David Nosal 's Business Strategy Essay

1058 Words Nov 29th, 2015 null Page
FACTS: David Nosal was a self-employed entrepreneur who opened a business mimicking his former employer Korn/Ferry’s business strategy. Korn/ Ferry operated an executive search firm, which employed several workers, who were given access to the company computer systems with the use of log in credentials. This granted employees access to critical business information, such as names and contact information for clients and others. Nosal, now a direct competitor of Korn/Ferry, asked some of Korn/Ferry employees to use their computer privileges, to access and obtain pertinent information, then supply the information to him in order to gain a competitive edge. Further, Korn/Ferry had a previously established policy in place, which prevented employees from disclosing confidential information.
ISSUE: The 9th Circuit Court would need to determine what the original intent of 18 U.S.C. 1030(a)(4), which was the primary law being brought forth by the federal government to prosecute Nosal, by the aiding of Korn/Ferry employees to use their authorized access to obtain information with the intent to defraud.”(United States v. Nosal, 642 F.3d 781 (9th Cir. 2011). Additionally, the courts would need to decipher the interrupted meaning of “exceeds authorized access” as it would apply to a privately owned business and not to a government entity. This would include computer privileges granted to employees by their employer and the misuse thereafter.
RULE: The court ruled in favor of Nosal,…

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