Intellectual_JJ capital_NN1 's_GE (_( IC_NP1 )_) rising_VVG value_NN1 in_II the_AT production_NN1 of_IO wealth_NN1 has_VHZ been_VBN mirrored_VVN by_II its_APPGE increasing_JJ vulnerability_NN1 to_II crime_NN1 ._. 
It_PPH1 is_VBZ estimated_VVN that_CST a_AT1 majority_NN1 of_IO the_AT productive_JJ capacity_NN1 of_IO organizations_NN2 is_VBZ tied_VVN up_RP in_II IC_NP1 and_CC even_RR a_AT1 significantly_RR more_RGR conservative_JJ estimate_NN1 leaves_VVZ IC_NN1 as_II a_AT1 major_JJ force_NN1 in_II organizational_JJ competitiveness_NN1 ._. 
The_AT move_NN1 from_II tangible_JJ to_II intangible_JJ assets_NN2 as_II a_AT1 major_JJ productive_JJ force_NN1 has_VHZ produced_VVN a_AT1 number_NN1 of_IO challenges_NN2 to_II management_NN1 and_CC financial_JJ reporting_NN1 ._. 
This_DD1 shift_NN1 has_VHZ also_RR resulted_VVN in_II a_AT1 new_JJ vulnerability_NN1 to_II financial_JJ crime_NN1 that_CST organizations_NN2 face_VV0 as_II a_AT1 result_NN1 of_IO their_APPGE reliance_NN1 on_II IC_NP1 ._. 
Taken_VVN together_RL ,_, these_DD2 factors_NN2 have_VH0 created_VVN a_AT1 new_JJ environment_NN1 in_II which_DDQ IC_NN1 is_VBZ uniquely_RR at_II risk_NN1 from_II financial_JJ crime_NN1 ._. 
This_DD1 paper_NN1 explores_VVZ these_DD2 risks_NN2 in_II greater_JJR detail_NN1 in_BCL21 order_BCL22 to_TO demonstrate_VVI that_DD1 traditional_JJ legal_JJ remedies_NN2 are_VBR largely_RR ineffective_JJ to_TO protect_VVI IC_JJ property_NN1 rights_NN2 and_CC that_DD1 given_VVN this_DD1 policy_NN1 environment_NN1 and_CC the_AT nature_NN1 of_IO IC_NP1 itself_PPX1 ,_, prevention_NN1 is_VBZ the_AT only_JJ reasonable_JJ means_NN for_IF protecting_VVG IC_NN1 ._. 
The_AT definition_NN1 is_VBZ in_II one_MC1 sense_NN1 more_RGR generic_JJ than_CSN that_DD1 incorporated_VVN in_II the_AT EEA_NP1 ._. 
The_AT Act_NN1 differentiates_VVZ between_II the_AT theft_NN1 of_IO trade_NN1 secrets_NN2 ,_, carried_VVD out_RP without_IW the_AT intent_JJ to_TO benefit_VVI a_AT1 foreign_JJ sovereign_NN1 ,_, and_CC economic_JJ espionage_NN1 ,_, intended_VVN to_II further_RRR the_AT strategic_JJ initiatives_NN2 of_IO a_AT1 sovereign_JJ state_NN1 and/or_CC damage_VV0 those_DD2 of_IO a_AT1 rival_JJ state_NN1 ._. 
The_AT definition_NN1 of_IO economic_JJ espionage_NN1 used_VVN in_II this_DD1 paper_NN1 considers_VVZ the_AT nature_NN1 of_IO the_AT conduct_NN1 at_II issue_NN1 and_CC therefore_RR encompasses_VVZ those_DD2 who_PNQS steal_VV0 to_TO benefit_VVI either_RR a_AT1 sovereign_JJ state_NN1 or_CC private_JJ parties_NN2 ._. 
