On April 10, the 9th Circuit ruled in U.S. v. Nosal that employees who violate workplace computer policies or website terms of use are not criminally liable under the federal Computer Fraud and Abuse Act (CFAA), which allows for the prosecution of anyone who “knowingly and with intent to defraud, accesses a protected computer without authorization, or exceeds authorized access.” The decision represents a split with several other circuits, which could result in the issue heading to the Supreme Court.

David Nosal resigned as head of the CEO practice group at executive recruiting firm Korn/Ferry International in October 2004. After his departure, Nosal allegedly tried to start a competing business by convincing three former colleagues to download a confidential client database in violation of Korn/Ferry’s company policy.