In particular, related to this $750k Wind River violation:
Bidzos realized that there was a simple way to skirt the export limitation laws. Both the AECA and the ITAR are US laws, and, as, such, they pertain only to US companies. Bidzos went to Japan and established a Japanese subsidary, Nihon RSA. Nihon RSA qualified as a distinct Japanese company, subject only to Japanese law, and Bidzos was able to do whatever he wanted with his strong encryption technologies. Knowing that his encryption technology was a desired commodity, he shopped it around the Japanese marketplace. He promptly struck a deal to produce encryption chips for Nippon Telephone and Telegraph Corporation.
If the US government continues to fine Wind River, then couldn't they just set up a foreign corporation?
That is likely going to be a consequence of these actions. Digital security is a huge industry and is going continue being a huge industry for a long time. US companies are decreasingly in a position to market themselves as genuinely secure companies.
Companies that want to have credibility in the industry are going to need to bring themselves out of the jurisdiction of restrictive laws, or lose business to companies that have set themselves up in more friendly jurisdictions.
In particular, related to this $750k Wind River violation:
Bidzos realized that there was a simple way to skirt the export limitation laws. Both the AECA and the ITAR are US laws, and, as, such, they pertain only to US companies. Bidzos went to Japan and established a Japanese subsidary, Nihon RSA. Nihon RSA qualified as a distinct Japanese company, subject only to Japanese law, and Bidzos was able to do whatever he wanted with his strong encryption technologies. Knowing that his encryption technology was a desired commodity, he shopped it around the Japanese marketplace. He promptly struck a deal to produce encryption chips for Nippon Telephone and Telegraph Corporation.
If the US government continues to fine Wind River, then couldn't they just set up a foreign corporation?