ADVANTAGES

Like most companies, Korn/Ferry’s corporate policy prohibited its employees from sharing passwords. This same restriction is also found in the and Terms of Service of many online services—everything from banks to social network. And things were looking good on this in the Ninth Circuit. As noted above, in the earlier version of this same case the Ninth Circuit, sitting en banc, ruled that violations of use restrictions by current employees themselves cannot give rise to CFAA liability. Regardless, a jury then convicted Nosal under three CFAA counts involving password sharing, along with trade secret theft under the Economic Espionage Act, because the access was done not by a current employee directly but by someone else using her username and password.

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