The High Costs of Espionage
Last summer, the Senate Select Committee on Intelligence had a question: How serious is the threat of foreign government and corporate espionage to the science and technology information developed by U.S. businesses? “Extremely great,” was the answer, from the Defense Intelligence Agency.
Jack Nelson, The Times’ chief Washington correspondent, reports that intellectual property losses have exceeded $300 billion in 1997 alone. At least 23 countries have targeted U.S. firms, while domestic companies also spy on their brethren.
What ought to be done when everyone seems to be spying on everyone else, particularly when otherwise strongly allied nations have no qualms about stealing trade secrets from one another? Domestic companies might question setting high moral standards when it’s clear that competitors do not.
Internationally, it might be best to assume that there are no allies. Some effort might be made to tie sanctions to trade agreements, but they would very likely be unenforceable or ignored. The recent agreement reached by the Organization for Economic Cooperation and Development requires member nations to outlaw industrial espionage-related bribery--but the participating nations will have to pass such laws.
Domestically, experts suggest that U.S. companies are fairly good at protecting their most valuable information, but stupidity can reign at lesser levels. Information can be gleaned from government forms, press releases and even speeches made public without checking for sensitive information. One lost computer disk can cost a company dearly, and every disgruntled employee is a potential information risk.
It is encouraging that companies are reporting thefts to law enforcement, rather than cover them up for fear of losing customers. But the first line of defense has to be internal security, for the spies will always be with us.
