The recent sentencing of a former Boeing engineer for stealing trade secrets raised the question of whether a defense contractor has a duty to notify the Department of Defense (DoD) under the Safeguarding Covered Defense Information and Cyber Incident Reporting Regulation (DFARS 252.204-7012), when the contractor has knowledge that an employee may be stealing trade secrets.
1. The Sentencing of Mr. Justice for Economic Espionage and AECA and ITAR Violations.
Former Boeing Satellite Systems’ engineer and long-time employee Gregory Allen
Continue Reading What Are A Defense Contractor’s Reporting Obligations When An Employee May Be Stealing Trade Secrets?
The US Department of Defense’s (DoD) new cybersecurity regulations require defense contractors to cooperate with Government support services contractors investigating a “cyber incident that affects a covered contractor information system or the covered defense information residing therein or that affects the contractor’s ability to provide operationally critical support.” DoD’s Defense Industrial Base Cybersecurity Activities Final Rule, 32 CFR 236.4(b), (m)(5) (effective Nov. 3, 2016); Response to Public Comments, 81 FR 68312 (Oct. 4, 2016).
often ask are whether the insurers selling cyber policies actually pay claims or whether the policyholders are just buying the right to later sue the insurers for coverage. The initial wave of cyber insurance litigation involved policyholders trying to obtain coverage for data breaches under their standard commercial general liability policies. This produced mixed results with some courts finding coverage, while others did not. The next wave of cyber insurance litigation involved policyholders asserting