In a recent case, the United States District Court for the District of Massachusetts issued the latest opinion regarding whether former employees violated the Computer Fraud and Abuse Act (“CFAA” or the “Act”) before they joined a competitor by downloading electronic information without authorized access. The CFAA, 18 U.S.C. §1030, makes it unlawful to take information from a protected computer of an employer by unlawful means.

In Advanced Micro Devices, Inc. v. Robert Feldstein, et al., USDC (D.Mass.), Civil Action No. 13-40007-TSH, decided on June 10, 2013, the Court adopted the “narrow view” in interpreting the CFAA, ruling that the former employees had not violated the Act where the employees had downloaded confidential information “with authorization” to do so. Judge Hillman, writing for the Court, rejected the alternative “broad view” which states that even though the former employees had authorization to access the information, the former employees nevertheless violate the CFAA when they “exceed their authorization.” The Court said that “[p]roponents of the narrower interpretation suggest that Congress’s intent in passing the CFAA was to address computer hacking activities and not to supplement state misappropriation of trade secrets laws.”

In this case, four former employees worked for Advanced Micro Devices, Inc. (“AMD”), a microprocessor manufacturer. All had authorization from AMD to access confidential technical and business strategy information during their employment. They all left AMD to work for a competitor. AMD sued the former employees claiming that they had copied proprietary data from AMD’s computers before they left the company.

Different courts have taken different interpretations of the CFAA regarding these alternative views. Compare, for example, United States v. Nosal, 676 F.3d 854 (9th Cir. 2012) with United States v. Rodriquez, 628 F.3d 1258 (11th Cir. 2010).

Judge Hillman also held that, at the time of his ruling, the First Circuit had not clearly articulated its position. See EF Cultural Travel BV v. Explorica, Inc., 274 F.3d 577 (1st Cir. 2001).

As the courts deal with these very interesting theories, we will continue to write about the latest developments by the courts in interpreting the CFAA.

 

Back to Trade Secrets & Employee Mobility Blog

Search This Blog

Blog Editors

Related Services

Topics

Archives

Jump to Page

Subscribe

Sign up to receive an email notification when new Trade Secrets & Employee Mobility posts are published:

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.