The_AT broader_JJR definition_NN1 is_VBZ necessary_JJ to_TO implement_VVI the_AT paper_NN1 's_GE focus_NN1 on_II economic_JJ espionage_NN1 as_II a_AT1 unique_JJ type_NN1 of_IO criminal_JJ activity_NN1 ,_, one_PN1 with_IW effects_NN2 beyond_II the_AT parameters_NN2 of_IO current_JJ policy_NN1 and_CC legal_JJ redress_NN1 ._. 
The_AT essence_NN1 of_IO economic_JJ espionage_NN1 has_VHZ remained_VVN unchanged_JJ when_CS observed_VVN from_II a_AT1 historical_JJ perspective_NN1 ._. 
Economic_JJ espionage_NN1 continues_VVZ to_TO consist_VVI of_IO covert_JJ actions_NN2 intended_VVD to_TO eliminate_VVI emarket_NN1 advantages_NN2 ._. 
There_EX is_VBZ ,_, for_REX21 example_REX22 ,_, a_AT1 long_JJ history_NN1 of_IO such_DA actions_NN2 in_II the_AT USA_NP1 ,_, dating_VVG back_RP to_II the_AT late_JJ seventeenth_MD and_CC early_JJ eighteenth_MD centuries_NNT2 ,_, when_CS intellectual_JJ piracy_NN1 was_VBDZ the_AT de_JJ21 facto_JJ22 policy_NN1 of_IO the_AT fledgling_JJ republic_NN1 ._. 
The_AT convergence_NN1 of_IO technology_NN1 ,_, economic_JJ ,_, demographic_JJ ,_, and_CC social_JJ factors_NN2 has_VHZ resulted_VVN in_II the_AT emergence_NN1 of_IO the_AT "_" Flat_JJ world_NN1 "_" described_VVN by_II author_NN1 Thomas_NP1 Friedman_NP1 ._. 
Friedman_NN1 asserts_VVZ that_CST these_DD2 factors_NN2 have_VH0 resulted_VVN in_II a_AT1 leveling_NN1 of_IO the_AT economic_JJ playing_JJ field_NN1 and_CC allowed_VVD developing_JJ nations_NN2 like_II China_NP1 ,_, India_NP1 ,_, states_NN2 comprising_VVG the_AT former_DA Soviet_JJ Union_NN1 ,_, Eastern_JJ Europe_NP1 ,_, and_CC South_ND1 America_NP1 to_TO compete_VVI more_RGR evenly_RR with_IW more_RGR developed_JJ nations_NN2 ._. 
The_AT case_NN1 Friedman_NN1 posits_VVZ is_VBZ a_AT1 compelling_JJ one_PN1 ,_, amply_RR demonstrated_VVN by_II the_AT recent_JJ growth_NN1 in_II gross_JJ domestic_JJ product_NN1 in_II China_NP1 ,_, India_NP1 and_CC to_II a_AT1 lesser_JJ extent_NN1 the_AT other_JJ geographic_JJ areas_NN2 mentioned_VVD ._. 
Factors_NN2 leading_VVG to_II a_AT1 "_" flat_JJ world_NN1 "_" have_VH0 also_RR altered_VVN the_AT methods_NN2 and_CC operations_NN2 of_IO those_DD2 engaging_VVG in_II economic_JJ espionage_NN1 ._. 
Prior_II21 to_II22 globalization_NN1 ,_, economic_JJ espionage_NN1 practitioners_NN2 were_VBDR constrained_VVN by_II traditional_JJ factors_NN2 of_IO proximity_NN1 ,_, scale_NN1 ,_, physical_JJ constraints_NN2 ,_, and_CC patterns_NN2 ._. 
These_DD2 factors_NN2 required_VVN that_DD1 espionage_NN1 tradecraft_NN1 be_VBI conducted_VVN in_II a_AT1 high-risk_JJ environment_NN1 by_II professional_JJ intelligence_NN1 operatives_NN2 trained_VVN to_TO recruit_VVI agents_NN2 and_CC manage_VVI agent_NN1 networks_NN2 ._. 
