In a long-awaited decision, the Supreme Court resolved a circuit split about whether an individual with access to a computer system violates the Computer Fraud and Abuse Act (“CFAA”) by accessing information for an improper purpose. By a 6-3 decision authored by Justice Barrett, the Court held that an individual does not “exceed authorized access” within the meaning of the CFAA by misusing access to obtain information that is otherwise available to that person. While the case heard by the high court was a criminal case involving a former law enforcement officer’s criminal conviction, the decision nonetheless has broad ramifications for trade secrets and restrictive covenant litigation, as CFAA claims were often brought against employees who misused access rights to misappropriate information. The CFAA is a criminal statute that also provides a civil remedy, and CFAA claims were commonly raised to acquire federal subject matter jurisdiction, especially prior to the enactment of the Defend Trade Secrets Act in 2016, which provided an independent private cause of action in federal court for trade secret misappropriation.
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What Underlying Facts are Required to Assert a Valid CFAA Claim Based on “Exceeds Authorized Access” in Georgia?
The Computer Fraud and Abuse Act (“CFAA”) gives rise to an actionable claim if someone “knowingly access[es] a computer without authorization or exceed[s] authorized access.” 18 U.S.C. § 1030(a)(1). The term “exceeds authorized access” is defined as “to access a computer with authorization and to use such access to obtain or alter information in the computer that the accesser is
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Webinar Recap! The Intersection of Trade Secrets Violations and the Criminal Law
In Seyfarth’s eighth installment in the 2016 Trade Secrets Webinar Series, attorneys Andrew Boutros, Katherine Perrelli and Michael Wexler focused on criminal liability for trade secret misappropriation. Trade secret misappropriation is increasingly garnering the attention of federal law enforcement authorities. This reality creates different dynamics and risks depending on whether the company at issue is being accused of wrongdoing or
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Upcoming Webinar: The Intersection of Trade Secrets Violations and the Criminal Law
The stakes are getting higher: Trade secret misappropriation is increasingly garnering the attention of federal law enforcement authorities. This reality creates different dynamics and risks depending on whether the company at issue is being accused of wrongdoing or is the victim of such conduct.
On Tuesday, October 4, at 12:00 p.m. Central, Seyfarth attorneys Katherine E. Perrelli, Andrew S. Boutros
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Activist’s Death May Spur Legislative Changes To The Computer Fraud and Abuse Act
By 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 create RSS, a
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“Click Fraud” Allegations Found Insufficient Under Computer Fraud and Abuse Act, But Personal Jurisdiction Found Where Defendant Company’s Website Deliberately Targeted Consumers Within the Forum State
By Joshua Salinas and Jessica Mendelson
A federal district court for the Northern District of California recently held in a “competitor click fraud” case that a mere assertion of a violation of the Computer Fraud and Abuse Act claim without sufficient factual details regarding any inside or outside “hacking” is insufficient to establish subject matter jurisdiction over the action. (
Continue Reading “Click Fraud” Allegations Found Insufficient Under Computer Fraud and Abuse Act, But Personal Jurisdiction Found Where Defendant Company’s Website Deliberately Targeted Consumers Within the Forum State
Employers May Have Sweat Equity In Their Executives LinkedIn Accounts, But Employees Score Win In War Over The Applicability Of The Federal Computer Fraud And Abuse Act In The Workplace
In the age of social media and networking, where employees undoubtedly use their company-issued computers to network with customers, vendors, colleagues, and friends, a legal question presents itself: can employers claim an interest in their employees’ LinkedIn accounts, or other social networking accounts, which the employees use in part to grow and maintain their relationships for the
Continue Reading Employers May Have Sweat Equity In Their Executives LinkedIn Accounts, But Employees Score Win In War Over The Applicability Of The Federal Computer Fraud And Abuse Act In The Workplace
Key Computer Fraud and Abuse Act Case Heard By Ninth Circuit En Banc Panel: Can Rogue Employees Be Held Liable For Data Theft Under The Computer Fraud and Abuse Act?
The Ninth Circuit held oral argument on the key United States v. Nosal case yesterday before an en banc panel.
The Court has made the oral argument available on-line.
At stake is whether the government can maintain criminal charges and an employer can maintain a civil cause of action under the Computer Fraud and Abuse Act against
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Dead Again? Use of Computer Fraud and Abuse Act By Employers To Combat Employee Data Theft Limited By Ninth Circuit’s Latest Ruling
The Ninth Circuit Court of Appeals ordered that U.S. v. Nosal be reheard en banc by all of the Appeals Court judges and that the “three-judge panel opinion [in U.S. v. Nosal, 642 F.3d 781 (9th Cir. 2011)] shall not be cited as precedent by or to any court of the Ninth Circuit.”
Accordingly, the ability of employers
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Outside Counsel Fees May Be a Qualified Loss to Meet the CFAA’s $5000 Jurisdictional Requirement
The Computer Fraud and Abuse Act (“CFAA”) requires, among other things, that a plaintiff demonstrate a “loss” of $5,000 or more. See 18 U.S.C. § 1030(c)(4)(A)(i)(I).
In Animators at Law, Inc. v. Capital Legal Solutions, LLC, et al., Case No. 10-CV-1341 E.D.Va. (May 10, 2011) (unpublished) (TSE) two former employees of Animators’ abruptly left to join
Continue Reading Outside Counsel Fees May Be a Qualified Loss to Meet the CFAA’s $5000 Jurisdictional Requirement