The Intellectual Property Commission recently published a report on the theft of intellectual property and estimated that it costs the U.S. economy over $300 billion a year, which translates roughly to 2.1 million lost jobs. To put this in perspective, the IP Commission found that the total cost of cyber theft was comparable to the amount of U.S. exports to Asia. General Keith Alexander, the director of the National Security Agency, called cyber crime and the resulting loss of our intellectual property and technology to our competitors "the greatest transfer of wealth in U.S. history." The purpose of this hearing is to understand how this loss is happening, the cost to our country, and how companies and the U.S. government are responding to this threat. The witnesses today will explain the methods and tactics used to penetrate U.S. cyber systems and what China and other perpetrators do with the information they obtain through these attacks.

Cyber espionage and the theft of U.S. intellectual property and technology : hearing before the Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce, House of Representatives, One Hundred Thirteenth Congress, first session, July 9, 2013.

The desire to steal the intellectual property (IP) of others, be they creative individuals or company teams working in patent pools to create new innovations, remains the same. Political methods have become more sophisticated in terms of devaluing the output of creative humans by creating open- source access, which can be taken freely by all and sundry. What has changed is the new cyber- based technology that allows increased theft of IP. Likewise, warfare for geo- political imperatives is not new but sophisticated cyber- based methods that can actually carry out infrastructural damage through cyberspace are new and are accordingly termed cyberwarfare. How cyber strategies are used in IP theft and cyberwarfare in relation to new complex digital technology such as the Internet of Things (IoT) is explored in relation to particular essential sectors in the economy: marine, smart energy power grids and insurance. Country- specifi c studies based on either being the recipient or perpetrator (or both) of cyberattacks provide analysis in relation to Japan, China and North Korea, Russia, Europe (the UK in particular), Iran and the USA.

The threats of economic espionage and intellectual property (IP) theft are global, stealthy, insidious, and increasingly common. According to the U.S. Commerce Department, IP theft is estimated to top $250 billion annually and also costs the United States approximately 750,000 jobs. The International Chamber of Commerce puts the global fiscal loss at more than $600 billion a year. Secrets Stolen, Fortunes Lost offers both a fascinating journey into the underside of the Information Age, geopolitics, and global economy, shedding new light on corporate hacking, industrial espionage, counterfeiting and piracy, organized crime and related problems, and a comprehensive guide to developing a world-class defense against these threats. You will learn what you need to know about this dynamic global phenomenon (how it happens, what it costs, how to build an effective program to mitigate risk and how corporate culture determines your success), as well as how to deliver the message to the boardroom and the workforce as a whole. This book serves as an invaluable reservoir of ideas and energy to draw on as you develop a winning security strategy to overcome this formidable challenge. It’s Not “Someone Else’s Problem: Your Enterprise is at Risk Identify the dangers associated with intellectual property theft and economic espionage The Threat Comes from Many Sources Describes the types of attackers, threat vectors, and modes of attack The Threat is Real Explore case studies of real-world incidents in stark relief How to Defend Your Enterprise Identify all aspects of a comprehensive program to tackle such threats and risks How to Deliver the Message: Awareness and Education Adaptable content (awareness and education materials, policy language, briefing material, presentations, and assessment tools) that you can incorporate into your security program now

Alleged Chinese cyber economic espionage periodically fills headlines, Internet security company reports, Congressional hearing transcripts, and official (and semi-official) pronouncements. Despite the apparent recognition of a problem, the U.S. has been seemingly ineffective in deterring or dissuading continued Chinese cyber activity--despite the potential significant impact to economic and national security. While accurate calculations on the cost of stolen intellectual property to U.S. businesses are nearly impossible to determine, some estimates suggest hundreds of billions of dollars per year--independent of broader and more sinister implications for the future of U.S. competitiveness. Why China, apparently, believes it must steal at the expense of the United States, and why the United States has been unable to stem it, are crucial national security questions. An analysis of China's strategic ambitions, coupled with national policies designed to achieve them, illuminate possible answers. Similarly, an examination of the U.S. response during the Obama Administration highlights the interplay between policy development and the influence of domestic politics, corporate interests, and narratives.For the strategically compelling issue of cyberspace and Chinese economic espionage, the administration similarly seemed to wander. One of the most significant proclamations designed to inform the public about an alleged nexus between America's rising competitor and the widespread theft of corporate secrets came not from the government but instead, three years into the president's first term, from retired government officials (who, admittedly, were likely acting as proxies). In a January 2012 editorial in the Wall Street Journal, Vice Admiral (ret.) Mike McConnell (former Director of National Intelligence as well as Director of the National Security Agency), Michael Chertoff (former Secretary of the Department of Homeland Security), and William Lynn (former Deputy Secretary of Defense) were clear: "The Chinese government has a national policy of economic espionage in cyberspace. In fact, the Chinese are the world's most active and persistent practitioners of cyber espionage today." The cost to the United States--in terms of competitiveness, innovation, dollars, and jobs--is "potentially catastrophic."An examination of how the United States has responded provides additional insights. Because cyber-enabled economic espionage has as its distinguishing feature cyberspace, which is neither exclusively public nor private, responses span political and social levels and are generally within the broader context of cybersecurity. Given that much of the publicly available debate of Chinese cyber economic espionage has occurred since President Obama assumed office, the chronology of government action between 2009-2015 highlights an incremental approach filled with tension. Recognizing the limits of executive action, particularly since economic espionage targets the private sector, the administration has sought legislation that would better enable cooperation between the government and businesses. Yet domestic politics, corporate interests, and a meandering narrative likely inhibited policies that would both improve U.S. cybersecurity (and therefore defense against cyber economic espionage) and change Chinese behavior.

Although every country seeks out information on other nations, China is the leading threat when it comes to the theft of intellectual assets, including inventions, patents, and R&D secrets. Trade Secret Theft, Industrial Espionage, and the China Threat provides an overview of economic espionage as practiced by a range of nations from around the world—focusing on the mass scale in which information is being taken for China's growth and development. Supplying a current look at espionage, the book details the specific types of information China has targeted for its collection efforts in the past. It explains what China does to prepare for its massive collection efforts and describes what has been learned about China's efforts during various Congressional hearings, with expert advice and details from both the FBI and other government agencies. This book is the product of hundreds of hours of research, with material, both primary and secondary, reviewed, studied, and gleaned from numerous sources, including White House documentation and various government agencies. Within the text, you will learn the rationale and techniques used to obtain information in the past. You will see a bit of history over centuries where espionage has played a role in the economy of various countries and view some cases that have come to light when individuals were caught. The book supplies an understanding of how the economy of a nation can prosper or suffer, depending on whether that nation is protecting its intellectual property, or whether it is stealing such property for its own use. The text concludes by outlining specific measures that corporations and their employees can practice to protect their information and assets, both at home and abroad.