Typically_RR ,_, this_DD1 required_JJ elaborate_JJ coordination_NN1 and_CC planning_VVG to_TO accomplish_VVI meetings_NN2 or_CC exchanges_NN2 ._. 
Proximity_NN1 between_II agents_NN2 and_CC handlers_NN2 could_VM not_XX be_VBI avoided_VVN ._. 
Case_NN1 officers_NN2 were_VBDR limited_VVN in_II the_AT number_NN1 of_IO agents_NN2 they_PPHS2 could_VM manage_VVI ensuring_VVG a_AT1 scale_NN1 of_IO operations_NN2 contingent_NN1 on_II resources_NN2 ._. 
The_AT physical_JJ constraints_NN2 of_IO operating_VVG in_II a_AT1 foreign_JJ environment_NN1 were_VBDR a_AT1 constant_JJ challenge_NN1 with_II31 respect_II32 to_II33 logistical_JJ support_NN1 and_CC operational_JJ techniques_NN2 ._. 
Additionally_RR ,_, the_AT need_NN1 to_TO follow_VVI established_JJ tradecraft_NN1 protocols_NN2 resulted_VVN in_II patterns_NN2 that_CST could_VM be_VBI discerned_VVN by_II counterintelligence_NN1 personnel_NN2 increasing_VVG the_AT risk_NN1 of_IO discovery_NN1 and_CC apprehension_NN1 ._. 
In_II today_RT 's_GE so-called_JJ "_" flat_JJ world_NN1 "_" ,_, the_AT entire_JJ operational_JJ landscape_NN1 has_VHZ been_VBN transformed_VVN ._. 
The_AT need_NN1 for_IF proximity_NN1 with_II31 respect_II32 to_II33 agent_NN1 operations_NN2 has_VHZ been_VBN lessened_VVN by_II the_AT ability_NN1 to_II remotely_RR and_CC anonymously_RR target_VV0 data_NN contained_VVN on_II information_NN1 networks_NN2 ._. 
The_AT scale_NN1 of_IO operations_NN2 has_VHZ been_VBN greatly_RR expanded_VVN by_II the_AT ability_NN1 to_TO simultaneously_RR target_VVI multiple_JJ objectives_NN2 ,_, increasing_VVG potential_JJ collection_NN1 capabilities_NN2 by_II an_AT1 order_NN1 of_IO magnitude_NN1 far_RR exceeding_VVG what_DDQ was_VBDZ formerly_RR available_JJ to_II traditional_JJ agent_NN1 networks_NN2 ._. 
The_AT absence_NN1 of_IO physical_JJ constraints_NN2 in_II cyberspace_NN1 provides_VVZ an_AT1 unbounded_JJ virtual_JJ operational_JJ venue_NN1 characterized_VVN by_II speed_NN1 and_CC an_AT1 immediacy_NN1 of_IO results_NN2 absent_VV0 in_II traditional_JJ espionage_NN1 operations_NN2 ._. 
The_AT ability_NN1 of_IO operators_NN2 to_TO implement_VVI a_AT1 variety_NN1 of_IO targeting_VVG techniques_NN2 crossing_VVG multiple_JJ international_JJ jurisdictions_NN2 reduces_VVZ the_AT likelihood_NN1 of_IO a_AT1 successful_JJ counterintelligence_NN1 operation_NN1 and_CC affords_VVZ a_AT1 much_RR lower_JJR risk_NN1 environment_NN1 ._. 
This_DD1 reduction_NN1 of_IO risk_NN1 combined_VVN with_IW a_AT1 commensurate_JJ opportunity_NN1 for_IF higher_JJR rewards_NN2 will_VM result_VVI in_II an_AT1 increase_NN1 of_IO trade_NN1 secret_NN1 and_CC intellectual_JJ property_NN1 theft_NN1 since_CS there_EX is_VBZ so_RG much_DA1 to_TO be_VBI gained_VVN in_II31 comparison_II32 with_II33 the_AT flattened_JJ cost_NN1 of_IO espionage_NN1 efforts_NN2 ._. 
