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 U.S. efforts to combat the theft of trade secrets that could be used by foreign governments or companies to gain an unfair commercial and economic advantage by harming U.S. innovation and creativity, including:

 Focusing diplomatic efforts regarding trade secret protection in other countries, which include, among others, sustained and coordinated engagement with trading partners, the use of trade policy tools (including through the use of this Report), cooperation, and training;

Promoting voluntary best practices by private industry to protect trade secrets, including best practices regarding information security, physical security, and human resources policies;

Enhancing domestic law enforcement operations, especially through the activities of the Departments of Justice and Defense, Federal Bureau of Investigation, and National IPR Coordination Center; and

Conducting public awareness campaigns and outreach to educate stakeholders regarding trade secret theft. 

Trade secret theft can result in illegitimate technology transfer to foreign actors and can undermine U.S. competitive advantage.

Given the global nature of trade secret theft, action by our trading partners also is essential. On May 26, 2014, the European Council adopted its position on the draft Directive of the European Parliament and of the Council on the Protection of Undisclosed Know-How and Business Information (Trade Secrets) Against Their Unlawful Acquisition, Use and Disclosure, which was introduced by the European Commission on November 28, 2013. The draft Directive is now before the Legal Affairs (JURI) Committee of the European Parliament (document number 2013/0402(COD)). This Directive would harmonize civil trade secret law throughout the EU. The United States welcomes these important steps and looks forward to continued progress on this draft measure specifically, and on EU efforts to protect trade secrets from theft and misappropriation generally.

Localization, Indigenous Innovation, and Forced Technology Transfer

Rights holders operating in other countries may face a variety of government measures, policies, and practices that are touted as means to incentivize domestic "indigenous innovation," but that, in practice, often disadvantage foreign companies, including those holding IPR. Such initiatives serve as market access barriers, discouraging foreign investment and hurting local manufacturers, distributors, and retailers. Such government-imposed conditions or incentives may distort licensing and other private business arrangements, resulting in commercially 21