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	<title>Comments on: Aleynikov goes free</title>
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	<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/</link>
	<description>A slice of lime in the soda</description>
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		<title>By: Christofurio</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-37890</link>
		<dc:creator>Christofurio</dc:creator>
		<pubDate>Sat, 14 Apr 2012 22:50:01 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-37890</guid>
		<description>The court actually issued its opinion in this matter on April 11:

Jacobs said that the language of the statute refers to products that have been &quot;produced for or placed in interstate or foreign commerce....&quot;. This, then, includes two sorts of product, both with a limited meaning, those that have “already been introduced into [placed in] the stream of commerce” on the one hand and on the other hand to those that “are still being developed or readied” [produced for] such placement. The words evoke two distinct sets of products with a sequential relationship to one another, which satisfies well-established rules of statutory construction. 

Aleynikov’s work was specifically in the development of “infrastructure programs that facilitate the flow of information throughout the trading system and monitor the system’s performance.” That trading system was created for the sake of engaging in commerce without regard to state or national lines. But the infrastructure of that system does not thereby satisfy the language “produced for or placed in….”</description>
		<content:encoded><![CDATA[<p>The court actually issued its opinion in this matter on April 11:</p>
<p>Jacobs said that the language of the statute refers to products that have been &#8220;produced for or placed in interstate or foreign commerce&#8230;.&#8221;. This, then, includes two sorts of product, both with a limited meaning, those that have “already been introduced into [placed in] the stream of commerce” on the one hand and on the other hand to those that “are still being developed or readied” [produced for] such placement. The words evoke two distinct sets of products with a sequential relationship to one another, which satisfies well-established rules of statutory construction. </p>
<p>Aleynikov’s work was specifically in the development of “infrastructure programs that facilitate the flow of information throughout the trading system and monitor the system’s performance.” That trading system was created for the sake of engaging in commerce without regard to state or national lines. But the infrastructure of that system does not thereby satisfy the language “produced for or placed in….”</p>
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		<title>By: PaulaProduct</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36290</link>
		<dc:creator>PaulaProduct</dc:creator>
		<pubDate>Thu, 23 Feb 2012 18:10:24 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36290</guid>
		<description>Felix - I share at least some of your concern about overreacting here, but your characterization of the Economic Espionage Act as being intended to apply only to stealing secrets that affect national security omits an important part of that law.  Sure, there is one part that addresses the of trade secrets for the benefit of states, state actors, and state enterprises.  But there&#039;s another, completely separate part of that law that criminalizes theft of trade secrets for economic advantage - the very sort of conduct you&#039;re saying happened here.  The prosecutors here may have overreached in attempting to pin such a charge on Aleynikov, but that law has been on the books for more than a decade, and many states also have criminal sanctions for trade secret theft as well.  If there is a flaw with this case, it&#039;s not that the EEA was never meant to punish solely economic crimes.  Clearly it was.  One can, of course, doubt the wisdom of criminalizing that behavior is a good idea, and take issue with prosecutors for charging under this law in this particular case, but as a general matter, that&#039;s what US law says.</description>
		<content:encoded><![CDATA[<p>Felix &#8211; I share at least some of your concern about overreacting here, but your characterization of the Economic Espionage Act as being intended to apply only to stealing secrets that affect national security omits an important part of that law.  Sure, there is one part that addresses the of trade secrets for the benefit of states, state actors, and state enterprises.  But there&#8217;s another, completely separate part of that law that criminalizes theft of trade secrets for economic advantage &#8211; the very sort of conduct you&#8217;re saying happened here.  The prosecutors here may have overreached in attempting to pin such a charge on Aleynikov, but that law has been on the books for more than a decade, and many states also have criminal sanctions for trade secret theft as well.  If there is a flaw with this case, it&#8217;s not that the EEA was never meant to punish solely economic crimes.  Clearly it was.  One can, of course, doubt the wisdom of criminalizing that behavior is a good idea, and take issue with prosecutors for charging under this law in this particular case, but as a general matter, that&#8217;s what US law says.</p>
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		<title>By: Curmudgeon</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36252</link>
		<dc:creator>Curmudgeon</dc:creator>
		<pubDate>Wed, 22 Feb 2012 20:29:41 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36252</guid>
		<description>Danny, you may be right about that.  While in general I know what coders make around the US, I simply have no feel about what happens in the finance industry.  And while I would love to get a consulting/employment offer at three times my current income, I would be wondering who I would have to kill.</description>
		<content:encoded><![CDATA[<p>Danny, you may be right about that.  While in general I know what coders make around the US, I simply have no feel about what happens in the finance industry.  And while I would love to get a consulting/employment offer at three times my current income, I would be wondering who I would have to kill.</p>
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		<title>By: Danny_Black</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36231</link>
		<dc:creator>Danny_Black</dc:creator>
		<pubDate>Wed, 22 Feb 2012 06:24:50 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36231</guid>
		<description>Curmudgeon, I was simply expressing that fact as a complete non-expert talking to someone who is in that field you would almost certainly know better than me.

