In a landmark decision, the U.S. Supreme Court has ruled that the Computer Fraud and Abuse Act (CFAA), 18 U.S.C. § 1030 et seq., does not prohibit improper use of computer information to which an individual has authorized access. Rather, the law prohibits obtaining information from areas of a computer, such as files, folders,
CFAA
U.S. Supreme Court Will Finally Weigh in on Scope of CFAA
The United States Supreme Court recently granted a petition for certiorari in Van Buren v. United States addressing the issue of whether it is a violation of the Computer Fraud and Abuse Act (“CFAA”) when an individual who is authorized to access information on a computer, accesses the same information for an improper purpose. The…
District Court Finds no CFAA Violation where Employee Shares Confidential Company Information with Competitor
A district court in Tennessee recently concluded in Wachter Inc. v. Cabling Innovations LLC that two former employees who allegedly shared confidential company information found on the company’s computer system with a competitor did not violate the Computer Fraud and Abuse Act (CFAA). The CFAA expressly prohibits “intentionally accessing a computer without authorization or exceeding…
SCOTUS Will Not Review CFAA Password Sharing Case
The United State Supreme Court recently denied certiorari in Nosal v. United States, 16-1344, declining to weigh in on the scope of unauthorized access under the Computer Fraud and Abuse Act (“CFAA”). The Ninth Circuit held in Nosal that David Nosal violated the CFAA by using his past assistant’s password to access his former…
Sharing of Passwords Under Certain Circumstances Unlawful
Many companies have experienced the departure of an employee and the elimination of that former employees access to the company’s computers and networks. In the recent case of USA v. Nosal, D.C. No. 3:08-cr-00237-EMC-1 (July 5, 2016), the Ninth Circuit Court of Appeals was presented with the following facts: Nosal, a former employee of…
North Carolina Employees are not “Authorized” to Divert Employer Data
As the year draws to a close, employer claims under the Computer Fraud and Abuse Act (“CFAA”) against departing employees for stealing or otherwise diverting employer information without authorization to do so are dying slow deaths in many federal courts across the nation. As noted over on the Non-Compete and Trade Secrets Report, the…
Computer Fraud and Abuse Act No Help to Employer Suing Employee Who Took Proprietary Business Info
An employer had no cause of action under the Computer Fraud and Abuse Act (“CFAA”) against an employee who accessed its computer systems to misappropriate confidential and proprietary business information to start a competing business, the U.S. District Court for the Southern District of Ohio has held. Cranel Inc. v. Pro Image Consultants Group, LLC,…
Computer Previously, But Not Currently, Used In Interstate Commerce Is Not A “Protected Computer” Under The Computer Fraud And Abuse Act
In order to be a “protected computer” within the meaning of the federal Computer Fraud and Abuse Act (the “CFAA”), the computer must be used in interstate commerce at the time of the allegedly unauthorized access of the computer, the U.S. District Court for the District of Massachusetts held. Pine Env. Servs., LLC v. Charlene …
Lawful Access and Improper Use of Computer Data Does Not Violate the CFAA
The Fourth Circuit recently held that the Consumer Fraud and Abuse Act’s (“CFAA”) prohibitions against unauthorized access or access in excess of authorization were not violated by an employee when the employee used his valid access to employer’s computer network to download confidential business information that he later used while working for a competitor.
Prior …
The Consumer Fraud and Abuse Act — Does It Apply To An Employee’s Personal Computer?
Many employers often question what recourse is available when faced with the destruction or alteration of company data by former employees. This question is made more complicated when employees use their own personal computer for work. In addressing this issue, the U.S. District Court for the Northern District of Illinois, Eastern division held that an employee’s …