Trade Secret Hacking, Online Data Breaches, and China's Cyberthreats

Abstract

Online hacking from China, Iran, North Korea, Russia, and other parts of the world has caught the attention of U.S. policymakers, commentators, and the American public. For example, the discussion of the systematic attacks launched by potentially government-sponsored Chinese hackers reinforces the view that China is using all means necessary to compete against the United States. Most recently, the unprecedented cyberattack on Sony's movie studio also delayed and scaled back the nationwide theatrical release of the film The Interview. This attack led President Obama to call for greater cooperation between the government and the private sector to protect cybersecurity and the country's critical infrastructure.

Commissioned by the Cardozo Law Review for the symposium on "Data Breaches: Moving Forward, Practically," this article closely examines the ongoing debate on China's sustained effort in using online hacking and other intrusive techniques to steal trade secrets and proprietary data from U.S. businesses. The article begins by outlining the five common narratives that have thus far been advanced to recount this widely criticized effort. Sensing the narratives' negative overtones, the article follows up by offering five modest suggestions on how a more positive debate can be constructed to help identify ways to reduce online hacking and data breaches as well as to enhance the protection of trade secrets and proprietary data.