I wasn&#039;t a salesman but the value that salesman has is his/her relationships not the actual names - which are typically the same people the company he is going to are already selling to.  In this case, judging by his salary bracket, the guy was a coder not a quant or a developer of the algos themselves.  As such what he could take with him in his head was some of the pitfalls or shortcuts that the new company could avoid or take in building a similar system and that experience would be his to give.  However, I doubt writing fast market data handler code is worth 1.2million USD and debugged reading to go code is likely to be more likely what they were paying for.</description>
		<content:encoded><![CDATA[<p>Curmudgeon, I was simply expressing that fact as a complete non-expert talking to someone who is in that field you would almost certainly know better than me.</p>
<p>I wasn&#8217;t a salesman but the value that salesman has is his/her relationships not the actual names &#8211; which are typically the same people the company he is going to are already selling to.  In this case, judging by his salary bracket, the guy was a coder not a quant or a developer of the algos themselves.  As such what he could take with him in his head was some of the pitfalls or shortcuts that the new company could avoid or take in building a similar system and that experience would be his to give.  However, I doubt writing fast market data handler code is worth 1.2million USD and debugged reading to go code is likely to be more likely what they were paying for.</p>
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		<title>By: Curmudgeon</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36200</link>
		<dc:creator>Curmudgeon</dc:creator>
		<pubDate>Tue, 21 Feb 2012 13:54:41 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36200</guid>
		<description>Danny, I wasn&#039;t criticizing.  In giving more thought to who owns the code they write, it&#039;s pretty clear in law that your employer does, but I can easily see someone saying that they want copies to demonstrate their ability or experience to future employers.  I developed a fledgling commercial software product as a university professor.  It ultimately failed, but if it succeeded, it might have been reasonable for my university to claim both credit and profit.

You are/were in finance.  If you were a salesman, you might think that you had some level of right to your client list, which you developed and succeeded with over a period of years.  Your employer likely thinks it owns your client list, and you have no rights to it after you leave.

In one instance I was at a software company where an employee quit and attempted to download an entire product source tree onto a CD before leaving.  That was pretty clearly criminal theft.  What if he had taken only the code he had written?  It is still theft, but you would have difficulty demonstrating criminal intent.</description>
		<content:encoded><![CDATA[<p>Danny, I wasn&#8217;t criticizing.  In giving more thought to who owns the code they write, it&#8217;s pretty clear in law that your employer does, but I can easily see someone saying that they want copies to demonstrate their ability or experience to future employers.  I developed a fledgling commercial software product as a university professor.  It ultimately failed, but if it succeeded, it might have been reasonable for my university to claim both credit and profit.</p>
<p>You are/were in finance.  If you were a salesman, you might think that you had some level of right to your client list, which you developed and succeeded with over a period of years.  Your employer likely thinks it owns your client list, and you have no rights to it after you leave.</p>
<p>In one instance I was at a software company where an employee quit and attempted to download an entire product source tree onto a CD before leaving.  That was pretty clearly criminal theft.  What if he had taken only the code he had written?  It is still theft, but you would have difficulty demonstrating criminal intent.</p>
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		<title>By: Danny_Black</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36198</link>
		<dc:creator>Danny_Black</dc:creator>
		<pubDate>Tue, 21 Feb 2012 13:33:57 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36198</guid>
		<description>Curmudgeon, I defer to your greater expertise on the matter....</description>
		<content:encoded><![CDATA[<p>Curmudgeon, I defer to your greater expertise on the matter&#8230;.</p>
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		<title>By: Curmudgeon</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36195</link>
		<dc:creator>Curmudgeon</dc:creator>
		<pubDate>Tue, 21 Feb 2012 11:37:47 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36195</guid>
		<description>@Danny, any license that is recognized as open source by the Open Source Initiative requires that any redistribution include in source form any additional code that is statically linked to the open source (the definition of statically linked is fuzzy, and to my knowledge has never been tested in court).  Last I checked, there were almost 60 such licenses.

