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

Category Archives: Cybersecurity

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Upcoming Webinar: Protecting Trade Secrets Presented By Seyfarth Shaw LLP, CREATe.org and PwC

Posted in Cybersecurity, Data Theft, Trade Secrets

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

When Is The Possession of International Trade Secrets A Mistake Or Economic Espionage: Contrasting U.S. v. Yeh with U.S. v. Liew

Posted in Cybersecurity, Data Theft, Espionage, Trade Secrets

The judgments rendered in two recent 2014 federal criminal cases reveal the inherent complexity in prosecuting international trade secret misappropriation claims.

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

Time to Party Like It’s 1999… Again: Information Technology Returns to Center Stage

Posted in Cybersecurity, Data Theft

By Matthew Hafter

With the Securities and Exchange Commission’s attention again returning to cybersecurity issues, many registrants are recalling the Commission’s intense focus on “Year 2000” issues over a decade ago.

Commissioner Luis Aguilar, in remarks at the SEC’s cybersecurity roundtable held on March 26, 2014, made a special point of discussing the SEC’s growing concerns about cybersecurity and observed … Continue Reading

Webinar Recap! Barbarians at the Gate: Class Action Avoidance and Mitigation for Data Breach

Posted in Cybersecurity, Data Theft, Trade Secrets

We are pleased to let you know that the webinar “Barbarians at the Gate: Class Action Avoidance and Mitigation for Data Breach” is now available as a podcast and webinar recording.

In Seyfarth’s third installment of its 2014 Trade Secrets Webinar series, Seyfarth attorneys took a closer look at avoidance and mitigation techniques for data breaches, including where the … Continue Reading

Tips for Avoiding Liability for Trade Secret Misappropriation Concerning the Hiring and Departure of Employees

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

By Robert Milligan and Joshua Salinas

As companies face increasing competitive and financial pressures, management is understandably consumed with running the day-to-day operations of the business and working to achieve business objectives and maximize the bottom line. As a result, it is not uncommon for companies to find themselves in situations where important assets are overlooked or taken for granted. … 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

Covert Cellular: Enough Protection for Trade Secrets?

Posted in Cybersecurity, Data Theft, Espionage, International, Trade Secrets

With the ever-increasing need to maintain communications with customers and your employees, mobile phones have become a requirement for business people. Spanish telecommunications company Geeksphone is targeting the business market with Blackphone, the first mobile phone that encrypts data transmissions. No one would argue against the value of increased wireless data security, but do CIA-style cellular phones really provide enough … Continue Reading

California Attorney General Provides Some Guidance on Cybersecurity

Posted in Cybersecurity, Data Theft, Privacy

Cross-Posted from The Global Privacy Watch

With all the high-profile cybersecurity breaches that seem to be in the news lately, there is a plethora of “guidance” on cybersecurity. The Attorney General of California has decided to add to this library of guidance with her “Cybersecurity in the Golden State” offering. Cybersecurity is a pretty mature knowledge domain, … Continue Reading

Trade Secrets: A New Framework

Posted in Cybersecurity, Trade Secrets

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

By Pamela Passman

Around the globe, dozens of countries are considering or enacting legal reforms to … 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

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 interplay … Continue Reading

2013 Trade Secrets Webinar Series – Year in Review

Posted in Computer Fraud and Abuse Act, Cybersecurity, International, Legislation, Non-Compete Enforceability, Practice & Procedure, Privacy, Restrictive Covenants, Social Media, Trade Secrets

Throughout 2013, 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 twelve webinars:

1. 2012 National Year in Review: What You Need to Know About the Recent Cases/Developments in Trade Secrets, Continue Reading

Obama Administration Releases Draft Voluntary Cybersecurity Framework for U.S. Business

Posted in Cybersecurity, Data Theft, Privacy

The U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) released its draft of a voluntary cybersecurity framework last Tuesday that provides a means to better evaluate cyber risk, and prepare better defenses against ever-increasing online attacks. 

NIST’s “Preliminary Cybersecurity Framework”, to be finalized in February 2014 after a period for public comment, originated with Executive Order … Continue Reading

Neglect of Cloud Computing Policies In Workplace Can Provide Perfect Storm for Trade Secret Theft

Posted in Cybersecurity, Data Theft, Privacy, Trade Secrets

By Robert Milligan, Jessica Mendelson, and Joshua Salinas

Prudent employers are often looking for areas in their business where valuable company data  may not be adequately protected.

Enter the growing prevalence of third party online data storage for professional and personal use in the workplace, coupled with the increasing accessibility provided by employers to access company data remotely.

While … Continue Reading

AMSC/Sinovel Industrial Espionage Thriller Takes a Procedural Detour, Threatening U.S. Criminal Prosecution

Posted in Cybersecurity, Data Theft, Espionage, International, Trade Secrets

In a story that Hollywood would love to script, the U.S. Government charged Sinovel and its executives with soliciting the then-head of the Automation Engineering Department of AMSC’s Austrian subsidiary, AMSC Windtec GmbH, to steal AMSC’s source code in order that Sinovel might bypass a commercial relationship with AMSC and utilize AMSC’s trade secrets without paying for ongoing software licenses.  … Continue Reading

Nosal Update: Court Denies Motion for Acquittal and New Trial in Marathon CFAA and Trade Secret Misappropriation Criminal Case – Part III

Posted in Computer Fraud and Abuse Act, Cybersecurity, Data Theft, Espionage, Practice & Procedure, Trade Secrets

In Parts I and II of this post, we looked at the Court’s ruling on Nosal’s motion for acquittal and new trial following his conviction of three CFAA counts, two EEA counts and one count of conspiracy. In this final part, we look at what may lie ahead for Nosal and lessons employers may learn from this case.

What’s Next … Continue Reading

Best Practices and Latest Developments in Trade Secret Law

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

I recently presented on “Hot Topics In Trade Secret Law Across the Nation” at the ABA Annual Meeting in San Francisco, California.

Here are seven key takeaways regarding best practices and latest developments from the event that you may find useful:

Understanding the Importance of Trade Secret Preemption

Simply put, trade secret preemption or supersession is the concept that the … Continue Reading

U.S. Senators Propose Legislation To Strengthen Federal Criminal Trade Secret Laws

Posted in Cybersecurity, Data Theft, International, Legislation, Trade Secrets

Senators Sheldon Whitehouse (D-R.I.) and Lindsey Graham (R-S.C.) recently proposed a draft discussion bill to amend the federal Economic Espionage Act and enhance criminal trade secret protections.  

The amendments would expand the Economic Espionage Act to expressly cover trade secret misappropriation sponsored by foreign governments and theft taken at their request, provide victims with additional procedures to protect their trade … Continue Reading

Obama Administration Issues Joint Strategic Plan To Protect America’s Intellectual Property

Posted in Cybersecurity, Data Theft, Espionage, Trade Secrets

The Obama Administration recently issued its 2013 Joint Strategic Plan on Intellectual Property Enforcement, building on the Joint Strategic Plan issued three years ago. In its 88 pages, the 2013 Plan outlines steps for federal agencies to take over the next three years to combat “[IP] infringement that has a significant impact on the economy, the global economic … Continue Reading

Federal Legislation Proposed To Combat Cyber-Espionage

Posted in Cybersecurity, Data Theft, Espionage, Legislation

Cybersecurity has become a growing concern in the United States.  Legislation impacting this topic covers a variety of fields, including national security and defense, trade and international relations, intellectual property, and even privacy and civil liberties.  As technology is constantly changing, so too are the types of restrictions in place.

A group of prominent American Senators recently introduced the Deter 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