What are the risks of using CI (competitive intelligence) for espionage?
A:
The line between competitive intelligence, or CI, and illegal corporate espionage is not always clear. This is especially true as technology increases the ability to gather and distribute information. There are also differences between domestic and international espionage laws. Whenever a company engages in an uncertain area of CI processing, it opens itself up to possible legal risk.
Intelligence Vs. Espionage
Corporate espionage, sometimes referred to as industrial espionage, is different than spying for political or national security reasons. The purpose of corporate espionage is to better understand the strengths and weaknesses of a specific business or industry. These are the same goals pursued by competitive intelligence strategies. The difference between CI and corporate espionage normally comes down to the means of acquiring information.
For example, it is legal to ask a competitive firm’s customers what they like or do not like about the competitor’s products. No illicit activity occurs to receive the information. On the other hand, blackmailing a competitor’s employee to garner information is illegal; blackmail is an illicit activity in the United States. The differentiation between licit and illicit is generally cited as the difference between espionage and intelligence gathering.
Risks of Corporate Espionage
Corporate espionage is relatively limited. Most forms of information gathering are legal, even if some are widely considered unethical. There are two broad means of committing corporate espionage: violating contracts or breaking other laws in the course of collecting information.
Nondisclosure agreements and gag orders are commonplace in corporate circles. Companies spend a considerable amount of time trying to protect trade secrets or other competitive advantages. Those with access to sensitive information can be required to sign away their right to reveal anything material.
Other acts normally considered illegal, such as fraud or bribery for example, can turn standard CI into espionage. Penalties for breaking these laws depend on their respective jurisdictional statutes. This is different than breaking a contract, where punishment might be detailed in the original agreement.