trade secret

Copying Customer List Does Not Necessarily Imply "Damages" Under Computer Fraud and Abuse Act

Sam's Wines & Liquors, Inc. sued Sean Hartig, a former employee, and Plinio Group, LLC, Hartig’s new employer, claiming that Hartig stole Sam’s Wines’ confidential customer list from its computers prior to Hartig’s resignation. The list was password-protected and Hartig had signed an acknowledgement declaring that the information would not be disclosed. Hartig took the confidential customer list to Plinio and used it to solicit customers.
The court decided that the misappropriation of trade secrets through the use of a computer does not give rise to a claim based on CFAA, if "damages" was not pleaded in the complaint. Damages under the CFAA is defined as "…any impairment to the integrity or availability of data, a program, a system, or information."

Published in Tuesday, November 11, 2008, Volume 6, No. 2
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