protecting your ip: data security for software technology

Data Security for

Software Technology

Protecting Your IP

www.solidcounsel.com

Cybersecurity: A Legal Issue?


What do you think?

Sophisticated James Bond-like attacks?

or

Simple things, people doing dumb things?


The real-world threats are not so sophisticated.

Easily preventable

• 90% in 2014

• 91% in 2015

• 63% confirmed breaches from weak, default, or stolen passwords

• Data is lost over 100x more than stolen

• Phishing used most to install malware

Easily preventable• 90% in 2014• 91% in 2015


Start with the basics.

“Some people try to find things in this game that don’t exist but football is only two things – blocking and tackling.”

-Vince Lombardi

* If you want to talk deep programming-type issues, see Section VII of paper.


Our objective is to protect IP.Which of the following aspects of the IP are we most focused on protecting?1. Confidentiality2. Integrity3. Availability 4. All of the above

“CIA Triad” of cybersecurity


Cybersecurity “CIA” examples. Stuxnet

Integrity German steel mill

Integrity Sony

Availability Confidentiality

Target Confidentiality


Malicious

• compete• newco• Sabotage• disloyal insider

Negligence• email• usb• passwords

Blended

• foot out the door• misuse of network• stealing data• negligence with data• violate use policies

Hacking / Cracking

Social Engineering

Malware

StealingPlanting

Corrupting

Who are the primary threats?


Threat Vectors

Network

Website

Email

BYOD

USBGSM

Internet Surfing

Business Associates

People

To protect IP, you must:• Protect our companies’ data

• Confidentiality• Integrity• Availability

• Against threats from• Insiders• Outsiders• Third-party partners


Cybersecurity needs for companies (and firms). Strong cybersecurity basics.

Policies and procedures focused on cybersecurity. Social engineering. Password and security questions

Training of all employees. Phish all employees (esp. executives). Signature based antivirus and malware detection. Multi-factor authentication. Backups segmented from the network. Incident response plan.

Encryption for sensitive and air-gap for hypersensitive data. Adequate logging and retention. Third-party security and supply chain risk management.* Intrusion detection and intrusion prevention systems.*


Incident Response• Appendix A• Goal is to execute IRP• This is check list, not

an IRP• How detailed?• Tabletop exercises


Cyber Risk

Assessment

Strategic Planning

Deploy Defense Assets

Develop, Impleme

nt & Train on

P&P

Tabletop Testing

Reassess & Refine

Cybersecurity Risk Management Program


Hypothetical.You have become very wealthy over the last 5 years working for one client, PayDaBills, Inc., which has given you so much business that it is now your only client. PayDaBills was a start-up when you met and you have been its trusted advisor for all things legal. Its leaders rely on you to alert and advise them on risks that could impact the company as they focus all of their time on promoting PayDaBills’ product, a highly-sophisticated computer program that is its only asset.

PayDaBills runs lean and mean with only the executives/sales people, 2 developers, and an office admin. The developers are “computer savvy” and set up the computer network when they started. Because the computer program is so valuable, they keep its source code on a network drive with limited access rights and highly encrypted.

It is a beautiful Friday afternoon and you are with PayDaBills’ CEO for your weekly golf game – the first round of drinks just arrived.


1:05 PM: CEO’s phone rings, it is Admin, he lets it go to voicemail. She is calling to tell him that the website link in his email to her did not work – it didn’t sound important, like she was confused, so he did not call back.

1:45 PM: Admin calls again, this time CEO answers. She tells him that her computer is frozen up and Developers are complaining that the network is slowing down. CEO asks to talk to one of the Developers.

2:05 PM: Developer calls and tells CEO that the entire network is encrypted and there was a demand for $50k Bitcoin, paid in 72 hours, to get the decryption key. But, it is not a big deal because they have recently backed up the network.

2:25 PM: Developer calls back, back up copy of network was also encrypted. But, not to worry, there is a monthly back up stored offline, they will use to restore.

3:45 PM: Developer calls CEO. They attempted to restore the only backup copy but somehow it too was then encrypted.

3:47 PM: CEO turns to you. You say, “I heard about something like this at a conference but I thought the speaker was making a big deal out of nothing.”


• Board of Directors & General Counsel, Cyber Future Foundation• Board of Advisors, North Texas Cyber Forensics Lab• Cybersecurity & Data Privacy Law Trailblazers, National Law

Journal (2016)• SuperLawyers Top 100 Lawyers in Dallas (2016)• SuperLawyers 2015-16 (IP Litigation)• Best Lawyers in Dallas 2014-16, D Magazine (Digital Information

Law)• Council, Computer & Technology Section, State Bar of Texas• Privacy and Data Security Committee of the State Bar of Texas• College of the State Bar of Texas• Board of Directors, Collin County Bench Bar Foundation• Past Chair, Civil Litigation & Appellate Section, Collin County Bar

Association• Information Security Committee of the Section on Science &

Technology Committee of the American Bar Association• North Texas Crime Commission, Cybercrime Committee• Infragard (FBI)• International Association of Privacy Professionals (IAPP)• Board of Advisors Office of CISO, Optiv Security• Editor, Business Cybersecurity Business Law Blog

Shawn TumaCybersecurity PartnerScheef & Stone, [email protected]@shawnetumablog: www.shawnetuma.comweb: www.solidcounsel.com