Background
c According to the World Intellectual Property Organization (WIPO),
the term "intellectual property" “refers to creations of the mind, such
as inventions; literary and artistic works; designs; and symbols, names
and images used in commerce.” In the U.S., there are several types of
intellectual property, which include patents, trademarks, copyrights,
and trade secrets (Stopfakes.gov, n.d.). The theft of Intellectual
Property occurs when someone steals or rob from an individual or
company, their ideas, inventions, creative works, etc. and using it for
their personal gain. In this informal briefing paper, I will explain the
problems and issues related with Intellectual Property Theft and ways
organizations can protect intellectual property stored in digital form
and how to mitigate any problems that has arisen as a result of
intellectual property theft.
c As technology continues to expand and evolve, Intellectual Property
theft continues to rise and be a problem. c Padgett-Beale takes security
and the theft of Intellectual Property very serious and recently
conducted an investigation into a series of Intellectual Property thefts
involving proprietary information being sent to a number of our
competitors. In one situation, copies of confidential architectural
drawings and designs for a new resort was sent to a competitor.
Results of the investigation has revealed that the copies were provided
through an economic development office within that particular
country’s government and it is suspected that an Advanced Persistent
Threat mechanism was used to steal information from Padgett-Beal.
c “An advanced persistent threat (APT) is a covert cyber-attack on a
computer network where the attacker gains and maintains
unauthorized access to the targeted network and remains undetected
for a significant period. During the time between infection and
remediation the hacker will often monitor, intercept, and relay
information and sensitive data. The intention of an APT is to exfiltrate
or steal data rather than cause a network outage, denial of service or
infect systems with malware” (Cisco, n.d.). c In addition, during the
investigation it was determined that an additional theft occurred as
another competitor contacted Padgett-Beale’s Corporate Security
office and informed them that an unknown party has provided them
with URLs for web pages containing links to resort plans.
Consequences of Intellectual Theft
c “Companies face substantial losses as a result of IP theft. The
Commission on the Theft of American Intellectual Property estimates
that annual costs from IP losses range from $225 billion to $600
billion. It’s also worth noting that the loss of IP is different from other
types of loss. Stolen or damaged inventory or vehicles can be replaced
through insurance, but the effects of stolen IP truly cannot be canceled
out. IP infringement may rob a company of revenue and put downward
pressure on its prices” (Sadler, 2021).
Problems with Protecting Intellectual Property in Digital Form
c c Protecting Intellectual Property in Digital Form is challenging
because of the rapid growth of technology. One popular form of
Digital Intellectual Property theft is in the form of Digital Piracy.
Digital Piracy is defined as the illegal distribution of copyrighted
material which includes the illegal access and downloading of a song,
movie, software, e-book, etc. It is challenging to prevent digital piracy
because it is hard to detect the crime at the time and once detected, it
is difficult to catch the criminals.
Process and Procedures for Preventing and Mitigating Intellectual
Property Theft
c c There are a number of ways in which Padgett-Beale can mitigate
Intellectual Property theft. The first and most important way is
through employee education and training. It is imperative that
employees understand the importance of protecting Intellectual
Property while also knowing the consequences of Intellectual Property
Theft.
c Secondly, implementing Segregation of Duties to prevent one
person from having total control over any business task is vital to the
security Padgett-Beale. When duties are segregated it prevents the
potential for insider threats and crimes to take place. “Segregation of
duties takes one task and divides the task into two or more phases,
jobs, or components. No one individual should have complete control
over a process. By limiting control over a process, it provides a barrier
to a fraud potentially being committed” (Jacy, 2020).
c Thirdly, It is imperative that Padgett-Beale ensure that all operation
systems and software is up to date. c “Operating system and software
updates are not only important from a functionality standpoint, they
also contain critical security updates that patch vulnerabilities. Where
possible, enable automatic software updates to streamline the process
and ensure you (and your staff) are always up to date. Leaving
machines unpatched is a major gap in a company’s security posture and
should be avoided at all costs” (Brook, 2019).
c Another form of prevention is through the concept of Least
Privilege. Least Privilege restricts and limits access rights to only those
individuals who have a need to access data for the purposes of
performing their work, a specific task and nothing more. Least
privilege is important to Padgett-Beale because it mitigates damages as
a result of Intellectual Property theft, cyber breaches and other forms
of cybercrimes.
c Lastly, Data Classification and Markings are essential to the
protection of proprietary information and company data. c It is
imperative that Padgett-Beale utilize classification markings on all
official and sensitive data in order to secure vital company information
and determining the classification level of data and who needs and has
the adequate security clearances to access. c If an organization doesn’t
have a data classification process in place then it will be extremely
difficult to protect critical data.
Recommended Best Practices for Implementation
c c There are several Best Practices recommended for Padgett-Beale to
implement to respond to the growing problem of Intellectual Property
theft. c The below recommendations are but a few of the many
recommendations offered to organizations:
• Monitor employee and vendor activity to ensure Padgett-Beale’s
resources are being used appropriately.
• Provide regular training and education to all employees. It is
important for Padgett-Beale to educated and train all employees
on ways to prevent accidental and unintentional data leaks and
the consequences of Intellectual Property theft.
• Have a robust risk management program to identify cybersecurity
risks and vulnerabilities. Simulated cyber attacks should be
conducted by the organization’s security team to exploit risks and
vulnerabilities.
• Review user access to IP. c “A periodic review of user access to
sensitive data is a great practice that helps you reduce the risk of
privilege abuse and security breaches. A user access review aims
to limit users’ access to critical data and resources to information
they need for their work routines. It re-evaluates user roles,
access rights and privileges, and user credentials” (7 Best
Practices to Prevent Intellectual Property Theft, 2021).
• Create and Implement a Data Security Policy. Creating a Data
Security Policy outlines and makes employees aware of the
required guidelines and rules as it relates to data security.
In conclusion, Intellectual Property theft is on the rise but it is not an
issue that can not be mitigated or eradicated if the proper
recommendations are adhered to. In order to understand the impact
Intellectual Property theft has on an organization, one must understand
Intellectual Property and why it happens. c c
References
Brook, C., (2019). Ten Steps to Stop Intellectual Property Theft. c
Retrieved from
c https://digitalguardian.com/blog/ten-steps-stop-intellectual-
property-theft
Cisco, (n.d.). c What Is an Advanced Persistent Threat (APT)? Retrieved
from
c https://www.cisco.com/c/en/us/products/security/advanced-
persistent-threat.html
Jacy, (2020). What is Segregation of Duties and why are they
important? Retrieved from
c https://accountinginternalcontrols.com/segregation-of-duties/
Sadler, R., (2021). Mitigating Losses from Intellectual Property Theft. c
Retrieved from
c https://www.treasuryandrisk.com/2021/02/04/mitigating-losses-
from-intellectual-property-
c theft/?slreturn=20220324200715
Stopfakes.gov., (n.d.). Protecting Intellectual Property in the United
States: A Guide for Small
c and Medium-Sized Enterprises in the United Kingdom. Retrieved
from
c https://www.uspto.gov/sites/default/files/documents/UK-SME-IP-
Toolkit_FINAL.pdf
7 Best Practices to Prevent Intellectual Property Theft. c Retrieved from
c https://www.ekransystem.com/en/blog/best-practices-to-prevent-
intellectual-property-
theft#:~:text=7%20best%20practices%20to%20prevent%20intellectual
%20property%20theft,it%E2%80%99s%20extremely%20important%20
to%20educate%20them%20about%20cybersecurity.
