U.S.v. Nosal

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Continuing our annual tradition, we present the top developments/headlines for 2017/2018 in trade secret, computer fraud, and non-compete law.

1. Notable Defend Trade Secrets Act Developments

Just two years after its enactment, the Defend Trade Secrets Act (“DTSA”) continues to be one of the most significant and closely followed developments in trade secret law. The statute provides for a federal civil cause of action for trade secret theft, protections for whistleblowers, and new remedies (e.g., ex parte seizure of property), that were not previously available under state trade secret laws.
Continue Reading Top Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2017/2018

On Tuesday, October 10, 2017, the United States Supreme Court denied certiorari in Nosal v. United States, 16-1344. Nosal asked the Court to determine whether a person violates the Computer Fraud and Abuse Act’s prohibition of accessing a computer “without authorization” when using someone else’s credentials (with that other user’s permission) after the owner of the computer expressly revoked the first person’s own access rights. In denying certiorari, the Court effectively killed the petitioner’s legal challenge to his conviction in a long-running case that we have extensively covered here, here, here, here, here, here, and here (among other places). The denial of certiorari leaves further development of the scope of the CFAA in the hands of the lower courts.
Continue Reading Supreme Court Refuses to Hear Password-Sharing Case, Leaving Scope of Criminal Liability Under Computer Fraud and Abuse Act Unclear

MEME_Cal Pecs eBookSeyfarth Shaw LLP has released its 2017 Edition of Cal-Peculiarities: How California Employment Law Is Different. Included within the publication is an overview of how California law is different in the areas of restrictive covenants , trade secrets, and computer fraud. For example, highlights include:

  • But for a narrow exception, new law provides that a California employer cannot

…
Continue Reading Can You Say P-e-c-u-l-i-a-r-i-t-i-e-s? Seyfarth’s Cal-Peculiarities Guide Is Here Highlighting Quirks in California Restrictive Covenant and Trade Secret Law

shutterstock_533123590Continuing our annual tradition, we present the top developments/headlines for 2016 in trade secret, computer fraud, and non-compete law. Please join us for our first webinar of the New Year on February 2, 2017, at 12:00 p.m. Central, where we will discuss these new developments, their potential implications, and our predictions for 2017.

1. Defend Trade Secrets Act

One of…
Continue Reading Top Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2016

shutterstock_414545476Not exactly. A divided Ninth Circuit panel recently affirmed the conviction of a former employee under the Computer Fraud and Abuse Act (“CFAA”), holding that “[u]nequivocal revocation of computer access closes both the front door and the back door” to protected computers, and that using a password shared by an authorized system user to circumvent the revocation of the former…
Continue Reading Computer Fraud and Abuse Act Ruling: Did the Ninth Circuit Just Criminalize Password Sharing?

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

In Parts I and II of this post, we looked at the Court’s ruling on Nosal’s motion for acquittal and new trial following his conviction of three CFAA counts, two EEA counts and one count of conspiracy. In this final part, we look at what may lie ahead for Nosal and lessons employers may learn from this case.

What’s Next …
Continue Reading Nosal Update: Court Denies Motion for Acquittal and New Trial in Marathon CFAA and Trade Secret Misappropriation Criminal Case – Part III

In Part I of this post, we reviewed the Court’s ruling on Nosal’s conviction on the CFAA counts. Here in Part II, we turn to the Court’s ruling on the EEA counts, and the exclusion of evidence regarding Nosal’s non-compete provision.

B.    Nosal’s Conviction on the EEA Counts:

Nosal was convicted of two counts under the EEA for downloading,…
Continue Reading Nosal Update: Court Denies Motion for Acquittal and New Trial in Marathon CFAA and Trade Secret Misappropriation Criminal Case – Part II

On April 25, 2013, a federal jury convicted Executive Recruiter David Nosal on three counts under the Computer Fraud and Abuse Act (“CFAA”), two counts under the Economic Espionage Act (“EEA”), and one count of conspiracy to violate the CFAA and EEA, for Nosal’s conduct leaving his former employer and establishing a competing business in 2004 and 2005.

The conviction…
Continue Reading Nosal Update: Court Denies Motion for Acquittal and New Trial in Marathon CFAA and Trade Secret Misappropriation Criminal Case – Part I

I recently presented on “Hot Topics In Trade Secret Law Across the Nation” at the ABA Annual Meeting in San Francisco, California.

Here are seven key takeaways regarding best practices and latest developments from the event that you may find useful:

Understanding the Importance of Trade Secret Preemption

Simply put, trade secret preemption or supersession is the concept that the …
Continue Reading Best Practices and Latest Developments in Trade Secret Law