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
While season-long fantasy sports leagues have long been in existence, the emergence of daily fantasy sports (“DFS”) has been relatively recent. DFS allows participants to enter daily contests for money where a salary cap is used to “draft” a team and compete against anywhere from one to hundreds of thousands of other participants. Points are allocated based on each player’s … Continue Reading
With the recent uptick of high-profile data breaches and lawsuits being filed as a result by both employees and consumers as a result, every business should take a fresh look at its information security policies … Continue Reading
It is frightening to think that valuable corporate trade secrets could be lost with the click of a mouse. But as electronic court filing becomes increasingly prevalent, the risk of inadvertent disclosure of sensitive information online—and the resulting loss of trade secret protection—is becoming more and more real.
A litigant in New York recently learned this lesson firsthand, narrowly escaping … Continue Reading
Milligan: Data theft of valuable company trade secrets … Continue Reading
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
As a special feature of our blog –special guest postings by experts, clients, and other professionals –please enjoy this blog entry by Pamela Passman, President and CEO for the Center for Responsible Enterprise and Trade (CREATe.org)
-Robert Milligan, Editor of Trading Secrets
Regional and national laws are increasingly focusing on the specific steps that companies … Continue Reading
Generally when one refers to “competitors” in the context of protecting trade secrets, it is in regard to business competitors, not competing sports teams. And usually when the talking heads on sports radio and television are discussing legal issues, they relate to domestic violence or other crimes, concussions, illicit and performance enhancing drugs, or labor disputes (sometimes even … Continue Reading
Over the past few years, users have become increasingly aware of the inherent dangers of connecting to unsecured Wi-Fi networks. Unfortunately, existing security vulnerabilities in the underlying network hardware may still open a user’s computer to security issues.
Recently, Wired reported that security firm Cylance discovered a vulnerability in a specific brand of network routers deployed throughout many hotel chains … Continue Reading
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
With the FTC’s 2015 report “Internet of Things: Privacy & Security in a Connected World” (“Report”) the idea that more than just computers and phones are able to connect to the Internet. In fact, the Report states that the “IoT explosion is already around us.” This is true, and the Report goes on to describe some … Continue Reading
Cross Posted from Global Privacy Watch
The plethora of security incidents in the news have once again put security front and center of the international agenda. Predictably, this has triggered a number of responses from governments around the world. Some of these responses seem to have been ill-considered. However, one of the more comprehensive responses came out of the … Continue Reading
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
Until December 11, employers thought that they owned their email systems and could limit their use to company business. On that day, a divided National Labor Relations Board (“NLRB”) ruled “not so.” In Purple Communications, 361 NLRB No. 126 (Dec. 11, 2014), the NLRB ruled that employees who have access to an employer’s email system as part of their job … Continue Reading
A company faced with a security breach has a lengthy “to do” list, things to accomplish with respect to its incident response plan. It must, among other things, determine the root cause of the vulnerability or breach, investigate and eliminate the vulnerability or breach, determine the full nature and extent of the breach, determine who to notify and finalize the … Continue Reading
The IP Institute brings together preeminent speakers from leading companies and law firms to share tips “from the trenches.” The Institute covers a great array of topics affecting our clients, such as trademarks, copyrights, licensing, litigation, … Continue Reading
Way back in the 1980’s, there was a very simple way to keep computer information from being stolen. Every disk containing confidential information was locked in a Sargent and Greenleaf safe.
Of course, even then, there were problems: 22,000 or so 3.5 inch “microfloppy” disks hold the same amount of data as a 32 GB thumb drive can hold today. … Continue Reading
On October 1, 2014, Michael D. Wexler and Robert B. Milligan, partners and co-chairs of Seyfarth Shaw’s Trade Secrets, Computer Fraud & Non-Competes practice group participated in a Q&A mini-roundtable from Corporate Disputes Magazine on current trends in trade secret disputes and the steps companies can take to reduce these disputes. Below are fielded questions from the Seyfarth Shaw Reprint … Continue Reading
We are pleased to let you know that the webinar “Protecting Trade Secrets: The Current Landscape, Top Threats, Best Practices for Assessing and Protecting Trade Secrets, Proposed Legislation and Future Scenarios” is now available as a podcast and webinar recording.
The security breach news cycle continues. There remains a deluge of news stories about point-of-sale terminals being compromised, the ease of magnetic stripes being cloned, and the need for Chip and PIN technology being deployed on credit cards. The legal ramifications of all these events is just starting to become apparent – and it’s complicated. Individual liability is beginning to … Continue Reading
From organized crime and “hacktivists” to competitors and rouge employees, the threats to companies’ trade secrets are more pronounced today than ever before. A recent report by the Center for Responsible Enterprise And Trade (Create.org) and PricewaterhouseCoopers LLP (PwC) — Economic Impact of Trade Secret Theft: A framework for companies to safeguard trade secrets and mitigate potential threats… Continue Reading
It is not uncommon for companies to find that a company’s crown jewels – trade secrets – are overlooked, taken for granted or not properly protected. In a matter of minutes, these key assets can be lost or compromised through what is often benign neglect. This reality is compounded by outsiders and insiders bent on stealing valuable company assets. Sources … Continue Reading
In U.S. v. Liew, Judge White of the U.S. District Court for the Northern District of California sentenced defendant Walter Liew to 15 years in prison for misappropriating trade secrets from chemical giant DuPont and selling them to … Continue Reading