![]() ![]() Supreme Court decision which derailed the ability of employers to sue employees under the Computer Fraud and Abuse Act (CFAA) for wrongfully taking the employer’s sensitive business data. ![]() The passage of the Florida Corporate Espionage Act follows closely on the heels of a recent U.S. Notably, the Corporate Espionage Act also specifically expands the previous definition of “trade secret” in the existing Florida criminal statute regarding theft of trade secrets to include scientific, technical or commercial information “whether tangible or intangible, and regardless of whether or how it is stored, compiled, or memorialized physically, electronically, graphically, photographically, or in writing.” This change comes in a time where much of employer data is electronically maintained in the cloud, or via other electronic means. The felony is reclassified one degree higher and the offense severity ranking is also increased. Severely increases penalties if an individual or entity violates this law on behalf of a foreign government.Individuals attempting to sell stolen trade secrets will face a second-degree felony, punishable by up to 15 years in prison. Anyone who willfully and without authorization steals or attempts to steal a trade secret for their own benefit will now face a third-degree felony with up to five years in prison. Creates new criminal offenses in Florida for anyone who traffics or attempts to traffic trade secrets. ![]() The Corporate Espionage Act, among other things: The Act defines “person” broadly as a “natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.” Highlights of the Act Interestingly, the Corporate Espionage Act not only provides for severe penalties when a foreign government is involved, but it also creates penalties when a “person” engages in theft or trafficking of trade secrets. In a news release by Florida Governor Ron DeSantis’ Office, the Act was endorsed as a protection against “foreign influence and combat corporate espionage, keeping Florida’s intellectual property safe within the state’s boundaries.” Governor Ron DeSantis stated “China is a hostile foreign power, and every Governor has the responsibility to protect their education system, and every other entity within their purview, from the espionage and commercial theft undertaken by the Chinese Communist Party.” Governor DeSantis further stated that “numerous countries are working to infiltrate our state and nation.” The act was unanimously passed by the Florida Legislature in June and takes effect October 1, 2021. While seemingly targeted at foreign interference, the Corporate Espionage Act may provide additional domestic employer trade secret protections. With the Biden Administration’s goal of curtailing non-competes and the Supreme Court’s narrow reading of a federal computer hacking law, employers are looking for additional ways to protect their sensitive business information. Florida has given employers a new weapon in their trade secret protection arsenal: the Combatting Corporate Espionage in Florida Act.
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