In Depth

Industrial Espionage: Secrets Stolen, Fortunes Lost

How industrial espionage and intellectual property theft destroy businesses and endanger the global economy.

By Richard Power and Christopher Burgess

Page 8

Physical Security

Do not overlook the "Duh" factor. It is pointless to invest in information security, or commit to background investigations, if agents of an unscrupulous competitor or a foreign government can simply walk away with what they covet.

Intelligence

You need both business and security intelligence. Know your competition, your partners and your customers. Research the market environment. Keep abreast of the latest trends in hacking, organized crime, financial fraud and state-sponsored economic espionage. You can outsource this expertise. But someone must be looking at both streams of intelligence, with the particulars of your enterprise in mind.

Industry Outreach

Actively participate in industry working groups appropriate to your sector and environment. Talk with your peers about the types of attacks or threats they are encountering.

Government Liaison

Leverage your tax dollars. Avail yourself of threat information from law enforcement, foreign ministries, elected officials, regulatory and trade organizations in your enterprise's country, and in those countries where you conduct business.

Legal Strategies

Realize that even when right is on your side, a market may be lost to you, and protecting a portion of the global market is sometimes a viable survival strategy. Litigation is not the solution; it is confirmation that intellectual property theft has occurred. Work to protect your intellectual property and avoid the costs associated with litigation. Don't let a small legal mind make decisions about big legal issues. Get expert legal advice on intellectual property issues.

In sum, your security is in your hands. Employees tend to apply effort and intellect to the issue in portions commensurate with management attention to the topic of intellectual property protection. Employees line up smartly behind the leader providing direction, guidance and support. Providing that leadership is essential to your own continued economic viability in the global economy of the 21st century.

Christopher Burgess has recently retired as an officer of the U.S. Central Intelligence Agency, with 30 years of experience in the clandestine services. He can be reached via e-mail: cburgess@att.net. Richard Power (www.wordsofpower.net) is an internationally recognized authority on cybercrime, information age espionage and other threats. He can be reached via e-mail: richardpower@wordsofpower.net.

NOTE: Portions of this study were reviewed, and cleared without objection, by the Publication Review Board of the U.S. Central Intelligence Agency.