Employers in Fifth Circuit Have Another Weapon to Stop Unauthorized Access of Proprietary Information by Employees, But Should be Careful in Exercising Damage Control

On November 22, 2006, the Fifth Circuit Court of Appeals decided Fiber
Systems International, Inc. v. Roehrs, ruling that the
Computer Fraud and Abuse Act (“CFAA”) allows an employer to
bring a civil action against an employee for downloading and copying
confidential or proprietary information from its computer system if it
spends more than $5,000 in any year to recover the data. This case is the
first reported decision by the Fifth Circuit on this issue and has armed
employers with a potential weapon in fighting unauthorized access of
proprietary information and theft of trade secrets by their employees.

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