The U.S. Supreme Court recently resolved a circuit split regarding the federal Computer Fraud and Abuse Act (CFAA), specifically weighing in on the “exceeds authorized access” provision of the statute. The CFAA subjects to criminal liability anyone who “intentionally accesses a computer without authorization or exceeds authorized access.” READ MORE
Protecting IP in a COVID-19 Remote-Work-World
Even before the COVID-19 pandemic, many employers offered remote work options. Now employers all over the world are encouraging or requiring their employees to work remote from home. This means employees are accessing, maintaining, and sharing proprietary information outside of the office more frequently than ever before, thereby increasing the risk of employee and third-party IP theft. READ MORE
Spring Cleaning: Tidying Up Your “Reasonable Efforts” to Maintain Trade Secrets
It’s among an in-house counsel’s worst nightmares. A former business partner, ex-employee, consultant, or competitor has stolen your company’s trade secret information. Company management demands swift action. You hire outside counsel who, after reviewing your company policies and interviewing stakeholders, tells you that he or she is concerned about being able to establish that your company took “reasonable efforts” to protect the information. Listening to the feedback, you realize with a sinking feeling that these were steps that you, as in-house counsel, may have been able to implement if you had only thought about the issue sooner. READ MORE
Constitutional Challenge to CFAA Survives Motion to Dismiss as D.C. Court Weighs in on Circuit Split
On March 30, 2018, in Sandvig v. Sessions, the U.S. District Court for the District of Columbia allowed one of several constitutional challenges to the Computer Fraud and Abuse Act to survive a motion to dismiss. In doing so, the district court highlighted and analyzed the split between circuits in interpreting the “exceeds authorization” provision and joined the Second, Fourth, and Ninth Circuits in finding that exceeding authorization means exceeding authorized access and not merely authorized use. READ MORE
Home Remedies for Politically Charged IP Theft
In January of this year, Chinese wind turbine manufacturer Sinovel Wind Group Co. Ltd. was convicted of stealing trade secrets from U.S. company AMSC Inc. The theft caused AMSC, more than $800 million in losses and forced the company to lay off more than half its global work force. Sinovel’s sentencing—which could include fines exceeding $1 billion and a multiyear probationary period—is scheduled for June 2018. READ MORE
Blockchain: Not Just a Platform for Cryptocurrency but a Potential Method for Protecting Trade Secrets and Other IP
Cryptocurrency has dominated the attention of the financial world for most of the past 12 months as Bitcoin’s value (as well as other cryptocurrencies’) soared over 1,500% in 2017 (though it has experienced some recent volatility). While investors are happy to see their wallets growing, companies should be excited about the technology underlying most cryptocurrencies – blockchain – which has the potential to create a competitive advantage in trade secrets protection.
David Nosal Raises Unusual Fairness Argument in Yet Another Attempt to Avoid 366-Day Prison Sentence
Just over four years ago, in January 2014, a court sentenced former Korn/Ferry regional director David Nosal to one year and one day in prison for violations of the federal Computer Fraud and Abuse Act and the Espionage Act. Nosal appealed the sentence, but his appeals ultimately failed: the U.S. Court of Appeals for the Ninth Circuit upheld Nosal’s sentence, and the U.S. Supreme Court denied review of the case. Luckily for Nosal, his 2014 motion for release pending appeal was granted, so he has not served any time during the four years of appeals. READ MORE
Nosal Reply Brief Sets Stage for SCOTUS Cert Decision
The U.S. Supreme Court, which just began a new term on Monday with a full complement of nine justices, is expected to soon decide whether it will hear the appeal of David Nosal, the former Korn Ferry executive whose conviction under the Computer Fraud and Abuse Act was upheld in a controversial and closely-watched Ninth Circuit decision last year. Nosal submitted his reply brief in support of certiorari on September 19, 2017, responding to the Department of Justice’s opposition submitted two weeks earlier.
Above the Clouds: Jeweler’s Trade Secret Spat Highlights Risk of Employee-Controlled Cloud Storage
We have discussed before the importance of maintaining internal policies and procedures to protect the security and integrity of cloud-based repositories. A recent case in the U.S. District Court for the District of Maryland illustrates that this continues to be an important issue—particularly for companies who store their crown jewels on the cloud.
The Saga Continues: New York’s Highest Court Will Weigh in on Aleynikov’s Fate
On April 20, 2017, the New York Court of Appeals issued a brief order continuing former Goldman Sachs programmer Sergey Aleynikov’s eight-year voyage through the state’s and country’s legal systems. Here’s the issue: does making a digital copy of misappropriated source code instead of physical copy constitute a “tangible reproduction or representation” of the source code? READ MORE