Access Of Computer System With Log-In Credentials Is Not Unlawful "Hacking"

A California federal court in Enki Corporation v. Freedman held that a former employee's access of the employer's computer systems through his log-in credentials did not amount to unlawful hacking under either the Computer Fraud and Abuse Act ("CFAA") or the California Computer Data Access and Fraud Act ("CDAFA").

Enki Corporation entered into an agreement with Zuora to provide Zuora with certain consulting and IT services, and as part of these services Enki installed a computer resources and performance monitor on Zuora's network. In order to fulfill its obligations, Enki contracted with one of its former employees, Keith Freedman, to provide certain consulting services to Zuora. Enki subsequently terminated the contract with Freedman after it learned that Freedman had allegedly spread negative stories about Enki and its work product to Zuora, and alleged that prior to the termination of Freedman's contract, Freedman and Zuora had accessed Enki's performance monitor