LITMIR.BIZ

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       Data required by law or regulation to be kept private or confidential

       Privacy-related information pertaining to individual employees, customers, prospective customers or employees, or members of the public who contact the firm for any reason

       Customer transaction and business history data, including the company's credit ratings and terms for a given customer

       Customer complaints, service requests, or suggestions for product or service improvements

      In many respects, such business confidential information either represents the results of investments the organization has already made or provides insight that informs decisions they're about to make; either way, all of this and more represent competitive advantage to the company. Letting this information be disclosed to unauthorized persons, inside or outside of the right circles within the company, threatens to reduce the value of those investments and the future return on those investments. It could, in the extreme, put the company out of business!

      Let's look a bit closer at how to defend such information.

Intellectual Property

      Our intellectual property are the ideas that we create and express in tangible, explicit form; in creating them, we create an ownership interest. Legal and ethical frameworks have long recognized that such creativity benefits a society and that such creativity needs to be encouraged and incentivized. Incentives can include financial reward, recognition and acclaim, or a legally protected ownership interest in the expression of that idea and its subsequent use by others. This vested interest was first recognized by Roman law nearly 2,000 years ago. Recognition is a powerful incentive to the creative mind, as the example of the Pythagorean theorem illustrates. It was created long before the concept of patents, rights, or royalties for intellectual property were established, and its creator has certainly been dead for a long time, and yet no ethical person would think to attempt to claim it as their own idea. Having the author's name on the cover of a book or at the masthead of a blog post or article also helps to recognize creativity.

      Financial reward for ideas can take many forms, and ideally, such ideas should pay their own way by generating income for the creator of the idea, recouping the expenses they incurred to create it, or both. Sponsorship, grants, or the salary associated with a job can provide this; creators can also be awarded prizes, such as the Nobel Prize, as both recognition and financial rewards.

      The best incentive for creativity, especially for corporate-sponsored creativity, is in how that ownership interest in the new idea can be turned into profitable new lines of business or into new products and services.

The vast majority of intellectual property is created in part by the significant investment of private businesses and universities in both basic research and product-focused developmental research. Legal protections for the intellectual property (or IP) thus created serve two main purposes. The first is to provide a limited period of time in which the owner of that IP has a monopoly for the commercial use of that idea and thus a sole claim on any income earned by selling products or providing services based on that idea. These monopolies were created by an edict of the government or the ruling monarchy, with the first being issued by the Doge of Venice in the year 1421. Since then, nation after nation has created patent law as the body of legal structure and regulation for establishing, controlling, and limiting the use of patents. The monopoly granted by a patent is limited in time and may even (based on applicable patent law) be limited in geographic scope or the technical or market reach of the idea. An idea protected by a patent issued in Colombia, for example, may not enjoy the same protection in Asian markets as an idea protected by U.S., U.K., European Union, or Canadian patent law. The second purpose is to publish the idea itself to the marketplace so as to stimulate rapid adoption of the idea, leading to widespread adoption, use, and influence upon the marketplace and upon society. Patents may be monetized by selling the rights to the patent or by licensing the use of the patent to another person or business; income from such licensing or sale has long been called the royalties from the patent (in recognition that it used to take an act of a king or a queen to make a patent enforceable).

      Besides patents and patent law, there exist bodies of law regarding copyrights, trademarks, and trade secrets. Each of these treats the fruits of one's intellectually creative labors differently, and like patent law, these legal and ethical constructs are constantly under review by the courts and the cultures they apply to. Patents protect an idea, a process, or a procedure for accomplishing a practical task. Copyrights protect an artistic expression of an idea, such as a poem, a painting, a photograph, or a written work (such as this book). Trademarks identify an organization or company and its products or services, typically with a symbol, an acronym, a logo, or even a caricature or character (not necessarily of a person). Trade secrets are the unpublished ideas, typically about step-by-step details of a process, or the recipe for a sauce, paint, pigment, alloy, or coating, that a company or individual has developed. Each of these represent a competitive advantage worthy of protection. Note the contrast in these forms, as shown in Table 1.1.

       TABLE 1.1 Forms of Intellectual Property Protection

LEGAL CONCEPT	PUBLIC DISCLOSURE	MONETIZE BY	COMPROMISE BY
Patent	Mandatory, detailed	License to use	Failure to develop or monetize; failure to defend against infringement
Copyright	Published works	Sell copies	Failure to defend
Trademark	Logos, signs, product stampings	Creates brand awareness in marketplace	Failure to defend
Trade secret	Must be undisclosed	Sell products and services based on its use; can be licensed	Failure to keep secret or defend

The most important aspect of that table for you, as the on-scene information security professional, is the fourth column. Failure to defend and failure to keep secret both require that the owners and licensed or authorized users of a piece of IP must take all reasonable, prudent efforts to keep the ideas and their expression in tangible form safe from infringement. This protection must be firmly in place throughout the entire lifecycle of the idea—from its first rough draft of a sketch on the back of a cocktail napkin through drawings, blueprints, mathematical models, and computer-aided design and manufacturing (CADAM) data sets. All expressions of that idea in written, oral, digital, or physical form must be protected from inadvertent disclosure or deliberate but unauthorized viewing or copying. Breaking this chain of confidentiality can lead to voiding the claim to protection by means of patent, copyright, or trade secret law. In its broadest terms, this means that the organization's information systems must ensure the confidentiality of this information.

      Protect IP by Labeling It

      Protection of intellectual property must consider three possible exposures to loss: exfiltration, inadvertent disclosure, and failure to aggressively assert one's claims to protection and compensation. Each of these is a failure by the organization's management and leadership to exercise due care and due diligence.

       Exfiltration generally occurs in part because decisions have been made to ignore risks, disregard alarm indications, and knowingly operate information systems in insecure ways. (There are cases of data breaches that happen to highly secure systems, hardened to the best possible standards, but these are few and far between.)

       Inadvertent exposure can happen due to

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