Practitioners_NN2 of_IO economic_JJ espionage_NN1 consist_VV0 primarily_RR of_IO two_MC groups_NN2 :_: state_VV0 sponsors_NN2 and_CC business_NN1 competitors_NN2 ._. 
The_AT overexpansion_NN1 of_IO broadband_JJ capacity_NN1 during_II the_AT dot.com_NNU bubble_NN1 era_NN1 had_VHD some_DD unanticipated_JJ consequences_NN2 relative_II21 to_II22 Friedman_NP1 's_GE flat_JJ world_NN1 scenario_NN1 ._. 
This_DD1 overexpansion_NN1 resulted_VVN in_II increased_JJ world-wide_JJ connectivity_NN1 ,_, collaboration_NN1 and_CC information_NN1 sharing_VVG to_II an_AT1 extent_NN1 not_XX previously_RR attainable_JJ ._. 
The_AT ability_NN1 to_TO aggregate_VVI and_CC disaggregate_VVI information_NN1 remotely_RR provides_VVZ numerous_JJ electronic_JJ targets_NN2 of_IO opportunity_NN1 ._. 
The_AT dark_JJ side_NN1 of_IO the_AT flat_JJ world_NN1 is_VBZ that_CST the_AT productivity-enhancing_JJ factors_NN2 are_VBR vulnerable_JJ to_II a_AT1 variety_NN1 of_IO electronic_JJ targeting_NN1 and_CC attack_VV0 methodologies_NN2 by_II adversaries_NN2 engaged_VVN in_II economic_JJ espionage_NN1 collection_NN1 pursuits_NN2 ._. 
The_AT proliferation_NN1 of_IO state-sponsored_JJ theft_NN1 of_IO IC_NP1 has_VHZ proven_VVN especially_RR problematic_JJ to_II those_DD2 businesses_NN2 which_DDQ on_II IC_NN1 for_IF the_AT creation_NN1 of_IO wealth_NN1 and_CC to_TO maintain_VVI a_AT1 competitive_JJ position_NN1 in_II the_AT market_NN1 First_MD ,_, the_AT centrality_NN1 of_IO IC_JJ assets_NN2 to_II competitiveness_NN1 has_VHZ made_VVN the_AT man_NN1 increasingly_RR attractive_JJ target_NN1 for_IF all_DB competitors_NN2 ,_, but_CCB particularly_RR those_DD2 with_IW more_DAR capabilities_NN2 in_II production_NN1 and_CC fewer_DAR in_II research_NN1 and_CC development_NN1 (_( R_ZZ1 &D).;_NULL An_AT1 extreme_JJ case_NN1 is_VBZ that_DD1 of_IO software_NN1 piracy_NN1 in_II which_DDQ programs_VVZ that_CST required_VVD millions_NNO2 in_II R_ZZ1 &D;_NULL to_TO produce_VVI can_VM be_VBI duplicated_VVN for_IF a_AT1 few_DA2 cents_NNU2 per_II CD-ROM_NN1 ._. 
A_AT1 second_MD aspect_NN1 of_IO state-sponsored_JJ economic_JJ espionage_NN1 is_VBZ the_AT difficulty_NN1 of_IO bringing_VVG legal_JJ remedies_NN2 to_TO bear_VVI against_II the_AT perpetrators_NN2 of_IO the_AT crime_NN1 ._. 
As_CSA subsequent_JJ sections_NN2 of_IO the_AT paper_NN1 will_VM argue_VVI ,_, conventional_JJ law_NN1 enforcement_NN1 is_VBZ predicated_VVN on_II the_AT identification_NN1 of_IO individuals_NN2 responsible_JJ for_IF committing_VVG the_AT crime_NN1 and_CC for_IF their_APPGE extradition_NN1 to_II the_AT USA_NP1 to_TO face_VVI charges_NN2 if_CS they_PPHS2 are_VBR outside_II the_AT physical_JJ jurisdiction_NN1 of_IO the_AT courts_NN2 ._. 
