Federal law doesn’t cover misuse of trade secrets — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Federal law doesn’t cover misuse of trade secrets

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in Employment Law,Human Resources

The federal Computer Fraud and Abuse Act (CFAA) doesn’t grant employers any legal recourse if an employee misuses information obtained from company computers, according to a recent federal court ruling.

The case involved a company that sued three ex-employees for misusing proprietary data. The court ruled that only information obtained by “intentionally accessing the computer without authorization” violated the law. Since the three had authorization to access the in­­for­­mation at the time, they did not violate the CFAA.

Advice: Protect your intellectual property by carefully crafting a noncompete agreement that addresses what employees may and may not do with proprietary information after they leave.

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