Category Archives: Intellectual Property

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The OMB Demands Answers About Insider Risks

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WikiLeaks has really stirred things up for the U.S. Government, ushering in questions regarding its policy for preventing insider data leaks. And that’s a good thing.

The Office of Management and Budget (OMB) has asked government agencies to detail their strategies for minimizing insider risk.

A highly detailed 11-page memo prepared by U.S. intelligence officials and distributed by Jacob J. Lew, director of the White House Office of Management and Budget, suggests that agencies use psychiatrists and sociologists to measure the “relative happiness” of workers or their “despondence and grumpiness” as a way to assess their trustworthiness.

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The memo was sent to senior officials at all agencies that use classified material. And though it is clear that the White House is in need of more rigid data leak prevention policies, some see the memo as paranoia.

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Steven Aftergood, a national security specialist for the Federation of American Scientists, claims the Obama administration is borrowing heavily from strict programs used at the CIA and other intelligence agencies to root out potential spies. He even goes so far as to call the idea of requiring workers to report any contacts with members of the news media as “triply absurd.”

But for others, what’s absurd is the fact that 200,000 diplomatic cables between the U.S. State Department and its diplomatic missions were leaked.

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The implications of such an act will most likely be serious and far reaching in regards to the U.S.-led war on terror.

What do you think?

Obama Artwork Copyright Case Dismissed

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In the December 2009 issue of Risk Management, I wrote about how the artist who created the Barack Obama “HOPE” image was being sued by the Associated Press for using the original photograph that the image was based on without permission or payment. The artist, Shepard Fairey, had initially claimed “fair use” since he had made significant alterations to the original image in creating a new work of art. The case was anticipated to have possible implications for copyright law in the digital age, namely what kind of use would be considered “fair use” and therefore permissable under the law?

Well, a little more than a year later, the case has been dismissed by U.S. District Judge Alvin Hellerstein.  The judge dropped the case, citing a “suggestion of settlement” between Fairey and the Associated Press. The claims could be reinstated within a month, however, if either side requests it.

What did remain in play, however, were related claims between the AP and a clothing manufacturer affiliated with Fairey that marketed and sold more than 230,000 products based on the Obama image. That case is generally considered a more typical copyright infringement case and is expected to go to a civil trial in March.

In papers filed last week, the AP said the case presents “the straightforward question of whether a T-shirt company may use a nearly verbatim copy of a copyrighted image to generate millions in dollars of revenues for itself without securing the permission of the copyright owner.”

But regardless of how this civil case case is resolved, it now looks like greater question of “What is ‘fair use’ in the digital age?”  will remain unanswered.

Data Breaches Breaking the Bank for Businesses

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Hope you enjoyed that headline alliteration.

But let’s talk cyber crime. In 2010 it’s rare to find someone who has never had their email account hacked (happened to me last month!) or their personal information stolen by cyber thieves. But that’s small time cyber crime compared to what’s happening to businesses around the globe.

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According to a new study by Ponemon Institute, an independent research establishment, organizations are getting hit by at least one successful attack per week. Sound like a lot to you? It is. But what’s even more distressing and hard to believe is that the annualized cost to their bottom lines from the attacks ranged from $1 million to $53 million per year.

Ponemon’s first annual “Cost of Cyber Crime” report studied 45 U.S. organizations hit data breaches. It found that the median cost to companies was $3.8 million per year for an attack. Certainly enough for some bottom line blues.

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“Information theft was still the highest consequence — the type of information [stolen] ranged from a data breach of people’s [information] to intellectual property and source code,” says Larry Ponemon, CEO of the Ponemon Institute. “We found that detection and discovery are the most expensive [elements].”

The report found that web-borne attacks, malicious code and malicious insiders are the most costly types of attacks, and social security numbers are the most commonly compromised form of data. According to Datalossdb.org, there have been 10 reported data breaches in the past 13 days alone. Let’s take a look at the largest reported breaches in history, courtesy of the aforementioned website:

data breach

According to the Ponemon study, the 45 organizations studied did not have the right tools or technologies in place to prevent such costly breaches (bad risk management to say the least). The leading types of attacks were malware (25%), SQL (24%) and stolen/abused credentials (16%).

Numerous tech companies, such as Cisco and Symantec, offer data loss prevention products and services.

Without data breach technology in place, a company is throwing away their hard-earned dollars.

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And millions of dollars at that, according to Ponemon.

Toyota Settles Hybrid Patent Case

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As we reported a few weeks ago, Toyota has been embroiled in a patent dispute with Paice LLC concerning its hybrid vehicle technology that threatened to halt hybrid imports in the United States.  As it turns out, after six years of litigation, Toyota has finally reached a settlement in the case. Terms of the settlement were not disclosed.

Paice founder Alex Severinsky, who had claimed that Toyota infringed on his 1994 patent, was pleased with the result.

“Finally people understand the merits of what I invented and give it the proper value,” Severinsky said.

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“Toyota is the leading technology company and finally appreciates the value of the invention.”

Toyota had insisted that, while its technology was similar to Paice patent, its hyrib vehicles were the result of its own independent research. Evidently, both parties were in agreement.

“The parties agree that, although certain Toyota vehicles have been found to be equivalent to a Paice patent, Toyota invented, designed and developed the Prius and Toyota’s hybrid technology independent of any inventions of Dr. Severinsky and Paice as part of Toyota’s long history of innovation,” both companies said in separate statements.

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With this issue out of the way, Toyota can now concentrate on its latest round of subpeonas. This time, a federal grand jury in New York is investigating whether or not Toyota notified the NHTSA in a timely fashion about faulty steering rods.

For Toyota, a bad year just keeps getting worse.

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