Software groups that intend to redistribute (ie, software vendors, such as those I have worked for) typically do a very good job at keeping open source separate from proprietary code.

In my experience, many organizations that use open source internally only, without intending to redistribute, don&#039;t do a very good job of this.  In fact, sometimes individual developers bring in open source code without telling anyone in order to get a head start on a development effort.

I have no knowledge or opinion of what might have happened at GS.  I do find it difficult to believe that Aleynikov would have taken it upon himself to return open source code used in his job back to the community.  Sometimes, however, developers think of code they have written as &quot;theirs&quot;, to use either as a part of their demonstrated expertise, or to reuse in future projects.</description>
		<content:encoded><![CDATA[<p>@Danny, any license that is recognized as open source by the Open Source Initiative requires that any redistribution include in source form any additional code that is statically linked to the open source (the definition of statically linked is fuzzy, and to my knowledge has never been tested in court).  Last I checked, there were almost 60 such licenses.</p>
<p>Software groups that intend to redistribute (ie, software vendors, such as those I have worked for) typically do a very good job at keeping open source separate from proprietary code.</p>
<p>In my experience, many organizations that use open source internally only, without intending to redistribute, don&#8217;t do a very good job of this.  In fact, sometimes individual developers bring in open source code without telling anyone in order to get a head start on a development effort.</p>
<p>I have no knowledge or opinion of what might have happened at GS.  I do find it difficult to believe that Aleynikov would have taken it upon himself to return open source code used in his job back to the community.  Sometimes, however, developers think of code they have written as &#8220;theirs&#8221;, to use either as a part of their demonstrated expertise, or to reuse in future projects.</p>
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		<title>By: Danny_Black</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36188</link>
		<dc:creator>Danny_Black</dc:creator>
		<pubDate>Tue, 21 Feb 2012 07:01:08 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36188</guid>
		<description>KenG_CA, not a developer so am quite possibly talking rubbish but from recollection only one licence - GPL - requires that if you redistribute the programe in executeable form then you have to give the code too and most commercial organisations prevent their developers even looking at said code in case they &quot;contaminate&quot; the commercial code, let alone embed that code for exactly this reason.  It is exactly because of that I don&#039;t believe he was posting open-source code.

I haven&#039;t seen any evidence that the government simply took GS word for it and unfortunately we don&#039;t have the reason the conviction was overturned but the way it reads it is over the applicability of the particular law that the prosecutor chose to use.</description>
		<content:encoded><![CDATA[<p>KenG_CA, not a developer so am quite possibly talking rubbish but from recollection only one licence &#8211; GPL &#8211; requires that if you redistribute the programe in executeable form then you have to give the code too and most commercial organisations prevent their developers even looking at said code in case they &#8220;contaminate&#8221; the commercial code, let alone embed that code for exactly this reason.  It is exactly because of that I don&#8217;t believe he was posting open-source code.</p>
<p>I haven&#8217;t seen any evidence that the government simply took GS word for it and unfortunately we don&#8217;t have the reason the conviction was overturned but the way it reads it is over the applicability of the particular law that the prosecutor chose to use.</p>
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		<title>By: KenG_CA</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36185</link>
		<dc:creator>KenG_CA</dc:creator>
		<pubDate>Tue, 21 Feb 2012 06:24:50 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36185</guid>
		<description>Some open source licenses require you to provide modifications you make to the original source back to the public.  It&#039;s possible he didn&#039;t finish doing that, and didn&#039;t expect Goldman to follow though on posting the code.  

So does the government prosecute with such zeal every complaint made by private citizens?  I think not.  Also, you usually have to provide evidence that what was taken was of material value. My point is that the government shouldn&#039;t just take Goldman&#039;s word that they were wronged, without providing evidence.  Is there any public record of the code in question?  The engineer&#039;s claim that the code was open source could be very easily verified or debunked. 

