Following last year’s successful Kickstarter campaign for Fear Effect Sedna, French studio Sushee’s next project is a complete remake of the 2000 original. Fear.The Great Brain Robbery - CBS News. Editor's Note: The author of the original article "A Harsh Winter for Sinovel and China's Wind Industry," which was later attached to the phishing email in this video, wishes it known that he was not involved in a cyberattack against American Superconductor. The following is a script from "The Great Brain Robbery" which aired on Jan. Business and management terms dictionary glossary of terminology and definitions from business and management. The Game Genie is a line of cheat systems originally designed by Codemasters and sold by Camerica and Galoob. The first device in the series was released in 1990 for. Lesley Stahl is the correspondent. Rich Bonin, producer. If spying is the world's second oldest profession, the government of China has given it a new, modern- day twist, enlisting an army of spies not to steal military secrets but the trade secrets and intellectual property of American companies. It's being called "the great brain robbery of America." The Justice Department says that the scale of China's corporate espionage is so vast it constitutes a national security emergency, with China targeting virtually every sector of the U. S. economy, and costing American companies hundreds of billions of dollars in losses - - and more than two million jobs. John Carlin: They're targeting our private companies. ![]() And it's not a fair fight. A private company can't compete against the resources of the second largest economy in the world. Lesley Stahl and John Carlin, assistant attorney general for National Security. CBS News. John Carlin is the assistant attorney general for National Security with responsibility for counterterrorism, cyberattacks and increasingly economic espionage."A private company can't compete against the resources of the second largest economy in the world." John Carlin: This is a serious threat to our national security. I mean, our economy depends on the ability to innovate. And if there's a dedicated nation state who's using its intelligence apparatus to steal day in and day out what we're trying to develop, that poses a serious threat to our country. Lesley Stahl: What is their ultimate goal, the Chinese government's ultimate goal? John Carlin: They want to develop certain segments of industry and instead of trying to out- innovate, out- research, out- develop, they're choosing to do it through theft. All you have to do, he says, is look at the economic plans published periodically by the Chinese Politburo. They are, according to this recent report by the technology research firm INVNT/IP, in effect, blueprints of what industries and what companies will be targeted for theft. John Carlin: We see them put out the strategic plan, and then we see actions follow that plan. We see intrusion after intrusion on U. S. companies. Lesley Stahl: Do you have a number of U. S. companies that have been hit? John Carlin: It's thousands of actually companies have been hit. Lesley Stahl: Thousands of U. S. companies? John Carlin: Of U. S. companies. But getting CEOs from those companies to talk is nearly impossible because most of them still have business in China and don't want to be cut out of its huge market. Daniel Mc. Gahn, the head of American Superconductor, is an exception. His firm spent years and millions of dollars developing advanced computer software for wind turbines that Mc. Gahn says China looted, nearly putting him out of business. He's talking because he wants to fight back. Daniel Mc. Gahn: I'm personally never gonna give this up. Too many lives were affected, too many families were damaged through this. We can never give up on this. Lesley Stahl: You had to fire 6. Daniel Mc. Gahn: Yes. Lesley Stahl: Out of how many jobs? Daniel Mc. Gahn: At the time we were almost 9. Lesley Stahl: So how much did you lose in share value? Daniel Mc. Gahn: Total loss is well over a billion dollars. Today, his factory floor is largely silent, a shadow of this once thriving company. Daniel Mc. Gahn: I think part of the strategy in all this was to kill us. So- - Lesley Stahl: They set out to kill you. Daniel Mc. Gahn: To kill the company. How can he be so sure? Well, his story begins when China passed a clean energy law in 2. The law made China the hottest wind power market in the world. So Mc. Gahn partnered with a small Chinese firm called Sinovel which was partly owned by the government. Sinovel made the skeletons of the turbines, and his company, American Superconductor, the sophisticated