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Mark A. Hofmann

China stealing intellectual property at 'breathtaking pace': Rep. Mike Rogers

May 22, 2014 - 11:03am

Intellectual Property Theft Cyber Crime


WASHINGTON — China is stealing intellectual property at a “breathtaking pace,” according to the chairman of the House of Representatives Intelligence Committee.

Speaking at Business Insurance's inaugural Cyber Risk Summit in Washington on Thursday, Rep. Mike Rogers, R-Mich., said that this week's indictment of five Chinese military officials for alleged cyber spying is “an important shot across the bow.”

He added, though, that the indictments must be followed by a series of actions, such as going after visas of some Chinese nationals.

Rep. Rogers, who served as the summit's opening keynote speaker, said the problem of Chinese theft of intellectual property is not a problem for the United States only. China will steal from any country that has innovation in its economy, including South Korea and European nations, Rep. Rogers said.

With the indictments, “the gears just shifted,” he said. “Put your helmets on; it's going to be a bumpy ride.”

Additionally, the overall problem of cyber security breaches from all sources will only get worse, Rep. Rogers said. “Nothing is off limits.”

The United States needs to send a message that “we're coming to get you no matter where you are,” he added.

IT supply chain also a concern

The issue of the information technology supply chain was among the matters discussed by the two other keynote speakers.

“We're seeing massive outsourcing of the IT supply chain,” said Sandor Boyson, research professor and co-director of the Supply Chain Management Center at the Robert H. Smith School of Businesses at the University of Maryland in College Park. “The very difficult task of managing the IT supply chain is coming to the fore,” he said.

Mr. Boyson noted for example that 80% of computer chips used in the U.S. come from overseas sources. “Counterfeits are flooding federal IT systems,” he said. Both criminal organizations and foreign intelligence services are targeting supply chains, he said.

Holly Mann, chief information officer of the Smith School, also joined Mr. Boyson in the cyber security discussion.

 



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