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NIH, FBI Accuse Scientists In US of Sending IP To China, Running Shadow Labs (arstechnica.com) 115

An anonymous reader quotes a report from Ars Technica: MD Anderson Cancer Center in Houston, Texas has forced out three senior researchers with ties to China. The move comes amid nationwide investigations by federal officials into whether researchers are pilfering intellectual property from U.S. research institutions and running "shadow laboratories" abroad, according to a joint report by Science magazine and the Houston Chronicle. The National Institutes of Health began sending letters to the elite cancer center last August regarding the conduct of five researchers there. The letters discussed "serious violations" of NIH policies, including leaking confidential NIH grant proposals under peer review to individuals in China, failing to disclose financial ties in China, and other conflicts of interest. MD Anderson moved to terminate three of those researchers, two of whom resigned during the termination process. The center cleared the fourth and is still investigation the fifth. MD Anderson isn't the only institution dealing with this issue. The NIH sent similar letters to at least three other institutions, according to reporting by Science and the Houston Chronicle. Some advocates expressed concern over what they considered racial profiling while other researchers worried that such efforts to protect intellectual property would actually backfire.

"These are the top talents foreign countries have been trying to recruit unsuccessfully," said Steven Pei, a University of Houston professor critical of the actions by MD Anderson. "We are now pushing them out of the Texas Medical Center, out of Houston, out of Texas, and out of the U.S. It seems we're helping foreign countries to accomplish what they could not do by themselves. We are hurting the American competitiveness."
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NIH, FBI Accuse Scientists In US of Sending IP To China, Running Shadow Labs

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  • by Anonymous Coward

    How can they be pilfering it if they are the ones that produced all the ground breaking research to begin with?

    My guess is that somehow corporate interest are using tax payer dollars via post secondary to benefit from research and pissed they aren't the only ones who get to pilfer.....

    If Chinese are here and transferring some of that knowledge, I don't see why it is any different.

    • by godrik ( 1287354 )

      How can they be pilfering it if they are the ones that produced all the ground breaking research to begin with?

      So when you review a grant for federal agency, you do so under a confidentiality agreement. Breaching it is a federal offense. (Not sure it is is technically a crime.)
      Right now, if I review for a federal agency and send the proposals I am asked to review to anyone else, I am breaking the agreement.
      Probably it is espionage.

      Now maybe grant proposals shouldn't be confidential, but that is a separate question.

      • Grant proposals should be confidential. I review all kinds of stuff professionally. Good ideas! That said, the number of well-proposed good ideas involving a new application of technology to an interesting problem well exceeds my budget. We fund some, and not others, based on my organizations' priorities. Plenty of good ideas go unfunded through no fault of their own. Unfunded ideas don't die, they just go elsewhere (to other agencies, foundations, etc.).

        Those 'ideas' are 40+ page research proposals w

    • We didn't pay China for fireworks or moveable type - turnabout's fair play
  • by Anonymous Coward on Monday April 22, 2019 @07:35PM (#58474496)

    LOL

  • sharing is bad (Score:2, Interesting)

    by Anonymous Coward

    Sure glad to hear that improving humanities health plays second fiddle to profitability. Of course these researchers are all financed by private money, not donations from people who couldn't give a flying fuck about profitability, and governments who have taken the money from all taxpayers. Yes, let's hide research, sharing is bad. This shadowing sounds like a great idea, that way we could see if the primary source is fudging their results/data. We need to encourage this kind of behavior.

  • For the cure, to ease human suffering, its in all our best interest.
  • Racial profiling? (Score:4, Insightful)

    by Gravis Zero ( 934156 ) on Monday April 22, 2019 @07:44PM (#58474536)

    Let's get this straight, nobody suspects Koreans or Japanese of stealing IP secrets for China. Your race isn't a factor but your nationality absolutely is. Why is this ok? Simple, it's understood that China is an authoritarian state and can and will entice willing targets with money or coerce unwilling targets by threatening their family still in China.

    These kind of IP stealing operations by China are pervasive for the simple reason that they are cost-effective. There is a nice podcast of Darknet Diaries [darknetdiaries.com] that details the exposure of such an operation.

