INTELLECTUAL PROPERTY RIGHTS CYBER CRIME · • The Administrative, ... • Blueprints, such as for...

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UNIT CHIEF JOHN KIM

U.S. EMBASSY MANILA

LEGAL ATTACHE, FBI

INTELLECTUAL

PROPERTY

RIGHTS &

CYBER CRIME

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Why Should We Care About Cybercrime?

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• Consumer cost of cybercrime in 2015: $158 billion

• 429 million Personal Records were stolen

– Over 1 million victims per day

• 12 victims per second

• 41% of online adults have fallen victim to attacks

(malware, viruses, hacking, fraud, etc.)

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Why Should We Care About Cybercrime?

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[The loss of industrial information and intellectual

property through cyber espionage constitutes the]

"greatest transfer of wealth in history."

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Current & Emerging Threats

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The FBI’s Role in IPR

• “To promote the progress of science and the

useful arts, by securing for limited times to

authors and inventors the exclusive right to their

writings and discoveries”

– Article I, Section 8, Clause 8, U.S. Constitution

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One of Our Oldest Laws

• Major Threats Through the Decades: Gangsters

Sabotage/Spies (WWII)

Soviet Threat

Organized Crime

Financial Crimes

Counterterrorism

Cyber Crimes

• Currently about 35,000 employees

• Headquartered in Washington, DC 56 Field Offices

400+ Resident Agencies

70+ Legal Attaches and Sub-Offices

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The FBI’s IPR Enforcement Mission

• Disrupt and dismantle domestic and international

criminal organizations and individuals that manufacture

or traffic in counterfeit and pirated goods, and/or steal,

distribute, or otherwise profit from the theft of intellectual

property.

• Investigative Priorities:

Theft of trade secrets (non-state sponsored)

Threats to public health and safety

Copyright and trademark cases involving:

National security

Organized crime

Significant economic impact

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Statutory Authority

• Theft of Trade Secrets /Economic Espionage (18 U.S.C. § 1831/1832)

• Copyright Infringement (§ 2319)

• Trademark Infringement (§ 2320)

• Trafficking Counterfeit Labels (§ 2318)

• Signal Theft (§ 2511)

• DMCA (§ 1201)

• Other Charges: Wire Fraud (§ 1343)

Mail Fraud (§ 63)

False Statements (§ 1001)

CFAA (§ 1030)

False Registration of a Domain Name (§ 3559)

CAN SPAM (§ 1037)

Money Laundering (§ 1956/1957)

Conspiracy (§ 1961)

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The FBI’s Role in IPR


Civil

Patents

Trade Secrets

Criminal

Copyrights

Trademarks

Trade Secrets

Broadcasts (“Signals”)

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Impact of IPR Violations

Drug Trafficking $320B

Counterfeit & Pirated Goods $250B

Wildlife Trafficking

$19B

Illegal Oil Trade

$11B

Human Trafficking

$32B

Illegal Logging

$10B

Illegal Fishing Trade $10B

Human Organ Trafficking $600M

Source: Economist-Apr 29, 2013

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Challenges: Perception vs. Reality

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Challenges: Perception vs. Reality


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Challenges: Changing Global Trade


0

1

2

3

2013 2018

Trill

ion

s U

SD

Growth in E-Commerce Trade

USA Global

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Challenges: Changing Global Trade


Mail/Express

Consign-ments

Cargo and Other

% Total Value of IPR Seizures, 2014

Mail/Express

Consign-ments

Cargo and Other

% Total Value of IPR Seizures, 2007

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Solutions: Improving De-Confliction


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National Intellectual Property Rights Center

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• In 1999, started with two agencies U.S. Customs and FBI

• In 2008, the IPR Center was enhanced with ICE, CBP, FBI, USPS, FDA, and DOC

• Today the IPR Center is a collaborative effort of 23 federal and international agencies

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INTELLECTUAL PROPERTY CODE OF

THE PHILIPPINES

• RA 8293

– Created the Intellectual Property Office

(http://www.ipophil.gov.ph/

• The Bureau of Patents;

• The Bureau of Trademarks;

• The Bureau of Legal Affairs;

• The Documentation, Information and Technology Transfer Bureau;

• The Management Information System and EDP Bureau; and

• The Administrative, Financial and Personnel Services Bureau.

