Intellectual Property Theft and Proactive Security Measures

Intellectual Property at Risk

Did you know that intellectual property (IP) theft can stunt or destroy a business or fledgling industry, as well as skewing competition between companies or countries?

The extent of the problem is hard to measure. In 2018, it was estimated IP theft represented at least a quarter of the then $600 billion total annual cost of cybercrime. Analog-style smuggling of manila folders soon gave way to proven cyber tactics in over 80% of cases – from malware to phishing.

Rising Threats to IP

Just like cybercrime which was discussed in our blog post, The Rising Tide of Cybercrime and AI’s Role, the trend for IP is also upwards. In the US, enforcement actions over IP theft were up 21% in 2023. The total cost of American IP theft increased 36% to more than $1.1 billion. Most publicly reported cases involve employees or ex-employees selling secrets to competitors or foreign states, but project partners and rival companies also instigate thefts. Nation-states are behind most ‘advanced persistent threats’ (APTs). Military defense- and security-related secrets are not the only targets. The 2021 Microsoft Exchange breach, which compromised 300,000 organizations worldwide, was blamed on China. Its state espionage provides foreign corporate competitors with vast amounts of data to replicate and enhance stolen technology.

Proactive Security Measures

To combat these threats, organizations must adopt proactive security measures. These include regular security audits, employee training on cybersecurity best practices, and the implementation of advanced AI-driven security tools. Collaboration with cybersecurity experts and continuous monitoring of networks for unusual activities are also crucial. Ensuring that sensitive data is encrypted and access is restricted to only those who need it can further reduce the risk of IP theft.

Investing in Cybersecurity

As the threat landscape evolves, investing in cybersecurity becomes more critical. Businesses need to allocate resources to develop robust security protocols and infrastructure. This investment not only protects against potential financial losses but also safeguards the organization’s reputation and future growth.

The cyber arms race continues to escalate, with AI playing a pivotal role on both sides. While cybercriminals are leveraging AI to enhance their attacks, defenders must also harness its power to stay ahead. By understanding the threats and investing in proactive measures, organizations can protect their assets and ensure a secure digital future.

Find out how to protect IP in our the latest edition of the IT and Tech report, “Out of the bottle. But is GenAI a cure-all?”.

As IP theft continues to rise, your business must stay ahead. Government funding can help you innovate and strengthen your defenses against this growing threat. Leverage SR&ED tax credits and government grants to fund your projects, develop cutting-edge IP protection strategies, and safeguard your valuable assets. Don’t let IP thieves outpace you—contact Ayming today to discover how we can support innovation efforts through government funding.