The_AT theft_NN1 of_IO IC_NN1 by_II sovereign_JJ states_NN2 makes_VVZ this_DD1 model_NN1 problematic_JJ in_II practice_NN1 due_II21 to_II22 the_AT likelihood_NN1 that_CST responsible_JJ individuals_NN2 will_VM be_VBI shielded_VVN from_II investigation_NN1 by_II the_AT sponsoring_JJ state_NN1 and_CC likelihood_NN1 that_CST the_AT sponsoring_JJ state_NN1 will_VM bar_VVI extradition_NN1 even_RR in_II the_AT event_NN1 that_CST specific_JJ perpetrators_NN2 are_VBR discovered_VVN ._. 
Since_CS the_AT primary_JJ beneficiary_NN1 of_IO the_AT crime_NN1 is_VBZ the_AT state_NN1 itself_PPX1 rather_II21 than_II22 the_AT individual_JJ perpetrators_NN2 ,_, prosecution_NN1 of_IO individuals_NN2 is_VBZ unlikely_JJ to_TO deter_VVI future_JJ thefts_NN2 ._. 
Even_RR worse_JJR ,_, they_PPHS2 may_VM operate_VVI under_II the_AT protections_NN2 of_IO diplomatic_JJ immunity_NN1 and_CC escape_VV0 criminal_JJ responsibility_NN1 altogether_RR ._. 
The_AT conduct_NN1 of_IO business_NN1 ,_, particularly_RR electronic_JJ commerce_NN1 (_( e-commerce_NN1 )_) ,_, has_VHZ further_RRR facilitated_VVN the_AT ease_NN1 with_IW which_DDQ IC_NN1 can_VM be_VBI targeted_VVN ._. 
The_AT nature_NN1 of_IO e-commerce_NN1 requires_VVZ remote_JJ ,_, electronic_JJ access_NN1 to_II company_NN1 resources_NN2 to_TO pace_VVI ,_, pay_VV0 for_IF and_CC track_VVI the_AT progress_NN1 of_IO shipments_NN2 ._. 
Moreover_RR ,_, the_AT expansion_NN1 of_IO customer_NN1 management_NN1 services_NN2 allows_VVZ and_CC even_RR encourages_VVZ outside_JJ users_NN2 to_TO access_VVI company_NN1 files_NN2 to_TO update_VVI individual_JJ data_NN ._. 
While_CS protections_NN2 against_II intrusion_NN1 can_VM be_VBI built_VVN into_II e-commerce_JJ systems_NN2 ,_, the_AT conduct_NN1 of_IO e-commerce_NN1 creates_VVZ access_NN1 to_II a_AT1 firm_NN1 's_GE IC_JJ assets_NN2 that_CST would_VM have_VHI been_VBN unprecedented_JJ even_RR ten_MC years_NNT2 ago_RA ._. 
Moreover_RR ,_, the_AT trend_NN1 is_VBZ likely_JJ to_TO increase_VVI in_II the_AT future_NN1 as_CSA customers_NN2 demand_VV0 greater_JJR services_NN2 and_CC access_NN1 to_II information_NN1 ._. 
Unlike_JJ tangible_JJ assets_NN2 ,_, there_EX is_VBZ no_AT limit_NN1 to_II the_AT number_NN1 of_IO usable_JJ copies_NN2 that_CST can_VM be_VBI made_VVN from_II IC_NP1 ._. 
The_AT distinction_NN1 may_VM seem_VVI obvious_JJ ,_, but_CCB it_PPH1 has_VHZ a_AT1 number_NN1 of_IO important_JJ implications_NN2 in_II the_AT context_NN1 of_IO IC_JJ theft_NN1 ,_, among_II which_DDQ are_VBR those_DD2 below_RL ._. 
