Today’s Corporate Darwinism puts IP at risk
Jan 04, 2010

There has never been a clearer example of Corporate Darwinism than today’s economy. And there is no end in sight. The winners in this evolutionary process are not necessarily the strongest or the fastest, but rather those that can most effectively adapt to new circumstances.

To adapt, businesses need to quickly figure out how to outsource, off-shore, and virtualize the workforce to cut costs and find top expertise and talent within the global resource pool. These same businesses need to find new ways to work with each other and customers via distributed tools like software as a service (SaaS) and cloud computing.

This “survival of the fittest” atmosphere is posing serious threats to digital security. Company-sensitive information is exposed, leading to more copying, piracy, and theft. And the risk of losing vital software Intellectual Property (IP) has never been higher. The loss of these vital digital assets can mean the loss of a competitive advantage or even the loss of their business.

More than one-third (34 percent) of U.S. companies in a recent survey said they had suffered from the leakage of sensitive or embarrassing data in the past 12 months. Forty-three percent said they had investigated a suspected leak of sensitive data via email, and 34 percent had investigated a violation of data protection regulations or privacy in the past year. More than one-third said customer data was exposed or stolen, and 28 percent said they had been hit by exposure or theft of their intellectual property(1).

In July 2009, a Former Goldman Sachs computer programmer was arrested and charged with stealing codes related to a high-speed trading program that he helped develop. In March 2008, a former Motorola software engineer was stopped at O'Hare airport before boarding a one-way flight to Beijing with more than 30 compact data storage devices containing stolen files with $600 million worth of corporate secrets. Those thefts are reminders that almost every modern organization has some IP subject to attack and theft.

A 2009 Purdue University Krannert School of Management study concluded that, “Business failures, mass layoffs, decimated markets and a poor economic outlook will lead to a vastly increased number of financially desperate current employees and laid-off staff stealing valuable corporate information, both for financial gain and to improve their job opportunities.” In fact, forty-two percent of the study respondents said that laid-off employees are the biggest threat to their companies during this economic crisis.

Companies are clamoring for a solution that will allow them to adapt to this new economic landscape. Today, businesses are foregoing critical opportunities, incurring significant costs for proprietary solutions OR they are exposing their software IP and company-critical information. Businesses need a solution that helps protect their IP when developing software, during due diligence, in M&A cycles, during IP litigation, and within software escrow.


Chaperon’s patent-pending software security solutions provide protection for IP (source code) – no matter where it travels or who is working on it. Chaperon encapsulates and isolates IP at all times with an audit trail so it cannot be compromised:


Chaperon solutions can be implemented on the cloud, as software-as-a-service (SaaS), or within an internal IT infrastructure. We offer cost-effective solutions with a quick, scalable process to set up and add users. And our “always on” solutions create minimal impact, i.e., they impose no special requirements on users’ toolsets or productivity.

Chaperon solutions are known for helping companies:

To learn more about how this technology can help protect your clients, check out our website or contact us today for a free consultation.


(1) Proofpoint: "Outbound Email and Data Loss Prevention in Today's Enterprise" survey.

Posted By Ashif Dhanani |


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