Theft Of Trade Secrets
The Silicon War Triology
From the moment the USSR execute operation XEVAIOV, the US countered with their operation RED UNICORN and the game on the chessboard commenced. Moves, counter moves took place as the Puppet Masters played their game. As for the chess pieces in play, the pawns paid the heaviest price. Where love, sex, drugs, friendship, and family could come in play, they now became the tools of choice.
I was just a small player in operation RED UNICORN, a dot on the map... the preverbal pawn. I was a person in love with my wife, with good friends, three of the greatest kids in the world and a great job.
Then one day I was asked to do someone a favor. I never took the time to ask why? I just thought it would be interesting to do. It was also some time later when I was asked "How far are you willing to go to win"?
Well, today I now know and for that, I am truly sorry. Please forgive me...
Just so you know, it was just a favor, yet somehow against all odds, or perhaps in perfect harmony with that macabre sense of humor of my God, I found myself in my own 'A Tale of Two Cities'. Because of this favor, I woke up one morning to find that I was up to my ears in a 'honey trapped', under indictment for Theft of Trade Secrets, and totally abandon by everyone in my world.
Yea, it could be said that it was the best of all possible worlds but at the same time, it could be said that it was the biggest mound of excrement I could have ever stepped in. However, one thing I had to admit, for the first time in my life, I was really alive.
It's always amazing how we react when a crises strikes us for the first time. This is when we find out how unprepared we are. It challenges the most basic foundation of our beliefs and knowledge. It shows us how our lack of experience, that lack of intellectual knowledge hampers our ability to respond or perform in the correct way.
It seems so easy to do something the second time. Or how safe it is to sit on the sidelines and play Monday morning quarterback after the game is over. Oh... of those 99 successes one has, it's that single failure that is remembered and you are forever judged by it.
"There are three kinds of men: The ones who learn by reading and the few who learn by observation. The rest of them have to pee on the electric fence and find out for themselves." -- Will Rogers
In Boy Scouts, we were taught to "be prepared." Well... most of us think we are but then life has this funny way of showing us that we aren't. It seems that we need to learn our lessons the hard way and this I was about to learn... again.
It is also fact that youth cannot see the future because they have no past to judge their today's by. Well, that's why we go to school and take history classes. Hopefully, we can learn from the past and from other's experiences.
Now, as far back as I can remember my father was always on my case for not reading more and kept saying "History is a good source of knowledge and understanding" as he handed me a book to read.
Well... being 12 at the time, I would say "... but Dad, I just wanted to go surfing."
My mom, I think was smarter than my dad. She just asked me to read one page of my dad's book. Then my curiosity would take over and I would read the book... middle to end, then I would start at the beginning to fill in the details.
"Those who cannot remember the past are condemned to repeat it" -- George Santayana (1863-1952)
However, if I would have listened to my father, history would have shown me how easily it was for me to get into trouble. See... my troubles started the day I was born.
CHICAGO MEMORIAL HOSPITAL
CHICAGO IL USA
SEPTEMBER 20TH, 1946 21:15 HOURS CST
The war had been hard for everyone, but for widows with children, it was very difficult to make ends meet. Any job, any means that kept her family fed, was ok. Ben, her husband of 13 years, had been killed at Normandy two years earlier and it became very hard on her. At 39, with three kids, Sandra no longer cared. As head nurse on the maternity wards swing shift, that extra $25 was worth the risk.
What's one more kid, one more birth certificate in this hospital? Last month alone, there were 217 babies born at Chicago Memorial Hospital. What's one more? Just eight more minutes of typing for every new birth she would record, and for that, she would get $25. Hell, it isn't like a kid was being taken. Still for the past 8 months, Sandra had earned $475, that's 19 kids, 19 birth certificates. It was just so easy!
Tonight, it was her monthly dinner with Serge. He was so charming, so sexy, and so... married. She loved the late night dinners, the drinks, and the talk. Her boys knew she worked two shifts during emergencies, so coming home late wouldn't be a problem.