Unlike_JJ cash_NN1 or_CC paintings_NN2 ,_, which_DDQ require_VV0 the_AT criminal_JJ to_TO enter_VVI a_AT1 vault_NN1 or_CC museum_NN1 and_CC subsequently_RR carry_VV0 off_RP the_AT stolen_JJ objects_NN2 ,_, IC_NP1 requires_VVZ only_RR that_CST the_AT criminal_NN1 make_VV0 a_AT1 copy_NN1 ._. 
Historically_RR ,_, even_RR this_DD1 may_VM have_VHI inhibited_VVN theft_NN1 and_CC increased_VVN the_AT likelihood_NN1 of_IO detection_NN1 ._. 
For_REX21 example_REX22 ,_, when_CS IC_NP1 was_VBDZ available_JJ primarily_RR in_II the_AT form_NN1 of_IO documents_NN2 ,_, theft_NN1 required_VVN the_AT copying_NN1 and/or_CC carrying_VVG away_RL of_IO bulky_JJ paper_NN1 files_NN2 ._. 
For_REX21 example_REX22 ,_, Jose_NP1 Lopez_NP1 ,_, a_AT1 former_DA Executive_NN1 at_II General_JJ Motors_NN2 ,_, was_VBDZ indicted_VVN in_II 1993_MC by_II a_AT1 Detroit_NP1 Grand_JJ Jury_NN1 for_IF the_AT theft_NN1 of_IO numerous_JJ paper_NN1 documents_NN2 and_CC computer_NN1 discs_NN2 ._. 
Such_DA a_AT1 charge_NN1 is_VBZ unlikely_JJ to_TO be_VBI made_VVN today_RT when_CS the_AT same_DA amount_NN1 of_IO information_NN1 can_VM easily_RR fit_VVI on_II a_AT1 portable_JJ data_NN drive_VV0 ._. 
Lopez'_JJ crime_NN1 ,_, in_II fact_NN1 ,_, is_VBZ largely_RR a_AT1 thing_NN1 of_IO the_AT past_NN1 ._. 
Since_CS IC_NP1 usually_RR has_VHZ no_AT tangible_JJ embodiment_NN1 ,_, it_PPH1 is_VBZ not_XX necessary_JJ to_TO be_VBI in_II physical_JJ contact_NN1 in_BCL21 order_BCL22 to_TO steal_VVI it_PPH1 ,_, nor_CC does_VDZ it_PPH1 occupy_VVI anything_RR21 but_RR22 a_AT1 negligible_JJ physical_JJ space_NN1 ._. 
As_CSA noted_VVN above_RL ,_, the_AT "_" flat_JJ world_NN1 "_" of_IO cyberspace_NN1 has_VHZ created_VVN an_AT1 operational_JJ space_NN1 in_II which_DDQ physical_JJ proximity_NN1 is_VBZ unnecessary_JJ to_TO effect_VVI a_AT1 theft_NN1 of_IO IC_NN1 ._. 
The_AT ease_NN1 with_IW which_DDQ IC_NN1 can_VM be_VBI stolen_VVN is_VBZ further_RRR exacerbated_VVN by_II the_AT increasing_JJ connectivity_NN1 required_VVN to_TO conduct_VVI business_NN1 ._. 
The_AT classic_JJ remedy_NN1 in_II cases_NN2 of_IO theft_NN1 is_VBZ to_TO return_VVI the_AT property_NN1 to_II its_APPGE original_JJ owner_NN1 ._. 
This_DD1 has_VHZ the_AT two-fold_JJ outcome_NN1 of_IO preventing_VVG the_AT asset_NN1 's_GE use_NN1 by_II the_AT thief_NN1 and_CC restoring_JJ exclusive_JJ use_NN1 to_II the_AT rightful_JJ owner_NN1 ._. 
An_AT1 automobile_NN1 ,_, for_REX21 example_REX22 ,_, can_VM be_VBI driven_VVN by_II only_RR one_MC1 person_NN1 at_II a_AT1 time_NNT1 ._. 
