We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


Industrial Espionage

Categories: Ethics/Morals

Imagine a John le Carré novel doing its normal spy thing, except instead of infiltrating Cold War USSR to get plans for a new nuclear submarine, the agent infiltrates Procter & Gamble to learn the secrets of a new ketchup recipe, or a proprietary technique for making toilet paper softer.

The goal of industrial espionage is to steal trade secrets from a competitor. It might involve hacking into the rival's computer system or bribing a well-placed employee. Or, if you're feeling creative, an elaborate Mission Impossible-style heist mission.

Seem farcical? It isn't, sadly. Huge patent secrets were stolen from American semi-conductor companies by Chinese companies who cloned them and basically said, "Sue us." (In our Beijing courts.) So we did. And we lost.

Qualcomm and Apple had a big dust-up. Microsoft used to routinely take the software secrets of small companies in Silicon Valley and proffer the same "sue us" thing. Small companies had about a thousand fewer lawyers than Microsoft. But then Bill cured malaria, pretty much. So all's good.

Find other enlightening terms in Shmoop Finance Genius Bar(f)