Would he be late as usual? Then sit down, take that deep breath and apologize in that deep, sexy accent? No... there he was, early. His smile was so broad tonight, and then a kiss on the cheek.
He had opened a bottle of red wine, and as he helped seat her, he said, "I have some great news, I'm moving to Chicago."
"Oh that's wonderful. When? But why" she asked?
"My company has opened an office downtown and I was asked to work here."
She asked, "But what about your family?"
"Oh, ah... yes. Well... it seems that my wife has left me. It seems there is someone else, I guess. It's not like we still know each other. I guess I should care but I don't." Picking up his glass, he said, "Here's to freedom."
The night went so fast. The charm! The wine! It surprised her when she said, "yes" when he asked her to come back to his room, but she really had been hoping for a long time that he would ask.
As they walked, he took her hand and said it had been so long since he had just walked. At 3:30 am, the crisp fall air had finally come and at the stop light just before the hotel, he leaned into her and lightly kissed her.
The walk to the hotel and the walk thru the lobby was a blur. The ride up the elevator was just a daze as the wine was finally taking effect. It felt good. She had today off, so Serge and her could walk or just stay in the room all day. As they reached the door, he asked, "Are you sure?"
Oh, how charming and she nodded yes and kissed him deeply.
The room was small, but very nice. She had never been in a hotel room with its own bathroom. And she giggled at how fast she undressed and got into bed. Even with her late husband, she hadn't move that fast.
A smile of delight was on Serge's face when he came out of the bathroom and saw her in bed. As he walked over to her, he gave her a deep, long, and the most passionate kiss she had ever experienced. She never had a kiss take her breath away like this. The light tingling on her lips! The light sweet taste!
As she gasped for air, Serge got up and walked over to her purse. In it, he found the new birth certificates.
The numbness had now made movement impossible and the gasping for air had gone from pleasure to sheer terror. Death had registered on her face. The gasping had stopped. The movements had stopped. And now, a broken heart had stopped.
Serge was halfway back to New York by the time Sandra Grace Jenner was found. Cause of death was listed as a heart attack. At work, everyone was shocked at the news, but even more shocked at the location.
Serge also knew if the authorities could tie everything together, there would be nine "kisses" in seven states resulting in 86 "official" and "legal" birth certificates.
It was with deep understanding of history and planning for the future that Anatoli A. Yakovlev (NKVD Agent SERGE) completed the foundation for his next deep cover operation.
Yes, history has proved that most people will put themselves first no matter what, and won't care what their actions cause. This is where the phrase "the enemy within" came from that was used so heavily in the 1950s to slander someone. It's how the American people indirectly helped the Russians obtain the technology that was then used against them. Consider the following series of events...
CALMA SYSTEMS HEADQUARTERS
SANTA CLARA CA USA
MONDAY, MAY 19, 1975
As all computer manufactures did in the 70s, Calma Company approached Intel Corporation in an attempt to sell them their new, second generation Calma Graphic Design System (GDS II). It was fast, feature rich, and used extensively by the semiconductor industry to digitize the Mask Layers required to make the tooling for manufacturing of the new semiconductor chips.
One of the major software features of the Calma GDS2 system was the Design Rule Verification Check feature used to check the minimum "Width" and "Spacing" of the mask design elements. Calma's sales team said "It's twice as fast as before."
Intel Corporation said "Prove it" and then requested Calma to "benchmark" the Design Rule feature for ease of setup, speed, and quality of results. Calma agreed. Intel then selected their new Intel 8080 Microprocessor chip design as the benchmark subject to be use.
So in June 1975, Intel and Calma agreed to a date of the benchmark. Intel team lead said "We have supplied you with a 12 inch magnetic database tape with computerized data of only 5 of the 6 mask layers required for the manufacturing of the chip. We have removed the 'Implement Mask' for security reasons and the automatic creation of this layer is an important part of our benchmark test requirements."
Therefore, Calma's lead System Engineer loaded the data into the new Calma GDS2 system located at Calma Corporate, Kifer Road headquarters at in Sunnyvale, California. The benchmark was executed on the Intel 8080a data and the "Width and Spacing" tests were successful.
