Court Rules That Source Code Theft Was Not a Crime

After a recent appeals court ruling, criminal prosecution of corporate espionage may change. Learn more in the following article.

2012-05-12

May 12, 2012 (Press-News.org) Corporate espionage may be more difficult to prosecute criminally after a recent appeals court ruling. The U.S. Court of Appeals for the Second Circuit overturned the conviction of former Goldman Sachs programmer Sergey Aleynikov who was accused of stealing trade secrets and essentially committing espionage against his former employer. Aleynikov allegedly uploaded Goldman's source code to its high-frequency trading system to a remote server in Germany before downloading it to his personal computer and flash drive in Chicago, all before leaving to take a new position with a competitor, Tezza Technologies. Goldman took action and contacted the FBI, who arrested him.

Aleynikov was charged with (and convicted of) violating the National Stolen Property Act (NSPA) and the Economic Espionage Act (EEA). He was sentenced to eight years in prison.

However, the Second Circuit overturned his conviction, ruling that his actions did not violate the NSPA, since he did not assume physical control over the code or deprive Goldman of its use. Applying the plain language of the statute, the court ruled that Aleynikov took "purely intangible property embodied in an intangible format" and did not transfer the code with the knowledge that it was stolen. As such, he did not "steal" the code, as defined under the law.

The three judge panel also found that Aleynikov did not violate the EEA since he did not (or intend to) profit from selling or licensing the code. Writing for the unanimous panel, Chief Judge Dennis Jacobs explained, "Because the HFT system was not designed to enter or pass in commerce, or to make something that does, Aleynikov's theft of source code relating to that system was not an offense under the EEA."

Nevertheless, the court noted that Aleynikov should have known that his actions violated his confidentiality agreement with Goldman Sachs and could have led to civil sanctions, but they ultimately did not constitute a crime.

Article provided by Erik S. Syverson
Visit us at www.syversonlaw.com

ELSE PRESS RELEASES FROM THIS DATE:

Frequently Asked Questions: Workers' Compensation

2012-05-12

If you are injured while working, you may be able to bring a workers' compensation claim. Workers' compensation replaces your wages and pays for medical expenses related to the workplace accident. The following are some common questions that clients ask Minnesota workers' compensation attorneys. This is general information that should not be construed as legal advice. What should I do when I am injured at work? First, seek medical attention. Then, report your injury to your employer. Give your employer as much information as possible about your injuries, and where ...

Feds Bust Central Florida Marijuana Trafficking Ring

2012-05-12

Largely because of its geography, Florida has long been a favored location of international drug trafficking organizations. The state gained significant national attention in the 1980s after it became an outpost for cocaine distribution rings based in Central and South America. When those groups waned, Mexican cartels stepped into the forefront. In recent years, the cartels have set up drug trafficking networks throughout the state. Earlier this year, state and federal investigators captured members a Mexican marijuana distribution organization that was operating ...

Student Loan Debt: Emerging Problems for All Age Groups

2012-05-12

Many debtors understand that a bankruptcy can discharge unsecured debt such as credit cards and medical bills. However, another common form of unsecured debt, educational loans are generally non-dischargeable when they file bankruptcy. Economists have begun to recognize a growing problem with the amount of student loan debt that Americans have undertaken, and a recent study (released as part of the Federal Reserve Bank's Quarterly Report on Household Debt and Credit) provides some surprising insights into the extent of these burdens. The study, based on data from Equifax ...

Regulations Against Cell Phone Use by Commercial Drivers

2012-05-12

The Department of Transportation has taken many steps to limit the distractions commercial drivers face while behind the wheel in an effort to increase the safety of the nation's roadways. As such, drivers of these vehicles, which would include 18-wheelers, are banned from both texting and using hand-held cell phones while driving. If a commercial truck driver is found to be texting or otherwise using a hand-held cell phone in violation of these regulations, new penalties will apply. Each offense could result in a $2,750 fine and drivers found in violation of the regulation ...

Total Knee Replacement and Deep Vein Thrombosis (DVT)

2012-05-12

One of the most serious complications of total knee replacement is the development of a deep vein thrombosis, or DVT -the presence of one or more blood clots that partially or completely block a vein. These DVTs can possibly result in a life-threatening pulmonary embolism. The possibility of a DVT following a total knee replacement exists for any patient. There are some factors that have been associated with an increased risk, including: - Age over 40 years - Estrogen use - Stroke - Nephrotic syndrome - Cancer - Prolonged immobility - Previous thromboembolism - ...

Attend Wingate University May Graduation Ceremony and Stay at Super 8 Monroe NC Hotel

2012-05-12

Super 8 Monroe NC Hotel offers convenient lodging to parents and guests attending Wingate University's spring 2012 Commencement Ceremony. The event will be held at 9:00am on Saturday, May 12 in the Academic Quadrangle. This year's keynote speaker is Robert Inman, novelist, writer, and former WBTV news anchor. "Conveniently located within minutes from the school, our hotel near Wingate University is pleased to welcome guests visiting the area for graduation weekend," explains Himanshu Patel, the property's General Manager. "A great lodging choice among ...

Trafalgar Introduces 3 New Itineraries to 2012/2013 Autumn, Winter & Spring Brochure

2012-05-12

Trafalgar (www.trafalgar.com), the ultimate insider of guided vacations, is pleased to announce the launch of their 2012/2013 Autumn, Winter & Spring Europe brochure, complete with three new itineraries to France, Italy and Morocco that offer unique local experiences and exceptional value. Trafalgar's collection of 33 incredible itineraries that visit 18 countries feature Trafalgar's Insider Experiences, including Hidden Treasures and Local Specialties with Europe's finest Travel Directors. These itineraries are perfect for travelers looking to experience the wonders ...

Tanco Bale Wrappers - 800-733-0275 in USA - See Our Video of the Tanco 1320 EH in Action!

2012-05-12

Tanco is recognized as the top choice for agricultural bale wrapping machines and bale shears for farmers and contractors around the world. And Hamilton Equipment is the exclusive US distributor of the full line of Tanco Autowrap products including Tanco Bale Wrappers, Bale Shears and Tanco parts. For wholegood sales in the United States, call Jan at Hamilton Equipment at 800-733-0275. Hamilton Equipment stocks the following units, and parts for, D70 Tanco Round Bale Stacker D80 Tanco Square Bale Stacker 170 Tanco Bale Shear (Less Brackets) 1080A Tanco Trailer ...

Gatwick Airport Welcomes Air China - Helping the UK Become Better Connected

2012-05-12

Gatwick Airport welcomed the arrival of Air China - the flag carrier for the People's Republic of China - providing more travel options to both businesses looking to explore opportunities in the world's second largest economy and for holiday makers attracted to cities with rich historical backgrounds. Air China has chosen to expand its London network, by providing a non-stop service from Gatwick to Beijing International Airport four times a week. The Airbus A330-200 aircraft will depart Gatwick at 1300 on Mondays, Wednesdays, Fridays, and Saturdays and arrive at Beijing ...

Black Hills Equestrian Property Features Ranch Property For Sale

2012-05-11

Nestled in the Elk Creek Valley of Western South Dakota, a large equine community is making news for being the first of its kind in the Black Hills. Created from the vision of two brothers, Kent and Brian Hagg, this unique property upholds an environmental aspect that allows for custom home building, relaxation and trail riding. "When we developed the idea for the Ranches at Creek Meadows, we envisioned the lifestyle horse owners dream of having. A sizeable lot with room to house your horse on the property, a place where you can build the home of your dreams and ...