An Illinois federal court recently found in the favor of the defendant on a plaintiff’s Computer Fraud and Abuse Act claim because the plaintiff allegedly failed to satisfy the statute’s $5,000 damages threshold. The plaintiff, a computer consulting servicing company which spent time restoring its client’s computer network (a Chicago law firm) after it was allegedly hacked by… Continue Reading
Category Archives: Computer Fraud and Abuse Act
Subscribe to Computer Fraud and Abuse Act RSS FeedSeyfarth Attorneys Lead Trade Secrets and Cybersecurity Program
Posted in Computer Fraud and Abuse Act, Data Theft, Espionage, Practice & Procedure, Trade SecretsCalifornia partners Robert Milligan and Jim McNairy will be presenting at a day long Bridgeport Trade Secret and Cybersecurity Program in Los Angeles on May 17th. Trade secret litigation and employee mobility cases are the hottest areas of intellectual property and employment litigation. More and more senior level executives and employees are leaving one company to… Continue Reading
California Federal Court Dismisses Computer Fraud and State Unfair Competition Claims Alleged Against Ex-Employees Accused Of Stealing Computer Source Code
Posted in Computer Fraud and Abuse Act, Practice & ProcedureA designer and marketer of stereophonic technology for presenting 3-D imaging on a computer screen recently sued some ex-employees in a California federal court for allegedly violating the federal Computer Fraud and Abuse Act (CFAA), among other claims. At some point, the ex-employees allegedly downloaded their former employer’s confidential computer code and provided it to their… Continue Reading
Corporate Recruiter Convicted of Computer Fraud and Trade Secret Theft By San Francisco Jury
Posted in Computer Fraud and Abuse Act, Data Theft, Trade SecretsBy Robert Milligan and Joshua Salinas A California federal jury convicted a San Francisco executive recruiter this week for violations of the Computer Fraud and Abuse Act (“CFAA”) and theft of trade secrets from his former employer. The conviction represents a significant landmark in the closely watched eight-year case that deepened a federal circuit court… Continue Reading
Employee Data Theft and Corporate Hacking Studies Point to Need for Additional Federal Trade Secrets Legislation
Posted in Computer Fraud and Abuse Act, Data Theft, Espionage, Legislation, Trade SecretsBy Robert Milligan and Jessica Mendelson Today is the deadline for public comments requested by the Obama Adminstration on any proposed changes to federal law to combat trade secret theft. Some legal commentators have proposed several suggested changes to improve America’s trade secrets laws, including creating a federal civil cause of action for trade secrets misappropriation and clarifying that the Economic… Continue Reading
Obama Administration’s Request for Public Comment on Trade Secrets Law Underscores Importance for Companies to Protect Their Proprietary Assets Now
Posted in Computer Fraud and Abuse Act, Data Theft, Espionage, Legislation, Trade SecretsTrade secrets and cybersecurity are on the national agenda. Responsible corporate leaders are closely following the issue and must be concerned about the adequacy of their protections and the fallout should there be a breach. “There are only two categories of companies affected by trade secret theft: those that know they’ve been compromised and those… Continue Reading
The Computer Fraud and Abuse Act and Disloyal Employees: A Narrow Bridge To Nowhere?
