MEMORANDUM
DATE:
TO: (Facilitator Name)
FROM: (Student Name)
RE: Ernst & Young. (2014). Cybersecurity and intellectual property theft in China: Protecting your corporate assets. Board Matters Quarterly, 7-8.
ARTICLE SYNOPSIS
Since industrial revolution, the number of hackers who seek to steal intellectual property has been on the rise in China. During the initial stages of technological advancements, many organizations in China largely focused on growth and paid limited attention to protection of important corporate assets and intellectual property against attack. Many companies in China are now developing adequate controls and safeguards on intellectual property as national economy matures. Majority of victims of intellectual property theft are companies and individuals who do business online. Currently, China provides a very good ground for doing business, and new investors are expected to take the lead towards protection of intellectual property. National leaders are taking appropriate steps to curb the ongoing intellectual property theft in China. China’s leaders have realized that innovations and economic growth can best be achieved if appropriate laws that protect and respect intellectual property rights are formulated and enforced. The government of China strives to enact laws that can help to address the problem of intellectual property theft in the country (Ernst & Young, 2014).
LEGAL ISSUE
Cyber attacks, illegal information technology, and intellectual property theft continue to be legal issues affecting China’s economy today. Approximately 20 million people using e-commerce have reported security fraud related to intellectual property theft within the last six months. Intellectual property theft in China is mainly affecting e-commerce retailers, and there is great need for all organizations in the country to prioritize cybersecurity as a risk that needs to be addressed urgently (Ernst & Young, 2014).
MANAGERIAL PERSPECTIVE
Illegal information technology, cyber attacks, and intellectual property theft in China are unethical because they infringe on the rights of individuals and businesses. Companies and individuals who have spent a lot of money in research and development lose their products on the hands of criminals due to intellectual property theft. According to ( ), the main reasons why criminals steal intellectual property is to reap cash from products that have been developed by others. This makes innovators in China to lose millions of cash every year. The impact of intellectual property theft is not only felt by people involved in e-commerce, but also by the national government. Since intellectual property contributes greatly to China’s economy, the Chinese government automatically loses millions of dollars due to intellectual property theft. The problem of intellectual property theft can be solved in a number of ways including transformations in the global security management framework, making changes in the global systems, increasing the level of security awareness, and implementation of modern technological tools to facilitate intellectual property protection (Ernst & Young, 2014).
The problem of intellectual property theft in China could have been avoided if adequate controls were in place. Authorities in China are working hard to prevent intellectual property theft through enforcement of protection laws. The Chinese government is concerned that effective laws, regulations, and rules are in place to help prevent intellectual property theft, but the only problem throughout the country is lack of enforcement of those regulations. Ideally, the risks of intellectual property theft and cyber attacks can significantly decrease, considering the fact that many companies continue to accept best practices for corporate governance as China’s economy develops. The Chinese government should continue to enact new legislations that will help reduce intellectual property theft in the country. Additionally, board members should insist that their companies develop international polices to curb intellectual property theft and effectively enforce those rules (Ernst & Young, 2014).
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