Understanding Cybercrime: Theft of Intellectual Property - Janine Hollesen


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Understanding Cybercrime: Theft of Intellectual Property - Janine Hollesen

  1. 1. THEFT OF INTELLECTUAL PROPERTY Janine HollesenFollow this event on Twitter: #Cybercrime
  2. 2. DIGITAL AGEWorldwide : 2 billion internet usersWorldwide : 294 billion emails and five billion sms’s dailySouth Africa : end of 2011 = 8.5 millionIncrease of 25% from 20107.9 million South Africans access internet from cell phonesNew technologies : smart phones, tablets, flash drives increases the risk of theft and piracy Follow this event on Twitter: #Cybercrime 2
  3. 3. INTELLECTUAL PROPERTY Patents = invention used or applied in trade, industry, agriculture New product, process, device or improvement Territorial and registered right Trade mark = distinguishing goods and services Territorial and registered right Designs = appearance i.e. shape, configuration, pattern or ornamentation of an article manufactured in an industrial process Aesthetic vs Functional designs Territorial and registered rights Follow this event on Twitter: #Cybercrime 3
  4. 4. INTELLECTUAL PROPERTYCopyrightConcerned with works as defined in the Copyright ActNo registration in SAGeneral legal requirements are met i.e. original and in a material formProtection granted in other territories who are signatories to the Berne ConventionLiterary works – anything that is written regardless of the literary quality thereof or the mode or form in which it is expressed Follow this event on Twitter: #Cybercrime 4
  5. 5. COPYRIGHT Musical works – music, excluding any words or actions intended to be sung, spoken or performed Artistic work – works of art including drawings, photographs, works of architecture and works of craftsmanship Cinematograph Film – fixation of material / data / signals capable of being seen as a moving picture Sound recording – fixation of sounds Computer programme – set of instructions which directs the operation of a computer Follow this event on Twitter: #Cybercrime 5
  6. 6. TRADE SECRETS / KNOW-HOWTrade secrets / Know-howTrade Secret - information which is not generally available and which gives the owner a competitive advantageKnow-how = similar to trade secretsBody of knowledge, the components of which may be individually known, but the compilation has competitive value Follow this event on Twitter: #Cybercrime 6
  7. 7. WHAT CAN BE STOLEN?Ideas / inventions / creative expressionsProductsDesignsProduct specificationsProcess information and methodologiesChemical formulaManufacturing processBusiness method Follow this event on Twitter: #Cybercrime 7
  8. 8. WHAT CAN BE STOLEN? Supplier lists Parts specifications Quality assurance Testing procedures Research and development outputs Product prototypes Documents setting out business process methodologies and corporate strategies Business decision-making Staff details, including personal information, skill sets and remuneration levels Company capabilities and weaknesses Follow this event on Twitter: #Cybercrime 8
  9. 9. Follow this event on Twitter: #Cybercrime 9
  10. 10. TRADE SECRET / KNOW-HOWCore business asset = company’s competitiveness to create market advantageMust be kept a secretSteps must be taken to ensure security of the informationInformation should be marked “confidential”Confidentiality / NDA agreementsDuration : For as long as secrecy is maintained Follow this event on Twitter: #Cybercrime 10
  11. 11. MEASURES Follow this event on Twitter: #Cybercrime 11
  12. 12. EXPLOITATION OF STOLEN IP?Manufacturing the same product (only if no statutory IP protection)Selling the IP - depend on whether the IP can be commercially exploitedManufacturing a similar product utilising the underlying concept without the delay and R&D costsPre-empting a marketing initiative of a rivalMarketing of a product with the same trade mark prior to the launch of the rival’s product Follow this event on Twitter: #Cybercrime 12
  13. 13. EFFECT OF THEFT AND USE OF IPErosion of competitive advantageLoss of salesReputational damageReduction in potential investment Follow this event on Twitter: #Cybercrime 13
  14. 14. EXAMPLES Former employee was convicted of exporting sensitive military technology to China Thousands of electronic files were stolen from employer which detailed the performance and design of guidance systems for missiles, rockets, target locators and unmanned aerial vehicles. The US spends billions of dollars annually on R&D which if used by a third party could result in rapid development of rival products without the significant cost Significant penalties and fines in the US SA – damages to be proved Follow this event on Twitter: #Cybercrime 14
  15. 15. EXAMPLES Pittsburgh Corning Corp : two people charged with trying to purchase trade secrets for $100,000 to open rival plant in China DuPont, US chemical company : 2 former employees and a third party conspired to steal trade secrets about a technology for Panang Group (one of China’s largest titanium pigment producers) DuPont has also filed a civil case DuPont : South Korea’s Industries hired ex- employees of DuPont to steal confidential information regarding a particular product. DuPont was awarded $1 billion in damages Follow this event on Twitter: #Cybercrime 15
  16. 16. CONCLUDING REMARKS The pervasiveness of digital platforms Increase in internet users Introduction of new technologies The speed with which information can be exchanged Contributory factors to assist in the age old crime of stealing, with the utilisation of sophisticated methods Follow this event on Twitter: #Cybercrime 16
  17. 17. THANK YOU Janine Hollesen 11 October 2012Nothing in this presentation should be construed as formal legal advice from any lawyer or this firm. Readers areadvised to consult professional legal advisors for guidance on legislation which may affect their businesses. © 2012 Werksmans Incorporated trading as Werksmans Attorneys. All rights reserved. Follow this event on Twitter: #Cybercrime