United States v. Nosal
642 F.3d 781
9th Cir.2011Background
- Nosal was a Korn/Ferry executive who left to start a competing business and was alleged to have aided co-conspirators in obtaining Korn/Ferry’s proprietary data via the Searcher database.
- Korn/Ferry protected its database with access controls, user IDs, passwords, confidentiality agreements, and notices warning of restricted access and potential criminal penalties.
- Counts 2–9 alleged that Nosal and co-conspirators violated § 1030(a)(4) by using authorized access to obtain information for fraudulent purposes, contrary to employer restrictions.
- The district court rejected Nosal’s argument that Brekka required dismissal, instead holding that an authorized user could still violate § 1030(a)(4) through fraudulent use.
- After the Ninth Circuit decided LVRC Holdings LLC v. Brekka, Nosal moved to reconsider, and the district court dismissed Counts 2 and 4–7, adopting Brekka’s interpretation that ‘exceeds authorized access’ requires access to information the employee is not entitled to obtain under any circumstances.
- The government appealed, and the Ninth Circuit ultimately held that an employee exceeds authorized access when they violate employer-imposed use restrictions, and remanded to reinstate Counts 2 and 4–7.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does CFAA § 1030(a)(4) cover a violation by an employee who exceeds authorization by using information in contravention of employer use restrictions? | Nosal argues Brekka controls and excludes use-restriction violations from § 1030(a)(4). | The government contends that exceeding authorized access includes violations of employer use restrictions when used to fraudulently obtain information. | Yes; employer restrictions define authorization and violation of those restrictions violates § 1030(a)(4). |
| Should Brekka govern the interpretation of 'without authorization' or 'exceeds authorized access' for this case? | Nosal relies on Brekka to limit 'exceeds authorized access' to those with no authorization at all. | The government argues Brekka is distinguishable and its reasoning supports defining excess authorization by employer restrictions. | No; Brekka informs, but the court adopts the broader reading that employer restrictions control 'exceeds authorized access.' |
| Are the district court’s concerns about breadth and potential criminalization of ordinary employee conduct addressed? | Nosal warns the approach could criminalize routine personal use of work computers. | The majority emphasizes necessary intent and causation requirements to avoid over-criminalization. | The statute’s intent and causation requirements prevent overreach; the conduct here satisfies § 1030(a)(4). |
Key Cases Cited
- LVRC Holdings LLC v. Brekka, 581 F.3d 1127 (9th Cir.2009) (employer determines authorization; 'exceeds' means violating access restrictions)
- United States v. John, 597 F.3d 263 (5th Cir.2010) (exceeds authorized access when user knows restrictions and commits fraud)
- United States v. Rodriguez, 628 F.3d 1258 (11th Cir.2010) (distinguishes Brekka; unauthorized personal use tied to not authorized for nonbusiness purpose)
- EF Cultural Travel BV v. Explorica, Inc., 274 F.3d 577 (1st Cir.2001) (employee duty of confidentiality as indicator of access limitations)
- International Airport Centers, LLC v. Citrin, 440 F.3d 418 (7th Cir.2006) (Citrin-based approach to loyalty duties and access termination)
- Perrin v. United States, 444 U.S. 37 (Supreme Court 1979) (statutory interpretation principle about giving effect to all provisions)
