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Non-Compete and Trade Secrets Blog

Posts from May 2011.

Numerous courts have weighed in recently on whether the Computer Fraud & Abuse Act applies in the context of a faithless employee. But few cases delve into the details of what qualifies as a “loss” under the statute. A recent federal court took on this issue and offered its view on whether an actual payment of money is required to establish a “loss.” The Court also addressed whether bartered services, lost employee time, and attorneys’ fees may qualify. The result is a decision that will make it easier to assert such claims if it is followed by other courts.

A U.S. District Court recently held that an employee's excessive use of the internet at work does not constitute a violation of the Computer Fraud & Abuse Act.

In a decision more in line with decisions from other circuits, the U.S. Court of Appeals for the 9th Circuit recently decided a Computer Fraud & Abuse Act ("CFAA") case which offers significant assistance to employers' efforts to protect their trade secrets and confidential information from theft or misuse by employees, so long as employers do it correctly.

On May 11, 2011, Governor Deal signed House Bill 30, Georgia’s Restrictive Covenant Act. The upshot of the signing of the legislation is that a new day has dawned in Georgia for restrictive covenants signed on or after May 11, 2011.

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