Nor_CC must_VM the_AT asset_NN1 always_RR be_VBI in_II a_AT1 tangible_JJ form_NN1 for_IF the_AT restoration_NN1 towork_NN1 ._. 
Restoring_JJ cash_NN1 ,_, even_RR in_II a_AT1 digitized_JJ form_NN1 ,_, prevents_VVZ a_AT1 competitor_NN1 from_II using_VVG the_AT asset_NN1 ._. 
In_II the_AT case_NN1 of_IO productive_JJ business_NN1 assets_NN2 ,_, denying_VVG the_AT use_NN1 of_IO the_AT asset_NN1 by_II a_AT1 competitor_NN1 may_VM be_VBI as_RG important_JJ as_CSA the_AT return_NN1 of_IO the_AT asset_NN1 itself_PPX1 ._. 
The_AT concept_NN1 ,_, in_II fact_NN1 ,_, really_RR has_VHZ no_AT application_NN1 outside_II intangible_JJ assets_NN2 ._. 
A_AT1 competitor_NN1 ,_, for_REX21 example_REX22 ,_, could_VM not_XX simultaneously_RR return_VVI and_CC continue_VVI to_TO use_VVI stolen_JJ machinery_NN1 ._. 
However_RR ,_, since_CS copies_NN2 of_IO IC_NP1 are_VBR often_RR as_RG useful_JJ as_CSA the_AT originals_NN2 ,_, there_EX is_VBZ little_RR benefit_VV0 in_RP simply_RR restoring_VVG the_AT stolen_JJ information_NN1 to_II its_APPGE original_JJ owner_NN1 ._. 
Anyone_PN1 with_IW copies_NN2 of_IO the_AT IC_NN1 can_VM still_RR use_VVI the_AT assets_NN2 for_IF competitive_JJ advantage_NN1 ._. 
A_AT1 simple_JJ example_NN1 of_IO the_AT use/but_FU return_JJ problem_NN1 can_VM be_VBI seen_VVN in_II the_AT theft_NN1 and_CC subsequent_JJ piracy_NN1 of_IO intellectual_JJ property_NN1 such_II21 as_II22 music_NN1 or_CC movies_NN2 ._. 
The_AT pirated_JJ copies_NN2 can_VM be_VBI produced_VVN at_II a_AT1 low_JJ cost_NN1 by_II manufacturers_NN2 with_IW no_AT initial_JJ investment_NN1 to_TO recoup_VVI even_CS21 if_CS22 the_AT originals_NN2 remain_VV0 in_II the_AT possession_NN1 of_IO their_APPGE legal_JJ owners_NN2 ._. 
Patent_NN1 and_CC copyright_NN1 law_NN1 offer_NN1 relatively_RR sparse_JJ protection_NN1 ,_, particularly_RR since_CS many_DA2 nations_NN2 have_VH0 official_JJ or_CC unofficial_JJ policies_NN2 of_IO using_VVG pirated_JJ IC_NN1 with_IW little_JJ or_CC no_AT legal_JJ protections_NN2 against_II its_APPGE unauthorized_JJ use_NN1 ._. 
A_AT1 situation_NN1 with_IW even_RR less_RGR legal_JJ recourse_NN1 might_VM result_VVI from_II the_AT disclosure_NN1 of_IO unpatented_JJ research-in-progress_NN1 ._. 
When_CS a_AT1 firm_NN1 has_VHZ patented_VVN its_APPGE research_NN1 ,_, it_PPH1 obtains_VVZ legally_RR enforceable_JJ intellectual_JJ property_NN1 rights_NN2 ._. 
However_RR ,_, research_NN1 has_VHZ value_NN1 long_RR before_CS it_PPH1 becomes_VVZ patentable_JJ ._. 
