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

Category Archives: Data Theft

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Upcoming Webinar: Data Security and Trade Secret Protection for Lawyers

Posted in Cybersecurity, Data Theft, Trade Secrets

On Thursday, February 25, 2016 at 12:00 p.m. Central, Seyfarth attorneys, Richard D. Lutkus and James S. Yu, will be joined by Joseph Martinez, Chief Technology Officer and Vice President of Forensics at Innovative Discovery to present the second installment of the 2016 Trade Secrets Webinar series. This program will cover considerations that attorneys should take into account when … Continue Reading

What does the Trans Pacific Partnership mean for IP in Australia?

Posted in Cybersecurity, Data Theft, International, Trade Secrets

The Trans Pacific Partnership Agreement (“TPP) between twelve Pacific Rim counties, including Australia and the United States, was finally made public on 5 November.

The text of the Agreement will now be reviewed by various parliamentary committees before Parliament votes on legislation to implement the Agreement in Australia, likely to be in February or March next year. If the implementing … Continue Reading

Untrusted Advisor: How Your Law Firm May Fail to Protect Your Data

Posted in Cybersecurity, Data Theft, Trade Secrets

In recent years, the prevalence of data and information security breaches at major corporations have become increasingly more commonplace.  While general awareness may be increasing, many companies are still neglecting to address serious information security issues.

Breached data can include proprietary or confidential information, trade secrets, personally identifiable information, health-related data, privileged communications, and regulatory data.  Such data is often … 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

Daily Trade Secret Theft for Daily Fantasy Sports?

Posted in Cybersecurity, Data Theft, Trade Secrets

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

Information Security Policies and Data Breach Response Plans Webinar Now Available!

Posted in Cybersecurity, Data Theft, Privacy

We are pleased to announce the webinar “Information Security Policies and Data Breach Response Plans” is now available as a podcast and webinar recording.

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

Getting Your Money Back: New Jersey Employers Can Disgorge A Disloyal Employee’s Salary

Posted in Breach of Fiduciary Duty, Data Theft, Practice & Procedure, Trade Secrets

By Christopher Lowe and Robert T. Szyba

In a recent ruling, the New Jersey Supreme Court gave employers a great recourse for dealing with former employees who breach their duty of loyalty.  In Bruce Kaye v. Alan P. Rosefielde, the Court allowed an employer to recover compensation paid to a disloyal, recently terminated, employee, even where the employer sustained no … Continue Reading

When E-Filing Goes Wrong: How to Protect Your Trade Secrets in the Event of Inadvertent Online Disclosure

Posted in Cybersecurity, Data Theft, Trade Secrets

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

Frequently Asked Questions Regarding Trade Secret Disputes and Employment Risks Answered

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

In today’s post, we have answered some of the most frequent and significant questions that we are asked about trade secret disputes and employment risks.

 Could you provide a brief snapshot of current trends in trade secret disputes? Do companies need to be more aware of the potential risks in this area?

Milligan: Data theft of valuable company trade secrets … 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

Upcoming Webinar: Information Security Policies and Data Breach Response Plans

Posted in Data Theft, Privacy

On Tuesday, September 22 at 12:00 p.m. Central, Seyfarth attorneys Karla Grossenbacher and John Tomaszewski will present “Information Security Policies and Data Breach Response Plans.” 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

Trade Secret Protection: What are Reasonable Steps?

Posted in Cybersecurity, 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 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

Regional and national laws are increasingly focusing on the specific steps that companies … Continue Reading

Corporate Espionage: Not Your Typical Sports-“Gate”

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

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

Unsecured Networks More Susceptible to Data Theft

Posted in Cybersecurity, Data Theft, Trade Secrets

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

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

Webinar Recap! International Trade Secret and Non-Compete Law Update

Posted in Data Theft, International, Non-Compete Enforceability, Trade Secrets

We are pleased to announce the webinar “International Trade Secret and Non-Compete Law Update” is now available as a podcast and webinar recording.

In Seyfarth’s third installment of its 2015 Trade Secrets Webinar series, Seyfarth attorneys focused on non-compete and trade secret considerations from an international perspective. Specifically, the webinar will involved a discussion of non-compete and trade secret … Continue Reading

SEC Cracks Down On Confidentiality Agreements Chilling Employees’ Rights to Report Potential Securities Law Violations

Posted in Data Theft, Trade Secrets

By Ada Dolph, Christopher Robertson, and Robert Milligan

The Securities and Exchange Commission (SEC) announced today that it had made good on its prior promises to take a hard look at employment agreements and policies that could be viewed as attempting to keep securities fraud complaints in-house. In KBR, Inc., Exchange Act Release No. 74619 (April 1, 2015), the … Continue Reading

Opposition Emerges to EU Trade Secrets Directive

Posted in Data Theft, International, Trade Secrets

By any measure, the past few weeks have been eventful in Europe.  Given the number of challenges facing European lawmakers — from continued hostilities in Ukraine, to last-minute negotiations over Greek debt, to anti-terrorism measures — it’s unlikely that trade secrets protection is at the top of anyone’s agenda in Brussels or Strasbourg.  Still — as we have … 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

Union Files NLRB Complaint Regarding the USPS’ Handling of Security Breach Involving Employee Personal Information

Posted in Cybersecurity, Data Theft, Privacy

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

Connecticut Supreme Court Grants Private Action for HIPAA Breach

Posted in Data Theft, Privacy

This week, the Connecticut Supreme Court issued an opinion which upheld a state common law negligence action against a healthcare provider for violation of privacy and confidentiality laws and regulations using as evidence of the standard of care the Health Information Portability and Accountability Act (HIPAA) and its accompanying regulations. The court denied defense arguments that HIPAA, which expressly does … Continue Reading

Please Join Us for an In-Person Seyfarth Shaw Briefing: Trade Secret Protection Best Practices

Posted in Data Theft, Restrictive Covenants, Trade Secrets

Who Should Attend:  In-house counsel, IT professionals, HR professionals, Privacy professionals, corporate executives, risk managers, and directors.

When & Where: This program will be held at three different locations.

November 13th at Seyfarth Shaw’s San Francisco Office (lunch and registration will begin at 11:30 a.m., program will begin at noon and go until 1:30 p.m.).

November 18th at Seyfarth Shaw’s … Continue Reading