The Canadian Security Intelligence Service (CSIS) and its US-based intelligence partners have collaborated to develop new guidance seeking to help Western technology startups protect themselves from possible exploitation when entering international pitch competitions.
“Canadian tech startups are essential to the Canadian economy and should protect themselves from potential threats or exploitation by threat actors,” said Dan Rogers, CSIS director, in a news release.
The National Counterintelligence and Security Center, the US Air Force Office of Special Investigations, and the Office of the Director of National Intelligence’s Office of Economic Security and Emerging Technology were the US intelligence partners that worked with CSIS to develop the guidance, according to the CSIS news release.
“CSIS actively works with its partners, including the U.S., Five Eyes and others around the world in order to identify threats, inform Canadians and share mitigation measures,” Rogers said in the CSIS news release.
CSIS accepted that international pitch competitions could provide tech startups with exposure and financing opportunities. However, CSIS noted that these competitions could subject participants to the following risks:
- exploitation by hostile foreign nations and entities seeking to obtain Western technology, innovation, and skills to improve their economic advantages and military capabilities
- loss of their intellectual property
- misuse of their data
- recruitment of their talent by competitors
- their ultimate failure if competitors utilized stolen assets to beat them in global markets
Ways to mitigate
According to the CSIS bulletin providing the guidance, international pitch competitions, especially those associated with the Chinese government or the Chinese Communist Party, presented notable risks to Western tech startups.
The bulletin identified the following strategies Western tech startups could consider to help mitigate such risks before entering pitch competitions.
First, the bulletin encouraged startups to exercise due diligence by extensively researching the competition’s organizers and others involved in the event.
Second, the bulletin urged startups to safeguard their data. One step suggested was applying for patent protection in Canada, the US, and the competition’s host nation.
The bulletin noted that publicly disclosing inventions prior to filing for patent protection might make applicants ineligible for patentability. The bulletin suggested consulting a legal professional with questions or concerns regarding revealing information or keeping their intellectual property safe.
Third, the bulletin encouraged startups to limit their exposure and only divulge the necessary information.
Fourth, the bulletin urged startups to monitor the market continuously and regularly for possible infringements concerning their startups during and after the competition. The bulletin stressed that startups should be ready to act if needed.
Lastly, the bulletin asked startups to reach out to federal agencies and other industry players to collect and share updated threat information and risk mitigation resources.