A Threat to or Protection of Agency Relationships? The Impact of the Computer Fraud and Abuse Act on Businesses

4 Am. U. Bus. L. Rev. 531, (2015)

23 Pages Posted: 22 Nov 2015

Multiple version iconThere are 2 versions of this paper

Date Written: June 30, 2015

Abstract

The Computer Fraud and Abuse Act of 1986 ("CFAA") criminalizes unauthorized access to information stored on computers and allows for those who are damaged by such unauthorized access to bring a civil suit against the abuser. Currently, the Seventh and Ninth Circuits have split regarding the proper interpretations of the terms "authorization" and "exceeds authorized access" on employer-provided computer use. The Seventh Circuit adopted a broad reading of the statute in International Airport Centers, LLC v. Citrin, holding that when the employee decided to quit his job in violation of his employment contract, he violated his duty of loyalty and therefore no longer had authorization to use his work laptop. In contrast, the Ninth Circuit developed a narrow reading of the statute in United States v. Nosal, finding that the employee misused confidential information when he took, downloaded, and copied a confidential source list of information and data from the search firm's computer system. However, since the employee did not access the information himself, he could not be held liable under the CFAA. This Comment first analyzes the background and history of the CFAA and cases that have contributed to the circuit-split. Next, this Comment addresses a hypothetical scenario of an employee who searches through his employer's confidential files and trade secrets to build a competing business. Finally, it recommends the Ninth Circuit interpretation be adopted either by Congress or the United States Supreme Court.

Keywords: Computer Fraud and Abuse Act, computer, fraud, abuse, circuit-split, agency, agency law, seventh circuit, 7th circuit, ninth circuit, 9th circuit, broad employer protection, employer, protection, narrow employee protection, employee, business, authorization, exceeds authorized access

JEL Classification: K42, K10, K19, K14, K20, K29, K30, K39, K40, K49, K31, L86, M51, M54, K2, F1

Suggested Citation

Milanowski, Jessica, A Threat to or Protection of Agency Relationships? The Impact of the Computer Fraud and Abuse Act on Businesses (June 30, 2015). 4 Am. U. Bus. L. Rev. 531, (2015), Available at SSRN: https://ssrn.com/abstract=2693836

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