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AG Mukasey Says IP Theft Threatens Public Safety, Fosters Terrorism

By Ryan Singel, Kevin Poulsen, Sarah Lai Stirland, Kim Zetter, and David Kravets

SAN JOSE, California -- Attorney General Michael Mukasey talked tough on intellectual property crime, telling Silicon Valley executives here Friday that the theft of their inventions poses a threat to the nation's "health and safety" and fosters terrorism.

"Every new technology we create can be abused -- whether it's a common identity thief looking for a new way to steal your bank account information, or an international terrorist looking to advance a murderous plot," the United States' top law enforcement official said here at TheTech Museum of Innovation.

The nation's 81st attorney general -- during a 20-minute speech in which he took no questions -- added that the "the continuing worldwide escalation of counterfeiting and piracy poses a threat to both our economy and public safety." He said the "mission of the Department of Justice is clear: whether it's a complex international narcotics ring, a corrupt public official abusing his office, or some scam-artist selling counterfeit software, our job is to enforce the law and bring to justice those who perpetrate these crimes."

He said "the counterfeiting of products like pharmaceuticals and medical devices, auto and airplane parts, or electronics that go into our nation?s critical infrastructure, can present a real and direct danger to the public."

Before his brief talk, he met with technology officials from Apple, Adobe and other groups. The day before, he spoke with Hollywood executives at Warner Bros. in Los Angeles.

Neil MacBride, vice president of the Business Software Alliance, said collaboration between industry and the DOJ led to the recent arrest and sentencing of two Virginia brothers who were selling millions of dollars in fake software over the internet. "As cybercriminals become more technologically sophisticated and bolder in committing illegal activities, it is even more critical for public and private collaboration," MacBride said.

The Department of Justice, the attorney general said, has deployed as many as 230 federal prosecutors around the country as part of its Computer Hacking and Intellectual Property, or CHIP, network. The DOJ has steadily increased the number of IP prosecutions, filing 217 last year, a 33 percent jump in two years, he said.

"We're devoting more resources and more personnel to IP crime, and we're sending the important message that we take these crimes seriously, and we will punish the actions of counterfeiters and pirates whenever we can," he said.

Mukasey said U.S. anti-counterfeiting authorities are coordinating with the European Union, Asia, Canada, and a host of other countries he termed "hacker havens" like China and Romania.

"FBI agents teamed up with the Royal Canadian Mounted Police in an initiative targeting the distribution of counterfeit Cisco computer networking equipment manufactured in China," he said. "So far we've had more than 400 seizures of counterfeit hardware and labels with an estimated retail value of more than $76 million -- and the investigation is still ongoing."

He said the DOJ has trained and provided technical assistance to thousands of foreign prosecutors, investigators and judges in more than a hundred countries, and urged Congress to adopt legislation "that would criminalize attempted copyright infringement, and add important investigative tools such as granting courts the authority to issue wiretap orders in criminal counterfeiting and piracy investigations."

Photo Air America

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Full post as published by Threat Level on March 28, 2008 (boomark / email).