However, the lead System Engineer couldn't figure out how to use the DRVC software to create the Implant Mask in the allotted time and as a result, Intel stated "The benchmark failed."
Intel's team lead said "We're sorry, but without creating the implement mask as promised, we feel that the benchmark failed. Would you please erase any and all of the data from the system."
Then the lead System Engineer asked "If you can leave the data with us for further experimentation and evaluation, I know if I have more time, I will be able to do it."
"Look, normally we would but there was a time limit set on this and Autotrol was able to do this. We're sorry." As a result, the Intel benchmark terminated.
Many members of the management team at Calma were very upset at failing the benchmark and losing the Intel sale to archenemy Autotrol. They blame a certain lead System Engineer for the failure.
That night, that same lead System Engineer undeleted the Intel data on the GDS2 system, copied it to magnetic tape, and then continued his attempt to try to figure out what would have been needed to do this successfully.
A week later, the real anger came out when the Vice President of Sales for Autotrol Corporation announced the $2.6M Intel sale. For the Calma sales team, they just lost 8% commission and they wanted blood. Within the week, the lead System Engineer's termination paper work was complete.
In hindsight, the Autotrol benchmark team had a skilled mask designer working for them that had already solved the DRVC issue and somehow got the "creation of the Implement Mask" inserted into the benchmark. Autotrol took existing knowledge of one of their employees and used it to eliminate the competition.
For Calma's Application Support team, they all had an extra 2 weeks to think about how they would have done it if they were assigned to do it. However, for Richard Canis, lead System Engineer for Calma; he was laid off on August 29, 1975.
However, he did not leave empty handed. In his possession was the heart and soul of the fledgling personal computer market.
History will show that your opponent will detect your weakness and then exploit it...
3RD FLOOR, LUBYANKA KGB HEADQUARTERS
THURSDAY, MARCH 25, 1974 - 1130 HOURS MSK
"Vladimir, you have been authorized to proceed with operation XEVAIOV."
Yes, Vladimir Mkkhailovich Kazakov, (KGB Agent JERICO) knew of the crucial importance in preventing Soviet military technology falling seriously behind the West. The greatest Russian economic paradox of the 1960s, despite possessing large numbers of highly qualified scientists and engineers that created a huge volume of Science & Technology (S&T), Soviet technology was falling further behind that of the West and Japan. After proposing plan after plan, today, he has just been authorized to change that by Yakovlev.
In early 1970, the Soviet leadership authorized the creation of a new KGB section, known as Directorate T, chartered to raid Western research and development for badly needed technology. Directorate T's operating arm charted to steal the technology was known as Line X and as before its spies were sprinkled throughout various Soviet delegations to the United States, Japan and Europe.
Then in March 1972, Kazakov became head of the FCD First (North American) Department, and reported to Yakovlev directly. There, he rose through the ranks of Directorate T, eventually becoming responsible for supervising the evaluation of the Intellectual Technology collected by Line X agents from around the world, and passing that information on to the relevant users inside the Soviet Union.
Kazakov was known as "brilliant," "unconventional thinker," "excellent chest player," "Super 'A-type'" and most important "heir-apparent to Yakovlev." In short, his favorite! However, to Yakovlev, it was more. When talking together, Kazakov was always ahead of him and this never happened with the other candidates. Kazakov's out-of-the-box thinking exceeded his own and that was the reason he chose him. To spy on the United States would now need this type of thinking, Anatoli should know, he had been doing it for the past 35 years.
For Kazakov, he was changing the rules. He was going inside the US to lead a new team of technology agents. They would be ghosts assigned to penetrate the very heart and soul of the US Department of Defense (DOD). Their objective was to be hired by the DOD vendors and then raid DOD from within.
Or how friends of the United States proved that they just might not be...
MINISTER OF INTERNATIONAL TRADE AND INDUSTRY
JUNE 23RD, 1971
By 1970, Japan had the largest shipbuilding, radio, and television industries in the world. Their consumer product industry outstripped those of the Soviet Union and was now gaining ground on the US.
