47th Session Issues
Industrial Espionage
Industrial espionage is a relatively new problem to be dealt with in international circles. Foreign industrial espionage can be defined as industrial espionage conducted against one government or corporation by another government or corporation with government assistance aimed at obtaining commercial secrets. Sectors that have been targeted by industrial espionage include: biotechnology, aerospace, telecommunications, advanced transportation and engine technology, advanced materials and coatings, energy research, defense and armaments technology, manufacturing processes, semiconductors, and computer software and hardware.
The United States has been in the forefront to set international standards for intelligence gathering. While the Industrial Espionage Act of 1996 protects proprietary economic information including intangible property such as software source codes from theft or misuse in espionage cases, it is often difficult to halt such behavior entirely when other governments are involved in obtaining this information.
Key players in the area of international espionage include the United States, France, Canada, Japan, China, Russia, Taiwan, South Korea, Brazil, Germany, Cuba, and Israel. General Motors, based in the United States, has accused Volkswagen of industrial espionage.
Here, we see the propensity for nations where these corporations are based to get dragged into an international conflict. Much of this spying is seen as common knowledge, with some nations 'Simply attempting to even the playing field by adopting their own techniques to obtain sensitive information.
Many governmental intelligence agencies such as the CIA have come under fire for supporting and aiding industrial espionage efforts- Conflicts of interest exist that not only pit government against government and corporation against corporation, but are aligned along traditional levels of development, with industrialized nations seeking to protect their information, their economic interest, against industrializing nations who would greatly benefit from obtaining such information.
Questions
- What type of international agreement can be realized given the nature of the conflict?
- How successful will any agreement be?
- What specific provisions should be included in any international agreement on industrial espionage?
- How would countries and/or corporations be tried for espionage? Under what auspices?
Resources
- Andrews, Edmund L. "Charges Expected Against VW President; Industrial Spy Case Said to be Near for Executive Who Left G.M." The New York Times. Nov. 9, 1996. V. 146, p. 20(N) p. 38 (L), col. 4.
- Annual Report to Congress on Foreign Economic
- Collection and Industrial Espionage. July 1995. (http://www.tscm.com/indust.html)
- Arbetter, Lisa (interview with David Skaggs) "Intelligence Policy in a Changing World, Security Management. May 1994. V. 38, No. 5, pp.39-41.
- Business Week. "Corporate Spying Just Got Harder." Sept- 30, 1996, p.46.
- ChemiCal Marketing Reporter. "Chemicals Seen as Likely Target as industrial Espionage Rises." July 31, 1995. V. 248, No. 5., pp.7-8.
- Deighen, Roderick P. "Welcome to Cold War II" Chief Executive(US). Jan-Feb. 1993. No. 82, pp. 4245.
- Dettmer, Jamie- "What's a Little Spying Among Allies." Insight on the News. March 27, 1995. V.11, No. 13, pp. 13-14.
- Morris, Nomi, et. al. "The New Spy Wars." Maclean’s. Sept. 2 1996 V. 109, No. 36, pp. 26-30.
- Pasternak, Douglas. "The Lure of the Steal; America's Allies are Grabbing U.S. Technology. Washington is Worried." U.S- News and World Report. Mar. 4, 1996. V. 120, No. 9, pp.45-48.
- Securitv Management. "New Call for Espionage Law." May 1996. V.40, No.5, p. 14
- Slahor, Stephanie. "'AFTA, NAFTA.,, Supervision. June 1996. V.57, No.6, pp. 6-8.
- Smith, Geoffray. "The French Connection.— Financial World. Feb. 16, 1993. V.162, No.4, p.6.
- Srodee, James. Cloak and Dagger." Financial World. March 28, 1995. V.184, No.8, pp.18-19.
- World Press Review. "The New Industrial Espionage." Feb. 1996. V.43, No.2, p. 48.