China IP Theft and the World Economy Post-Mandiant

A conversation with Richard Marshall, CEO, X-SES; and Mark Anderson, Founder and Chair, INVNT/IP; hosted by Ed Butler, Senior Broadcast Journalist, BBC

Mark Anderson and Richard Marshall talk at fire about international IP theft.

Mandiant Report

• Richard Marshall: The problem with attribution is what to do with it? There has always been a tension and reluctance on the part of the federal government, which is, they know it’s going on, but don’t want to let China know how they know it AND they want to use it themselves. The Mandiant report allowed the federal government to acknowledge this.
• Mark Anderson: The landscape transformed because of the report. “It allowed the conversation to occur politically.”

What techniques/weapons does the US have at its disposal?

• RM: The U.S. is not adequately protecting its data. “That is unconscionable.” Files can be made self-destructible and some believe they should be made to destruct other files as well. “We’re victims, but we shouldn’t play the victimhood role. We should be the aggressor in protecting our intellectual property.”
  • Richard Clark is positing a treaty, but that won’t work with rogue actors, some of whom are sponsored by nations. Russians are protecting criminals so that they can use their services.
  • Stock exchange system that only allows companies who have been confirmed not to have stolen IP.
  • CFIUS could take a step further and require outside, foreign companies not to buy or invest in U.S. companies without proof
• MA: “The government’s already on this. For them it’s probably walk softly, carry a big stick. Meanwhile, corporations are really made.” “There’s probably greater concern about some maverick response, which could launch a big thing.”
  • If we’re worried about crown jewels disappearing, that generally IS nation-related. “All this stuff about tech stuff won’t solve it.” The real answer long-term is going to be no more tax. Naming and blaming won’t do it, cyber attack returns won’t do it. “They can’t come right out. It’s like a heroin addict.” Their economy is propped up on it.
  • Can not allow them to trade their stolen IP.
  • You only need to get a few of these guys to deter the rest
  • Historically, CEOs didn’t talk about attacks. Since the Mandiant Report, everyone’s talking about it. SEC has made the problem more public.