No longer was it a white washing machine, white refrigerator, black and white TV. It was now cars, kitchen appliances, and color TVs. During the 60's, the value of exports was $4 billion in 1960, but went to $19 billion a decade later. On the shelves of America, everything said, "Made in Japan."
With this success, on June 23, 1971, the Minister of International Trade and Industry (MITI) set out a new high tech agenda for the Japanese economy. It was based on a shift to "knowledge-intensive" industries such as semiconductor and integrated circuits. Both Government and the Keiretsu Banks teamed together quietly to make this happen. The Government guaranteed the funds that the Keiretsu Banks would then loan to Corporate Japan.
Over the period of 1975 to 1982, more than half of the research and capital budget of the six major Japanese Keiretsu (Fujitsu, Hitachi, Mitsubishi, NEC, Oki, and Toshiba) were dedicated to joint semiconductor activities.
They focused on the leading technology in areas such as gallium arsenide semiconductors, vertical and optical data storage systems, TV and computer flat displays, computer controlled machines and robotics, and world-class supercomputers.
Growth rates among Japanese Keiretsu in many cases exceed the highest hopes and fears of observers on both sides of the Pacific. Then there were the loss of millions of US jobs because of this. Japanese bashing became a common theme in the US as their exports of computers, peripherals, and components to the US topped $1.5B.
However, the final straw was the Japanese shipments of new 256K Random Access Memory (RAM) chips to the U.S. at deep discount pricing that caused the greatest concern to the major US semiconductor companies. Within a 7-year period, Japanese RAM sales soared to approximately $350 million worth. The US had lost their semiconductor lead, their profits, and integrity. Now they demanded Washington to do something to bail them out.
In hindsight, these Japanese successes represented a vanguard of a massive intellectual effort to achieve market leadership across the entire range of information technology. In addition, significant Japanese long term planning and investments were made to strengthen existing footholds, and none was more aggressive than the fledgling microprocessor driven Personnel Computer market.
However, behind the scene was the real plot to piggyback off this growth by the Russian KGB and it was now up to the US Intelligence Agencies to stop it.
And remember that pile I was about to stepped in? Well... it all started because of a simple message.
LANGLEY, VA USA
In Washington DC, it was a simple message intercepted in Moscow by US agents that was decoded from some unknown source named NAZAR that got the attention of most everyone in the US Intelligence community.
It was in an early morning briefing at CIA when the Deputy Director said "Good morning. Let's get started. Many of you should already have the document in front of you. It's quite ballzie of the Centre to be so overt about their mission but here it is ladies and gentlemen in writing."
The document was in reality a mission statement on what the Russian's Scientific and Technological Intelligence (S&T) arm's objectives were for the years, 1974 thru 1976. In short, it was a budget request to accomplish the tasks.
It was well known in the west that Line X, which reported in the Centre to FCD Directorate T, was responsible for all scientific and technological Intelligence (S&T). Their mission was to increase the collection S&T.
The Directorate T work plan for 1974 instructed Line X to offers:
- To cultivate and recruit American citizens in Japan
- To cultivate and recruit Japanese working in American establishments in Japan, and in American organizations involved in Japanese/American cooperation in the scientific, technical, and economic fields.
- To cultivate Japanese and individuals of other nationalities engaged in industrial espionage in the USA on behalf of Japanese monopolies
- To train agent recruiters and agent talent spotters capable of working on American citizens in Japan and the USA
- To penetrate the Japanese colony in the USA
- To obtain information of American origin
- Systematically to seek out, cultivate and recruit Japanese with the objective of deploying them to the USA and to act as support agents.
"Obviously as you can see, the source, NAZAR was out of Japan, but we should consider this as a global T-Directive and take appropriate measures. Now, anyone have suggestions"?
After the normal discussions, arguments and exchange of heated words between departments, there came a comment from one of the older DIA Special Agent, a Gunter Diersbach, US Navy Retired.
"Well sir, since they want to steal the technology, maybe we should just let them!"