Annual Report to Congress on Foreign Economic Collection and Industrial Espionage—2004

Office of the National Counterintelligence Executive (ONCIX). Annual Report to Congress on
Foreign Economic Collection and Industrial Espionage—2004. (on line), April 2005 (accessible at http://www.loyola.edu/dept/politics/intel/fecie/fecie_2004.pdf). Consulted the 03-15-07.


Here is just the scope note. You can read the whole report by clicking the link above.

This is the tenth annual report reviewing the threat to the United States from
foreign economic collection and industrial espionage. The report seeks to
characterize and assess efforts by foreign entities—government and private—
to unlawfully target or acquire critical US technologies, trade secrets,
and sensitive financial or proprietary economic information. The paper
focuses on technologies, the loss of which could undermine US military
capability, impede the ability of US firms to compete in the world marketplace,
or have an adverse effect on the US economy, thereby weakening
national security and eroding the current US technological lead.

The report is being submitted in compliance with the Intelligence Authorization
Act for Fiscal Year 1995, Section 809 (b), Public Law 103-359,
which requires that the President annually submit to Congress updated
information on the threat to US industry from foreign economic collection
and industrial espionage. It updates the ninth annual report published in
February 2004 and includes data for the fiscal year 2004, including the
period 1 October 2003 through 30 September 2004.

The contents of this report include the following:

• The types of foreign entities believed to be conducting industrial espionage.
• The kinds of information and technology targeted.
• The methods used by foreign actors to acquire that technology.

This report deals with the acquisition of sensitive US technology—either
classified or proprietary—by foreign entities, both government and private.
The acquisitions take a variety of forms, including:

• Economic Espionage, which is narrowly defined by Section 1831 of the
Economic Espionage Act of 1996 (EAA) to be the theft of trade secrets1
in which the perpetrator acts intending or knowing that the offense will
benefit any foreign government, foreign instrumentality, or foreign agent.
Proving links between foreign governments and entities caught stealing
US goods is often impossible, even where such links may exist.


• Industrial espionage or trade secret theft that cannot be linked to a foreign
government agent and where the acquisition has been made for the
intended economic benefit of someone other than the owner of the trade
secret. These violations are covered under Section 1832 of the EAA.

• Violations of export control regulations include the foreign acquisition of
restricted US dual-use technologies—having both military and civil
applications—by countries or persons that might apply such items to uses
inimical to US interests. These include goods that might be related to the
proliferation of weapons of mass destruction and their delivery means and
those that could bolster the military and terrorism support capability of
certain countries. Export Administration Regulations (EAR) issued by
the United States Department of Commerce, Bureau of Industry and
Security (BIS), cover these violations.

• Illegal exports of US arms and implements of war (including
cryptography) and defense technology to proscribed countries that could
misuse or cause illegal proliferation of those items. These shipments are
prohibited under the International Trade in Arms Regulations (ITAR),
which are administered by State Department’s Office of Defense Trade
Controls.

The paper highlights foreign efforts to target sensitive US technologies even
when those efforts are legal. For example, it is not illegal for foreign entities
to request classified or controlled information or technology, even
though the actual export of that technology would violate US laws. The fact
that such technologies are being targeted, however, is considered important
information for this report. This paper does not cover violations of US
copyright laws, such as the illegal plagiarism of videos, compact disks, or
other literary or artistic works.

This assessment is a product of a cooperative effort across the Counterintelligence
(CI) Community. It was compiled by the Office of the National
Counterintelligence Executive (ONCIX) based on input from a broad crosssection
of US Government entities. In particular, databases compiled by the
Defense Security Service (DSS), the Air Force Office of Special Investigations
(AFOSI), the Army Counterintelligence Center (ACIC), and the Army
Case Control Office (ACCO) were instrumental in providing much of the
detail for this assessment. The Federal Bureau of Investigation (FBI)—the
lead investigative agency for enforcing economic espionage statutes—provided
significant analytical and investigative information as did the Department
of Defense’s (DoD’s) Counterintelligence Field Activity (CIFA) and
the National Geospatial-Intelligence Agency (NGA).


Dublin core analysis

DC Title: Annual Report to Congress on Foreign Economic Collection and Industrial Espionage—2004
DC Creator: Office of the National Counterintelligence Executive (ONCIX)
DC Subject: Industrial espionage, Economic Espionage, Business Intelligence
DC Description: “The paper highlights foreign efforts to target sensitive US technologies even
when those efforts are legal. For example, it is not illegal for foreign entities
to request classified or controlled information or technology, even
though the actual export of that technology would violate US laws. The fact
that such technologies are being targeted, however, is considered important
information for this report. This paper does not cover violations of US
copyright laws, such as the illegal plagiarism of videos, compact disks, or
other literary or artistic works.”
DC Publisher: National Counterintelligence Executive (NCIX)
DC Contributor:
DC Date: 04-2005
DC Type: text
DC Format: PDF
DC Identifier: http://www.loyola.edu/dept/politics/intel/fecie/fecie_2004.pdf
DC Source:
DC Language: English
DC Relation:
DC Coverage: InternationalDC Rights: