Protect Your Organizations Proprietary Information
The other day one of our overseas clients called in a state of near panic, to ask a question. At issue was whether they had unwittingly violated U.S. law by transferring technical information to a joint venture partner in a European country. After hearing a two minute description, I was able to answer a resounding "Yes"! Such are the dangers of operating in a global environment. The worst part is that my client had been lead into their misdeed by following the well intentioned advice of a Fortune 100 U.S. corporation. One that certainly should have known better, but obviously does not. The potential penalties for such errors are daunting and ignorance of the law is not a defense. For a mere administrative ("civil") infraction, the penalty is up to $100,000 per occurrence. For intentional misdeeds, which are accorded criminal penalties, well, let's not even go there.
Few business executives realize that these laws apply to a far wider range of products and technical information than the obvious military armaments. Computer software, including off-the-shelf commercial office programs for instance, are in many cases subject to export controls, as are many other seemingly commercial items having a potential dual use.
In addition to the legal dangers, are those surrounding the loss of proprietary advantage through the sharp practice of intelligence gathering by competitors and even industrial espionage. Interestingly, a recent report out of the U.K. placed France on equal standing with Russia as an intelligence threat, not for military secrets, but rather industrial espionage. Unfortunately, most companies believe that these threats only apply to military, space or ultra-high technology markets. Not so! Today, businesses in many run of the mill industries are clearly at risk. Worse yet, many still do not realize it even after they have been stung. Business plans, customer lists, technology and other strategic assets can be lost or severely compromised without even knowing it until long afterward, if ever. Companies frequently wonder how their foreign competitors suddenly "got so smart" or why they "seem to know every move we make."
Both problems are serious, but is there a practical answer short of a paranoia that inhibits healthy business openness, dialog and partnering with customers, competitors and suppliers alike? Let's look at a simple 5 Point Set of Policies that can effectively protect your organization within just a few weeks and at little or no cost.
1. Education: Every employee of your organization and any independent contractors working in the facility need to be briefed on the requirement not to disseminate any technical and /or commercial information to anyone outside the organization, except on a need-to-know-basis. This includes everyone from the Chairman and CEO to the maintenance staff. Few companies realize just how much significant information can often be parlayed at the local watering hole. Merely "hanging out at the local lunch or after work gathering spot" is an old, but tried and true technique that has enabled many a competitive intelligence gatherer to learn critical information. It is amazing what one can learn from production workers or administrative support staff over a beer or two, especially on a Friday after work. Casual conversation can reveal information such as production problems, order backlogs, customer and supplier names, quality problems, new product developments and strategies, capital expansion plans, hirings, firings, lay-offs and far more.
In addition, management, marketing, technical and contracts personnel should all be thoroughly briefed on applicable government technical data export regulations. This mandatory education for all should be standard for new hires, as well as reviewed periodically at company meetings and in newsletters and through other means.
Competitive intelligence gathering and industrial espionage are issues that are seriously underestimated by most companies today, especially in North America.
Copyright 2005 by John Di Frances
John Di Frances is an internationally recognized organizational legacy expert and keynote speaker. www.difrances.com
Latest News
PAR Technology Corporation Releases Next Version of SpaSoft(R) Spa ... MarketWatch - With a unique booking engine, advanced resource inventory, scheduling, yield management and reporting tools, SpaSoft is the system of choice for today's ... |
Founders & Former Executive Management Team of LCA-Vision Seek ... MarketWatch - The three of them worked together as the executive management team of LCAV to grow the market capitalization of the Company in excess of 1000% from ... LCA-Vision Names Michael J. Celebrezze CFO |
MassMutual Announces Promotions for Two Co-Chief Operating Officers MarketWatch - Bill has also proven his exceptional capabilities as a leader in the asset management business and in building strong financial services organizations," Mr. ... OppenheimerFunds Names CEO Mass Mutual promotes COOs Babson Capital Names Finke as Chairman & CEO, Noreen as President |
Steve & Barry’s to liquidate Bizjournals.com, NC - ... filed for bankruptcy in July and was purchased earlier this year to the tune of $168 million by Bay Harbour Management and York Capital Management. ... UPDATE 1-Steve & Barry's stores to be liquidated Steve & Barry's to begin liquidating stores All Steve & Barry's to Close |
Angiotech Terminates Note Repurchase Agreement With Ares ... RTT News, NY - TO) said it terminated the note purchase agreement with Ares Management and New Leaf Venture Partners. Earlier, Angiotech said it had notified Ares and New ... Private equity firms pull out of Angiotech financing agreement Firms pull out of Angiotech agreement Angiotech announces termination of note purchase agreement with ... |
AFP | Treasury to Buy Reserve Government Fund's Holdings (Update3) Bloomberg - 3, according to statements today by the department and New York- based Reserve Management Corp., the fund's owner. Shareholders can expect their money by ... Treasury Will Help Liquidate Reserve Fund Treasury to Support a Frozen Money Fund Treasury to backstop mutual fund |
TOWONA Strengthens Management Team; Li Jieling, Lin Ming, Kong ... MarketWatch - The TOWONA group formed the complete management framework headed by Zhang Zhenzhong as Chairman of the Board and CEO, Zhang Leyang as president, ... |
NTN Buzztime, Inc. Announces Management and Board Changes MarketWatch - ... will be comprised of Terry Bateman, Kendra Berger, the company's chief financial officer and other members of the management team. ... Wi-LAN Appoints New Chairman of the Board |
Innerscope Research Strengthens Management Team With Three ... MarketWatch - ... healthcare and service sectors, brings to Innerscope significant experience in marketing, customer relationship management and operations. ... |
![]() Miami Daily Business Review | US Sugar Corp. Statement Regarding The Lawrence Group MarketWatch - As would be the case with any such proposal, our Board of Directors will carefully review it with its professional advisors and the Company's management ... Florida's Everglades Deal With US Sugar Faces Challenge From New Bid Nashville firm wants to purchase US Sugar land Florida Gets a Rival in Effort to Buy Everglades Land (Update2) |
Resources
-
AdWords | Google AdWords | 21 Ways to Maximize ROI by Andrew Goodman
Get the original Google AdWords handbook by Andrew Goodman. This 155-page e-book is packed with advanced tips to help you maximize your AdWords campaigns. Download and get free December 2005 update.
-
Reservation software for Hotels, Motels, Bed and breakfast
Reservation software for Hotels, Motels, Bed and breakfast
-
Restaurant Checklists: restaurant menu design, cafe training, business plans, restaurant marketing a
Full package of restaurant information including restaurant menu design, training, restaurant business plans, restaurant marketing and Management forms and templates
-
Castlemelody.com: Web design and creative design of graphics
Web design with content Management system for dynamic and flexible websites.
-
...MySoftwareTemplates.com high-quality Microsoft Word templates for Software
Development, Proposal
Write successful Proposals, White Papers, Case Studies with slick templates, checklist and forms.
-
Living Within Your Means - The Easy Way!
"
-
PARENTING TOOLS to design the family of your dreams! What does your dream family look like?
Powerful tools for parenting, anger Management, and creative blocks!
-
Productivity. Improve business productivity through work measurement and method study.
Set of resources to improve worker, workplace and office productivity. Learn to measure productivity, calculate a productivity index and construct a total factor productivity index. Resources include team productivity and employee productivity.
-
Construction Information Services - Construction Management
Construction Information Services include Construction Management ebooks - Construction Software - Articles - Firm directories - Forecasting and Trends of the building industry
-
Landlord Property Management Rental Guide
Looking to manage your own rental property? Use our beginners guide for landlords and rental property investors!
