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ARTICLE · 03 MAY 2012

The Trading Algorithm Is No "Good" (White Collar Roundup - May 2012)

Day Pitney LLP
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Proprietary computer code is not a "good" subject to protection under the National Stolen Property Act and is not "related" to interstate or foreign commerce under the Economic Espionage Act, according to this opinion from the U.S. Court of Appeals for the Second Circuit.

United StatesCriminal Law
Day Pitney LLP'S White Collar Defense And Internal Investigations Practice
Day Pitney LLP'S White Collar Defense And Internal Investigations Practice
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The Trading Algorithm Is No "Good"

Proprietary computer code is not a "good" subject to protection under the National Stolen Property Act and is not "related" to interstate or foreign commerce under the Economic Espionage Act, according to this opinion from the U.S. Court of Appeals for the Second Circuit. The government had won a conviction of a former Goldman Sachs Group Inc. programmer who was alleged to have stolen the company's proprietary trading software. After he appealed his conviction and eight-year sentence, the Second Circuit reversed, holding that while his misappropriation may have violated his confidentiality agreement with Goldman, it did not violate these acts.

It's a Bird! It's a Plane! It's an Attorney-Client Waiver Opinion!

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