Industrial Espionage In Formula 1

The Formula 1 team, Scuderia Ferrari dismissed an employee following allegations of unsanctioned transfer of its engine designs and technical data to an engineer from a competing team. In turn, the McLarens Mercedes team suspended its chief designer at whose residence the a sizable amount of data and technical designs were seized. Alan Henry summarizes the story on the Guardian here.

Whereas the McLarens team has undertaken to cooperate fully with the investigation and have not been accused of complicity in the theft, this blogger wonders what value the designs would have for individual engineers. However, with the benefit of hindsight, it is clear that the data and the plans have potentially enormous value for competing teams even if they did not intend to directly copy the designs. It is difficult to explain away the reason for the alleged transfer of the hundreds of drawings as reported in Planet 1. In addition, one can see very clearly the motivation that any employee would have to retain unauthorized information and exchange that for another good such as new job or simply to get back at an employer that has treated one unfairly.

Because this case is not concluded, I will be posting further updates on the real facts behind these allegations as they surface during the court hearings. The lesson here is that as property becomes increasingly held in intangible forms, the premiums attached to their acquisition will invariably rise. Whether technology driven corporations have understood the security requirements is another matter. What is clear though is that increasingly, the human element will remain the weakest link.