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Trading Secrets A Law Blog on Trade Secrets, Non-Competes, and Computer Fraud

Category Archives: Computer Fraud

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Recent Decision Highlights Important Pleading Requirements for Computer Fraud and Abuse Act Claims

Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Trade Secrets

Ever since Iqbal and Twombly, it has become imperative that a complaint filed in federal court contains “sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’”  Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 554, 570 (2007)).  The Eastern District of Michigan recently … Continue Reading

Computer Fraud and Abuse Act Not Violated Unless Plaintiff Shows Defendant Had Intent To Defraud

Posted in Computer Fraud, Computer Fraud and Abuse Act

In a recent Computer Fraud and Abuse Act case, the Seventh Circuit Court of Appeals affirmed the district court’s conclusion that the plaintiff had produced no evidence refuting the defendant’s contention that it honestly believed it was engaging in lawful business practices rather than intentionally deceiving or defrauding the plaintiff.  Accordingly, entry of judgment for the defendant was appropriate.  Fidlar Continue Reading

Upcoming Webinar: 2015 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, Non-Compete Enforceability, Practice & Procedure, Trade Secrets

On Friday, January 29, 2016 at 12:00 p.m. Central, Seyfarth attorneys Michael Wexler, Robert Milligan and Joshua Salinas will present the first installment of the 2016 Trade Secrets Webinar series. The presenters 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-competes and other restrictive … Continue Reading

Webinar Recap! Social Media Privacy Legislation Update

Posted in Computer Fraud, Computer Fraud and Abuse Act, Privacy, Social Media, Trade Secrets

We are pleased to announce the webinar “Social Media Privacy Legislation Update” is now available as a podcast and webinar recording.

In Seyfarth’s eighth installment in its series of Trade Secrets Webinars, Seyfarth social media attorneys discussed their recently released Social Media Privacy Legislation Desktop Reference and addressed the relationship between trade secrets, social media, and privacy legislation.

As … Continue Reading

Nosal Update: Ninth Circuit Hears Oral Arguments on Password Sharing and Scope of Computer Fraud and Abuse Act

Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft

On October 20, 2015, a Ninth Circuit panel consisting of Chief Judge Sidney Thomas and Judges M. Margaret McKeown and Stephen Reinhardt heard oral argument from the U.S. Department of Justice and counsel for David Nosal on Nosal’s criminal conviction arising under the Computer Fraud and Abuse Act (CFAA).   In 2013, Nosal was found to have violated the CFAA by … Continue Reading

Michigan Federal Court Rejects As Dicta Sixth Circuit’s Broad Computer Fraud and Abuse Act Interpretation

Posted in Computer Fraud, Computer Fraud and Abuse Act, Cybersecurity, Data Theft

While employee Lehman was employed by Experian and allegedly subject to various employment covenants, he incorporated Thorium, a competitor.  After Experian laid him off, he operated Thorium.  Experian sued Lehman and Thorium in a Michigan federal court, accusing them of wrongdoing including violations of the federal Computer Fraud and Abuse Act.  Holding that the CFAA is intended to criminalize hacking … Continue Reading

California Federal Courts Reiterate: Unless Computer Hacked, Computer Fraud and Abuse Act Permits Misuse Of Electronic Information

Posted in Computer Fraud, Computer Fraud and Abuse Act, Cybersecurity, Data Theft

In United States v. Nosal, 676 F.3d 854 (9th Cir. 2012) (en banc), the court held that the Computer Fraud and Abuse Act, 18 U.S.C. § 1030, prohibits unlawful access to a computer but not unauthorized use of computerized information.  Although that holding represents a minority position, two recent opinions — one in a Ninth Circuit criminal case and one … Continue Reading

Legal 500 Names Seyfarth Shaw as a Finalist for Top Trade Secrets Litigation Department in the U.S.

Posted in Computer Fraud, Non-Compete Enforceability, Restrictive Covenants, Trade Secrets

The 2015 edition of The Legal 500 United States recommends Seyfarth Shaw’s Trade Secrets group as one of the best in the country.

Nationally, our Trade Secrets practice retained its position in Tier 2. For the second year in a row, our practice has been named to the shortlist for best trade secrets practice in the U.S., and we are … Continue Reading

Satisfying the Computer Fraud and Abuse Act’s Jurisdictional Requirements Can Be Complicated

Posted in Computer Fraud, Computer Fraud and Abuse Act, Cybersecurity, Data Theft

The parties in a Computer Fraud and Abuse Act case moved for partial summary judgment. Among the issues were whether the plaintiff had incurred the requisite $5,000 in qualifying losses, and whether the complaint was time-barred. The motions were denied, but the court had to do a lot of explaining. Quantlab Technologies Ltd. v. Godlevsky, Case No. 4:09-CV-4039 (S.D.Tex., … Continue Reading

Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2014

Posted in Computer Fraud, Non-Compete Enforceability, Trade Secrets

As part of our annual tradition, we are pleased to present our discussion of the top 10 developments/headlines in trade secret, computer fraud, and non-compete law for 2014. Please join us for our complimentary webinar on January 27, 2015, at 1:00 p.m. e.s.t., where we will discuss them in greater detail. As with all of our other webinars (including the … Continue Reading

