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Securing Intellectual Assets in the Era of Innovation: Proprietary Information and Intellectual Property Protection Paul is a fraud and security specialist with Booz Allen Hamilton’s Strategic Security Practice. Specialising in the management of Economic Crime risks with a focus on Financial Crime, Intellectual Property, Proprietary Information and Identity Crime matters, Paul applies his specialist background and knowledge to improve enterprise resilience by reducing corporate loss and managing risk exposure whilst ensuring that competitive advantage is maintained. Paul has assisted numerous government agencies and private sector companies with specialist advice concerning Fraud and Security from the perspective of strategic risk and planning activities. Paul has previously undertaken related appointments in the Biotechnology, R&D strategy, Government, Aerospace and Banking and Finance sectors. Paul can be contacted via email at Curwell_Paul@bah.com. Dr. Damian Hine In his academic role at the UQ Business School, University of Queensland, Damian has published extensively on Entrepreneurship and innovation, as well as intellectual capital issues. He writes on firm based perspectives in international journals and is on the editorial board of a number international entrepreneurship journals. Damian has recently co-authored a book entitled Innovation and Entrepreneurship in Biotechnology. He is also co-editor of Innovative Methodologies in Enterprise Research. Table of Contents Securing Intellectual Assets in the Era of Innovation: Proprietary Information and Intellectual Property Protection 1 Table of Contents 2 1. Introduction 4 1.1. Background 4 1.2. Scope 6 1.3. Security threats and their place in the Intellectual Asset Value Chain 7 2. Context 9 2.1. Role of Knowledge in Competitive Strategy 9 2.2. Knowledge as an Intangible Asset 12 2.3. Defining Intellectual Assets 17 2.4. The nature of R&D 19 2.5. The function of security and knowledge-intensive organisations 20 3. Proprietary Information 22 3.1. Background 22 3.2. Trade Secrets 22 3.3. Security and Proprietary Information 23 4. Intellectual Property 24 4.1. Background 24 4.2. Types of IP 24 4.3. Managing IP 25 4.4. Generating Profit from IP 25 4.5. IP Due Diligence 26 5. Vulnerabilities 28 5.1. Critical Vulnerabilities 28 5.2. Market Surveillance and Enforcement in relation to Intellectual Property 28 5.3. Disclosure of Proprietary Information 29 5.4. Other Vulnerabilities 30 5.4.1. Networks and Research Partnerships 30 5.4.2. Unapproved Research Activities 30 5.4.3. Patent Publications 31 5.4.4. Pre-Patent Phase 31 5.4.5. Product Diversion and “Grey Markets” 31 5.4.6. Validity of IPRs 31 6. Threats and Perpetrators 33 6.1. Internal Perpetrators 33 6.2. External Perpetrators 33 6.3. Motives 34 6.4. Threats 34 6.4.1. Joint Ventures and Alliances 35 6.4.2. Mergers and Acquisitions 35 6.4.3. Market Competitors 35 6.4.4. Business Intelligence Collectors 36 6.4.5. Financiers 36 6.4.6. Consumers 36 6.5. Criminal Threats 36 6.5.1. Organised Crime 37 6.5.2. Small time, opportunistic Criminals 37 6.5.3. Foreign Intelligence Services, Terrorists and Insurgent Groups 38 6.6. Specific Threats: IPR Infringement 39 6.7. Specific Threats: Fraud 41 6.8. Specific Threats: Licensing Abuse 46 6.9. Specific Threats: Espionage 48 6.10. Specific Threats: Insiders 48 6.11. Specific Threats: Com