius and Ethel Rosenberg , Pentagon Papers whistleblower Daniel Ellsberg , Cablegate whistleblower Chelsea Manning , WikiLeaks founder Julian Assange , Defense Intelligence Agency employee Henry Kyle Frese , and National Security Agency (NSA) contractor whistleblower Edward Snowden . Although the most controversial amendments, called the Sedition Act of 1918 , were repealed on December 13, 1920,

13104-403: Was planned starting in 1973 away from the business model developed since 1945 by the founder Willard Rockwell (1888–1978). The founder's son, Willard Rockwell Jr., appeared taking the company in a new direction, replacing the founder's model of strong medium-size manufacturing companies with diverse industrial products with strong industrial engineering and quality control in multiple locations – to

13221-495: Was prosecuted as part of "the perpetuation of the 'national-security state' by over-classifying documents that there is no reason to keep secret, other than devotion to the cult of secrecy for its own sake". The media dubbed 1985 " Year of the Spy ". U.S. Navy civilian Jonathan Pollard was charged with violating 18 U.S.C.   § 794(c) , for selling classified information to Israel. His 1986 plea bargain did not get him out of

13338-532: Was re-merged into Rockwell, and by that time produced most of the rocket engines used in the United States. Rockwell also purchased the Aero Design and Engineering Company from William and Rufus Travis Amis . Rockwell redesigned the company's Aero Commander aircraft , introducing its new design as the Rockwell Commander 112 and Commander 114. The company developed a desktop calculator based on

13455-683: Was released along with the Logtrak module for DOT log recording for fleets who successfully petitioned the DOT for paper logbook exemptions. Rockwell also built yachts and business jets and owned large amounts of real estate. It was also involved in providing custom electronic intelligence equipment to the Imperial Iranian Air Force as part of Project Ibex and paid bribes to the Shah of Iran in order to secure contracts there. For

13572-512: Was successful in large part because the company undertook reasonable measures to keep its information secret, including: The EEA has also been used to prosecute a Boeing manager, together with an employee he hired from Lockheed Martin with the offer of a higher salary in return for his inside information on Lockheed Martin's pricing. Although the EEA charges were later dropped, the matter resulted in Boeing being denied $ 1 billion in contracts from

13689-528: Was used against James Mintkenbaugh and Robert Lee Johnson , who sold information to the Soviets while working for the U.S. Army in Berlin. In 1948, some portions of the United States Code were reorganized. Much of Title 50 (War and National Defense) was moved to Title 18 (Crimes and Criminal Procedure). Thus Title 50 Chapter 4, Espionage, (Sections 31–39), became Title 18, 794 and following. As

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