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	<title>New York Business Litigation Attorney &#124; New York Breach of Contract Attorney &#187; computer fraud</title>
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		<title>New York Federal Court Limits Scope of Computer Fraud and Abuse Act</title>
		<link>http://nysmallbusinessattorney.com/new-york-federal-court-limits-scope-of-computer-fraud-and-abuse-act/</link>
		<comments>http://nysmallbusinessattorney.com/new-york-federal-court-limits-scope-of-computer-fraud-and-abuse-act/#comments</comments>
		<pubDate>Fri, 23 Oct 2009 15:21:19 +0000</pubDate>
		<dc:creator>Jonathan Cooper</dc:creator>
				<category><![CDATA[breach of fiduciary duty]]></category>
		<category><![CDATA[computer fraud]]></category>
		<category><![CDATA[employee theft]]></category>
		<category><![CDATA[business litigation]]></category>
		<category><![CDATA[commercial litigation]]></category>
		<category><![CDATA[computer fraud and abuse act]]></category>
		<category><![CDATA[jonathan cooper]]></category>
		<category><![CDATA[new york]]></category>

		<guid isPermaLink="false">http://nysmallbusinessattorney.com/?p=165</guid>
		<description><![CDATA[In a rare opinion that was handed down last week (and reported in today&#8217;s New York Law Journal), a New York Federal Court took the time to provide some detail into what actions constitute a violation of the Federal Computer Fraud and Abuse Act (&#8220;CFAA&#8221;). The statute, which carries both civil and criminal penalties, provides [...]]]></description>
			<content:encoded><![CDATA[<p>In a rare opinion that was handed down last week (and reported in <a href="http://www.law.com/jsp/nylj/PubArticleNY.jsp?id=1202434832030&amp;iThe_Dedalus_Foundation_v_Banachi">today&#8217;s New York Law Journal</a>), a New York Federal Court took the time to provide some detail into what actions constitute a violation of the Federal <a href="http://www.law.cornell.edu/uscode/18/1030.html">Computer Fraud and Abuse Act</a> (&#8220;CFAA&#8221;). The statute, which carries both civil and criminal penalties, provides that one may not  transmit  &#8220;a program, information, code, or command&#8221; that would irretrievably remove data or information from a &#8220;protected computer.&#8221; The full statute can be read at <a href="http://www.westlaw.com/find/default.wl?rs=CLB3.0&amp;vr=2.0&amp;cite=18+USCA+s1030" target="_top">18 U.S.C. §1030</a>. As a practical matter, this statute comes into play with respect to the prosecution of hackers, as well as disloyal employees who breach their fiduciary duty to their employers, and remove data from the computer system, either maliciously, or even  trying to cover the tracks of their inappropriate activities.</p>
<p>Interestingly, for purposes of imposing liability under the CFAA, the Court noted that simply hitting the delete button will not suffice; citing a Seventh Circuit case, <a href="http://www.westlaw.com/find/default.wl?rs=CLB3.0&amp;vr=2.0&amp;cite=440+F.3d+418" target="_top">Int&#8217;l Airport Ctrs., L.L.C. v. Citrin, 440 F.3d. 418 (7th Cir. 2006)</a>,  &#8220;merely pressing the delete key on a computer does not remove data but rather &#8216;removes the index entry and pointers to the data file so that the file appears no longer to be there.&#8221; <a href="http://www.westlaw.com/find/default.wl?rs=CLB3.0&amp;vr=2.0&amp;cite=440+F.3d+419" target="_top">Id.</a> &#8220;Such deleted files,&#8221; wrote the Court, &#8220;are easily recoverable.&#8221; <a href="http://www.westlaw.com/find/default.wl?rs=CLB3.0&amp;vr=2.0&amp;cite=440+F.3d+419" target="_top">Id.</a></p>
<p>The Court continued, &#8220;Even though pressing the delete key technically &#8216;transmits a command&#8217; to the computer,&#8221; it would render the statute (which, as stated above also carries criminal implications) too broad.  On the other hand, where, as in this case, the defendant allegedly used a secure-erasure program, such actions would fall within the ambit of the CFAA.
