US Bioservices Corporation, et al. v. Leticia Lugo, et al.
595 F.Supp.2d 1189
In the United States District Court for the District of Kansas
Case Number 08-2342-JWL
Before District Judge J.W. Lungstrum
Decided on January 21, 2009

Relevancy of the Case: Interpretation of “without authorisation” and “exceeds authorisation” under CFAA

Statutes and Provisions Involved

• The Computer Fraud and Abuse Act, 18 U.S.C. § 1030
• The Kansas Uniform Trade Secrets Act, K.S.A. § 60-3320
• The Federal Rules of Civil Procedure (Rule 12(b)(6))

Relevant Facts of the Case

• The plaintiff is a speciality pharmaceutical care provider servicing manufacturers, physicians, patients, and payors.
• During the employment with the plaintiff, the defendants obtained its confidential information and disclosed it to their new employer.
• The plaintiff has claimed violation of the CFAA, misappropriation of trade secrets, tortious interference, and breach of contract.

Prominent Arguments by the Counsels

• The defendants’ counsel submitted that they did not access the plaintiff’s computers without authorisation or exceed their authorised access. They had the necessary authorisation to access the particular information during their employment.
• The plaintiff’s counsel argued that a person acts without authorisation or exceeds his authorisation when he obtains information for a wrongful purpose.

Opinion of the Bench

• Neither party has acknowledged the clear split in the existing case laws on the meaning of “without authorisation” or “exceeds authorisation”. However, the court leaned in favour of holding that “without authorisation” happens only when initial access is not permitted. Hence, the plaintiff’s claim of exceeding authorisation will survive, while the without authorisation claim will not.
• Customer lists and other customer-related information can constitute trade secrets under KUTSA.

Final Decision

• The court granted the defendants’ motion to dismiss only for the “without authorisation” claim. For the remaining claims, the motion is denied.