Employment Law Alert

Employment Law Alert

News and Updates on Employment Law

Tag Archives: Computer Fraud and Abuse Act

Trade Secrets Theft by Former Employee Results in a Criminal Conviction Under the Federal Computer Fraud and Abuse Act but Still Leaves Uncertainty Over the Scope of the Act

Posted in Restrictive Covenants, Trade Secrets
In United States v. Nosal, a federal jury in California convicted a former employee of Korn/Ferry for violating the Computer Fraud and Abuse Act ("CFAA"). The evidence showed that the defendant directed his co-conspirators within the firm to use a borrowed password to gain access to trade secrets to be used in establishing their own business. The use of the borrowed password was critical to the successful prosecution under the CFAA because earlier in the case the Ninth Circuit Court of Appeals issued an opinion that narrowly interpreted the statute to prohibit only "unauthorized procurement or alteration of information, not its misuse or misappropriation." The significant aspect of the Ninth Circuit's interpretation of the CFAA in Nosal is the Court's conclusion that a violation of the statute does not occur merely because an employee initially uses his authorized access to obtain his employer's proprietary information even if he does so with the intent to misappropriate it. Presumably, had Nosal's co-conspirators who accessed the computerized information in question been able to do so using their own passwords, there would have been no "unauthorized procurement" in violation of the … Continue Reading

Taking Over Former Employee’s LinkedIn Account Not a Violation of Federal Law, According to Pennsylvania District Court

Posted in Privacy
A Pennsylvania Federal District Court has decided that an employer did not violate the Federal Computer Fraud and Abuse Act ("CFAA") or the Federal Lanham Act, when it took control of a departed employee's LinkedIn account. The Court ruled that (1) the CFAA, which in part prohibits unauthorized access to a computer with the intent to defraud, did not come into play and (2) no trademark infringement in violation of the Lanham Act had occurred… Continue Reading

Computer Fraud and Abuse Act Continues to be “Employer Friendly”

Posted in Policies/Handbooks
The Computer Fraud and Abuse Act ("CFAA") is a federal law that, in part, makes it a crime to access a computer in an unauthorized manner. In the employment context, the statute has proven valuable in protecting confidential and proprietary information that employees can access on their employers' electronic systems. Recent decisions by the United States Courts of Appeals for the Ninth and Third Circuits emphasize the breadth of the CFAA's application to the workplace… Continue Reading
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