Effective Data-Use Policies Can Have “Far-Reaching” Benefits in Cracking Down on Employee Cyber Theft

more+
less-

In a decision that could make it easier for U.S. companies to enforce claims against employees who commit cyber theft from remote locations, including from beyond U.S. borders, the Second Circuit breathed life into a Connecticut lawsuit accusing a former Canada-based employee of using her home computer to steal trade secrets from her employer’s Connecticut server.

Plaintiff, a Connecticut-based chemical company, employed defendant as an account representative in Canada. When the employee became aware of her impending termination, she downloaded and forwarded to her personal email account certain data files that the company alleged were confidential and proprietary. The company then sued the employee “alleging unauthorized access and misuse of a computer system and misappropriation of trade secrets.” The terminated employee moved to dismiss the complaint for lack of personal jurisdiction. Although the district court held that there was no personal jurisdiction over the Canadian employee because she had not used a computer in Connecticut, the Court of Appeals disagreed. It held that jurisdiction over the defendant employee (in a state she had never visited) was established by her purposeful remote access to the Connecticut servers in retrieving and emailing confidential files.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Cross-Border, Cybersecurity, Cybertheft, Data Use Policies, Email, Employee Handbooks, Misappropriation, Personal Jurisdiction, Trade Secrets, Unauthorized Access

Published In: Civil Procedure Updates, Intellectual Property Updates, International Trade Updates, Labor & Employment Updates, Science, Computers & Technology Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Cohen & Gresser LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »