AUSA VICKIE E. LEDUC at 410-209-4885

June 19, 2006

DEPARTMENT OF JUSTICE CREATES NEW COMPUTER HACKING AND INTELLECTUAL PROPERTY UNITS IN SEVEN CITIES

Baltimore to Establish CHIP Unit to Combat Cyber Crime and Intellectual Property Theft

Baltimore, Maryland – The Department of Justice announced today that Baltimore, Maryland will be one of seven new cities joining the fight against intellectual property crimes by creating a new Computer Hacking and Intellectual Property (CHIP) Unit. The announcement was made with the release of the 2006 Progress Report of the Department of Justice’s Task Force on Intellectual Property. The CHIP Program commits specially-trained prosecutors to address the growing problem of cyber crime and intellectual property offenses within the selected districts.

The addition of seven new cities brings the total number of CHIP Units nationwide to 25. Additional cities involved in the expansion will include: Austin, Texas; Denver; Detroit; Newark, N.J.; New Haven, Conn.; and Philadelphia. The U.S. Attorney’s Office in each city will dedicate prosecutors, who receive specialized training in intellectual property theft and related issues, to coordinate the investigation and prosecution of cyber crimes and intellectual property offenses in their districts.

United States Attorney Rod J. Rosenstein said, "The CHIP program will provide us with the tools that we need to fight high-tech crime in Maryland. We will work with businesses and law enforcement agencies throughout Maryland to use these tools to identify vulnerabilities and prevent computer and security breaches before they occur."

In July 2001, the Department of Justice created the CHIP Program by establishing 10 new CHIP Units to address the increasing threat of cyber crime and intellectual property offenses in specific regions of the country. The program was expanded to 12 cities in 2002 and to 18 cities in 2004.

The Justice Department’s strategy to combat cyber crime and intellectual property theft through the CHIP Program has four key components:

1. Prosecution: CHIP Units will prosecute computer intrusions, copyright and trademark violations, theft of trade secrets and economic espionage, theft of computer and high tech components and other Internet crimes.
2. Regional Prevention and Outreach: Prosecutors will coordinate with the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), the FBI and other agencies to establish good working relationships with the high tech community and to encourage victims of high tech crime to report such crimes to law enforcement.
3. Regional Training: CHIP Units will receive high-level training provided by the Department of Justice, and will also be expected to develop and offer regional training programs to increase expertise among federal, state, and local prosecutors.
4. Legal Counsel: As subject matter experts, CHIP Unit prosecutors will provide legal advice to prosecutors and law enforcement officers in the district on the collection of digital evidence, cyber crimes, and intellectual property law.

In addition to announcing the creation of seven new CHIP Units, the 2006 Progress Report also announced that the Department of Justice has increased the number of defendants prosecuted for intellectual property crime by 98 percent and met with over 2,000 foreign prosecutors, investigators, and judges to provide training and technical assistance regarding intellectual property issues.

More information about the CHIP program can be found in the 2006 Progress Report of the Department of Justice’s Intellectual Property Task Force. To download a copy of the Progress Report, please visit the Department’s Web site at www.usdoj.gov or www.cybercrime.gov.