The Institute for Complexity Management
Making the complex simple
August 24, 2016
by John Hnatio
On June 7, 2016, the Iranian Maher News Agency released an article on the Russian development of a revolutionary technology developed by a small American company called Demodulation. The article describes something called ferrous magnetic microwire. The technology was originally used to make former Soviet spy planes stealthy and is now being given to Iran by Russia to enhance Iran’s nuclear program.
Microwire is so amazing because when you simply move it in the earth’s gravitational field like magic it gives off a burst of energy. It does not require batteries to operate. The signals it gives off can be detected at near and far distances—even by satellites in space. The intelligence and national security uses of microwire are almost limitless.
So why are Russia and Iran so far ahead of the United States in using the technology? You may be shocked by the answer.
With the fall of the former Soviet Union, a small American company called Demodulation went to the National Institute for Research and Development on Technical Physics (NIRDTP) in Iasi, Romania. There they got a legal license to commercialize microwire technology. But unbeknownst to Demodulation, U.S. intelligence had already been there and stolen the technology. They wanted to use microwire for highly classified U.S. military and intelligence uses.
For the next decade, Demodulation developed the microwire technology on their own dime developing a portfolio of patents and making scientific breakthroughs to optimize all of the different uses of microwire. They did all of this without being told that the U.S. intelligence agencies had a secret “black” shadow program that was competing directly with them.
Just as most small companies must do to find the money they need to develop their new technologies, Demodulation went to the National Security Agency (NSA), Department of Energy (DOE), Department of Defense (DOD), Department of the Treasury (DOT), Department of Commerce (DOC) and other federal agencies to try and garner their interest in investing in the development of microwire. They were completely unaware that they were really dealing with a direct competitor trying to force them out of business.
So instead of helping Demodulation commercialize their technology, the government used meetings and cooperative development programs to steal Demodulation’s trade secrets so that they could optimize the performance of their own secret black shadow microwire development programs to drive Demodulation out of business.
By now you might be asking yourself, “What’s wrong with this picture?” First, what the government did was a violation of the Constitution.
NSA, DOD, DOE and the others disregarded Article I that gives patent holders ownership of their own inventions. The government infringed on Demodulation’s patents and plagiarized their ideas as they wrote their own patents as a cover to hide their theft of Demodulation’s ideas.
Then there’s Article II of the Constitution that talks about America’s obligation to live up to international treaties and protocols. Well, the Constitution did not stop the intelligence people from stealing intellectual property belonging to Romania. By the way, Romania is one of our most important NATO allies.
And, what about Amendment IV that is supposed to protect American citizens against unlawful search and seizure of their property by the government? This didn’t bother the intelligence people either. This might cause some of us to reconsider the veracity of NSA whistleblower Edward Snowden’s contentions that our own government doesn’t care a hoot about the Constitution.
Finally, we’ve got Amendment V that is supposed to protect us against the confiscation of our property by the government without fair compensation. Apparently, the intelligence people feel that they can pick and choose whether they want to follow the constitution or not.
By violating the Constitutional rights of Demodulation, the USG held the small company at bay in their efforts to develop their microwire technology. So, who’s the big loser in all of this? That’s right it’s you and I.
The commercialization of Demodulation’s microwire in the United States would have generated billions of dollars and new jobs to strengthen the U.S. defense industrial base instead of helping Russia get ahead of us in this crucial area. The actions by our own intelligence agencies in stealing Demodulation’s technology and trade secrets actually delayed the optimization of the technology for military and intelligence purposes. This is because the government had no idea how to use many of the trade secrets they stole from Demodulation. Finally, the intelligence community blew a big hole below the waterline of the ship of trust between small businesses and their own government. No entrepreneur in his right mind is going to invest in technologies that he knows will only be stolen by competing secret black shadow government programs.
On top of all this, the people we rely on to make sure that all of us follow the Constitution and the laws of the land are guess what? That’s right folks, the people in the Department of Justice and the FBI. So you might ask, “What happened when Demodulation reported what was going on?” You guessed it—absolutely nothing!
Dr. Hnatio is a thirty-year veteran of the U.S. Government having served in a variety of senior policy and leadership positions. His areas of expertise include nuclear safeguards, the maintenance of the defense industrial base and intelligence.
Demodulation is now in the throes of two important legal cases before the Federal District Court of Claims and the Federal District Court of New Jersey where they are trying to defend the rights of all Americans to liberties and protections that the U.S. Government is supposed to respect. Please go to http://www.jgpis.org and donate generously to the James O’Keefe Jr. legal Defense Fund.