2014 Trade Secrets Webinar Series Year in Review

Posted in Computer Fraud, Cybersecurity, Data Theft, International, Non-Compete Enforceability, Social Media, Trade Secrets

Throughout 2014, 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 10 webinars:

2013 National Year in Review: What You Need to Know About the Recent Cases/Developments in Trade Secrets, Non-Compete,… Continue Reading

Third Circuit Signals Pro-Defendant Interpretation of the Computer Fraud and Abuse Act’s “Authorized Access” Provisions

Posted in Computer Fraud, Computer Fraud and Abuse Act, Cybersecurity, Espionage

On April 11th, the Third Circuit Court of Appeals reversed the conviction and 41-month prison sentence of a Computer Fraud and Abuse Act (CFAA) defendant, holding that he was tried and convicted in an improper venue.  U.S. v. Auernheimer, No. 13-1816 (3rd Cir. Apr. 11, 2014).  Though we usually do not post on procedural issues like these, we certainly post … Continue Reading

Computer Fraud and Abuse Act Claims in the First Circuit – Will the Narrow Approach Prevail?

Posted in Computer Fraud, Computer Fraud and Abuse Act

The scope of the Computer Fraud and Abuse Act (“CFAA”), 18 U.S.C. § 1030, remains unsettled in the First Circuit after two decisions issued just weeks apart adopted differing approaches to the treatment of such claims.

The CFAA prohibits the intentional access of a computer without authorization or exceeding a party’s authorization to obtain information from a protected computer.  As … Continue Reading

Big Data and IP Business Strategy

Posted in Computer Fraud, Cybersecurity, Data Theft, Privacy, Social Media

As a special feature of our blog –special guest postings by experts, clients, and other professionals –please enjoy this blog entry about the big data and IP business strategy by technology lawyer and IP strategist Joren De Wachter. Joren serves as a Co Chair with me on the ITechLaw Intellectual Property Law Committee and has an excellent blog of his … Continue Reading

Trading Secrets – 2013 Year in Review

Posted in Computer Fraud, Computer Fraud and Abuse Act, International, Legislation, Social Media, Trade Secrets

Seyfarth Shaw is pleased to announce the publication of the Trading Secrets 2013 Year in Review. The 2013 Review is a compilation of our significant blog posts from 2013 and is categorized by specific topics such as: Trade Secrets; Computer Fraud and Abuse Act; Non-Competes and Restrictive Covenants; Legislation; International and Social Media. As the specific blog entries, including … Continue Reading

Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2013

Posted in Breach of Fiduciary Duty, Computer Fraud, Computer Fraud and Abuse Act, Cybersecurity, Data Theft, Espionage, International, Legislation, Non-Compete Enforceability, Practice & Procedure, Privacy, Restrictive Covenants, Social Media, Trade Secrets, Unfair Competition

By Robert Milligan and Joshua Salinas

As part of our annual tradition, we are pleased to present our discussion of the top 10 developments/headlines in trade secret, computer fraud, and non-compete law for 2013. Please join us for our complimentary webinar on March 6, 2014, at 10:00 a.m. P.S.T., where we will discuss them in greater detail. As with all Continue Reading

Upcoming Webinar: 2013 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, Cybersecurity, Espionage, International, Legislation, Non-Compete Enforceability, Practice & Procedure, Social Media, Trade Secrets

On Thursday, March 6, 2014 at 12:00 p.m. Central, Michael Wexler, Jim McNairy and Josh Salinas will present Seyfarth’s first installment of its 2014 Trade Secrets Webinar series. They will review noteworthy cases and other legal developments from across the nation this past year in the areas of trade secret and data theft, non-compete enforceability, computer fraud, and the … Continue Reading

Mobile Device Forensics – Are You in the Know?

Posted in Computer Fraud, Cybersecurity, Data Theft, Practice & Procedure, Privacy, Social Media, Trade Secrets

As a special feature of our blog –special guest postings by experts, clients, and other professionals –please enjoy this blog post by digital forensics experts James Whitehead and Arnold Garcia with iDiscovery Solutions. -Editor Robert Milligan  

By James Whitehead and Arnold Garcia

Smartphones, tablets and other “Smart” mobile devices are becoming a mainstay within the corporate landscape. Today’s mobile devices … Continue Reading

Recent Alleged Cyberattack By Ex-Employee Demonstrates Importance of Employer Diligence On Protecting Network Passwords

Posted in Computer Fraud, Computer Fraud and Abuse Act, Cybersecurity, Data Theft

By Robert Milligan and Grace Chuchla

A recently unsealed criminal complaint out of the Eastern District of New York raises allegations that paint a frightening picture for employers of the havoc that disgruntled ex-employees can wreak on company computer networks.

The prosecution alleges that a former employee of an unnamed company that manufactures high-voltage power supplies in Suffolk County, New … Continue Reading

No Damages? Illinois Federal Court Tosses Computer Fraud and Abuse Act Claim Alleging Hacking of Law Firm Network

Posted in Computer Fraud, Computer Fraud and Abuse Act

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 the plaintiff’s … 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 Secrets

By 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 crossing. Trying to assert Computer … 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 Secrets

As 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

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, Legislation

By 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 create RSS, a … Continue Reading