intellectual property protection · intellectual property theft magnitude recent statistics from...

Intellectual Property ProtectionIntellectual Property ProtectionGlobal Enforcement Challenges

Fourth Global Conference on Intellectual Property RightsUnited Nations Economic Commission for Europe (UNECE)Geneva, SwitzerlandJuly 8, 2010

Ram ManchiPresident and Chairman of the Board of Directors

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1

President and Chairman of the Board of DirectorsAlliance for Gray Marketing & Counterfeiting Abatement

Agenda

1. Overview of AGMA

Who are we, Membership & Charter

2. Key aspects of IP compromise y p p

3. Global challenges for IP Protection

4 C t di i IP4. Case studies on various IP areas

5. IPP issues in the context of the USA

6. Reference resource

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 22Ram Manchi – AGMA - July-08-2010

AGMA Overview

Who are we?

The Alliance for Gray Market and Counterfeit Abatement is an industry group composed of l di hi h t h l ileading high technology companies.

Our mission is to collectively address the l b l i t d i f i t ll t lglobal impact and issues of intellectual

property rights caused by gray markets, parallel imports, counterfeiting, software piracy, patent infringement, warranty and service abuse on the technology industry.


AGMA Membership


AGMA focus and charter

We promote and facilitate

Best practices and knowledge sharing

Whitepapers & benchmarking studies

Showcasing leading edge solutions g g g

Industry education and awareness

Law enforcement engagement Law enforcement engagement

Influence government policy

Case studies & workshops IP

Counterfeiting

Service Gray IP Case studies & workshops IP Abuse

Software, Patents& Copyright Abuse

yMarketing IP


& Copyright Abuse

Key aspects of IP compromise

Vectors Enablers Employees

Competitor

Organized Criminals

Weak Network security

Lack of Education & Policy

Social engineering g

Nation/State

g g

Control deficiencies

ImpactMotives Monetary Financial Competitive edge

Rivalry & revenge

Adventure

Business survival

Investments in innovation

Social & human harm


Adventure Social & human harm

Global Challenges in IPP Enforcement

Enforceability and capability

Local laws and governance

Education and awareness

Political & cultural factors

Resources and priorities

Indigenous IPP priority

Virtual Globalization

New technologies


Case Studies

CASE IP BREACH

Samsung – Applied ‐ Hynix Technology

Hilton ‐ Starwood Trade secrets – business plans

Eurocopter ‐ SVR Engineering plans

Cisco – Huawei Software

Sigmatel‐Citroen Patented technology

l d ll f h b !!!NEC company cloned All of the above !!!


Intellectual Property theft magnitude

Recent Statistics from the U.S. Bureau of Customs and Border Patrol show:

IPR i i th U S i d 85% f 8 022 t 14 841IPR seizures in the U.S. increased 85%, from 8,022 to 14,841 between 2005‐2009.

Domestic value of these goods increased by 179% to $260.7 million from $93.2 million. This is just what was actually caught.

The U.S. Chamber of Commerce estimates that per year, broad IP theft costs domestic companies:broad IP theft costs domestic companies:

Up to $250 billion in lost revenue; 750,000 lost jobs.


IPP Enforcement Challenges in the US

The US has a complex apparatus for supporting intellectual property rights, pp g p p y g ,with responsibilities cutting across many different federal government agencies.agencies.

Lack of coordination and performance measures . No integrated approach across key offices to guide and improve IP enforcement.

C t ffi i l ith i iti Customs officials with many priorities to weigh generally give IP enforcement less priority


IP Protection in the US – moving forward

The US 2010 Joint Strategic Plan on Intellectual Propertyon Intellectual Property Enforcement was just announcedto be lead by Victoria Espinel

The US Congress is drafting new Customs legislation to increaseCustoms legislation to increase resources for IP enforcement


Conclusion

1. IP compromise is the biggest and growing global threat that is critically disruptive and impactingthreat that is critically disruptive and impacting global economy

2. AGMA member companies are investing resources to combat IP theft through enhancing controls within their scope

h i h i ifi3. The US government now recognizes the significance and magnitude of the problem and new laws are being worked g

4. Global organizations such as UNECE helping increase awareness and influencing the global law makers


Reference resource

Secrets Stolen, Fortunes LostFortunes Lost Preventing Intellectual Property Theft and Economic Espionage in the 21st Centuryy

This book offers both a fascinating journey into the underside of the Information Age, geopolitics, and global economy, shedding new light on corporate hacking, industrial

i t f iti d iespionage, counterfeiting and piracy, organized crime and related problems, and a comprehensive guide to developing a world class


guide to developing a world‐class defense against these threats.

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