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Philippine Authority

• R.A. 10372 An Act Amending Certain Provisions of Republic Act No. 8293, Otherwise known as

the "Intellectual Property Code of the Philippines", and for Other Purposes

• R.A. 8293 Intellectual Property Code of the Philippines

• R.A. 3720 Food and Drug Administration

• R.A. 8203 Special Law on Counterfeit Drugs

• R.A. 9239 Optical Media Act

• R.A. 10088 Anti-Camcording Act

• R.A.8792 E-Commerce Act

• R.A. 10175 Cybercrime Act

• Supreme Court Rules on Procedure for Intellectual Property Rights Cases (A.M. No. 10-3-10-SC)

• E.O 736 (Creation of National Committee on Intellectual Property Rights)

• Implementing Rules and Regulations on Republic Act 10515 or the Anti-Cable Television and

Cable Internet Tapping Act of 2013

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Industry Coordination

Law

Enforcement

Policy

Industry


Effectiveness o

f M

itig

ation A

ctivity

Range of Potential Mitigation Activities

LOW

HI

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Protection

• Intellectual property

• Proprietary technology

• May not be technology…

– PII

– Trade Secrets

– Business processes

– Customer management

– Privileged communications

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What Is a Trade Secret?

A trade secret is a formula, practice, process,

design, instrument , pattern, or compilation of

information which is not generally known or

reasonably ascertainable, by which a business can

obtain an economic advantage over competitors or

customers.

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• A trade secret is information that:

– is not generally known to the public;

– confers some sort of economic benefit on its

holder (where this benefit must derive

specifically from its not being generally

known, not just from the value of the

information itself);

– is the subject of reasonable efforts to maintain

its secrecy

What Is a Trade Secret?

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• Formulas for chemicals, drugs, cosmetics, foods, etc. •Industrial Processes

• Know-how, i.e., technical information relating to the practical application of patented or unpatented inventions.

• Blueprints, such as for a building or machinery.

• Computer software, to the extent it cannot be reverse engineered.

• Sources of supply, pricing information, identity of vendors or suppliers, and customer lists.

Examples of Trade Secrets

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Theft of Trade Secrets Case

• Defendant was a former research chemist for DuPont involved in

research of Organic Light Emitting Diodes (OLED)

• DuPont spent several million dollars in research and

development of OLED technology

• Defendant accepted a position as a faculty member at a Beijing

University while still employed by DuPont and without informing

the company

• Defendant emailed sensitive DuPont proprietary information

about the chemical process to his University email account,

uploaded the information to his personal computer using a thumb

drive, and mailed over 100 samples of intermediate chemical

compounds to his University office in Beijing

• In June 2010, defendant pleaded guilty to theft of trade secrets

• In October 2010, defendant sentenced to 14 months in prison

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• Original complaint from MPAA for illegal distribution

and streaming of movies still in theaters

• Subject sold counterfeit cancer medication to at

least 65 victims

• Admitted to selling more than 800 pirated copies of

business software valued at over $435,000

• Sentenced to 33 months in prison, $75,000 fine, and

$53,724 in restitution (Aug. 2010)

Health and Safety Case

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Law Enforcement Engagement

• Establish a working relationship with the Local Law

Enforcement Authorities before a breach

• Engage established LE contacts as early as

practical when a significant event occurs

• Private sectors and LE need to understood to work

together in order to defeat this threat.