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		<title>&#8220;Big Brother&#8221; Amazon Sued For Breach of Contract, Computer &amp; Consumer Fraud and Invasion of Privacy</title>
		<link>http://nysmallbusinessattorney.com/big-brother-amazon-sued-for-breach-of-contract-computer-consumer-fraud-and-trespass/</link>
		<comments>http://nysmallbusinessattorney.com/big-brother-amazon-sued-for-breach-of-contract-computer-consumer-fraud-and-trespass/#comments</comments>
		<pubDate>Mon, 03 Aug 2009 03:46:24 +0000</pubDate>
		<dc:creator>Jonathan Cooper</dc:creator>
				<category><![CDATA[Breach of contract]]></category>
		<category><![CDATA[business fraud]]></category>
		<category><![CDATA[commercial litigation]]></category>
		<category><![CDATA[computer fraud]]></category>
		<category><![CDATA[consumer fraud]]></category>
		<category><![CDATA[trespass]]></category>
		<category><![CDATA[amazon]]></category>
		<category><![CDATA[breach of contract]]></category>
		<category><![CDATA[conversion]]></category>
		<category><![CDATA[kindle]]></category>
		<category><![CDATA[theft]]></category>

		<guid isPermaLink="false">http://nysmallbusinessattorney.com/?p=97</guid>
		<description><![CDATA[After on-line retail giant Amazon remotely deleted electronic copies of George Orwell&#8217;s &#8220;1984&#8243;  that they had previously sold to consumers, who then downloaded the eBooks onto Amazon&#8217;s Kindles,  two of those users have now brought a consumer class action complaint against on-line retail giant Amazon, claiming that Amazon&#8217;s acts violated a series of state and [...]]]></description>
			<content:encoded><![CDATA[<p>After on-line retail giant Amazon remotely deleted electronic copies of George Orwell&#8217;s &#8220;1984&#8243;  that they had previously sold to consumers, who then downloaded the eBooks onto Amazon&#8217;s Kindles,  two of those users have now brought a consumer class action complaint against on-line retail giant Amazon, claiming that Amazon&#8217;s acts violated a series of state and federal laws.</p>
<p>Leaving aside, for the moment, the delicious irony inherent in this particular story (of all books for Amazon to remotely access and delete, they had to pick &#8220;1984&#8243;?) the lawsuit does raise several fascinating legal issues. First, the lawsuit claims that by remotely deleting the eBooks after they had sold the eBooks to consumers, Amazon was not only guilty of <a href="http://nysmallbusinessattorney.com/identifying-whether-you-may-have-a-breach-of-contract-case/">breach of contract</a>, but had contravened their own promotional advertising literature that was aimed at the public at large, and therefore, should be held liable for violating state consumer protection laws for engaging in deceptive advertising. (Under New York law, these statutes are codified at General Business Law sections 349 and 350). More specifically, the plaintiffs allege that Amazon&#8217;s own terms provide that consumers may keep &#8211; on a permanent basis &#8211; any eBooks that they pay for and download from Amazon.</p>
<p>Additionally, the plaintiffs to this lawsuit raised a compelling logical argument: since Amazon would certainly be barred from entering the purchasers&#8217; homes and retrieving a hard copy of a book that Amazon had previously shipped to them, Amazon was likewise legally barred from deleting electronic copies of the books that were purchased for download.  Therefore, according to the complaint, Amazon&#8217;s actions are tantamount to an unlawful taking, or theft, of the purchasers&#8217; private property (in legal terms commonly referred to as trespass and/or conversion).</p>
<p>Finally, the plaintiffs assert that Amazon&#8217;s actions constitute an invasion of their computer privacy rights, and therefore are liable to plaintiffs and all those who suffered a similar fate at Amazon&#8217;s hands, for violating the relatively new <a href="http://www.law.com/jsp/nylj/PubArticleNY.jsp?id=1202432567278&amp;State_Courts_and_the_Federal_Computer_Fraud_and_Abuse_Act">Computer Fraud &amp; Abuse Act</a>.</p>
<p>To their credit, Amazon has openly and readily acknowledged its mistake, stating that due to licensing issues, it should not have made available for sale these particular eBooks. Nevertheless, given the overwhelmingly negative publicity that Amazon is receiving from this story (which, at least in the short term, is likely to have a signficant chilling effect on Kindle sales), their mea culpa was obviously too little and too late to avert a class action lawsuit, and perhaps further damage to the reputation and sales of their prized product, the Kindle.
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