Export Control Compliance, Academic Research UNCLASSIFIED

Transcription

1 Export Control Compliance, Technical Data and Academic Research U.S. v. Dr. J Reece Roth, et. al.

2 Academic Research and Export Control Export Controlled technology and technical data: what does that t mean? Do academic institutions have a duty to safeguard a R&D project with export controlled technology or technical data? Counter proliferation of export controlled technology and technical data: A shared responsibility to protect the public interest.

3 U.S. Export Controls Defense Articles and Services Strategic Dual-Use Goods and Technologies Arms Export Control Act (AECA) 22 USC 2778 Export Administration Act (EAA) 50 USC International Traffic in Arms Regulations (ITAR) 22 CFR Export Administration Regulations (EAR) 15 CFR United States Munitions List (USML) 22 CFR 121 Commerce (Commodity) Control List 15 CFR 774.1

4 The US Air Force R&D Project In 2004, the USAF was seeking to develop advanced technology for unmanned aerial vehicles (UAV) for air dominance Global Hawk Predator R&D project on UAVs ( drones ) that are smaller, more cost effective to deploy and stealthier with fewer moving parts Plasma physics applied towards exploring theoretical advantages in aeronautical engineering for the next generation UAVs

5 Technical Data was the Key Issue U.S. Air Force sought to develop plasma actuator technology to advance flight controls for military UAVs through R&D contract with AGT Predator AGT and Roth (UT Plasma Lab) developed ITAR ( export controlled ) technical data during the USAF project Roth both (1) disclosed ITAR technical data to foreign nationals and (2) transported it to the PRC

6 How Does Someone Violate the Export Control Laws under the AECA? 1. The defendant exported, attempted to export, or caused to be exported TO A FOREIGN NATIONAL or from the United States of America TO A FOREIGN COUNTRY 2. a DEFENSE ARTICLE or defense service, or TECHNICAL DATA directly relating to such an item, that is listed on the United States Munitions List 3. Without having first obtained a validated license or written approval from the State Department; and 4. Acted knowingly and willfully. [JURY INSTRUCTIONS]

7 What is a Defense Article or Technical Data? Any Item (i.e., hardware ) or associated Technical Data (i.e., information ) -- that is described in the United States Munitions List (USML). U.S. S v. Roth, et.al. involved scientific data derived from R&D project tests designed to develop plasma actuators t as aeronautical controls of aircraft, including drones specifically designed d for military purposes.

8 U.S. v. ROTH, et.al. What Happened? - AGT and Dr. Roth agreed to include a PRC foreign national graduate student in the USAF research project. - An initial attempt was made to wall off the PRC graduate student from the export controlled research in an effort to evade export control restrictions. University of Tennessee officials were not consulted on this plan. - This ITAR wall was torn down to accelerate the project. Export controlled Technical Data was disclosed to both a PRC and Iranian graduate student ( domestic export ) ). - Dr. Roth Export sent and transported export controlled USAF Technical Data to the PRC ( foreign export ) ).

9 What are the Consequences? Dr. J. Reece Roth > convicted on 17 counts of conspiracy, violating the AECA and wire fraud (9/08) > Sentenced to 4 years imprisonment Atmospheric Glow Technologies (AGT) > Pled guilty to 10 counts of AECA violations and cooperated in investigation (8/08) > Sentenced to $50,000 fine (bankruptcy)

10 Important Export Control Definitions EXPORT: Sending or taking a defense article out of the United States in any manner. Disclosing (including oral or visual disclosure) or transferring in the US to a foreign person. DEFENSE ARTICLE : Any item or technical data on the USML. DEFENSE SERVICE: The furnishing of assistance, including training, to foreign persons, whether in the United States or abroad in the design, development, engineering, manufacture, production, assembly, testing, repair, etc. of defense articles. Also, the furnishing to foreign persons of any controlled technical data. TECHNICAL C DATA: Data which is required ed for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance, or modifications of defense articles, etc. ITAR at 22 C.F.R 120

11 Important Exceptions for Academia TECHNICAL DATA: EXCLUDES any Information concerning 1. GERNERAL PRINCPLES of science, mathematics or engineering g taught in schools, colleges and universities or 2. PUBLIC DOMAIN information PUBLIC DOMAIN: Defined as information 1. PUBLISHED in magazines, journals, etc. or released with approval for distribution by the appropriate US government authority or 2. Information obtained through FUNDAMENTAL RESEARCH in science and engineering at accredited U.S. institutions of higher learning where the resulting information is ORDINARILY PUBLISHED and SHARED broadly in the scientific community

12 Important Exceptions in Academia FUNDAMENTAL RESEARCH Basic and Applied Research in science and engineering where the resulting information is ordinarily published and shared broadly in the scientific community, AS DISTINGUISHED from research results that are subject to restrictions for proprietary reasons or specific U.S. government access and dissemination controls Academic research is NOT considered Fundamental Research if: 1. The academic institution or its researchers ACCEPT OTHER RESTRICTIONS on publication of scientific and technical information resulting from the project or activity; or 2. The research is funded by the U.S. government and specific access and DISSEMINATION CONTROLS ARE APPLIED to protect the dissemination of information resulting from the research.

