Page 2 - White-Collar Crime

S2 | MONDAY, SEPTEMBER 29, 2014 | White-Collar Crime
| NYLJ.COM

Cyber Crime
BY JONATHAN G. CEDARBAUM

AND JANE LOVE
L
And Trade Secret Protection: ike almost every other kind of economic
activity, theft of intellectual property is
increasingly moving to the digital domain.
The indictment by the Justice Department
Strengthening Defenses
this spring of ive members of China’s military
for economic espionage through sophisticat-
ed computer hacking threw onto the front

pages an issue that has increasingly agitated
not only the growing number of corporate
victims but also enforcement and regulatory
authorities in both the United States and the
European Union: how to combat the theft
of valuable IP by sophisticated, often gov-
ernment-sponsored, cyber intruders located
around the globe.

The 2013 report of the blue ribbon Com-
mission on Theft of American Intellectual
Property, chaired by former Director of
National Intelligence Admiral Dennis Blair
and former U.S. Ambassador to China John
Huntsman Report, put the value of stolen U.S.
IP at a staggering $300 billion per year. The
Obama Administration has responded with a
“Strategy on Mitigating Theft of U.S. Trade

Secrets,” and Congress has responded by
strengthening federal laws against trade secret
misappropriation and by considering bills to
strengthen further both criminal and civil rem-
edies for trade secret theft, particularly by cyber
thieves from overseas. In November 2013, the
EU took a major step toward addressing the
problem as well, with a draft directive on trade
secret protection that would both strengthen EU

laws against trade secret theft and bring them
into closer alignment with U.S. law.
This article describes the dimensions of
the problem of cyber theft of IP, explains
how the problem has gained the attention
of policymakers, and reviews the executive
and legislative initiatives moving forward in
the United States and the EU to combat the

problem.

Dimensions of the Problem

In October 2011, the National Counterin-
telligence Executive—a consortium of U.S.

JONATHAN G. CEDARBAUM is a partner at Wilmer
Cutler Pickering Hale and Dorr in Washington, K
D.C. JANE M. LOVE is a partner at the firm’s New TOC
York office.
GS
BI

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