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Trade SecretsBy Gary Glaser and Jacob Oslick An old folk melody describes the world as “a very narrow bridge,” where one misstep can bring disaster. The song seeks to inspire, calling on people to have “no fear at all” while crossing through life’s perils. However inspiring this song might be, some metaphorical bridges just aren’t worth… Continue Reading
Recent California Federal Court Rulings Muddy the Interpretation of the Computer Fraud and Abuse Act
Posted in Computer Fraud and Abuse ActDoes the Computer Fraud and Abuse Act (“CFAA”) prohibit hacking–improperly gaining entrance into a computer system–or simply prohibit improper use of a computer system? U.S. Courts of Appeal are divided. Now, district and appellate court judges in a single federal case pending in the Northern District of California, U.S. v. Nosal, have produced several divergent… Continue Reading
Obama Administration Calls for Public Comments on Legislative Changes to Enhance Enforcement Against Trade Secret Theft and Economic Espionage
Posted in Computer Fraud and Abuse Act, Data Theft, Espionage, Legislation, Trade SecretsBy Robert Milligan and Joshua Salinas Last week, the Office of the U.S. Intellectual Property Enforcement Coordinator published a Notice in the Federal Register soliciting public comments for an Administration legislative review related to economic espionage and trade secret theft. The request specifically seeks written submissions from the public regarding “any recommendations for legislative changes that… Continue Reading
North Carolina Federal Court Uses Computer Fraud and Abuse Act Claim to Exercise Supplemental Jurisdiction Over State Law Claims Against Former Employee and her New Employer
Posted in Computer Fraud and Abuse ActA North Carolina federal court judge exercised his discretion recently to deny a Federal Rule 12(b)(1) motion to dismiss, for lack of subject-matter jurisdiction (complete diversity was absent), multiple state law claims filed by NouvEON against its ex-employee and her new employer. One of the eight counts in the complaint alleged a federal cause of… Continue Reading
Seyfarth Attorney Meets With IP Leaders In Washington, D.C.
Posted in Computer Fraud and Abuse Act, Data Theft, Legislation, Trade SecretsI will be part of the State Bar of California Intellectual Property Section’s annual Washington D.C. delegation this week. Our delegation is scheduled to meet with leaders of the Patent and Trademark office, Copyright Office, International Trade Commission, and the House Judiciary. We are also planning on meeting with IP Czar Victoria Espinel, Representative Zoe… Continue Reading
Nuts and Bolts for Terms Commonly Used in Trade Secret Computer Forensic Investigations
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Practice & Procedure, Trade SecretsAs a special feature of our blog –special guest postings by experts, clients, and other professionals –please enjoy this blog post by digital forensics expert Jonathan Karchmer, a Senior Manager with Intelligent Discovery Solutions. -Editor Robert Milligan By Jonathan Karchmer Computer forensic investigations are commonplace for matters dealing with allegations of trade secret theft. Forensic experts and IT security teams… Continue Reading
California Federal Court Allows Non-Signatory to Arbitration Agreement to Compel Arbitration in Trade Secrets Dispute
Posted in Computer Fraud and Abuse Act, Restrictive Covenants, Trade SecretsA federal district court in the Northern District of California recently found that a non-signatory to an arbitration agreement may enforce that agreement against a signatory and compel arbitration under the doctrine of equitable estoppel. Semin, a software developer, worked for Torbit, Inc. He signed an employment agreement containing a proprietary information non-disclosure provision, and a commitment… Continue Reading
Missouri Federal Court Finds Violations of Employment Agreement May Constitute Unlawful Access Under the Computer Fraud and Abuse Act
Posted in Computer Fraud and Abuse Act, Restrictive Covenants, Trade SecretsBy Paul Freehling and Joshua Salinas A recent Missouri federal court opinion describes an almost unbelievable scenario. Employees signed well-drafted employment agreements — containing such provisions as non-competition, confidentiality, promise of loyalty, and commitment to return employer’s property within 24 hours of termination of employment — and then incorporated and operated a competitor company while still… Continue Reading
Computer Activists Take Over Sentencing Commission Website
Posted in Computer Fraud and Abuse Act, LegislationAnonymous, the aptly named anonymous collective of hackers, hacked into the United States Sentencing Commission’s website on January 23 to protest the government’s prosecution of Aaron Swartz, who committed suicide last month. The group initially hacked the site on Friday January 22, replacing the contents of the site with its own video. In the video,… Continue Reading
Video Interview: Discussing Aaron Swartz and Potential Computer Fraud and Abuse Act Changes with LXBN TV
