Commercial Espionage Analysis

This report delves into the concept of commercial espionage, highlighting its implications for businesses. It discusses notable cases, such as the Gillette and Hitachi incidents, and emphasizes the importance of employee vetting to mitigate risks associated with espionage activities. The report outlines strategies for effective background checks and monitoring to safeguard sensitive information and maintain organizational integrity.

Running head: COMMERCIAL ESPIONAGE
Commercial Espionage
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Answer 1:.........................................................................................................................................2
Answer 2:.........................................................................................................................................3
Answer 3:.........................................................................................................................................4
Reference.........................................................................................................................................6

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Answer 1:
Espionage is the concept, which is based on spying of information. This helps in the
purpose of obtaining the information in the form of stealing that is without taking permission
from the holder. The spying or espionage activities those are committed for the purpose of
industrial, economic and military purposes are under the category that is termed as commercial
espionage. This commitment of vetting is one of the important aspects of the operational
functions related to commercial or industrial espionage1. There are several cases where,
employees within the commercial private or government organizations hack or steal information,
which are then sold to the rivals or enemies. This can cause huge loss to the organization as the
classified information related to the protocol is being leaked. This can be one of the major
security concerns for all major organizations, while they recruit new members.
It is essential in this context for any forms of commercial organization to have careful
background check for all the employees. This is process is called vetting and is essential to
minimize the cases related commercial espionage. The background checking of an individual
includes cases that are related to criminal track record and the performance level of the
employees in the past organization. Intelligence gathering is one of the important components of
the vetting that help the organization to have high level of trust upon the employees. This can
help to ensure that the employees are to involve themselves in any forms of espionage activities.
With the tough level of competition in the current days at the commercial level, there are several
organizations, which have used unethical steps in the form of espionage activities to use the
1 Argaman, S. and Siboni, G., 2014. Commercial and Industrial Cyber Espionage in Israel.
Military and Strategic Affairs, 6(1).

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classified information to gain competitive advantage. Hence, it is with the help of the vetting
process that originations in the current days can reduce the risks that are associated due to the
increased tendency of commercial espionage.
Answer 2:
In the year 1997, the Gillette Company, which is one of the renowned brands for men’s
personal care products, has been the victim of corporate level of espionage. This is due to the
fact that they had form partnership with Wright industries, which was in charge of designing the
shaver that is needed for men. One of the employees of the Wright Industries got bribe for the
rival brands of Gillette and sold the blue print that was to be used in the new shaver. Hence, this
resulted in the fact that the new technology being used in the shavers of other brands. Even
though with the help of legal cases, it was possible to provide punishment to the guilty employee
the leak of the blueprint has caused loss to the company that was spend in the designing
technology of the shaver. The official business contract between Gillette and Wright industries
was also compromised due to the fact the companies were not able to trust each other. Overall
the Gillette Company suffered a loss of $100 million due to act of this espionage.
There is also the case of industrial rivals between technological companies that includes
leaking information related to the blueprint of machineries. One of the examples is the infamous
legal case between Hitachi and IBM. This case occurred during the time, where notebooks and
Laptops were not so popular among common people. The Hitachi Company with the help of
spying technique was able to get the design that IBM had planned for their workbooks ad
laptops. With the help of the investing team of FBI, it is possible for IBM to identify the breach
and the espionage activity that is involved in the process. The overall plot and the plan related

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the espionage have also been uncovered that has caused huge financial and reputation loss of
IBM. The company also had lost some of their senior worker, due to which, the working
performance level of the company is compromised2.
The Reliance Industries of India has also been the victim of espionage due to the activity
of the five employees. The employees were arrested as they attempted to steal some of the
documents that are the part of the oil ministry. Due to this activity most of the classified
information being leaked due to espionage activity, the reliance industries has to face loss of
reputation as the oil ministry blamed the company for scandal 3
Avery Denison Corporation is one of the leading adhesive producers in the world. In
1997, one of the managers of the company had bribed upon the company to share information
related to the research of the manufacturing data to Four Pillars Enterprise. It was estimated that
the company had lost millions of dollars as the revenue income as the part of the revenue income
due to the act of this commercial espionage4.
Answer 3:
Every company needs to have one of the effective ways of vetting that is initiated by the
employee screening policy. It is essential for all the companies to regularly screen and monitor
2 Mayam, Attar, 5 Most Famous Cases Of Industrial Espionage (2017) Blog.inventus.com
http://blog.inventus.com/blog/5-most-famous-cases-of-industrial-espionage
3 Forbes Welcome (2017) Forbes.com
https://www.forbes.com/sites/meghabahree/2015/02/23/companies-of-several-indian-
billionaires-embroiled-in-a-case-of-corporate-espionage/#710664f2c189
4 Mayam, Attar, 5 Most Famous Cases Of Industrial Espionage (2017) Blog.inventus.com
http://blog.inventus.com/blog/5-most-famous-cases-of-industrial-espionage

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all the performance level of the workers. The background screening during the time of
recruitment can help in this process5.
Every company also needs to keep a record of the financial condition of their employees.
There are many employees, who may have some extra source of income. With the help of
financial background check, it is possible to track whether or not any employee is involved in
any forms of illegal and unethical activities that can compromise upon the reputation of the
company.
Every company needs to have definite protocol and procedure for vetting. This is one of
the essential works that can help to deal with the activity of the workers. The company also
needs to provide the classified information only to the old and trusted employees, which will
help them to minimize the risks of espionage. It is also essential to motivate the workers in the
forms of appraisal in salary, which will not allow them to involve in forms of bribing and
espionage activities6.
5 Singh, P.R. and Maheshawari, M., 2013. TRADE SECRET MISAPPROPRIATION VIS-À-
VIS THREAT TO COMMERCIAL ESPIONAGE. READINGS BOOK, p.1140.
6 Rascoff, S.J., 2016. The Norm against Economic Espionage for the Benefit of Private Firms:
Some Theoretical Reflections. The University of Chicago Law Review, pp.249-269.

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Reference
Argaman, S. and Siboni, G., 2014. Commercial and Industrial Cyber Espionage in Israel.
Military and Strategic Affairs, 6(1).
Forbes Welcome (2017) Forbes.com
https://www.forbes.com/sites/meghabahree/2015/02/23/companies-of-several-indian-
billionaires-embroiled-in-a-case-of-corporate-espionage/#710664f2c189
Mayam, Attar, 5 Most Famous Cases Of Industrial Espionage (2017) Blog.inventus.com
http://blog.inventus.com/blog/5-most-famous-cases-of-industrial-espionage
Rascoff, S.J., 2016. The Norm against Economic Espionage for the Benefit of Private Firms:
Some Theoretical Reflections. The University of Chicago Law Review, pp.249-269.
Singh, P.R. and Maheshawari, M., 2013. TRADE SECRET MISAPPROPRIATION VIS-À-VIS
THREAT TO COMMERCIAL ESPIONAGE. READINGS BOOK, p.1140.