Traverse Internet Law Federal Court Report: March 2011 - Hacking Lawsuits

Traverse Internet Law Disclaimer

The facts are unproven allegations of the Plaintiff and all commentary is based upon the allegations, the truthfulness and accuracy of which are likely in dispute.


NACCO MATERIALS HANDLING GROUP, INC. d/b/a YALE MATERIALS HANDLING CORPORATION v. THE LILLY COMPANY
EASTERN DISTRICT OF NORTH CAROLINA
4:11-CV-00028
FILED: 2/22/11

The use of a password to get access to a competitor’s private resource area is typically characterized as “hacking”. If the allegations are true the Defendant is exposed to a broad range of potential liabilities under the federal and state hacking laws. Make sure that your staff understands it is not permitted to use someone else’s passwords to gain access to any websites.

The Plaintiff manufactures and sells lift trucks. It maintains a dealer resource site restricted to authorized users. Lilly allegedly obtained unauthorized access to the secure dealer resource site. The Defendant is a direct competitor of the Plaintiff. The unauthorized access allegedly provided detailed specifications and trade secrets.

Plaintiff alleges violation of the Computer Fraud and Abuse Act, computer trespass, misappropriation of trade secrets, tortious interference with contract and business relations, tortious interference with prospective economic advantage, violation of the North Carolina Unfair and Deceptive Trade Practices Act, and copyright infringement. The lawsuit requests injunctive relief, destruction of infringing materials, punitive damages, actual damages, treble damages, prejudgment interest, attorneys’ fees and costs and other such relief the Court deems just and proper. Traverse Internet Law Cross-Reference Number 1477.