    • by Anonymous Coward

      Simple, it's understood that China is an authoritarian state and can and will entice willing targets with money or coerce unwilling targets by threatening their family still in China.

      This is also the main reason you shouldn't trust anything said about the Chinese government from those who are still directly or indirectly under the control of China. Certainly, if I were from China and going to a US university, I'd probably only do so with either (1) the objective to steal as much possible information for Ch

    • by Anonymous Coward

      These kind of IP stealing operations by China are pervasive for the simple reason that they are cost-effective.

      We should respond by cancelling an amount of their US treasury securities equal to three times the value of what was stolen each time they are caught. Stealing must be punished, whether by individuals or nations.

      • by Anonymous Coward

        If that principle was taken to the logical extreme the US treasury would be emptied by penalties.
        To say nothing of the EU ...

    • Re: (Score:3, Informative)

      by AmiMoJo ( 196126 )

      Actually if you read TFA these researchers were not accused of stealing IP at all. They were accused of sharing some grant application documents they should not have shared, and of having some financial ties that where not in and of themselves a problem but which were not disclosed.

      The documents in question may give hints as to where research money is being targeted I guess, but the details of the grants become public if they are successful so that's pretty weak.

      • The thing you have to understand is that the behavior you mention is effectively cheating at the grant application process, and therefore defrauding the government agency funding it. The critical thing being that grant topics become public after they are successful not before. This can be very complex for the NIH specifically, where in order to get a grant for X they will ask you to show Y and Z and then submit a revised proposal. The assumption of this revision process is that nobody is going to steal y
        • Re: (Score:2, Informative)

          by AmiMoJo ( 196126 )

          Sure, and I'm not trying to excuse the things they did, they were against the rules. What I'm saying is that it's bizarre how Ars and now a bunch of asshats on Slashdot are trying to make it about China stealing IP.

          • But it actually can be theft of IP if they are applying for grants to develop novel process methods,and those methods are described in the grant application and review, which I can almost guarantee some of these were if the NIH was this up in arms over it.

    • by Luckyo ( 1726890 )

      For the record, this isn't just for "foreign intelligence acquisition". Threatening family of individual targeted by others for any reason is considered a legitimate tool in China and is practised routinely even on in low level bureaucracy and private enterprise.

      This is simply the case of what is routine in one culture sounding shocking in another.

  • The old "you can't fire me, I quit!"...?
  • What bugs me is the fact they are likely doing Cancer research considering it's MD Anderson.

    CANCER. Not the next Nuclear or cyber-weapon. It's F*****G CANCER.

    Disease doesn't care if you're American, Chinese, Russian, etc. and Cancer is one of the big ones that kills an awful lot of people every year. Cancer Research isn't something that we should be protecting under IP laws unless, of course, your true goal isn't to cure cancer but rather, to ensure you're the only one with a patent able treatment that w

    • (sacrificing mod points to reply)

      The business of research requires IP laws to ensure billions of dollars are spent by corporations on research. Without protection, they have no reason to risk building entire campuses, outfitting a dozens of labs, hiring hundreds of researchers, and creating studies in hopes that one, just one, will produce a treatment.

      If an unscrupulous thief can make off with research worth billions, pretty serious measures need to be implemented at the national and international scale o

      • by Anonymous Coward

        (sacrificing mod points to reply)

        The business of research requires IP laws to ensure billions of dollars are spent by corporations on research. Without protection, they have no reason to risk building entire campuses, outfitting a dozens of labs, hiring hundreds of researchers, and creating studies in hopes that one, just one, will produce a treatment.

        If an unscrupulous thief can make off with research worth billions, pretty serious measures need to be implemented at the national and international scale or the cure you're hoping for won't happen.

        So why are the communist Chinese bothering to do it? Didn't think that out terribly well, did you?

    • by jabuzz ( 182671 )

      Actually lots of diseases do care what your ethnicity is. You won't see many people of Northern European descent with Sickle Cell Anemia for example. If you are of Ashkenazi Jewish descent you are more likely to get breast cancer than if you are not (both male and female).

