![]() 3 The incidents that led to the act, while notorious, were exceptional. This was the background against which Congress passed the Economic Espionage Act of 1986, which criminalized stealing intellectual property. American know-how was the target, and by the mid-1990s, tens of billions of dollars’ worth of intellectual property had reportedly been stolen from American companies. Though he was never convicted, German prosecutors tied him to a trove of secret GM documents, and VW settled with GM for $100 million and a commitment to buy $1 billion in auto parts. In the early 1990s, the purchasing chief for GM’s European operations decamped for Volkswagen, allegedly taking with him GM’s cost-cutting secrets. 1 More recently, starting no later than 1980, Hitachi and other Japanese companies repeatedly launched espionage attacks against IBM and other American companies, with the support of the Japanese government. In 1812, Francis Cabot Lowell traveled to Britain, where he visited and managed to memorize and steal the secret workings of the Cartwright loom. Chinese silkworms legendarily made their way to India in a clandestine transaction. Economic espionage is not itself a new phenomenon. Some US allies abuse the access they have been granted to try to clandestinely collect critical information that they can use for their own economic or political advantage.The lawless world of international espionage, until recently the preserve of the most secretive organs of government, has come to affect the everyday commercial affairs of businesses around the world, which are woefully unprepared to deal with it. China and Russia are our most aggressive and capable adversaries using economic espionage.Ĭhina and Russia are not the only perpetrators of espionage against sensitive US economic information and technology. The requirement to move quickly and unabashedly leaves American companies vulnerable as they flock into spy-rich developing nations. American companies are driven into developing markets by shareholders, growth ambitions, and the desire to beat Wall Street's quarterly earnings expectations. The second CI challenge is tied to the nature of public corporations. CI measures absorb company resources that would otherwise be used for growth. This is in large part because counterintelligence is not a typical corporate function, even for well-trained and well–staffed security professionals.Ĭounterintelligence is a challenge for corporations for two reasons. The private sector alone lacks the resources and expertise to thwart foreign efforts to steal critical American know-how. Without corrective action that mobilizes the expertise of both the Federal Government and the private sector, the technologies cultivated by American minds and within American universities are at risk of becoming the plunder of competing nations at the expense of long-term U.S. Espionage against the private sector increases the danger to long-term U.S. Their efforts compromise intellectual property, trade secrets, and technological developments that are critical to national security. These adversaries use traditional intelligence tradecraft against vulnerable American companies, and they increasingly view the cyber environment-where nearly all important business and technology information now resides-as a fast, efficient, and safe way to penetrate the foundations of our economy. ![]() ![]() ![]() Today, foreign intelligence services, criminals, and private sector spies are focused on American industry and the private sector. Nazi spies during World War II tried to penetrate the secrets behind our aviation technology, just as Soviet spies in the Cold War targeted our nuclear and other military secrets. They frequently avoid using standing armies, shirk traditional spy circles, and go after the heart of what drives American prosperity and fuels American might. Principles of Artificial Intelligence Ethics for the ICĪmerica's adversaries throughout history have routinely taken their competitive efforts beyond the battlefield. ![]()
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