13 Basic vs. Applied Research under DoD Regulations Basic Research AKA: Budget Activity 1 Research 61R 6.1 Research Defined: Basic Research is a systematic study directed toward greater knowledge or understanding of the fundamental aspects of phenomena and observable bl facts without specific applications towards processes or products in mind.. Farsighted, high-payoff research... Applied Research AKA: Budget Activity 2 Research 6.2 Research Defined: Applied Research is systematic study to understand the means to meet a recognized and specific national security requirement. It is the systematic application of knowledge to develop useful materials, devices, and systems or methods.

14 AECA VIOLATIONS Conspiracy with AGT officers to violate export control laws. Domestic Exports to a PRC and Iranian Foreign National Inclusion of a PRC foreign national in the USAF export controlled R&D project resulting in repeated exports of Technical Data Providing a document containing ITAR Technical Data to an Iranian foreign national Export p of Force Stand ITAR restricted Defense Services Foreign Exports to the PRC by Dr. Roth Transportation of three documents containing ITAR Technical Data Causing wire transmission of a document containing ITAR Technical Data

15 Military Technical Data Agreement USAF Prime Contract with AGT.(1) acknowledge all responsibilities under applicable U.S. export control law and regulations (including the obligation, under certain circumstances, to obtain an export control license from the U.S. Government prior to the release of militarily critical technical data within the United States)... and (2) agree not to disseminate militarily critical data in a manner that would violate applicable U.S. or Canadian export control laws and regulations.

16 AGT Subcontract with UT Export Controlled Data Restrictions EXPORT CONTROLLED DATA RESTRICTIONS (AFMC)(JUL 1997) Signed by AGT President on 05/05/2005 Signed by both UT Official and Dr. Roth on April 29, 2005.

17 Evidence of Dr. Roth s Knowledge and Intent Statement t t of Work on What I Want to Do Export Controlled Data for Munitions AGT provides Test Stand, Misc. Testing Eq.

18 UT Administration Directions to Dr. Roth UT Export Control Officer informs Dr. Roth it is clear the USAF Research Project is ITAR controlled Once aware of possible AECA violations, UT officials direct Dr. Roth NOT to further disclose export controlled technical data to foreign national graduate students UT administrators direct Dr. Roth NOT to take USAF export controlled technical data to the PRC The prime contract contains the Export Control restrictions (AFMC EXPORT CONTROLLED DATA RESTRICTIONS) on foreign nationals that I spoke to you

19 Domestic Export of Technical Data Transferring Technical Data to PRC National by Weekly Reports

20 USAF R&D PLASMA ACTUATORS

21 Example of a Defense Article that was used dto provide Defense Services Dr. Roth provided a Defense Service by allowing access and training to foreign national graduate students on the Force Stand that was used to generate the Technical Data The Force Stand used to produce the ITAR Technical Data developed in the USAF Project

22 Example Of Technical Data Disclosed to Foreign National Graduate Student Iranian foreign national graduate student worked, at Dr. Roth s direction, on the Force Stand. A detailed explanation of the capabilities and operation of the Force Stand was provided to him.

23 Foreign Export of Technical Data Subject: RE: Review of AIAA Draft and other urgent matters From: Xin Dai Date: Sat., 20 May 2006, 11:11: To: Roth directs Xin Dai to the 2007 AIAA draft paper to Dr. Zhang s at Fudan University in China Roth sends revised 2007 AIAA paper back to Dai Dr. Zhang (in the PRC) acknowledges receipt of 2007 AIAA paper

24 Example of ITAR Technical Data ed to the PRC by Dr. Roth Contained data and diagrams directly from two Phase II Weekly Reports #31 and #32. Concept diagrams of Force Stand and technical data. Transmitted to Dr. Roth by Xin Dai via a Fudan University Professor at Dr. Roth s Request.

25 Academic Research Institutions: A partnership in protecting national security DoD directly or indirectly funded a high percentage of universitybased engineering and science research in 2008 including: Exp ort Contro ols 76 % of electrical engineering, 72 % of mechanical engineering, 15 % each aeronautical and astronomical engineering, 24 % of astronautical engineering, g 47 % of metallurgy and materials, 41 % of computer sciences, 36 % percent of oceanography, 15 % each chemistry and mathematics. [Source 2008 DOD Official S&T Website]