• Sharing of information became critical in mitigating

and preventing this threat

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Key Points of Contacts

Threat Response Asset Response

National Bureau of Investigation (NBI) Cybercrime Division http://www.nbi.gov.ph Email: [email protected] Complaints Desk: +63-2-523-8231 local 3454/3455

Philippine National Police (PNP) Anti-Cybercrime Group (ACG) http://pnpacg.ph/main/ Cybersecurity Concerns: Email: [email protected] General cybercrime: Email: [email protected] Terrorism concerns: Email: [email protected] Women and Children Concern:

Email: [email protected] Complaint Action Center: +63 (02) 414-1560

Department of Justice (DOJ) Office of Cybercrime https://www.doj.gov.ph/office-of- cybercrime.html Email: [email protected]

Call: +63-2-523-8481 local 298

Department of Information and Communications Technology (DICT) Cybercrime Investigations and Coordination Center (CICC) http://www.dict.gov.ph/cybercrime- investigation-and-coordinating-center- cicc/ Email: [email protected] Complaints Desk: +63-2-920-0101 local 1200

Report suspected or confirmed cyber incidents, including when the affected entity may be interested in government assistance in removing the adversary, restoring operations, and recommending ways to further improve security.

National Privacy Commission (NPC) https://privacy.gov.ph/ Email: [email protected] Report suspected or confirmed cyber incidents, when the loss of personal data, PII, any other data defined in the Data Privacy Act of 2012.

If there is an immediate threat to public health or safety, the public should always call 911.

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1. Establishing/enforcing clear policies about confidential business

information;

2. Identifying technological and technical information deemed to be

secret;

3. Advising/training employees and others of the existence of trade

secrets;

4. Use of nondisclosure and confidentiality agreements with

employees and others;

5. Limiting access to trade secrets on a “need-to-know-basis”;

6. Controlling access to company files and facility locations;

7. Central control of blueprints and engineering drawings;

8. Use of security systems and guards;

9. Providing locked storage for sensitive information such as laboratory

notebooks;

10. Implementation of document protection and retention policies; and

11. Use of computer passwords and firewalls throughout organization.

Reasonable Efforts to Maintain Secrecy

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Reporting IPR - www.iprcenter.gov

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Reporting IPR in the Philippines

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http://www.ipophil.gov.ph/

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Joint Cybersecurity Working Group

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• What?

• In August 2016, the FBI in

partnership with Department Of

State, GPH, and private sector

companies, established an

interagency working group.

• Why?

• To promote intelligence sharing and

policy development between

Philippine public and private

sectors.

• When?

• The JCSWG meets monthly. We

will be conducting our Eighth

Meeting May 15th 2017.

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Some Private Members

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Government

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Reporting in the Philippines

Threat Response Asset Response

National Bureau of Investigation (NBI) Cybercrime Division http://www.nbi.gov.ph Email: [email protected] Complaints Desk: +63-2-523-8231 local 3454/3455 Philippine National Police: Anti-Cybercrime Group (ACG) http://pnpacg.ph/main/ Cybersecurity Concerns: Email: [email protected] General cybercrime: Email: [email protected] Terrorism concerns: Email: [email protected] Women and Children Concern: Email: [email protected] Complaint Action Center: +63 (02) 414-1560 Department of Justice (DOJ) Office of Cybercrime https://www.doj.gov.ph/office-of-cybercrime.html Email: [email protected]

Complaint Call: +63-2-523-8481 local 298

Department of Information and Communications Technology (DICT) Cybercrime Investigations and Coordination Center (CICC) http://www.dict.gov.ph/cybercrime- investigation-and- coordinating-center-cicc/ Email: [email protected] Complaints Desk: +63-2-920-0101 local 1200

Report suspected or confirmed cyber incidents, including when the affected entity may be interested in government assistance in removing the adversary, restoring operations, and recommending ways to further improve security.

National Privacy Commission (NPC) https://privacy.gov.ph/ Email: [email protected] Report suspected or confirmed cyber incidents, when the loss of personal data, PII, any other data defined in the Data Privacy Act of 2012.

mailto:[email protected]

mailto:[email protected]

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INTERNET CRIME COMPLAINT CENTER

WWW.IC3.GOV

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• Intelligence Center for Internet Enabled Crime

• iC3 was established in May 2000 • 262,813 complaints received in FY2013 for a total

reported loss of $700M

Romance Scams Auto Fraud Mass Marketing

Fraud

Extortion

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Questions?

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