gadgetry and computer code to run them. Sinovel wind turbines. CBS News. Lesley Stahl: They actually built the turbines. Daniel Mc. Gahn: They make the turbine, we make the controls. Lesley Stahl: And did they make these turbines with your brains in them for the entire country of China? Daniel Mc. Gahn: Yes. When he went into business there, China was already notorious for poaching American intellectual property. So he says he did everything he could think of to protect his technology from being stolen. Daniel Mc. Gahn: We made sure that any software or any pieces of the code were restricted and used, were able to be accessed, only by a few people within the company. Lesley Stahl: Once they got everything over there couldn't they reverse- engineer it? Daniel Mc. Gahn: We believe that's what they tried to do. And what they learned was this encrypted protocol was in the way. They didn't quite understand how it worked. And they couldn't reverse- engineer it Lesley Stahl: Everybody knows if it's on the Internet, some brilliant hacker can get at it. Daniel Mc. Gahn: It wasn't accessible through the Internet. Lesley Stahl: You kept it off the Internet? Daniel Mc. Gahn: Yes. Lesley Stahl: It sounds like you built a little fortress around your, your precious codes. Daniel Mc. Gahn: We certainly tried. Initially, business boomed in China for American Superconductor, with sales skyrocketing from $5. Daniel Mc. Gahn: We were going through exponential growth. It's what every technology company wants to get to, is this high level of growth. We were there. Then, in 2. China on Sinovel's turbines. The software had been programmed to shut down after the test but the blades didn't shut down. They never stopped spinning. Daniel Mc. Gahn: So we said why. We didn't really know. So the team looked at the turbine and saw running on our hardware a version of software that had not been released yet. Lesley Stahl: That's when you realized. Daniel Mc. Gahn: Realized something's wrong. So then we had to figure out how did, how could this have happened? To find out, he launched an internal investigation and narrowed it down to this man, Dejan Karabasevic, an employee of American Superconductor based in Austria. He was one of the few people in the company with access to its proprietary software. He also spent a lot of time in China working with Sinovel. Daniel Mc. Gahn: And what they did is they used Cold War- era spycraft to be able to turn him. Lesley Stahl: They turned him. Daniel Mc. Gahn: And make him into an agent for them. Lesley Stahl: Do you know any specifics of what they offered him? Daniel Mc. Gahn: They offered him women. They offered him an apartment. They offered him money. They offered him a new life. The arrangement included a $1. Mc. Gahn's investigation found on Dejan's company computer. In this one, from him to a Sinovel executive, Dejan lays out the quid pro quo, "All girls need money. I need girls. Sinovel needs me." Sinovel executives showered him with flattery and encouragement: you are the, quote, "best man, like superman." Lesley Stahl: And did they say, "We want the- - the source codes"? Daniel Mc. Gahn: It was almost like a grocery list. Can you get us A? Can you get us B? Can you get us C?" Lesley Stahl: I've seen one of the messages, the text message, in which Dejan says, "I will send the full code of course." Daniel Mc. Gahn: That's the full code for operating their wind turbine. Dejan eventually confessed to authorities in Austria and spent a year in jail. Not surprisingly, the Chinese authorities refused to investigate, so Daniel Mc. Gahn filed suit in civil court - - in China, suing Sinovel for $1. But he suspected that China was still spying on his company, and that Beijing had switched from Cold War to cutting- edge espionage. Lesley Stahl: So why were you brought in? Dmitri Alperovitch: We were brought in because the attacks now continued in cyberspace. Mc. Gahn hired Dmitri Alperovitch and George Kurtz, cofounders of a computer security firm called Crowd. Strike, to investigate. They zeroed in on a suspicious email purportedly sent by a board member to 1. Dmitri Alperovitch: It had an attachment. A few people clicked on an attachment and that let the Chinese in. It was sort of like opening the front door. Lesley Stahl: What do you mean they were in? Latest Topics | ZDNet. Our takeaways from this fall's Strata main event are that enterprise data lakes are going the (virtual) way of enterprise data warehouses, and that for now, machine learning is more accessible than Io. T to developers. 7 hours ago. Tony Baer (Ovum) in Big Data Analytics.
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