Computer Fraud and Abuse Act

shutterstock_214450246An ex-employee’s former employer sued him for alleged violations of the Kansas Uniform Trade Secrets Act (KUTSA) and the federal Computer Fraud and Abuse Act (CFAA).  The first claim was based on the company’s hunch that he had misappropriated trade secrets and thereby breached his non-disclosure agreement.  Two forensic experts were paid $38,000 to examine the computers and flash drives
Continue Reading Federal Court Rejects Employer’s Trade Secret and Computer Fraud and Abuse Act Claims

shutterstock_261389492Ever since Iqbal and Twombly, it has become imperative that a complaint filed in federal court contains “sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’”  Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 554, 570 (2007)).  The Eastern District of Michigan
Continue Reading Recent Decision Highlights Important Pleading Requirements for Computer Fraud and Abuse Act Claims

shutterstock_131284286In a recent Computer Fraud and Abuse Act case, the Seventh Circuit Court of Appeals affirmed the district court’s conclusion that the plaintiff had produced no evidence refuting the defendant’s contention that it honestly believed it was engaging in lawful business practices rather than intentionally deceiving or defrauding the plaintiff.  Accordingly, entry of judgment for the defendant was appropriate.  Fidlar
Continue Reading Computer Fraud and Abuse Act Not Violated Unless Plaintiff Shows Defendant Had Intent To Defraud

shutterstock_208633174Background

Imagine if you could manage all of your social media platforms on one app.  Believe it or not, there was an app for that (or, at least a website), created by a company named Power Ventures (“Power”).  Back in 2008, Power instituted its “Power 100” campaign, which offered its users the chance to win $100 if they invited 100
Continue Reading Ninth Circuit Poised to Address the “Without Authorization” Debate under the Computer Fraud and Abuse Act Again

shutterstock_334793126Continuing our tradition of presenting annually our thoughts concerning the top 10 developments/headlines this past year in trade secret, computer fraud, and non-compete law, here—in no particular order—is our listing for 2015 and a few predictions for 2016.  Please join us for our first webinar of the New Year on January 29, 2016 discussing these developments/headlines.

1) Enactment of federal
Continue Reading Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2015

shutterstock_276783140We are pleased to announce the webinar “Social Media Privacy Legislation Update” is now available as a podcast and webinar recording.

In Seyfarth’s eighth installment in its series of Trade Secrets Webinars, Seyfarth social media attorneys discussed their recently released Social Media Privacy Legislation Desktop Reference and addressed the relationship between trade secrets, social media, and privacy legislation.

As
Continue Reading Webinar Recap! Social Media Privacy Legislation Update

shutterstock_299582249On 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 Nosal Update: Ninth Circuit Hears Oral Arguments on Password Sharing and Scope of Computer Fraud and Abuse Act

shutterstock_242602567While 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 Michigan Federal Court Rejects As Dicta Sixth Circuit’s Broad Computer Fraud and Abuse Act Interpretation

shutterstock_152933135In 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.

  1.  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 Frequently Asked Questions Regarding Trade Secret Disputes and Employment Risks Answered

California -- brick wallIn 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
Continue Reading California Federal Courts Reiterate: Unless Computer Hacked, Computer Fraud and Abuse Act Permits Misuse Of Electronic Information