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Technology and Intellectual Property Protection in a Global Economy AUVSI Symposium

Technology and Intellectual Property Protection in a Global Economy AUVSI Symposium. Gregory S. Witkop, M.D. Special Agent, FBI Basic and Applied Research Consultant, Critical National Asset Unit Strategic Partnership Coordinator, Seattle Division

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Technology and Intellectual Property Protection in a Global Economy AUVSI Symposium

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  1. Technology and Intellectual Property Protection in a Global EconomyAUVSI Symposium Gregory S. Witkop, M.D. Special Agent, FBI Basic and Applied Research Consultant, Critical National Asset Unit Strategic Partnership Coordinator, Seattle Division Affiliate Scientist, UW Applied Physics Laboratory UNCLASSIFIED

  2. The Great Game • From time to time, God causes men to be born who have a lust to go abroad at the risk of their lives and discover news – today it may be of far off things, tomorrow of some hidden mountain, and the next day of some near by men who have done a foolishness against the State. We of the Game are beyond protection. If we die, we die. Our names are blotted from the book. When everyone is dead the Great Game is finished. Not before. • Rudyard Kipling’s Kim

  3. Traditional Threat • “Many people assume the end of the Cold War made the world of cloak-and-dagger obsolete. Unfortunately, espionage is still very much with us. Nations will always try to learn one another’s secrets to gain political, military, or economic advantage. Indeed, the foreign intelligence presence operating in the United States is roughly the same as it was during the Cold War.” • Robert S. Mueller, III – Director, FBI 11/17/2011

  4. Asymmetric Threat • “ Apart from the more traditional types of espionage, today’s spies are just as often students, researchers, businesspeople, or operators of “front companies”. And they seek not only state secrets, but trade secrets from corporations and universities-such as research and development, intellectual property, and insider information.” • Robert S. Mueller, III – Director, FBI 11/17/2011

  5. Cyber Threat • “ I am convinced that there are only two types of companies: those that have been hacked and those that will be. And even they are converging into one category: companies that have been hacked and will be hacked again.” • Robert S. Mueller, III – Director, FBI 03/01/2012

  6. Commercial / ITAR Threat • “At least 108 countries have full fledged procurement networks that work through front companies, joint ventures, trade delegations and other mechanisms to methodically target our government, our private industries, and our universities.Assistant Attorney General Kenneth WeinsteinOctober 2007

  7. Risks when we sell… COUNTRY 1 OPERATIONAL THREAT: COUNTRY 1 CHANGES FROM A FRIENDLY COUNTRY TO A THREAT COUNTRY. COUNTRY 2 COMPETITIVE THREAT: COUNTRY 2 USES TECHNOLOGY GAINED TO FURTHER ITS INDUSTRIAL BASE & GAIN MARKET SHARE. TRANSFER CAPABILITY OR TECHNOLOGY OR BOTH COUNTRY 3 PROLIFERATION THREAT : COUNTRY 3 INTENTIONALLY OR UNINTENTIONALLY RELEASES TECHNOLOGY, PROLIFERATION RESULTS IN THREAT COUNTRIES GAINING TECHNOLOGY. COUNTRY 4 PRECEDENCE THREAT : RELEASE TO COUNTRY 4 NECESSITATES RELEASE TO OTHER COUNTRIES RESULTING IN PROLIFERATION AND THREAT COUNTRIES GAINING TECHNOLOGY. UNCLASSIFIED

  8. PRC J-10 F-16 UNCLASSIFIED

  9. Commercial Tactical Response • Continue export vigilance- report not only “unusual” but rejectedDomestic Sales – Every sale is an export i.e. know end users, all invoices have export controlled warningAccounting – alert to shipping destination payment origination discrepanciesActive Measures – Prosecutions are nice. Disruption is Better!

  10. Cyber Tactical Response • “Assume Breach” – Kirk Bailey, CISO UW • Buy In – “easy” things are hard i.e. update patches, change passwords, unknown = unopened • Clean machines whenever travel outside of US • Reverse firewalls • Compartmentalize – need to know = need to access; no need to know = no access

  11. Insider Threat Tactical Response • “Mind the Gap” – emotional, social, financial changes • Anonymous reporting • Banners • Linear relationship between responsibility / access and transparency i.e. CEO, CEO Admin, Program Directors and Systems Administrators should be most transparent not only because could do most harm but more importantly avoids adversarial culture

  12. Proactive Risk Mitigation • Taxonomy of Risk • Reporting • Security Responsibility • Counterintelligence Responsibility • Corporate Responsibility • Individual Responsibility

  13. Taxonomy of RiskThreat Vectors • Human (witting) + Technical – Inside (collection technology / hardware / software) = air gaps, specificity, targeting, justified access • Human – Inside (unwitting) + Technical • Technical - Outside • Human - Outside

  14. Insider Threat – Greatest Challenge • Modern era – 2 greatest traitors, Ames and Hanson, worked for the CIA and FBI. Their success proves how difficult it is to deal with this threat. • Myriad of psychological, ethical, and sociological reasons prevent reporting of suspicious behavior

  15. National Industrial Security Program Operating Manual • “The contractor shall promptly submit a written report to the nearest field office of the FBI, regarding information coming to the contractor’s attention concerning actual, probable, or possible espionage, or subversive activities at any of its locations. An initial report may be made by phone, but if must be followed in writing, regardless of the disposition made of the report by the FBI. A copy of the written report shall be provided to the CSA” • Chapter 1, Section 3, Paragraph 301

  16. Risk Mitigation = SecurityKeeping the Adversary Out • Security is necessary but not sufficient – all the guns, gates, guards, badges, passwords, firewalls, and classification systems in the world will not defeat our adversaries

  17. Risk Mitigation CounterintelligenceKeeping the Adversary Close • Counterintelligence is necessary but not sufficient – all the threat and vulnerability assessments, understanding of motivations, and even active measure programs are not enough to defeat our adversaries

  18. Risk Mitigation = Corporate Responsibility • Ownership • Trust / Respect • Creativity • Meaning

  19. Risk Mitigation = Individual Responsibility • Security System + Counterintelligence Strategy + Corporate Responsibility + Individual Responsibility is necessary and sufficient • Ultimately no one can defend your house other than you

  20. Thank you Greg Witkop, M.D. Special Agent, Seattle Division (206) 262-2177 Gregory.Witkop@ic.fbi.gov UNCLASSIFIED

  21. Espionage Statutes • 18 USC 794 – Espionage Statute • 1 Transmittal 2 National Defense Information 3 To an Agent of a Foreign Power 4 With Intent to Injure U.S. or Aid Foreign Power • 50 USC 783 -- Unauthorized Disclosure • A "Filler" Statute • 1 U.S. Government Employee • 2 Who Knowingly Transmits • 3 Classified Information • 4 To a Foreign National

  22. Economic Espionage Act of 1996 • Economic Espionage – 18 USC 1831 • - “Economic espionage is (1) whoever knowingly performs targeting or acquisition of trade secrets to (2) knowingly benefit any foreign government, foreign instrumentality or foreign agent.” • Theft of Trade Secrets – 18 USC 1832 • - Commonly called Industrial Espionage • - “Theft of trade secrets is (1) whoever knowingly performs targeting or acquisition of trade secrets or intends to convert a trade secret to (2) knowingly benefit anyoneother than the owner.”

  23. Bayes Theorem • Given some phenomenon (A) that we want to know about, and an observation (X) that is evidence relating to A, Bayes’ theorem tells us how much we should update our knowledge of A, given the new evidence X • Gives a mathematical basis for belief i.e. probability

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