Industrial espionage

Denial Of Service Attack DoS Breaking Down 'Industrial Espionage' Industrial espionage describes covert activities, such as the theft of trade secrets by the removal, copying or recording of confidential or valuable information in a company for use by a competitor. It may also involve bribery, blackmail and technological surveillance. Industrial espionage should be differentiated from competitive intelligencewhich is the legal gathering of public information by examining corporate publications, websites, patent filings and the like, to determine a corporation's activities. Industrial Espionage Types Industrial espionage can be divided into two types.

Industrial espionage

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 a federal enforcement gap in this important area of law.

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 Industrial espionage defeat the Congressional intent in passing the EEA.

Industrial espionage

Lange, [3] [4] 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 was successful in large part because the company undertook reasonable measures to keep its information secret, including: He spent over 30 years providing U.

The year sentence is viewed as a life sentence for Chung who is 74 years old. He worked for Rockwell International from until its defense and space unit was acquired by Boeing inand he continued to work for Boeing as an employee and then as a contractor through The first such prosecution was of Daniel and Patrick Worthing, maintenance workers at PPG Industries in Pennsylvania who stole blueprints and diskettes.

Both pleaded guilty in early Meng was indicted in Decemberwith 36 counts, "for stealing military software from a Silicon Valley defense contractor and trying to sell it to the Chinese military.

Aleynikov [20] In that case, it was held that the theft of the source code for a proprietary system at Goldman Sachs was never intended to be placed in interstate or foreign commerce.

In cases filed after that date: As a reinforcing measure, employers are required to include a notice of such immunity in any employment agreement that governs trade secrets and other confidential information.

Impact of the Act[ edit ] This legislation has created much debate within 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.

However, some techniques focus on 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 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.

Inthe Society of Competitive Intelligence Professionals published its Policy Analysis on Competitive Intelligence and the Economic Espionage Act which explained how the Economic Espionage Act will not affect legitimate competitive intelligence.

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.

Congress which outlines these espionage activities of many foreign nations. The United States does not engage in state-sanctioned industrial espionage. Inin response to European concerns, a former U. 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.

Central Intelligence Agency documents had been revealed to the British press, showing that the U. The French and European allegations centered on the suspicion that such information was being passed to U.Recent Articles.

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Breaking Down 'Industrial Espionage'

Economic espionage sponsored by the Chinese government is costing U.S. corporations hundreds of billions of dollars and more than two million jobs. Chinese Industrial Espionage: Technology Acquisition and Military Modernisation (Asian Security Studies) [William C. Hannas, James Mulvenon, Anna B.

Puglisi] on *FREE* shipping on qualifying offers. This new book is the first full account, inside or outside government, of China’s efforts to acquire foreign technology. Based on primary sources and meticulously researched.

Feb 08,  · In the s, Wen Chyu Liu, aka David W. Liou, came to the United States from China as a graduate student. In , Liu started working as a .

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