Economic Espionage Act (EEA)

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Sergey Aleynikov, the ex-Goldman Sachs computer programmer convicted of stealing high-frequency trading source code, has once again succeeded in reversing a criminal conviction related to his infamous code-copying acts. Federal prosecutors had previously charged, tried, and won a conviction of Aleynikov for violations of the federal National Stolen Property Act (NSPA) (18 USC § 2314) and Economic Espionage Act (18 USC § 1832). However, in 2012, the Second Circuit reversed both convictions. See United States v. Aleynikov, 676 F.3d 71 (2d Cir. 2012). That in turn prompted Congress to amend the Economic Espionage Act to close the loophole that allowed Aleynikov to walk.
Continue Reading Twice Convicted, Twice Reversed: Another Aleynikov Code Theft Conviction Overturned

Sergey Aleynikov, the former Goldman Sachs computer programmer accused of stealing computer source code powering the bank’s high-frequency trading platform, has been convicted by a New York jury of a single count of Unlawful Use of Secret Scientific Material.  The jury hung on a second Unlawful Use count and acquitted Aleynikov on a third count of Unlawful Duplication of Computer-Related Material.

This is not the first time Aleynikov has been criminally convicted for this same conduct:  In 2010, Aleynikov was charged, tried and convicted in federal court of violating the federal National Stolen Property Act (“NSPA”) (18 USC § 2314) and Economic Espionage Act (“EEA”) (18 USC § 1832).  However, in 2012, the Second Circuit reversed both convictions.Continue Reading Split Verdict – Second Criminal Trial of Infamous Goldman Source-Code Thief Concludes

On April 29, 2014, Senators Hatch & Coons introduced the Defend Trade Secrets Act of 2014, the third bill in as many years to propose a federal civil cause of action for trade secret misappropriation by amending the Economic Espionage Act. This latest attempt, which closely resembles the 2012 bill (also co-sponsored by Senator Coons)…

In United States v. Agrawal, the Second Circuit upheld a jury’s 2010 conviction of a former Société Générale trader under the Economic Espionage Act (EEA) and the National Stolen Property Act (NSPA). The three-judge panel unanimously affirmed the NSPA conviction, but split on whether the EEA conviction could stand in light of the Second…

Congress continues to show interest in refining federal trade secret law to meet the challenges of the internet age. Two bills potentially impacting a company’s ability to protect its trade secrets have been introduced. The first, “Aaron’s Law Act of 2013,” seeks to resolve the Circuit split under the Computer Fraud and Abuse Act (CFAA)…

On December 18, 2012, Congress approved an amendment to the Economic Espionage Act (EEA) to cover service-related trade secrets and relax the interstate-commerce jurisdictional requirement. The amendment just approved by Congress expands liability in two ways. First, the amendment criminalizes the theft of service-related trade secrets, regardless of whether they are related to a physical…

For the first time, the U.S. Department of Justice has indicted a Chinese state-owned enterprise for violating the Economic Espionage Act, in connection with efforts to acquire manufacturing technology for titanium dioxide, a white pigment commonly used in paint, plastics and paper. The indictment specifically alleges that “the People’s Republic of China (PRC) publicly identified…