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Third Circuit Narrows Scope of CFAA and DTSA Claims Against Former Employees
['Peter J. Toren']
IPWatchdog.com | Patents & Intellectual Property Law
The Act prohibits unauthorized access or access that exceeds authorized access to computers.
The CFAA defines “exceeds authorized access” as accessing “a computer with authorization and [using] such access to obtain .
The court determined that whether the passwords qualified as trade secrets “hinged” on the independent economic value element.
While the use of non-disclosure agreements (NDAs) alone may not be sufficient in all cases to meet the reasonable efforts requirement to qualify as a trade secret, it is often a critical feature of the trade secret owner’s efforts.
The decision counsels against reflexively pursuing CFAA and DTSA claims without a careful analysis of whether the conduct and information at issue truly fall within the scope of these statutes.