California 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
Category Archives: Data Theft
Subscribe to Data Theft RSS FeedNew York State Court Rejects Double Jeopardy Argument In Data Theft Case
Posted in Data Theft, Espionage, Trade SecretsWe have previously written about Sergey Aleynikov, a former computer programmer for an investment bank who beat federal charges of trade secret theft under the Economic Espionage Act in 2012. Although Aleynikov was initially convicted of these charges, the Second Circuit Court of Appeals overturned his conviction, finding that the trade secrets relating to the… 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
If a Company in China Steals Your Trade Secrets, Do You Have to Litigate Your Lawsuit in China? Maybe…
Posted in Data Theft, Trade SecretsThe theft of trade secrets by foreign companies, especially those in China, from American companies is a hot topic among lawmakers and in the press. A recent opinion from the Fifth Circuit Court of Appeals dealt a blow to the ability of American companies to bring lawsuits in the United States for trade secret theft in… Continue Reading
Growing California Trade Secret Preemption Doctrine May Thwart Efforts To Combat Employee Data Theft
Posted in Data Theft, Practice & Procedure, Trade Secrets, Unfair CompetitionBy Robert B. Milligan, Jessica Mendelson, and Daniel Joshua Salinas Company information that is sensitive, but may not rise to the level of a trade secret is protectable in California, isn’t it? Not necessarily. Some recent California decisions have significantly limited an employer’s ability to pursue certain claims and remedies based upon the theft of… 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
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
Federal Court Rules That Government’s Service Attempts Fail In Criminal Trade Secret Matter
Posted in Data Theft, Espionage, Trade SecretsA federal judge in Virginia recently held that the United States Department of Justice’s attempts to serve Kolon Industries, Inc and five of its executives with criminal summons in a high profile criminal trade secrets action were ineffective, finding, among other things, that service on its U.S. subsidiary was not sufficient. In the complaint, which was unsealed last October, the… Continue Reading
United States Announces Multifaceted Plan To Combat Trade Secret Theft At Home And Abroad
Posted in Data Theft, Espionage, Legislation, Trade SecretsBy Jessica Mendelson and Robert Milligan On Wednesday February 20, 2013, the White House released a five-point plan (“the Plan”) intended to combat trade secret theft of American trade secrets. The plan is a collaboration between various federal agencies, including the Departments of Commerce, Defense, Homeland Security, Justice, State, Treasury, the Office of the Director of… Continue Reading
President Obama Signs Significant Cybersecurity Executive Order
Posted in Data Theft, Espionage, LegislationBy Misty Blair and Ken Wilton Cybersecurity is at the forefront of the public and private sectors alike, as daily news reports warn of cyberattacks on American institutions such as media, banks, and governmental agencies. It is in this spirit that, just Tuesday, President Obama signed the long-awaited Executive Order on “Improving Critical Infrastructure Cybersecurity”… Continue Reading
Second Circuit Largely Affirms $18.1 Million Trade Secrets Misappropriation Verdict
Posted in Data Theft, Trade SecretsOn February 6, 2013, the federal Second Circuit Court of Appeals affirmed $15 million of a $18.1 million dollar jury verdict (onto which the trial court tacked on an additional $1.5 million in interest) in favor of a New York subway brake manufacturer on its trade secret misappropriation claim against a former licensee turned competitor. … Continue Reading
Aleynikov Case Continues to Grab Headlines in Trade Secrets Community
Posted in Data Theft, Espionage, Trade SecretsLast year, Sergey Aleynikov, a computer programmer, beat federal charges of trade secret theft under the Economic Espionage Act. Although Aleynikov was initially convicted, the Second Circuit Court of Appeals overturned his conviction, finding that the trade secrets relating to the source code Aleynikov had taken were not related to a product “produced for. …. 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
President Obama Signs Economic Espionage Act Amendments That Significantly Enhance The Penalties For Trade Secret Theft By Foreigners
Posted in Data Theft, Espionage, LegislationOn January 14, 2013, President Obama signed the Foreign and Economic Espionage Penalty Enhancement Act of 2012. The Act enhances the penalties for certain violations of the Economic Espionage Act. The purpose of the Act was to amend title 18, United States Code, to provide for increased penalties for foreign and economic espionage. Under the Act,… 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
Chicago Breakfast Briefing: Protecting Your Most Valuable Assets – Trade Secrets, IP and Your Employees
Posted in Data Theft, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade Secrets, Unfair CompetitionIllinois and Federal laws have evolved significantly in recent years and as a result employers now have many tools available to protect themselves. Understanding these tools, as well as the impact of legal changes in this area, is necessary if a company intends on protecting its most valuable assets (i.e. trade secrets, IP and employees)…. Continue Reading
Employers Take Note: Michigan Adopts Social Media Privacy Legislation
Posted in Data Theft, LegislationBy Jessica Mendelson and Robert Milligan The Michigan Legislature recently passed the Internet Privacy Protection Act (“IPPA”), otherwise known as House Bill 5523. On December 28, 2012, Michigan Governor Rick Snyder signed the IPPA, making Michigan the fourth state to enact a social media privacy law regulating employers. In explaining the reasoning behind the law, Governor… 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