By 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
Tag Archives: data theft
Protecting Company Information When Employees Bail: California Alternatives to Employee Non-Compete Agreements
Posted in Non-Compete Enforceability, Practice & Procedure, Trade SecretsBy Robert B. Milligan, Jessica Mendelson, and Joshua Salinas How does a California employer prevent its business from walking out the door along with a departing employee? In most jurisdictions, the employer could have the employees sign a non-compete agreement. Not in California. One of the notorious employment laws that separates California from other states… 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
Despite Allegations That Something Fishy Was Occurring, Kentucky Federal District Court Rules That Texas Corporate Defendant Was Not Subject To Personal Jurisdiction In Trade Secret Misappropriation Suit
Posted in Breach of Fiduciary Duty, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade SecretsMPI, a Texas company, went to Kentucky and allegedly attempted to hire two Luvata employees, Foster and Meredith. Foster joined MPI soon thereafter. Over the course of the next few months while Meredith remained a Luvata employee, he and Foster allegedly spoke by phone repeatedly. In addition, prior to leaving Luvata for MPI, Meredith… Continue Reading
Solicitor General Decides Not To File Petition For Review In United States v. Nosal: Circuit Split On Computer Fraud And Abuse Act Remains
Posted in Computer FraudBy Robert Milligan and Joshua Salinas The Solicitor General indicated yesterday that he will not file a petition for a writ of certiorari with the Supreme Court in U.S. v. Nosal. It was anticipated by some legal commentators that a Supreme Court decision in Nosal may resolve a deepening split between the Circuit Courts regarding the proper interpretation… Continue Reading
Another Michigan Federal Court Adopts Narrow Interpretation of Civil Liability Under Computer Fraud and Abuse Act
Posted in Computer Fraud, Computer Fraud and Abuse Act, Practice & ProcedureA U.S. District Court in Michigan recently granted partial summary judgment in favor of two individuals who were sued by their former employer, Dana Ltd., for violating the Computer Fraud and Abuse Act, 18 U.S.C. §1030 et seq. The individuals admitted that, prior to their departure from Dana but after accepting employment with a competitor,… Continue Reading
Computer Fraud and Abuse Act Remains Viable Claim For Employers To Assert Against Employees Who Steal Company Data
Posted in Computer Fraud and Abuse ActBy Robert Milligan and Joshua Salinas The Computer Fraud and Abuse Act (“CFAA”) remains a potent weapon for employers to use against disgruntled employees who steal company data. The Sixth Circuit in U.S. v. Batti, No. 09-2050, 2011 WL 111745 (6th Cir. 2011)recently upheld the criminal conviction of an employee who allegedly accessed, copied, and leaked… Continue Reading