US Court Affirms Remedy for Computer Fraud in the Internet Truckstop

The US 9th Circuit Court of Appeals has affirmed a damages award and an injunction remedy in a suit between rivals in the online trucking industry (Creative Computing v Getloaded.com and Martin, DC No CV-00-00476-BLW, October 15, 2004). The dispute arose when Getloaded.com (Getloaded) set up a web site in competition with Creative Computing's <truckstop.com>, a successful online service used by shippers and truck drivers to match their loads and trips. Getloaded executives employed several tactics to access their competitor's valuable trade secrets and confidential information: sneaking into by falsely registering as trucking companies, hacking into the code used to operate the web site and hiring away a Creative Computing employee with insider access to the business and customer lists. The trial judge awarded damages under Idaho's Trade Secrets Act and the federal Computer Fraud and Abuse Act, as well as exemplary damages for Getloaded's willful and malicious conduct. A permanent injunction with broad terms was also entered, prohibiting Getloaded from accessing truckstop.com. On appeal, Getloaded argued that the Computer Fraud and Abuse Act does not apply in this case because it requires a minimum of $5000 damage or loss for each unauthorized computer access. The Court dismissed this interpretation, finding that the legislation contains no "single act" requirement. Regarding the permanent injunction, the Court found that although it is unusual to prohibit access to a publicly available web site, the egregious conduct of Getloaded – akin to a shoplifter caught repeatedly at the same store - justified the extraordinary remedy. For the full text of the decision, see: http://caselaw.findlaw.com/data2/circs/9th/0235856P.pdf. Summary by: Rosa Kim