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10 Questions

with Jiří Schmidt
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By Markéta Hulpachová
Staff Writer, The Prague Post
July 18th, 2007 issue

Jan Přerovský/THE PRAGUE POST
Schmidt emphasizes the importance of determining the country's acceptable limits for spying devices.
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The Schmidt file

Job title: Executive director, Probin Security Technology; external professor of monitoring technology, Tomáš Baťa University, Zlín
Nationality: Czech
Age: 40
Education: University of Economics in Prague
Family: Married, two children

Most of the public considers bugging, wiretapping and other spying techniques to be common tactics of the former totalitarian regime. But in a climate of ubiquitous political scandals and growing corporations, this communist-era practice is far from dead: Between 2005 and 2006, the number of police wiretappings in the country increased from 7,300 to 7,500. Each year, Prague-based security technology company Probin sweeps more than 20,000 square meters (215,278 square feet) for eavesdropping devices. Jiří Schmidt, the company’s co-founder, talks to The Prague Post about new technology, legislative developments and the country’s perception of privacy issues.
❶ You operate in a very specific field. When did you begin selling security technology?
Probin was founded in July 1997. The company’s creation wasn’t the result of any long-term planning; it happened after a former classmate and I sold our shares in the company and joined forces with a former employee of the Interior Ministry. In the beginning, this person was a significant asset for us because he had years of experience with spying protection technology in his old job. The first few years were extremely difficult, because I had no experience in the field. I had previous experience with selling monitoring devices such as hidden cameras and detectors, but this was an altogether different market.
➋ You mentioned Probin is the largest security technologies distributor in the country. Who are your biggest clients?
Most of our clients fall into one of two groups. The first are major state organizations and various government branches. The second group is formed by large corporations. From time to time, we also work with small, regional companies, but these businesses make up a negligible fraction of our clientele. While the demand is constant, our clientele is changing — we’re getting fewer wealthy individuals and more wealthy corporations. Ten years ago, these companies felt they didn’t need spying protection technology because they weren’t doing anything illegal. But, as these companies grow, they realize they need this technology to protect themselves from competitors.
➌ In the past 18 years, this country has undergone profound socioeconomic transformations. How has the spying technology market developed since 1989?
The use of these technologies is far more widespread today. Before [1989], these devices were used almost exclusively by state powers. If they appeared on the public market at all, they were used for personal affairs, such as marital conflicts. Banking and competition did not exist, so the business sphere had no use for this technology. Then, the [Velvet Revolution] spawned a glut of privately owned companies and consequently created a competitive market, which went hand in hand with an urge to use spying technology to get as much information about your competitor as possible.
➍ Your line of business is sensitive to technological advances. How do you keep abreast of new developments in security technology?
In this field, the attack unfortunately always moves faster than the defense: Spying technology is always one step ahead of spying protection. In the 1980s and 1990s, the most common spying devices were wire microphones with amplifiers. As information technology developed, so did the methods to protect it. It began with information coding and scrambling. In the past 10 years, the technological developments diverged in several directions, such as frequency hopping, in which a projector sends sound through altering frequencies. There are also newer forms of spying, such as GSM phone taps, and e-mail bugs. We’re currently experiencing increased demand for GSM phones with scrambling capabilities.
➎ What are some common misconceptions about spying technology?
Most people get their perception through modern detective films in which a beautiful young woman sits down in front of a computer and decodes the password in five seconds, which is nonsense. Equally unrealistic are the scenes in which the protagonist sticks something under a table and is able to clearly listen in from 5 kilometers away. As a result, people are willing to pay us tens of thousands of crowns to sweep their office for bugs, but they won’t pay 5,000 or 6,000 for a mobile phone with scrambling capabilities. The problem is that the field experts have no interest in letting the public know this information is misleading.
➏ Probin also sells security technology abroad. How does the Czech consensus on privacy differ from that of other European countries?
In Europe, there are large discrepancies in a relatively small area. In the United Kingdom, if you’re given a valid reason for the placement of hidden cameras in restrooms, you’ll accept it. But in Germany the mere possession of a bug is illegal. It’s important for the Czech Republic to decide what the Czech mentality considers acceptable and establish its own legal limits, because spying devices always infringe upon personal rights. So far, such limits have not been established.
➐ You mentioned spying devices are often linked with criminal activity. What laws are in place regarding privacy protection?
When the protection of classified information law was passed in 1998, Probin was given “accessibly secret” status, which is the highest level granted to privately owned companies. … Overall, the country still lacks functional legislature. If you’re being spied upon, the law offers you no support. All you can do is file a civil suit and seek financial compensation for the abstract damage you were caused. Given the current judicial system, it’s unfortunately pointless.
➑ Your clients range from international corporations to small business owners. From what are your clients protecting themselves?
The statistics issued by the Interior Ministry clearly indicate the amount of spying devices in the country is growing. You don’t have to be doing anything illegal to become a victim of police interests. It was recently discovered that the ministry tapped 46 mobile phones, and that some of these phone numbers had nothing to do with their investigation. Who can guarantee you that one of those 46 phone numbers wasn’t yours?
➒ Since 1989, the government has dealt with multiple cases involving phone taps. How does the political climate affect Probin’s sales?
In 1998, the government initiated the Clean Hands operation, an investigation of business decisions made during the privatization process. During that time, we were contacted by dozens of clients in the style of a butcher from Kladno, who suddenly panicked that someone would start questioning where they got the quarter-million with which they bought their shop.
➓ Aside from spying protection technology, you mentioned Probin also sells spying devices. For what purposes do clients typically use them?
More and more of our clients are realizing that their employees pose the biggest threat to their company. If you want to uncover these people, you have no choice but to check their e-mails, listen in on their conversations, monitor their every move. Of course, it’s important to stay within legal limits, but the business sphere will not move ahead without these methods.
Want a top manager to answer our 10 Questions? Send a message to Paul Voosen at pvoosen@praguepost.com

Markéta Hulpachová can be reached at mhulpachova@praguepost.com


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