[IWAR] US espioange 300B loss

From: Michael Wilson (MWILSON/0005514706at_private)
Date: Mon Jan 12 1998 - 08:08:59 PST

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       Posted at 6:29 a.m. PST Monday, January 12, 1998 
                   Spies took $300 billion toll on U.S. firms in 1997
       LOS ANGELES (AP) -- Foreign spies have increased their attacks on
       U.S.-based companies, who lost an estimated $300 billion in 1997 alone
       in intellectual property losses, it was reported today.
       Governments of at least 23 countries, ranging from Germany to China, are
       targeting U.S. firms, according to the FBI. The information was
       published today by the Los Angeles Times, which obtained the results of
       a survey by the American Society for Industrial Security due for release
       ``The odds are not favorable for any American company when they are
       targeted for clandestine action by some country's intelligence
       service,'' said Larry Torrence, deputy assistant director of national
       security who urged U.S. firms to notify the FBI if they suspect
       The society's periodic surveys, which FBI Director Louis J. Freeh has
       cited in congressional testimony, provide the federal government with
       its only estimate of potential damage from economic espionage, the
       newspaper reported.
       More than 1,100 documented incidents of economic espionage and 550
       suspected incidents that could not be fully documented were reported
       last year by major companies in the survey.
       The 1997 survey disclosed that high-tech companies were the most
       frequent targets of foreign spies, followed by manufacturing and service
       industries. The spies targeted research and development strategies,
       manufacturing and marketing plans and customer lists.
       The FBI does not identify governments that sponsor economic espionage,
       but a recent article in Public Administration Review, published by the
       American Society for Public Administration, offered a look at commercial
       spying by foreign intelligence services.
       In the article by Edwin Fraumann, a New York-baesd FBI agent who teaches
       at John Jay College of Criminal Justice, France, Germany, Israel, China.
       Russia and South Korea were listed as major offenders.
       The FBI confirmed Fraumann's report that more than 700 foreign
       counterintelligence investigations involving economic espionage are
       pending before the bureau. It said economic spying by countries
       considered friends as well as adversaries of the United States has been
       increasing, despite passage of the 1996 Economic Espionage Act.
       The act makes theft of proprietary economic information a felony
       punishable by a $10-million fine and 15-year prison sentence.
       China was involved in one of the few cases the FBI has brought into
       court so far under the act. Harold C. Worden, 56, a retired Eastman
       Kodak manager, pleaded guilty in November to stealing Kodak's formulas,
       drawings and blueprints and passing them along to China.
       He agreed to cooperate in a continuing investigation.
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