On May 22, the Eleventh Circuit clarified trade secrets misappropriation analysis under the Florida Uniform Trade Secrets Act (“FUTSA”), strengthening the trade secret protection offered by the statute. The decision vacated a magistrate judge’s finding that the defendants had not misappropriated trade secretes following a bench trial in the Compulife Software Inc. v. Newman et al. matter (No. 18-12004). The court found error in the magistrate’s failure to “consider the several alternative varieties of misappropriation” contemplated by FUTSA and the magistrate’s reasoning that the public availability of life insurance quotes on the plaintiff’s website “automatically precluded a finding that scraping those quotes constituted misappropriation.”

“At its essence, it’s a case about high-tech corporate espionage,” Circuit Judge Kevin C. Newsom’s opinion begins. The plaintiff, Compulife Software Inc. (“Compulife”), sells access to its online database of insurance premium information, which synthesizes publicly available insurers’ rate tables using Compulife’s proprietary method and formula. Compulife also provides life insurance quotes sourced from its online database. The database itself is valuable because it consistently updates with current information about life insurers’ rate tables and allows for direct comparison across dozens of providers. Compulife licenses access to the database to its customers—primarily insurance agents who in turn seek to provide reliable insurance rate estimates to policyholders. In direct competition with Compulife, the defendants likewise generate life insurance quotes through their various websites.


Continue Reading Eleventh Circuit Solidifies Protection of Trade Secrets Threatened By “High-Tech Corporate Espionage” Under Florida’s Trade Secret Law

On April 20, 2020, the Supreme Court granted cert in Van Buren v. United States, to resolve an important circuit split over the meaning of “authorized access” under the Computer Fraud and Abuse Act (CFAA). This is the Court’s first foray into analyzing the precise contours of CFAA liability. Van Buren may have far-reaching implications for any individual or business operating in the digital domain, as the scope of civil and criminal liability under the CFAA can impact just about any sort of relationship involving access to computer systems, whether it be employer-employee relationships or third-party relationships.

The CFAA was enacted in 1986 as a first-of-its-kind statute designed to combat computer-related crimes, and has become an important and powerful tool for not only for the government but any business seeking to protect its intellectual property and computer systems. The CFAA imposes criminal liability on any person who “intentionally accesses a computer without authorization” or “exceeds authorized access” and, in doing so, obtains information from any protected computer. The CFAA also provides a civil cause of action for similar conduct. See 18 U.S.C. §§ 1030(a)(2), 1030(a)(4), 1030(a)(5)(B)-(C).
Continue Reading “Authorized Access”: The Supreme Court’s First Foray Into The Computer Fraud and Abuse Act

The COVID-19 pandemic presents unique and unprecedented challenges to the ongoing need to protect confidential information and trade secrets. With entire workforces working remotely, employees are increasingly relying on video services to remain connected, but the increasing prevalence of video services does not come without problems. For example, Zoom Video Communications Inc. (“Zoom”) is a videoconferencing app which allows multiple people to be in the same “virtual room” at once and which has seen an uptick of users since the COVID-19 crisis. While Zoom permits employees to remain in contact, it and other video services also permit employees to use and share confidential information and trade secrets from their home. Now more than ever companies need to be extra vigilant in what platforms they allow their employees to use and how their employees use the platforms.
Continue Reading Is the Platform You’re Using a Potential Threat to Protecting Your Trade Secret?

Source: Claudia Künkel (Flickr)

A lawsuit seeking $1 billion in damages based on allegations that the rideshare company was founded based on stolen trade secrets can now move forward after a jury in San Francisco Superior Court decided last month that the plaintiff’s claim was timely filed. The complaint alleges that former Uber CEO Travis Kalanick and others misappropriated Plaintiff Kevin Halpern’s idea for a startup called Celluride Wireless Inc. – a peer-to-peer service enabling passengers to summon drivers and track them with their cell phones. Halpern claims that he disclosed information about his idea to Kalanick under the promise of secrecy around 2006. The Uber app was launched four years later.

In defense, Kalanick claims that Uber Chairman Garrett Camp, also an individual defendant in the lawsuit, came up with the idea that later became Uber when the two were in Paris. According to Kalanick and Camp, Camp’s initial concept was for a limo timeshare service.
Continue Reading Billion Dollar Trade Secret Misappropriation Lawsuit Against Uber to Move Forward

Crowell & Moring has released its Regulatory Forecast 2020: What Corporate Counsel Need to Know for the Coming Year, a report that explores the impact of regulatory changes on the technology industry and other sectors, and provides insight into the trends that in-house counsel can expect to face in the coming year.

For 2020,

On January 25, 2019, the Illinois Supreme Court in Rosenbach v. Six Flags Entertainment Corp. ruled unanimously that plaintiffs do not need to allege “some actual injury or adverse effect” in order to challenge alleged violations of Illinois’ Biometric Information Privacy Act (BIPA). In so doing, the Supreme Court expressly held that the loss of