US accuses China of "industrial-scale" AI theft. China says it's "slander."

"The committee recommended that the State Department assess whether the distillation attacks violate laws like the Economic Espionage Act and the Computer Fraud and Abuse Act. They also want 'adversarial distillation' clearly defined and officially categorized as a controlled technology transfer, which would make it easier to restrict fraudulent Chinese access to models."

"If such steps were taken, the US could prosecute bad actors and impose heavy financial penalties that might dissuade Chinese firms from treating 'serious violations as a tolerable cost of doing business,' the committee's report said."

"China has always been committed to promoting scientific and technological progress through cooperation and healthy competition. China attaches great importance to the protection of intellectual property rights."

The committee urges the State Department to evaluate if distillation attacks breach laws like the Economic Espionage Act. They recommend defining 'adversarial distillation' as a controlled technology transfer to limit Chinese access to models. Implementing these measures could enable the US to prosecute offenders and impose penalties, deterring Chinese firms from viewing violations as acceptable. China has dismissed these allegations as slander, emphasizing its commitment to intellectual property rights and technological cooperation.

Read at Ars Technica