The other day one of our overseas clients called in a state of near panic, to ask a question. At issue was whether they had unwittingly violated U.S. law by transferring technical information to a joint venture partner in a European country. After hearing a two minute description, I was able to answer a resounding "Yes"! Such are the dangers of operating in a global environment. The worst part is that my client had been lead into their misdeed by following the well intentioned advice of a Fortune 100 U.S. corporation. One that certainly should have known better, but obviously does not. The potential penalties for such errors are daunting and ignorance of the law is not a defense. For a mere administrative ("civil") infraction, the penalty is up to $100,000 per occurrence. For intentional misdeeds, which are accorded criminal penalties, well, let's not even go there.
Few business executives realize that these laws apply to a far wider range of products and technical information than the obvious military armaments. Computer software, including off-the-shelf commercial office programs for instance, are in many cases subject to export controls, as are many other seemingly commercial items having a potential dual use.
In addition to the legal dangers, are those surrounding the loss of proprietary advantage through the sharp practice of intelligence gathering by competitors and even industrial espionage. Interestingly, a recent report out of the U.K. placed France on equal standing with Russia as an intelligence threat, not for military secrets, but rather industrial espionage. Unfortunately, most companies believe that these threats only apply to military, space or ultra-high technology markets. Not so! Today, businesses in many run of the mill industries are clearly at risk. Worse yet, many still do not realize it even after they have been stung. Business plans, customer lists, technology and other strategic assets can be lost or severely compromised without even knowing it until long afterward, if ever. Companies frequently wonder how their foreign competitors suddenly "got so smart" or why they "seem to know every move we make."
Both problems are serious, but is there a practical answer short of a paranoia that inhibits healthy business openness, dialog and partnering with customers, competitors and suppliers alike? Let's look at a simple 5 Point Set of Policies that can effectively protect your organization within just a few weeks and at little or no cost.
1. Education: Every employee of your organization and any independent contractors working in the facility need to be briefed on the requirement not to disseminate any technical and /or commercial information to anyone outside the organization, except on a need-to-know-basis. This includes everyone from the Chairman and CEO to the maintenance staff. Few companies realize just how much significant information can often be parlayed at the local watering hole. Merely "hanging out at the local lunch or after work gathering spot" is an old, but tried and true technique that has enabled many a competitive intelligence gatherer to learn critical information. It is amazing what one can learn from production workers or administrative support staff over a beer or two, especially on a Friday after work. Casual conversation can reveal information such as production problems, order backlogs, customer and supplier names, quality problems, new product developments and strategies, capital expansion plans, hirings, firings, lay-offs and far more.
In addition, management, marketing, technical and contracts personnel should all be thoroughly briefed on applicable government technical data export regulations. This mandatory education for all should be standard for new hires, as well as reviewed periodically at company meetings and in newsletters and through other means.
Competitive intelligence gathering and industrial espionage are issues that are seriously underestimated by most companies today, especially in North America.
Copyright 2005 by John Di Frances
John Di Frances is an internationally recognized organizational legacy expert and keynote speaker. www.difrances.com
![]() Google News Updated : Mon, 13 Oct 2008 11:51:33 GMT Forecast: Summery Sunshine Sticks Around - Washington Post
Washington Post - Columbus Day will feel a lot more like Labor Day as temperatures climb to around 80 degrees. This unseasonably warm weather will continue for the next several days. Enjoy a warm, sunny Columbus Day Beautiful start to the work week Publ.Date : Mon, 13 Oct 2008 09:03:26 GMT 1.5 million G1 Android phones pre-ordered - TG Daily
TG Daily - By Wolfgang Gruener Chicago (IL) - T-Mobile’s upcoming G1 may not be the best-looking iPhone rival, it may not have the most complete feature set and T-Mobile may have undersold the device at the recent launch event. Get ready for next-gen mobile HTC G1 Android Phone Racks up 1.5 Million Pre-orders Publ.Date : Mon, 13 Oct 2008 05:21:21 GMT UK government takes stake in three banks - CNN International
CNN International - LONDON, England (CNN) -- The British government on Monday said it would make a multi-billion investment in three of the country's major banks to help them through the "first financial crisis of the global age. In quotes: Bank bail-out reaction TEXT-Lloyds TSB terms for acquisition of HBOS Publ.Date : Mon, 13 Oct 2008 11:18:47 GMT Manatee dies before reaching rehab site - Boston Globe
Boston Globe - By Emily Canal After a 27-hour trip to Florida, Dennis the manatee, rescued from the frigid waters of Cape Cod, died in Orlando yesterday as SeaWorld employees carted the mammal to a rehabilitation center. Video: Rescued Manatee Dies After Mass. Rescue Manatee rescued off Cape Cod dies en route to Florida Sea World Publ.Date : Mon, 13 Oct 2008 07:21:21 GMT European, Asian markets bounce back - The Associated Press
The Associated Press - LONDON (AP) - European markets opened strongly Monday following Asia's lead in response to the widespread government efforts over the weekend to shore up the world's troubled financial system. The financial crisis A light at the end of the tunnel? World stock markets welcome European bank rescue Publ.Date : Mon, 13 Oct 2008 10:23:04 GMT Fantastic finishes: 5 NFL games down to the wire - Washington Post
Washington Post - Dallas Cowboys' Mat McBriar (1) has his punt blocked by Arizona Cardinals' Sean Morey as Monty Beisel (52) looks on during overtime of an NFL football game Sunday, Oct. 12, 2008 in Glendale, Ariz. Blocked punt downs Dallas Backups Burst Through Line and Lift Cardinals in Overtime Publ.Date : Mon, 13 Oct 2008 08:15:50 GMT Dodgers stand up to Phillies in Game 3 win - FOXSports.com
FOXSports.com - by Ken Rosenthal Ken Rosenthal has been the senior baseball writer for FOXSports.com since Aug. 2005. He appears weekly on the FSN Baseball Report and MLB on FOX. LA revitalized at Moyer's expense Kuroda's pitch serves its purpose for Dodgers Publ.Date : Mon, 13 Oct 2008 07:00:36 GMT Display RSS Feeds on Your Website |
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