Today’s new story is a classic case of data theft wherein an employee on his last working day stole code and transferred it to his new employer! Does it not sound like the last story we covered about SunPower Vs SolarCity? What is it with employees who think they can get away by stealing data from their employer’s office? Are they trying to get even in some way?
Well, let us see what made the judges overturn Sergey Aleynikov’s data theft conviction!
It all started in June 2009
On his last day at work, Aleynikov stole trade secrets from his employer, Goldman Sachs. Apparently he sent hundreds of thousands of lines of source code for Goldman’s high frequency trading system to a server in Germany, in order to build a HFT system for his new employer, Teza Technologies. Aleynikov also sent copies of these files to his home computer. He was found guilty of data theft and was sentenced to eight years in prison. He was lucky enough to be released last week after a panel of judges at the U.S. Court of Appeals reversed his conviction. Why was the conviction overturned is a question yet to be answered by the court.
The case is U.S. v. Aleynikov, 2nd U.S. Circuit Court of Appeals, No. 11-1126. The lower court case was U.S. v. Aleynikov, U.S. District Court, Southern District of New York, No. 10-00096.
Kevin Marino, Aleynikov’s lawyer’s argument
According to Kevin Marino the only code taken by his client was open source was orginally written by him. Marino further added that Aleynikov only intended to use the code as a ‘cheat sheet’. “There is no trade secret,” Marino said in court. “He took it to make his new job easier; he never intended to harm Goldman.”
Sergey Aleynikov’s comes out of prison
“Justice occasionally works,” was what the Russian-born programmer, Sergey Aleynikov, had to say.
According to him he “just jumped all over the place” at 6 a.m when he read an email from his lawyer informing him that the 2nd U.S. Circuit Court of Appeals in Manhattan had reversed his conviction. The words were, he said, “‘we won!’”
“This is such big news to me that I don’t have time to think about what will happen tomorrow,” said Aleynikov, dressed in a gray sweat suit and white sneakers. “Today, it’s a victory.”
What this news means for the intellectual property world?
The court’s reversal of Aleynikov’s conviction is a major setback for organizations who are fighting to curb intellectual property crime that includes computer code.
“The government wanted to send a very strong message about online economic espionage,” said Joel Reidenberg, a professor at Fordham University School of Law and director of the Fordham Center on Law and Information Policy.
“This is a fast-growing crime, not just from theft of trade secrets but also the hacking into computer systems of American companies,” he said. “It poses increasingly significant risks to the U.S. economy.”
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