Abstract U.S. Companies lose an estimated $500 billion in raw innovations each year due to industrial espionage. These raw innovations include research and development, trade secrets and the products that enable U.S. companies their competitive edge. Industrial espionage typically capitalizes on simple and very avoidable vulnerabilities that produce incredible results. The counter espionage market is relatively small and businesses often do not employ a counter espionage program. Businesses can incorporate a counter espionage program, which could significantly discourage adversaries to attempting to steal their raw innovations and trade secrets. This paper will discuss the importance of incorporating counter espionage programs and how it can …show more content…
The Economic Espionage Act of 1996, Title 18, UCS 1831 defines it as the theft of trade secrets or economic espionage is a federal criminal offense (FBI, Title 18 UCS 1831). A trade secret can provide a competitive edge to the competitors, has the potential to make money, is a secret, and is something you want to keep confidential and not known to your competitors(FBI, Title 18 UCS 1831). The US Economic Espionage Act of 1996 passed into law to help provide legal guidelines that would help prosecute those taking part in industrial espionage and who those who stole trade secrets that could benefit any foreign entities. The Economic Espionage Act also helps organizations to get financial reimbursement for any financial losses they might suffer as result of industrial espionage (FBI, Title 18 UCS 1831). Economic Espionage Act of …show more content…
One of the first steps in developing an effective counterespionage program is to conduct a risk assessment of the organizations trade secrets or sensitive information. Daniel Benny states that when determining the risk, there will be a need to examine the information that is to be protected; what the value of the information is, define would want it; determine how accessible it is; and the impact on the organization should such information be illegally obtained through industrial espionage (Benny, page 51). When the risk assessment shows what the risk and threat are, a trusted person in the organization will need to determine the information they want to protect. Daniel Benny illustrates Threat: risk of threat = severity of threat x probability of occurrence (Benny, page
...ary 1997, Earl Edwin Pitts plead guilty on two counts of espionage. On 23 June, Earl Edwin Pitts was sentenced to 27 years in prison by a Federal judge who stated that the former agent was guilty of “the most egregious abuse of trust.” When asked why he spied, Pitts cited a number of grievances he had against the Federal Bureau of Investigations and stated that he “wanted to pay them back.” (12) This could have been prevented if the Federal Bureau of Investigations had a program similar to the Army’s TARP (Threat Awareness Reporting Program) to train fellow employees what to look for and how to report on espionage indicators. Another preventive measure would be to work with employees on job preferences to duty locations, If Earl Edwin Pitts would not have been transferred he would not have thought to get payback and the nations secrets would still be secure today.
The Sherman Act outlaws every contract, combination or conspiracy in restraint of trade. It also prohibits any attempt to monopolize. The Sherman Act enforcement can be civil or criminal. The criminal penalty can be up to $1 million for an individual and $100 million for a corporation. The Federal Trade Commission Act bans unfair methods of competition and deceptive acts or practices. Violation of Sherman Act also violates Federal Trade Commission Act. The Sherman Act and Federal Trade Commission Act are very effective, but they do not address certain specific practices. The Clayton Act addresses some specific practices such as mergers and interlocking directorates. For example, Section 7 of Clayton Act prohibits mergers and acquisitions that lessen competition or tend to create monopoly. Apart from these three core antitrust acts, most states also have antitrust laws. (FTC, 2014)
The first of the three major Federal antitrust laws is the Sherman Act that was created in 1980. This act will not allow for competitors to set a fixed price on a good or allow for one company to become a monopoly. Breaking the Sherman Act can be punished normally as a criminal felony with individuals being fined up to $350,000, businesses being fined up to $10 million and corporations up to $100 million per offense. There is also jail time that can be served by each with the individual who can be sentenced up to three years in jail and a business up to ten years in prison per offense when the Sherman Act is violated.
Celeste Saenz 4th Period 5/20/14. Gestapo World War 2 began in 1939. It was the deadliest and most widespread war in history. There were more than 30 countries involved in the war, and more than 5,000,000 deaths throughout. The war finally ended in 1945.
The International Anti-Bribery and Fair Competition Act amends the Securities and Exchange Act of 1934 and the Foreign Corrupt Practices Act of 1977. The Securities Exchange Act is a United States law which regulates the trading of securities in the secondary market. The secondary market involves sales that take place after a security is originally offered by an issuer which is typically a company (Sarkar). The Foreign Corrupt Practices Act is a United States law which prohibits paying bribes to foreign officials to retain or obtain business. It also requires companies to retain accurate records and books. Companies are also required to implement a system of internal controls which provides reasonable assurances that transactions are executed and assets are accessed and accounted for in accordance with management's authorization (U.S. Securities and Exchange Commission). The Convention on Combating Bribery of Foreign Public...
