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… Continue Reading
Category Archives: Computer Fraud
Subscribe to Computer Fraud RSS FeedRecent 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 TheftBy 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… 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 ActAn 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
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
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
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
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
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
Virginia Federal Court Finds For Employer on Fidicuary Duty Claim Against Former Employee
Posted in Breach of Fiduciary Duty, Computer Fraud, Computer Fraud and Abuse Act, Practice & ProcedureBy Michael Baniak A Virginia federal court district court recently issued a significant decision awarding lost profits to an aggrieved employer for breach of fiduciary duty by a former employee. The Court found that the ex-employee was not able to deduct his services for the company as an expense against the damages award. Further, the Court found… Continue Reading
Mississippi Federal District Court Allows Computer Fraud and Abuse Act Claim To Proceed Against Former Employee
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data TheftA recent Computer Fraud and Abuse Act (“CFAA”) case from the Southern District of Mississippi further muddies the water with respect to the circuit split regarding the application of the law against former employees who violate computer usage policies or violate their duties of loyalty to their employers by stealing company data from company computer… Continue Reading
2012 California Year in Review Webinar: What You Need to Know About the Recent Developments in Trade Secret, Non-Compete, and Computer Fraud Law
Posted in Computer Fraud, Computer Fraud and Abuse Act, Legislation, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade SecretsOn Tuesday, December 18, 2012 at 10:00 a.m. pacific/12:00 p.m. central, Jim McNairy, Jessica Mendelson and Joshua Salinas will present the “2012 California Year in Review,” the final segment in this year’s Trade Secret Webinar Series. You can register for this complimentary webinar here. In Seyfarth’s final installment of its 2012 Trade Secret Webinar series,… Continue Reading
Arizona Federal Court Issues Significant Computer Fraud and Abuse Act and Trade Secret Preemption Decision
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Trade SecretsAccording to a recent Arizona federal court decision, (a) an employee who had the right to access his employer’s confidential emails did not violate the federal Computer Fraud and Abuse Act (CFAA), 18 U.S.C. § 1030, by downloading 300 such documents to his personal computer and sharing them with a recently terminated employee; (b) an employer may pursue… Continue Reading
Cybersecurity Act of 2012 Dies Again in the Senate
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Espionage, LegislationBy Misty Blair You may recall that hopes were high this summer that the Cybersecurity Act of 2012 would become law, as various advocacy groups attempted to reach compromises on the most controversial portions of the bill, resulting in it being revised to address those groups’ concerns. Then, on August 2nd, the Senate voted 52-46 (largely… Continue Reading
Plaintiffs Retain Home Field Advantage in Email Hacking Action But Nebraska Federal Court Dismisses Computer Fraud and Abuse Act Claim
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, EspionageBy Marcus Mintz Corporate espionage in the sports industry? The owners of the Indoor Football League’s Omaha Beef recently asserted serious allegations against rival team, the Allen Wranglers, the League commissioner, and the Beef’s former coach, now coaching for the Wranglers. In Gridiron Management Group LLC v. Allen Wranglers, No. 8:12-cv-3128, 2012 WL 5187839 (D. Neb…. Continue Reading
Employer Petitions U.S. Supreme Court to Resolve Computer Fraud and Abuse Act Circuit Split
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Practice & ProcedureBy Robert Milligan and Joshua Salinas As anticipated, the issue regarding the application of the Computer Fraud and Abuse Act (“CFAA”) against employees who violate their employer’s computer use policies and steal valuable company data may be headed to the U.S. Supreme Court. Last week, WEC Carolina Energy Solutions LLC (“WEC”) filed a petition for writ… Continue Reading
Zynga Sues Former Employee For Trade Secret Theft While Defending Its Acquisition Of Other Alleged Proprietary Information
Posted in Computer Fraud, Data Theft, Practice & Procedure, Restrictive Covenants, Trade SecretsOn October 12, 2012, Zynga, a major provider of social game services based in San Francisco, filed suit against its former general manager of its highly successful CityVille game, Alan Patmore. Zynga alleges that Patmore, after allegedly refusing to acknowledge his confidentiality obligations, wandered out of the offices of Zynga with 760 computer files, which… Continue Reading
Hacking Into Personal E-Mail Account Not a Violation of the Stored Communications Act According to South Carolina Supreme Court
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Practice & ProcedureOn October 10, 2012, the Supreme Court of South Carolina found in Jennings v. Jennings, et al., that a defendant who allegedly hacked into a plaintiff’s personal e-mail account to retrieve messages that were already read by the plaintiff was not liable under the Stored Communications Act (“SCA”), 18 U.S.C. § 2701. The Defendant allegedly hacked… Continue Reading
Sports Agent Non-Compete and Trade Secrets Dispute Heats Up in California
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade Secrets, Uncategorized, Unfair CompetitionBy Robert Milligan and Jessica Mendelson With the NBA basketball season almost upon us, a high profile legal battle between an aspiring NBA sports agent and his former agency continues to heat up in Los Angeles federal court. The case involves some interesting non-compete, trade secret, and privacy issues. In April 2012, we first alerted… Continue Reading
Pennsylvania Federal Court Dismisses Employee’s Computer Fraud and Abuse Act Claim Based Upon Employer’s Alleged Improprer Access of LinkedIn Account: No Cognizable Damages
Posted in Computer Fraud, Computer Fraud and Abuse Act, Practice & Procedure, Trade SecretsBy Jessica Mendelson and Robert Milligan Ownership of company social media accounts has recently become a hot topic in the legal industry, and with its decision in Eagle v. Morgan, 2012 WL 4739436, E.D.Pa., October 04, 2012 (NO. CIV.A. 11-4303) this past week, the Eastern District of Pennsylvania has added fuel to the fire. Edcomm, a banking… Continue Reading
New Federal Legislation Proposed To Amend Computer Fraud and Abuse Act To Address Unauthorized Cloud Computing Activities
Posted in Computer Fraud, Computer Fraud and Abuse Act, LegislationOn September 19, 2012, Senators Amy Klobuchar (D-MN) and John Hoeven (R-ND) introduced the “Cloud Computing Act of 2012.” The bill is a bipartisan effort to amend the Computer Fraud and Abuse Act (“CFAA”). If the bill passes, it would purportedly provide greater civil and criminal protections under the CFAA against unlawful computer activites related to cloud… Continue Reading
Failed Federal Cybersecurity Act May Emerge In Executive Order
Posted in Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Espionage, Legislation, Practice & ProcedureBy Misty Blair In August, we waved farewell to the Cybersecurity Act of 2012 (S.3414). Or, so we thought. The bill, which followed a tortured path of at least four major iterations since the introduction of its predecessor in 2010, finally hit the brick wall of Senate gridlock when a cloture vote failed to end… Continue Reading