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Ninth Circuit Interprets “Without Authorization” under the Computer Fraud and Abuse Act

When we last left David Nosal, he had escaped liability under the Computer Fraud and Abuse Act after convincing some of his former colleagues at executive search firm Korn/Ferry to use their log-in credentials to download...more

Taking a Walk Back to a Kinder, Gentler Interpretation of the Computer Fraud and Abuse Act

We don’t usually talk about four-year-old court decisions in the first instance here. But the Ninth Circuit has issued a pair of noteworthy opinions interpreting the Computer Fraud and Abuse Act in the last few weeks. And...more

When Stealing in Baseball Can Land You in Jail: Computer Fraud Sentencing Announced in MLB Case

Although stealing bases, and even signs, in baseball may be part of the game, stealing another team’s trade secrets can land you in federal prison, as one executive recently learned the hard way. As we previously...more

CFAA Double Feature: Ninth Circuit Issues Two Important Decisions on the Scope of Liability Related to Data Scraping and...

This past week, the Ninth Circuit released two important decisions that clarify the scope of liability under the federal Computer Fraud and Abuse Act (CFAA), 18 U.S.C. § 1030. The Act was originally designed to target...more

Ninth Circuit Rules that CFAA Imposes Criminal Penalties When Terminated Users Try To Access Systems With Borrowed Passwords

It can be a violation of the federal Computer Fraud and Abuse Act (“CFAA”) to “access[] a protected computer without authorization.” The CFAA clearly applies when criminals with no connection to a company try to force their...more

How employers can stop departing employees taking client lists with them

When an employee departs for a role with a competitor, there is often a risk that the employee might take confidential client details with them, with potentially damaging consequences for the employer. However, a recent court...more

Happy Times, High Crimes and Misdemeanors (Silicon Valley – Episode 25)

In this week’s episode of Silicon Valley, Richard enjoyed an unprecedented run of success, culminating with the official launch of Pied Piper’s platform. Richard has suffered so many setbacks, it’s little wonder he is...more

Also In the News - Data, Privacy, & Security Practice Report - May 2016 #2

K&S Client Alert: Third Try Is A Charm: Defend Trade Secrets Act Of 2015 Enacted Into Law—For the third consecutive year, Congress introduced legislation to create a federal civil cause of action for trade secret...more

The Scariest Hack So Far

Hackers have upped the ante. Data controllers wax fondly about the good old days when data was outright stolen. Back then, in 2013, there was a sense of fair play. Trolls did troll things. Assuming the victim implemented and...more

The Supreme Court - May 2016

The Supreme Court of the United States issued one decision on May 2, 2016: Ocasio v. United States, No. 14-361: Petitioner Samuel Ocasio, a former police officer, was tried and convicted under the Hobbs Act for...more

Feds Open The Gates and Seize the Domain Names

Does the federal government have the right to seize a domain name without notice? With growing frequency, the feds have seized the domain names of thousands of websites for alleged criminal wrongdoing. The latest example is...more

Proving “Loss” Under the Economic Espionage Act – Not Always Straightforward

The Obama Administration’s focus on criminal trade secret prosecutions under the Economic Espionage Act (EEA) highlights the legal complexities at the murky intersection between criminal and civil jurisprudence in trade...more

7th Circuit Grants Partial Reprieve to Trade Secret Thief Who Couldn’t Shoot Straight

Crime Does Not Pay - You have to feel a little sorry for Yihao Pu. Pu was a finance engineer who worked for two companies with proprietary systems for executing high frequency stock trading (HTF). Pu illegally...more

Backdooring Investment Security (On the Apple Case)

There's lots of talk about information security with the Apple case. But, perhaps just as important, the case also raises important concerns relating to investment security and to the predictability of our markets and laws. ...more

Government Charges Five, Including Two Scientists, With Stealing Trade Secrets And Confidential Information From GlaxoSmithKline

On January 20, 2016, the United States Attorney’s Office for the Eastern District of Pennsylvania announced the indictment of five people, including two research scientists at GlaxoSmithKline (“GSK”), on charges of stealing...more

Baseball Executive Caught Stealing, Pleads Guilty To Violation Of Computer Fraud And Abuse Act

A scandal in America's Pastime has culminated with a baseball executive, Christopher Correa, pleading guilty on January 8, 2016 to violating the Computer Fraud and Abuse Act ("CFAA"), 18 U.S.C. § 1030, et seq. The guilty plea...more

Stealing Bases Okay; Stealing Data Not So Much

On January 8, 2016, Christopher Correa, the former director of Baseball Development for the St. Louis Cardinals, pleaded guilty to each count of a five-count criminal information, charging him with felony violations of...more

Update on recent cyber prosecutions/stings

The feds keep chipping away at those thieves and hackers and we are pleased to showcase the recent results of their hard work. Computer Hacking and Sexual Extortion - On December 9, 2015, the U.S. Attorney’s Office...more

The “Cannibal Cop” and Protection of Computerized Data

In an unusual criminal case, the Second Circuit Court of Appeals recently weighed in on an important question at the intersection of employment law and data security. The decision will likely have implications wherever...more

Nosal Update: Ninth Circuit Hears Oral Arguments on Password Sharing and Scope of Computer Fraud and Abuse Act

On 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...more

Motion to Quash Service Is Not a Collateral Order and Therefore Not Appealable - United States v. Sinovel Wind Grp. Co.

The U.S. Court of Appeals for the Seventh Circuit concluded that the district court’s denial of defendant Sinovel’s motion to quash service of process is not an appealable order under the collateral order doctrine. The Court...more

New York v. Aleynikov: New York State’s Penal Code (Like Federal Criminal Law) Does Not Cover Electronic Reproduction of Source...

In 2009, Sergey Aleynikov was a computer programmer employed by Goldman Sachs to write high-frequency trading code. He accepted an offer to join a new Chicago-based company, Teza Technologies. Before he left Goldman Sachs,...more

Landmark Case for Abuse of Personal Data

In the September 9th landmark decision, the Hong Kong Magistrates' Court convicted Hong Kong Broadband Network ("HKBN") of a criminal offence for failing to comply with the direct marketing provisions of the Personal Data...more

500,000 Lines of Source Code: The New “Intangible Property”

Sergey Aleynikov’s six-year trade secret odyssey through all possible configurations of litigation, civil and criminal, federal and state, may at long last have come to an end after the New York Supreme Court recently...more

Another Aleynikov Trade Secrets Case Ends with Narrower Statute

In 2009, Sergey Aleynikov was a computer programmer employed by Goldman Sachs to write high-frequency trading code. He accepted an offer to join a new Chicago-based company, Teza Technologies. Before he left Goldman Sachs,...more

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