      I could go on, but a quick Google search will show you that cancer rates are most definitely effected by ethnicity, and that's before a whole host of other diseases both genetic and none genetic.

    • I haven't read the article, but some of the behaviors referenced in the summary have more to do with effectively "cheating" in the grants process by not treating confidential information as confidential. It is common to get to review your competitor's proposals, but there is an explicit understanding that you won't use that information to your own advantage or to help your friends in an unfair way. The "shadow labs" issue is also this kind of problem, where the US PI is basically acting as a front for a g
  • by Anonymous Coward on Monday April 22, 2019 @11:54PM (#58475400)

    Obviously if the talent is conducting espionage for China, China was not "trying to recruit [the talent] unsuccessfully."

    We're also obviously "helping foreign countries to accomplish what they could not do by themselves." In terms of cancer research, that's actually probably OK; if my dad is dying of prostate cancer I really don't care if the cure is discovered on American soil by a state-funded university or in a Chinese "shadow lab" funded by the Chinese government, as long as the cure is made available to American patients when they need it.

    China has for many years offered American businesses an exchange: get cheap labor and manufacturing in China, in exchange for helping China improve its state of the art to American levels. Where we run into problems is when China can't get this state of the art stuff because cheap farm laborers can't produce it reliably with sufficient quality to satisfy their business partners; Chinese factories are notorious for cutting every corner they can get away with and that "it's not cheating if I don't get caught" attitude is pervasive throughout their culture.

    I've never met a Chinese person who didn't suffer a fit of paranoia when I didn't try to cheat them on a contract, because they assumed I WAS cheating them and they just couldn't figure out how. That's just how business is done for them. And when they can't meet their goals through legitimate means they see nothing wrong with lying, cheating and stealing to meet those goals.

    I'm not saying there AREN'T honest Chinese business people out there; I'm just saying what I've observed to be true about the ones I know personally whom I've done business with. Two examples are a college professor who abused his position to cause literally millions of dollars of damages to students over the course of his career by failing students who wouldn't bribe him (unacceptable in American culture, but very normal in China), and a landlord who insisted on performing shoddy, dangerous repairs because he was too cheap to fix things properly and who almost got my room mate's dog killed as a result.

  • This is not a case where these researchers were stealing the secrets of cancer research from their academic institution. They were, however, stealing copies of confidential grant proposals written by US companies. I'm an industry scientist, and this is part of the problem with the way the government handles grants.

    This issue is very complex. I've been part of scientific political organizations and lobbied congress to have friendlier visa policies for students and postdocs studying in the US. Those are the

    • Not to mention the positive effects of them starting these companies in their own countries. Nobody wants more of America, world bully. Imagine the future when America has to beg other countries, and they hold all the cards because they were smart and got strong.
      • Not to mention the positive effects of them starting these companies in their own countries. Nobody wants more of America

        Ok, even with the problems the US has, are you seriously wanting to have China be the new world leader?

        Russia?

        I mean....you'd rather have these bastions of fair play, peace and openness as world top dog over the US?

  • In this instance, letting China have access to IP is likely to speed up any research anyway... It is certainly not racist to point out that employing Chinese is risky though, since the responsibility to the state is put above responsibility to a company, or even family.
  • Should hardly be a surprise when the US taxpayer educates and employs Chinese nationals. The phrase "We are hurting the American competitiveness." is often used in defense of outsourcing. In outsourcing its an excuse to increase unemployment while reducing the tax base to enrich foreign nationals at the expense of citizens. With this it is as if we have to accept espionage to maintain competitiveness.

    • by jedidiah ( 1196 )

      Foreign nationals are just part of the scenery. Despite how much certain people like to whine about how much money we "waste" on health care, all of that money means that we can poach the best talent from the entire rest of the planet.

      If you're any good, your head gets hunted and you will get offers you will find difficult to refuse.

  • If the cure for cancer is found by the Chinese, Japanese, Russians, it doesn't matter. As long as it is found. Screw the US for trying to hoard it for themselves (i.e. for the profit).

    -Miser

Two can Live as Cheaply as One for Half as Long. -- Howard Kandel

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