![]() ![]() ![]() (“RAPCO”) accused of stealing and offering to sell computer data from RAPCO. Lange was a former employee of Replacement Aircraft Parts Co. Lange, Matthew Lange was sentenced to thirty months in prison for violating Section 1832 of the Act. The parties settled the dispute prior to trial.Īn outgoing employee can download or copy proprietary information and sell that information to a competitor or engage in unfair competition. River City alleged that the defendants used the data obtained by the cyberattack to attack and damage River City’s reputation via media and blog postings. Further, the threat actor accessed River City’s: (1) company email accounts (2) account (3) accounts for affiliate networks (4) PayPal accounts and (5) its email service provider accounts. The threat actor destroyed data that mapped River City’s network, thereby hamstringing River City’s ability to detect and stop additional cyberattacks. River City alleged that a then-unknown threat actor connected to one of its servers that was used to monitor River City’s network for potential intruders. In 2017, River City Media, LLC, a Wyoming corporation that engages in internet-based marketing, alleged, among other things, that Kromtech Alliance Corporation, CXO Media Inc., International Data Group Inc., and related individuals, systematically infiltrated their data network, illegally gained access to their databases without authorization, and then copied, modified, and damaged its confidential, sensitive, and propriety information, in violation of Section 1832 of the Act. malware, ransomware, and denial of service attacks) can be used to collect confidential company information, they can also be used to disrupt a company’s computer system(s) for commercial gain. A further discussion of the available remedies to affected entities will be examined in a subsequent blog post. The DTSA does not preempt existing state trade secrets laws, but provides companies another option for filing suits in federal court. New York and North Carolina are the only states that have not enacted some form of the UTSA. Virgin Islands have enacted some form of the Uniform Trade Secrets Act (“UTSA”). Currently, 48 states and the District of Columbia, Puerto Rico and the U.S. including expenses for research and design and other costs of reproducing the trade secret.” Section 1832 requires that the products be “produced for” or “placed in” interstate or foreign commerce.īefore the passage of the Defend Trade Secrets Act of 2016 (“DTSA”), which amends the Act to include a federal civil cause of action for the misappropriation of trade secrets, companies relied on state civil laws for the misappropriation of trade secrets, or an independent federal cause of action to seek redress for the misappropriation of trade secrets. For organizations, the fine may be “not more than the greater of $5,000,000 or 3 times the value of the stolen trade secret. § 1832 can result in a prison sentence of up to 10 years or a monetary penalty, or both. For individuals, convictions in violation of 18 U.S.C. Section 1832 of the Economic Espionage Act of 1996 (the “Act”) criminalizes the theft of trade secrets “intended for use in interstate or foreign commerce, to the economic benefit of anyone other than the owner.” The trade secret owner is required to take “reasonable measures” to keep the information secret. As we discussed in a previous article, the ways in which industrial espionage can affect a company are numerous and include theft of trade secrets and disruption to operation. ![]() ![]() Industrial espionage refers to various activities performed to gain an unfair competitive advantage, rather than for national security purposes. By Benjamin Glassman, Colin Jennings and Woli Urbe on Posted in cyberattack, cybersecurity, Data Protection & Privacy, Intellectual Property, Uncategorized, United States ![]()
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