Protecting Intellectual Property In Manufacturing: Guarding Against Cyber Threats

Intellectual property (IP) is the cornerstone of innovation and competitive advantage in the manufacturing sector. Whether its proprietary manufacturing processes, innovative product designs, or innovative technologies, manufacturers rely on their IP to remain at the forefront of their industry. However, the very technology that enables progress also presents a growing threat in the form of cybersecurity attacks. In this article, we will explore the critical importance of protecting intellectual property from cybersecurity threats in manufacturing and provide valuable strategies to safeguard these invaluable assets.

Intellectual property (IP) is the cornerstone of innovation and competitive advantage in the manufacturing sector. Whether its proprietary manufacturing processes, innovative product designs, or innovative technologies, manufacturers rely on their IP to remain at the forefront of their industry. However, the very technology that enables progress also presents a growing threat in the form of cybersecurity attacks. In this article, we will explore the critical importance of protecting intellectual property from cybersecurity threats in manufacturing and provide valuable strategies to safeguard these invaluable assets.

THE RISING THREAT OF CYBERSECURITY ATTACKS

While intellectual property is invaluable to manufacturers, it is also a prime target for cybercriminals. Manufacturing organizations face a growing array of cybersecurity threats, including:

Data Breaches

Data breaches occur when unauthorized actors gain access to sensitive IP and confidential data. This can be accidental but is more often because of weak cyber security controls and protocols. In May 2023 Suzuki Motorcycle suffered a major cyber-attack which forced the vehicle manufacturer to close its factories in India, losing the production of 20,000 vehicles. In January 2023 UK based Morgan Advanced Materials was hit by a security breach which rendered several IT systems and data irrecoverable. More recently, in October 2023 a major USA based manufacturer; Simpson Manufacturing Company was also hit by a cyber-attack, which has severely disrupted business operations.

Ransomware

This is when cybercriminals encrypt data and demand a ransom for decryption. IP related data is an attractive target for ransomware groups and ransom-as-a-service attacks. According to Sophos State of Ransomware in Manufacturing Report the rate of such attacks has increased from 36% in 2021 to 56% in 2023.

Phishing Attacks

These are deceptive emails or messages which impersonate legitimate organisation and are aimed at stealing login credentials or distributing malware. According to Sophos Sate of Ransomware Manufacturing report, phishing has been the root cause of a fifth of ransomware attacks in the manufacturing sector in 2023.

Insider Threats

Insider threats include malicious or unintentional actions by employees or partners. This can also include former employees with a grievance and who still have access to a company’s systems.

Supply Chain Attacks

Supply chains attacks target vulnerabilities in the supply chain, potentially exposing IP. The manufacturing industry involves a complex and interdependent supply network, where a cyber-attack on one company can severely impact many others.

STRATEGIES TO SAFEGUARD INTELLECTUAL PROPERTY FROM CYBERSECURITY THREATS

Manufacturers can take proactive measures to protect their intellectual property from cybersecurity threats:

Identify and Document IP Assets

Start by identifying and documenting all your intellectual property assets by value. This inventory should encompass patents, trade secrets, copyrights, trademarks, and any other proprietary information critical to your manufacturing processes.

Find Your Cybersecurity Gaps and Weak Points

In addition to reviewing your assets themselves, it is recommended to assess any weak points in your cyber posture through penetration testing. This can help you identify which assets are most likely to be compromised in a cyber-attack and take steps to mitigate any issues.

Implement IP Protections

Determine the most appropriate forms of protection for your IP assets. This may involve filing for patents to safeguard innovative technologies, implementing strict access controls for trade secrets, and reviewing existing user roles, privileges, and credentials. This is especially important if an employee with access to IP-related data changes roles and no longer requires the same level of access.

Employee Training and Awareness

Educate your manufacturing workforce about the critical importance of intellectual property protection and cybersecurity. This includes training staff to spot a phishing email and ransomware threats. Fostering a culture of awareness and responsibility within your organisation ensures everyone is a stakeholder in safeguarding IP.

Vigilant Monitoring and Response

Maintain continuous surveillance of your manufacturing operations and IT infrastructure to detect potential cyber threats. Adopting strong security practices and actively monitoring your internal and external environment enables organisations to identify and block attacks reducing the risk of a breach.

Develop a proactive incident response plan to mitigate any IP breaches or cybersecurity incidents swiftly. If you suffer a breach your incident response plan is critical to limiting business interruption, financial costs, and reputational damage.

In the manufacturing sector, protecting intellectual property from cybersecurity threats is not just a legal obligation; it is an essential strategic imperative. Manufacturers who invest in robust IP protection strategies can harness the full potential of their innovations, maintain a competitive edge, and thrive in an increasingly competitive landscape. By recognising the significance of intellectual property, implementing effective protection strategies, and remaining vigilant against cyber threats, manufacturers can safeguard their innovative edge and establish themselves as leaders in the manufacturing industry.

If you have concerns about your cyber security, the team at PureCyber are here to help. Please email info@purecyber.com or contact us to find out more.