May 24, 2012

More Year of the Hack: Government Based Cyber Security Threats

In a prominent lead opinion piece on June 15, 2011 in the Wall Street Journal, Richard Clarke, former Chair of the federal government's Counter-terrorism Security Group in the Clinton and George W. Bush administrations, makes the case that the Chinese government is actively involved in cyber attacks on U.S. businesses. Mr. Clarke also notes prior threats that have been identified to the power grid.

Mr. Clarke, to be sure, is a controversial figure, but he has not been hesitant to criticize even administrations in which he served on matters involving national security. Mr. Clarke observes: "Congress hasn't passed a single piece of significant cyber security legislation." Noting the muted response of governmental officials to issues in the face of Chinese government denials, Mr. Clarke states that if explosives were found in our infrastructure, a strong response could be expected, but if "the explosive is a digital bomb that could do even more damage, our response is apparently muted—especially from our government."

Mr. Clarke's concerns are not limited to the power grid infrastructure or the defense industry. He notes that cyber criminals tend to go after banks and credit card companies, not defense contractors.

Mr. Clarke's thoughts represent a cautionary tale for all companies dependent upon information technology -- which would probably include most companies. At this point, do not assume that the government is going to protect you. Be sure your defenses are up and that you have plans in place in the event of a breach.

© 2012 BARNES & THORNBURG LLP

About the Author

Partner

John L. Watkins practices primarily in the areas of insurance coverage and bad faith, trade secrets and confidential information, and international business. He also handles other complex commercial litigation. 

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About the Author

Partner

Roy E. Hadley is a partner in the Atlanta office of Barnes & Thornburg LLP where he is a member of the firm’s Corporate Department and co-leader of the firm’s Cloud Computing and Cyber-Security practice team. He counsels clients in complex corporate and outsourcing transactions, with a focus on those transactions involving cloud computing, intellectual property, technology and information security. Mr. Hadley specializes in counseling c-level executives and boards on information security risk management. 

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Contributors

Partner

Joan L. Long is a partner in the Chicago and Grand Rapids offices of Barnes & Thornburg LLP, where she is a member of the Intellectual Property Department and Chair of the Advertising and Marketing Group. Ms. Long’s practice is focused on virtually all aspects of trademark and brand protection and enforcement.

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About the Author

Associate

Jeffrey M. Peabody is an associate in the Energy, Telecommunications, Transportation and Utilities Department in Barnes & Thornburg LLP’s Indianapolis, Indiana office.

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