IP Theft and Cybersecurity

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Content

LS121

Intellectual
property and
Shahin Kohan
cybersecurity
Nicole Y. Lamb-Hale
Tim Molino

Voices For Innovation
Who we
are

Community: VFI is a free community for Microsoft partners who want to stay informed and
involved on public policy issues that impact the IT sector and their business
Platform: VFI provides a platform for members to champion positive policies and educate
lawmakers about the technology industry—and often, thereby, grow their own businesses

Do more Act now

U.S. engagement: we’re composed of 8000+ Microsoft partners in the U.S. and primarily,
though not exclusively, in the SMB and public sector space

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Visit www.voicesforinnovation.org

Speakers

Shahin Kohan

President, AIMS 360 / Focal Technology Solutions

Nicole Y. Lamb-Hale

Former Assistant Secretary of Commerce for Manufacturing &
Services, International Trade Administration

Tim Molino

Director, Policy, BSA | The Software Alliance

Shahin Kohan
President, AIMS 360 / Focal Technology
Solutions

Emerging markets have the
highest
86%
piracy rates
77%
53%

55%

63%

57%

63%

21
%

Brazil Malaysia Mexico Indonesi
Source: 2012 BSA-IDC Piracy Study
a

China

Russia

India

Japa
n

19
%

US

Software piracy causes harm to
multiple parties
Software
producers

Service
providers

End users

Customers

Direct and indirect harm to our
$63 billion–the value of unlicensed
industry
software
in
‘11
Software producers

Lost revenue
Brand damage
Decreased incentive to innovate

Service providers
Lost revenue
Lost business opportunity
Fewer customers to service

Software drives manufacturing
US
manufacturing IT spending is on
innovation
the rise

$62B

$64B

$53B

$20B

2006

Other IT Spend

$27B

2008

$29B

2010

Software Spend

Piracy hurts our customers and end
users
Customers
Unfair competition
Lost revenue
Decreased incentive to innovate

End users
Exposure to malware
Risk of security breaches
Leading to data loss

A 10% reduction in piracy would
add…
+40,314
manufacturing
jobs

+25,431
IT jobs

+$29B
manufacturing
revenue

+$8.7B
U.S. GDP

+$807M
U.S. federal
tax revenue

Source: Economic Impact Global Software Theft on U.S. Manufacturing Competitiveness and Innovation, January 2014, NAJI, NAM, BSA Global Software
Piracy Study 2011

NAJI was created to help stop IP
Why should you join?
theft
Support IP protection and innovation ecosystem

Improve ability for your business to compete and capture revenue in emerging
markets
Position your company as an industry leader and promote your company’s
brand
Manufacturers
and
Orgs
and VFI members
Academic
Show
support forITissues
that affect
many
and Microsoft partners
services firms

associations

institutions

Scan our QR code or join online www.naji.org/join-naji

Nicole Y. Lamb-Hale
Former Assistant Secretary of Commerce for
Manufacturing and Services, International Trade
Administration

Intellectual Property fuels
Strong
Intellectual
Property rights and
economic
growth
protections:

Lead to job creation and economic growth
Level the competitive playing field
Increase the flow of technology

ncentivize entrepreneurs and drive innovation
Source: GIPC International IP Index, Second Edition, January 2014

NAJI encourages actions to protect
State enforcement by Attorneys
IP
General

US Federal legislation to protect
trade secrets
International trade agreements

State AGs leverage unfair
To address negative
competition
lawsimpact of software piracy
California

Tennessee

Louisiana

AG Kamala Harris filed lawsuits
against Chinese and Indian
apparel manufacturers using
stolen IT to compete unfairly

AG Bob Cooper settles unfair
competition cases against Thai
tire manufacture

AG Buddy Caldwell took action
against Chinese grill
manufacturer who was in
violation of LA law

Jan 2013
Oct 2012

Jun 2013
Apr 2013

Mar 2014
Dec 2013

Massachusetts

Washington

Oklahoma

AG Martha Coakley forced Thai
seafood co. to agree to stop
using unlicensed software when
doing business in her state

AG Bob Ferguson negotiated
settlement with Brazilian aircraft
manufacturer exporting goods
made with unlicensed software

AG Scott Pruitt filed complaint
against Chinese oil and gas
value manufacturer using
unlicensed software to compete
unfairly

US trade secrets legislation
Efforts are underway to protect trade secrets,
including:
Business methods Financial and
Machine
personal data

processes
and devices

Computer
programs
and databases

Inventions, R&D
info
and formulas

and plans
Designs,
prototypes
and drawings

International trade agreements
Trans-Pacific Partnership

Negotiating countries:
Australi
a
Canada
Peru

Chile
Mexico
United States
Japan
Singapore New Zealand
Malaysi Vietnam Brunei Darussalam
a

Transatlantic Trade and Invest. Partnership

Tim Molino
BSA’s members include:

Director, Policy, BSA | The Software Alliance

“The threat of cyberattacks has
become so pervasive in recent
years that it now tops the U.S.
government’s global threat
assessment, beating out
terrorism
for the number one position.”
—Worldwide Threat Assessment of the
US Intelligence Community, Senate
Select Committee on Intelligence
March 12, 2013

What we are dealing with . . .

75%

Of most organizations' value
and revenue sources are in
intangible assets, intellectual
property and proprietary
competitive advantages

Source: Trends in Proprietary Information Loss, ASIS International, August 2007

Pirated software unlocks the
For
cyber criminals to steal confidential
backdoor
business data, trade secrets and IP

78% of Web-based counterfeits installed tracking cookies
and spyware
36% of Web-based counterfeits installed Trojans
and adware
28% of Web-based counterfeit had
performance issues
20% of counterfeit CD/DVD programs installed
malware
Sources: IDC, The Dangerous World of Counterfeit and Pirated Software, March 2013

Why do we care?
In 2014 enterprises will spend $491 billion
because of malware associated with pirated
software:

$364B in dealing with data losses

27B in identification, repair, and data recovery from malware

4% of these losses will be attributable to criminal organizations

Source: IDC White Paper: The Link between Pirated Software and Cybersecurity Breaches: How Malware in Pirated Software Is Costing the World
Billions, March 2014

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interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR
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