With the introduction of the internet being a relatively new phenomenon, the act of cyber espionage is not something that has been properly acknowledged by society. The American Government has done a stand up job of keeping its methods in the shadows and away from the eyes of its people since its documented domestic surveillance began on October 4th, 2001; Twenty three days after the Twin Towers fell President George Bush signed an order to begin a secret domestic eavesdropping operation, an operation which was so sensitive that even many of the country's senior national security officials with the...
In times of peace (and war), the Espionage Act granted the “issue of search warrants for the seizure of property used as a means of committing a felony” (“Treason”, 223). Additionally, it took measures against sending purported illegal materials through the mail: a task overseen by the Post Master General.
Espionage has always been a subject that has captured the thoughts and imaginations of many people. The idea of the glamorous life of espionage agents and spies with grand parties, high tech gadgets, and world destroying villains have led to the belief that spies live a life of adventure and almost science fiction. Real agents live far from that life in reality. Many live in constant fear of imprisonment or execution. The facts and fiction of espionage have become distorted overtime.
The National Security Act of 1947 created the Central Intelligence Agency (CIA). President Truman’s vision of the CIA was a peacetime intelligence agency that provided early warnings in the event of an attack. After President Truman signed the National Security Act of 1947, a loophole was found. The National Security Act “instructed the CIA to correlate, evaluate, and disseminate intelligence and to perform ‘other functions and duties related to intelligence affecting the national security’ ” (Weiner 2007). The CIA used this wording of ‘other functions’ to conduct secret operations overseas and to practice cloak and dagger methods in obtaining intelligence. Since its establishment over sixty years ago, the CIA’s implementation of cloak and dagger intelligence gathering has evolved to developing a componen...
Economic espionage is the theft of trade secrets. Trade secrets are used by companies when manufacturing products. Trade secrets may be a technique, device, pattern, program, formula, process, or a combination of these things. Companies will go the extra mile to make sure this information is protected and doesn’t end up in the wrong hands. However, economic espionage wouldn’t exist if the measures taken by companies truly protected their trade secrets. Two issues involved in investigating economic espionage and trade secrets are the difficulty of collecting evidence and proving the trade secrets were truly stolen.
Espionage is defined as the act or practice of spying.1 The term ‘industrial espionage’ , also known as ‘corporate espionage’ or ‘cyber espionage’, is the act of stealing trade secrets through the removal, duplicating or recording of highly confidential or valuable information in order to gain a competitive advantage. It is defined as the use of illicit means by more aggressive competitors to disrupt their rival’s operations or gain access to their sensitive information for a better competitive edge.2 While industrial espionage involves the theft of information for commercial purposes, which is obviously illegal, competitive intelligence is the legal gathering of information through conventional practices such as picking up scrap information through attending trade shows or through sources readily available i.e. corporate publications, patent filings and websites.3 Trade secrets are a form of intellectual property thus industrial espionage is most commonly linked with technology-heavy industries, especially in the computer and auto sectors where a great deal of money is splurged on research and development since technological change in this modern era has become a growing importance to business performance.
In layman’s terms, this means Congress allows you to have ideas and creations while also safeguarding your idea from others who want to use it. While the Constitution does give Congress the ability to protect your ideas you do have to follow certain steps in order to “protect the time, effort, and money spent in developing knowledge in order to transform it into valuable intangible assets.” If these steps needed are not taken, your information may be “captured” by others who want to use the idea. Another piece of information discussed in the chapter is infringement, which is taking or using any form of intellectual property. Essentially, infringement is stealing property from another person or party. This leads into trade secrets. A trade secret is having knowledge or information of one’s ideas that could have “economic value from not being generally known or has been the subject of reasonable efforts by the owner to maintain secrecy.” If it becomes known that someone knows a trade secret then a judge can issue what is called an injunction, which is an “order to do something or to refrain from doing something.” This injunction keeps those who have infringed a trade secret to cease from telling the secret or putting it to use.
The act of espionage is as a facilitator of sensitive information that may compromise the operations of the U.S. government. The citizen, who may also be a government employee ...
Espionage is the secret gathering of information on rival countries for military purposes. Espionage can be used in business, military, economic or political decisions however; it is commonly employed government for defensive tactics. Espionage or spying is illegal in many nations however, it gains profits from agencies to protect the secrecy of information that is desired.
Intentionally stealing someone’s trade secret is, indeed, considered a crime under both state and federal law. It is covered under the Economic Espionage Act of 1996. This act gives the U.S. Attorney General sweeping powers to prosecute any company or individual involved in trade secret misappropriation. Violators of this law can be subject to a fine of up to $500,000 or individuals or $5 million for corporations. Violators may also face up to 10 years in prison. The penalties are even stiffer if the theft was done on behalf of a foreign government or