If an employee quit his job and took confidential information to one of your company’s competitors, would you be able to do anything about it?
Read the facts of this real-life case and decide: Who won?
The facts:
Two employees resigned from an employer to accept jobs at one of the company’s competitors. Before they left, they took their company-issued laptops home and copied a bunch of confidential data, including customer lists and specifications for products being developed. They brought that info to their new employer.
The employer:
The company sued the former employees and the new employer for violating the Computer Fraud and Abuse Act (CFAA). Estimated losses: about $5,000 in revenue because of the theft.
Who won the case?
Answer: The employees.
Why: The court ruled the CFAA doesn’t protect against monetary damage caused by the theft of data — only actual damage to computer files and the systems they’re stored on. Since the employees left the info intact after they copied it, the company had no standing to sue under that law.
Fixing damage cause by departing employees can be extremely difficult. Experts recommend keeping a close eye on employees who resign or are terminated and remove those employees’ access quickly to avoid theft in the first place.
Cite: Andritz, Inc. v. Southern Maintenance Contractor, LLC