Criminal

Password Sharing Is Not a Crime, Ninth Circuit Reassures in Denial of Nosal’s Request for Rehearing

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Since the early days of this blog, we’ve been covering the ongoing legal battle involving ex-Korn Ferry recruiter David Nosal as it winds its way through the courts. The latest chapter in this saga came on December 8, 2016, when a Ninth Circuit panel clarified that the Computer Fraud and Abuse Act (CFAA) does not criminalize innocent password sharing, in a published opinion denying Nosal’s request for a rehearing en banc. READ MORE →

Amendment to Federal Criminal Procedural Rule Could Impact Trade Secret Cases

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Much attention, including here at Trade Secrets Watch, has been focused in recent weeks on the Defend Trade Secret Act (“DTSA”), which overwhelmingly passed both houses of Congress in April and was signed into law by President Obama on May 11th. The DTSA gives companies new tools for combatting alleged trade secret theft, including a direct path to federal court via the addition of a private right of action to the Economic Espionage Act (EEA) and the ability to apply for ex parte seizure orders to prevent propagation or dissemination of stolen trade secrets. READ MORE →

Trade Secrets and Cloud Services: Is the Sky the Limit?

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Germany is not only known as one of the best countries for enjoying beer and bratwurst, but it is also known as a country with some of the strictest data privacy laws on the planet. Within this environment, should companies doing business in Germany even consider using cloud services for trade secrets? They should! READ MORE →

A Preview of the CFAA Arguments in United States v. Nosal, Part II: Could “Phishing” be a Factor?

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Oral arguments for the next round in United States v. Nosal have been set for October 20, 2015 at the Ninth Circuit in San Francisco.  So we figured it may be a good time to review both sides’ arguments related to the Computer Fraud and Abuse Act. After doing so, it seems to us that one topic not given any consideration in the briefs, but that may play a role during oral argument is the phenomenon known as phishing schemes, and how such schemes might be compared and contrasted with the scheme alleged in this case. READ MORE →

A Voice from China: Unraveling the Different Standards for Civil and Criminal Misappropriation of Trade Secrets

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In China, victims of trade secret misappropriation suffering losses over RMB 500,000 are entitled to file a civil action and may also report the case to public security authorities to initiate a criminal investigation. (For more of our coverage about trade secrets protection in China, click here). When both criminal and civil actions are pending, a Chinese criminal court tends to use the civil decision, if available, as the basis of proving the crime of trade secret misappropriation as long as the damages requirement is met. In Maige Kunci Co., Ltd. v. Suzhou Ruitai New Metal Co., Ltd. (regarded as one of the top 10 Chinese IP cases in 2014) READ MORE →

First Foreign Hacker Is Convicted In The United States Of Hacking Crimes Involving Theft Of Trade Secrets From American Companies

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A 22-year-old Canadian hacker has been sentenced to federal prison by a Delaware court for engaging in a conspiracy to break into the computer networks of several large gaming companies, to steal trade secret and other information related to unreleased products, and to commit criminal copyright infringement.  According to the Government’s Sentencing Memorandum, David Pokora of Ontario, sentenced last Thursday was “a leading member in an international computer hacking ring . . . that committed numerous unlawful intrusions into the computer networks of various technology companies involved in the $22 billion-dollar video gaming industry.”  The conspiracy’s victims included Microsoft, Epic Games (which develops the highly popular “Gears of War” series), and Activision Blizzard (which published, among many other successful games, “Call of Duty: Modern Warfare 3”). READ MORE →

Back in a Flash: Sergey “Flash Boy” Aleynikov Returns to Court for New Trial

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Sergey Aleynikov’s six-year odyssey through the U.S. judicial systems—both federal and state—continues.  Last week, Aleynikov stepped into a New York State courtroom to defend himself at trial against a pair of criminal charges stemming from his 2009 arrest for allegedly stealing source code for one of Goldman Sachs  high-frequency trading platforms.  If convicted on the two counts – unlawful use of secret scientific material and unlawful duplication of computer-related material – Aleynikov could face a return trip to prison for up to eight years. READ MORE →

POTUS Declares Cybercrime a National Emergency, Announces New Penalties for Trade Secrets Theft

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Declaring cybercrime a “national emergency,” President Obama today empowered Treasury to freeze assets that are the fruits of cybercrime, according to an Executive Order issued this afternoon. The agency can block money or property in the United States or in the control of any United States person determined to have engaged in “cyber-enabled activities” originating or directed from outside the United States. Targeted activities include harming computer networks in critical infrastructure sectors; significantly disrupting a computer network; or causing significant misappropriation of trade secrets and other protected information. The EO also enables seizure of money or property of any persons involved in misappropriating trade secrets by “cyber-enabled means” that impact the national security, foreign policy, or economic health or financial stability of the United States.

TSW is tracking the EO and will report further developments.

FROM THE ARCHIVES: The Role of Alleged Trade Secrets Forensic Evidence in the Amanda Knox Murder Case

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Italy’s high court has taken up the appeal of Amanda Knox’s murder conviction in the 2007 murder of Knox’s British roommate in Italy.  A decision was expected as early as Wednesday, but with a full caseload, the judge has said a ruling may not be handed down until Friday.

The story has grabbed headlines for years, and while many of us are now all-too-familiar with the grisly details surrounding the case, most are not aware of the role trade secrets have played in the proceedings. READ MORE →

Five Minutes With … National Security and Cybercrime Professor Ahmed Ghappour

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This marks the inaugural “Five Minutes With” feature that Trade Secrets Watch will run occasionally.  These will be question-and-answers with notable figures in the trade secrets world.

TSW got a chance to sit down with UC Hastings College of the Law professor and Liberty, Security & Technology Clinic founder Ahmed Ghappour.  He had a lot to say about trade secrets, cybersecurity, and encrypting “all the things.”
 
TSW:  Ahmed, TSW is dying to know what you’ve been up to lately in the world of economic espionage.  What’s the inside scoop? READ MORE →