Companies protect their trade secrets to gain business advantage through stringent contracts and agreements. Protection of trade secrets includes a nonpublic information that has been developed by the protected parties. In terms of business strategy, Economic Espionage refers to the unauthorized theft of a trade secret knowing or intending that the act will benefit any nation, foreign entity, or instrumentality. This includes, but is not limited to, trade secrets found on, or transmitted by, any wire or electronic communication, records, papers, or documents of a protected person. Economic espionage is a violation of the law and can be punished as vigorously and as severely as any other crime.

Protecting business interests is the primary reason behind sharing intellectual property rights; however, there are many situations where confidential information must be protected. One such situation includes the marketing and promotion of new products and services. It is not uncommon for large corporations to consult with a marketing firm to obtain confidential information regarding a prospective product line before actual implementation. In instances such as these, it is often reasonable for the parties to share their confidential information in order to ensure the success of the marketing plan.

Protection of trade secrets is a matter of national security and should be a high priority on the agendas of all businesses. The economic consequences of stealing trade secrets can be disastrous to any business, as well as to the national economy. Any trade secret that is stolen can harm a business and its ability to compete. Also, damages that result from the illegal release of trade secrets can result in substantial fines and a loss of business. Therefore, when any type of information is taken or stolen in violation of law, businesses must take reasonable steps to protect their information.