The_AT research_NN1 itself_PPX1 might_VM not_XX be_VBI at_II a_AT1 stage_NN1 in_II which_DDQ it_PPH1 was_VBDZ possible_JJ to_TO claim_VVI intellectual_JJ property_NN1 rights_NN2 ,_, but_CCB could_VM still_RR be_VBI valuable_JJ to_II competitors_NN2 as_II an_AT1 indication_NN1 of_IO new_JJ avenues_NN2 of_IO research_NN1 ._. 
Nothing_PN1 would_VM prevent_VVI competitors_NN2 from_II pursuing_VVG successful_JJ parallel_JJ research_NN1 once_CS they_PPHS2 were_VBDR aware_JJ of_IO its_APPGE underlying_JJ concepts_NN2 ._. 
The_AT frequency_NN1 and_CC virulence_NN1 of_IO economic_JJ espionage_NN1 attacks_NN2 has_VHZ increased_VVN markedly_RR over_II the_AT last_MD ten_MC years_NNT2 and_CC will_VM almost_RR certainly_RR continue_VVI to_TO grow_VVI as_II the_AT importance_NN1 of_IO IC_NP1 grows_VVZ and_CC as_CSA criminals_NN2 (_( both_DB2 private_JJ and_CC state-sponsored_JJ )_) increase_VV0 in_II number_NN1 and_CC sophistication_NN1 ._. 
As_CSA this_DD1 paper_NN1 as_CSA previously_RR noted_VVN ,_, the_AT traditional_JJ ,_, reactive_JJ model_NN1 of_IO law-enforcement_NN1 has_VHZ not_XX proven_JJ effective_JJ in_II reducing_VVG the_AT frequency_NN1 of_IO economic_JJ espionage_NN1 or_CC in_II mitigating_VVG the_AT damages_NN2 of_IO such_DA crimes_NN2 ._. 
And_CC while_CS statutes_NN2 such_II21 as_II22 the_AT EEA_NP1 have_VH0 provided_VVN improved_JJ legal_JJ remedies_NN2 in_II cases_NN2 of_IO IC_JJ theft_NN1 ,_, they_PPHS2 are_VBR clearly_RR insufficient_JJ to_TO control_VVI the_AT burgeoning_JJ industry_NN1 of_IO economic_JJ espionage_NN1 ._. 
This_DD1 really_RR leaves_VVZ only_RR one_MC1 venue_NN1 to_TO control_VVI the_AT problem_NN1 ,_, prevention_NN1 ,_, but_CCB how_RRQ best_RRT to_TO implement_VVI it_PPH1 ?_? 
The_AT conventional_JJ wisdom_NN1 to_II date_NN1 has_VHZ been_VBN to_TO allow_VVI firms_NN2 that_CST own_DA IC_NN1 to_TO protect_VVI it_PPH1 voluntarily_RR ._. 
Given_VVN the_AT rising_JJ tide_NN1 of_IO identity_NN1 theft_NN1 and_CC related_JJ security_NN1 breaches_NN2 ,_, this_DD1 has_VHZ clearly_RR been_VBN an_AT1 unworkable_JJ strategy_NN1 ._. 
Mandating_VVG compliance_NN1 ,_, however_RR ,_, is_VBZ nearly_RR as_CSA challenging_JJ since_CS it_PPH1 adds_VVZ an_AT1 additional_JJ layer_NN1 of_IO policing_NN1 ._. 
Given_CS21 that_CS22 the_AT number_NN1 of_IO potential_JJ victims_NN2 is_VBZ even_RR greater_JJR than_CSN the_AT number_NN1 of_IO potential_JJ attackers_NN2 ,_, this_DD1 is_VBZ hardly_RR more_RGR effective_JJ than_CSN simply_RR increasing_VVG the_AT number_NN1 of_IO investigators_NN2 ._. 
A_AT1 more_RGR effective_JJ strategy_NN1 under_II the_AT circumstances_NN2 is_VBZ to_TO devolve_VVI both_DB2 the_AT responsibility_NN1 for_IF protecting_VVG valuable_JJ and_CC liability_NN1 for_IF losing_VVG it_PPH1 on_II the_AT owners_NN2 ._. 