Posted in Computer Fraud and Abuse Act, LegislationFollowing up on my post discussing the matter, I spoke with Colin O’Keefe of LXBN regarding how legislative changes may soon be coming to the Computer Fraud and Abuse Act following the tragic death of entrepreneur and internet activist Aaron Swartz. In the interview, I explain that athough the incident does not present an example… Continue Reading
Activist’s Death May Spur Legislative Changes To The Computer Fraud and Abuse Act
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, LegislationBy Jessica Mendelson and Robert Milligan The death of Aaron Swartz, a well-known coder, entrepreneur and political activist, has resulted in increased scrutiny of the federal Computer Fraud and Abuse Act (“CFAA”), a law some condemn as arcane and draconian but supported by others as necessary to combat illegal hacking and data theft. Mr. Swartz helped to… Continue Reading
2012 National Year in Review: What You Need to Know About the Recent Cases/Developments in Trade Secrets, Non-Compete, and Computer Fraud Law
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Espionage, Legislation, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade Secrets, Unfair CompetitionIn Seyfarth’s first installment of its 2013 Trade Secrets Webinar series, Seyfarth attorneys Michael Wexler, Robert Milligan, and Joshua Salinas will review noteworthy cases and other legal developments from across the nation this past year in the areas of trade secrets and data theft, non-compete enforceability, computer fraud, and company owned social media accounts and… Continue Reading
2012 Year in Review On Significant Trade Secret, Non-Compete, and Computer Fraud Cases, Legislation, and Developments Now Available
Posted in Breach of Fiduciary Duty, Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Espionage, Legislation, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade Secrets, Unfair CompetitionWe are pleased to announce the publication of the Trading Secrets Blog 2012 Year in Review. The 2012 Review is a compilation of our significant blog posts from 2012 and is categorized by specific topics: Trade Secrets; Computer Fraud and Abuse Act; Non-Competes and Restrictive Covenants; and Legislation. As the specific blog entries, including our Top 10… Continue Reading
Computer Fraud and Abuse Act Claims Subject to Heightened Pleading Requirements
Posted in Computer Fraud and Abuse Act, Practice & ProcedureIn a recent Northern District of California decision, Judge Saundra Brown Armstrong upheld the Ninth Circuit’s ruling in Nosal, and at the same time, held that fraudulent conduct claims under the Computer Fraud and Abuse Act are subject to the heightened pleading requirements of Rule 9 of the Federal Rules of Civil Procedure. Plaintiff is a… Continue Reading
Department of Justice Issues Report Highlighting Trade Secret Theft Prosecutions And Need For Companies To Vigilantly Protect Their Data
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Espionage, Trade SecretsBy Jessica Mendelson and Robert Milligan In December 2012, the Department of Justice released a “Summary of the Major U.S. Export Enforcement, Economic Espionage, Trade Secret and Embargo-Related Criminal Cases.” The report includes the major export enforcement, trade secret theft, economic espionage, and embargo-related criminal prosecutions handled by the United States Department of Justice between… Continue Reading
Computer Fraud and Abuse Act Circuit Split Remains Unresolved: United States Supreme Court Challenge Dismissed
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, EspionageThe parties in the WEC Carolina Energy Solutions LLC v. Miller matter recently agreed to dismiss the petition for writ of certiorari filed with the United States Supreme Court, and as a result, the Court has dismissed the case. Accordingly, the circuit split regarding the ability of employers to use the Computer Fraud and Abuse Act (CFAA) to sue former employees in typical employee data… Continue Reading
Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2012
Posted in Computer Fraud and Abuse Act, Data Theft, Espionage, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade Secrets, Unfair CompetitionBy Robert Milligan and Joshua Salinas As part of our annual tradition, here is our list of the top 10 developments/headlines in trade secret, computer fraud, and non-compete law for 2012. Last year we predicted that in 2012 we would see a significant increase in social media cases and this year did not disappoint. In fact,… Continue Reading
2012 Trade Secrets, Computer Fraud, and Non-Competes Webinar Series – Year in Review
Posted in Breach of Fiduciary Duty, Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Espionage, Legislation, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade Secrets, Unfair CompetitionThroughout 2012, Seyfarth Shaw LLP’s dedicated Trade Secrets, Computer Fraud & Non-Competes Practice Group hosted a series of CLE webinars that addressed significant issues facing clients today in this important and ever changing area of law. The series consisted of eight webinars: 1) Employee Privacy, Social Networking at Work, and the Computer Fraud and Abuse… Continue Reading