Thinking of Exporting Classified Material? Think Again
ITT was fined $100 million for illegally exporting classified technical data relating to night vision equipment overseas. In addition to being fined, they must "invest $50 million over five years to accelerate development of night vision technology, and the government will maintain rights to all technology that is developed under the agreement."
This incident should raise awareness to all companies who manufacture or develop export controlled commodities. In security, we need to ensure we comply with all EAR/ITAR/AECA regulations and prevent unauthorized exports to foreign nationals.
Q.) What is an export?
- Sending or transporting hardware, software, or technical data out of the U.S. in any manner (e.g. hand-carry, web, courier, visually)
- Disclosing or transferring technical data to a foreign person by any means whether in the U.S. or abroad ("deemed export")
- Release to a U.S. citizen employed by a foreign company, including non-incorporated branches
- Providing technical support/service on behalf of or for the benefit of a foreign person whether in the U.S. or abroad
Q.) OK then, what is technical data?
- Information that may be used in the design, development, manufacture,
repair, utilization, or reconstruction of articles or materials
- Blueprints and/or Specifications
- Manuals and/or Training
- Tours and/or Meetings
- Software and/or Algorithms
Q.) What is a foreign national?
- A person who is
- Not a U.S. Citizen, or
- Not a permanent resident alien ("green card"), or
- Has not been granted asylum or refugee status
- A U.S. citizen employed by foreign companies or governments (including embassies)
Q.) Who can I not export to?
- OFAC regulations prohibit exports to sanctioned countries, denied parties, etc. BIS entities and debarred parties list
If you have other questions, see your IP legal team or Business Area Export Representative for advice that pertains to your environment and what constitutes export controlled data for your business.
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