(VOVworld) - President Barack Obama plans to announce legislation to protect companies from lawsuits for sharing data with the government to help prevent cyber attacks.

President Barack Obama delivers remarks at the National Cybersecurity and Communications Integration Center (NCCIC) in Arlington, Virginia on January 13, 2015. (Photo: UPI/Kristoffer Tripplaar)

The new legislation encourages sharing of information on cyber attacks between private companies and the government agencies, who will be protected by law. The new bill would criminalize the sale of botnets, referring to criminals typically use bots to infect large numbers of computers, and stolen data, as well as criminalizing cyber attacks under the Racketeering Influence and Corrupt Organizations Act (RICO). It would also allow the prosecution of insiders who use stolen information for their own purposes. The bill covers sale of stolen financial information such as information on credit cards and bank accounts.

Earlier, President Obama proposed two bills to enhance and standardize protection of personal data on the internet which ask companies to inform clients whose data has been stolen within 30 days. President Obama will chair a summit on cyber security and protection of internet users at Stanford University on December 13.