espionage
Espionage is the crime of secretly obtaining or transmitting information without authorization for the purpose of benefiting a foreign power, organization, or entity. It involves the collection of confidential, classified, or proprietary information through spying, surveillance, or other covert means. Under 18 U.S.C. § 794, it is a federal offense in the United States to communicate, deliver, or attempt to communicate or deliver national defense information to a foreign government or its agents. The statute provides for punishment by death or imprisonment, depending on the severity of the offense and its impact on national security.
Industrial espionage, sometimes called economic espionage, is distinct from political or military espionage. Industrial espionage involves the theft or unauthorized acquisition of a company’s trade secrets or proprietary data for the benefit of another company or nation. For instance, if Company A sends employees to infiltrate Company B and steal confidential designs or formulas for a competitive advantage, that conduct constitutes industrial espionage. In the United States, industrial espionage is criminalized under the Economic Espionage Act of 1996, codified at 18 U.S.C. §§ 1831–1839, which prohibits the theft or misappropriation of trade secrets for the benefit of a foreign entity or for commercial gain.
[Last reviewed in October of 2025 by the Wex Definitions Team]
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