Looks like Congress held a hearing about Corporate Espionage. Very interesting tid bits came out of this. Like the following.
Mr. Charney. I would just like to build on this question a
moment because when I was chief of the computer crime section,
I can tell you that prosecutors salivate over cases like these.
You know, the first case out of the box was the Four
Pillars case, which went to trial. We convicted the president
of a corporation from Taiwan for stealing secrets from Avery
Dennison. These are good cases with sex appeal. That is not the
problem.
If you look at the Computer Security Institute's surveys,
however, they have done surveys on computer crime from 1996 to
the year 2000, and in the year 2000 survey what they said was
one of the most remarkable statistics on computer crime--not
just trade secrets, but computer crime--was the rapid increase
in the number of companies willing to report to law
enforcement. It had gone all the way up to 32 percent.
You know, one victim out of three was now willing to report
to law enforcement, up from 17 percent the year before, so if
you have between one and two, you know, in every 100 cases you
have roughly 17 reported. That is not a very high statistic.
I think there is a lot of difficulty within the corporate
environment in making the determination about whether you
handle this civilly, whether you cut your losses, remediate and
get your business up and running again and seek damages through
civil action or whether you go to law enforcement.
That is a tough call because when you go to law enforcement
you get far more publicity than you might want. Then you have
to worry about shareholders and investors and public relations.
Mr. Manzullo. Loss of confidence.
Mr. Charney. Loss of confidence. It is a hard call for a
CEO whose primary responsibility is to protect the assets of
the corporation and not to----
Mr. Manzullo. Especially in light of the fact that the
penalties are so minimal. That goes back to what you were
saying. Do companies then opt for civil action, or do they just
take it on the chin?
Mr. Charney. No. I am actually now on the private side, and
the cases that we have been investigating for companies is for
civil suit purposes, not to go to law enforcement.
For clairfication on their identities read the report here:
www.fas.org...