If the engineer violated his agreement by taking code with him, it&#039;s a civil case.  The government turned it into a criminal case, and tried to use statutes that were not applicable.</description>
		<content:encoded><![CDATA[<p>Some open source licenses require you to provide modifications you make to the original source back to the public.  It&#8217;s possible he didn&#8217;t finish doing that, and didn&#8217;t expect Goldman to follow though on posting the code.  </p>
<p>So does the government prosecute with such zeal every complaint made by private citizens?  I think not.  Also, you usually have to provide evidence that what was taken was of material value. My point is that the government shouldn&#8217;t just take Goldman&#8217;s word that they were wronged, without providing evidence.  Is there any public record of the code in question?  The engineer&#8217;s claim that the code was open source could be very easily verified or debunked. </p>
<p>If the engineer violated his agreement by taking code with him, it&#8217;s a civil case.  The government turned it into a criminal case, and tried to use statutes that were not applicable.</p>
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		<title>By: cnhedge</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36183</link>
		<dc:creator>cnhedge</dc:creator>
		<pubDate>Tue, 21 Feb 2012 05:26:39 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36183</guid>
		<description>goldman is truly invincible.

http://www.cnhedge.com</description>
		<content:encoded><![CDATA[<p>goldman is truly invincible.</p>
<p><a href='http://www.cnhedge.com'>http://www.cnhedge.com</a></p>
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		<title>By: Danny_Black</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36181</link>
		<dc:creator>Danny_Black</dc:creator>
		<pubDate>Tue, 21 Feb 2012 04:21:09 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36181</guid>
		<description>Also not at all obvious that GS were the geniuses that came up with the idea of this type of prosecution.</description>
		<content:encoded><![CDATA[<p>Also not at all obvious that GS were the geniuses that came up with the idea of this type of prosecution.</p>
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		<title>By: Danny_Black</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36180</link>
		<dc:creator>Danny_Black</dc:creator>
		<pubDate>Tue, 21 Feb 2012 04:19:24 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36180</guid>
		<description>KenG_CA, what clients did they lie to?

Also if it was purely open-source why does he need his own copy?  If he made material modifications then that is his companies and he was planning to steal it in order to give him a head start at his new company.

As for buying the power of the government, when you report a robbery are you &quot;buying&quot; the power of the government?  Or do you think they should tell you to go sort it out in the civil courts?</description>
		<content:encoded><![CDATA[<p>KenG_CA, what clients did they lie to?</p>
<p>Also if it was purely open-source why does he need his own copy?  If he made material modifications then that is his companies and he was planning to steal it in order to give him a head start at his new company.</p>
<p>As for buying the power of the government, when you report a robbery are you &#8220;buying&#8221; the power of the government?  Or do you think they should tell you to go sort it out in the civil courts?</p>
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		<title>By: KenG_CA</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36179</link>
		<dc:creator>KenG_CA</dc:creator>
		<pubDate>Tue, 21 Feb 2012 02:53:44 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36179</guid>
		<description>Unless Goldman is willing to describe the code that was uploaded, I wouldn&#039;t accept their claim that it was not open source code.  Are we supposed to accept whatever they claim as truth?  That didn&#039;t work well for many of their &quot;clients&quot;.

Aleynikov said it was open source code, so unless Goldman wants to prove otherwise, they have no case.  This isn&#039;t a national security case where they won&#039;t disclose what was taken, they are claiming injury and they should have to prove it.  Otherwise, it&#039;s just a wealthy organization being able to buy the power of the government.</description>
		<content:encoded><![CDATA[<p>Unless Goldman is willing to describe the code that was uploaded, I wouldn&#8217;t accept their claim that it was not open source code.  Are we supposed to accept whatever they claim as truth?  That didn&#8217;t work well for many of their &#8220;clients&#8221;.</p>
<p>Aleynikov said it was open source code, so unless Goldman wants to prove otherwise, they have no case.  This isn&#8217;t a national security case where they won&#8217;t disclose what was taken, they are claiming injury and they should have to prove it.  Otherwise, it&#8217;s just a wealthy organization being able to buy the power of the government.</p>
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		<title>By: Curmudgeon</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36176</link>
		<dc:creator>Curmudgeon</dc:creator>
		<pubDate>Mon, 20 Feb 2012 20:50:38 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36176</guid>
		<description>@Christofurio, the short answer is yes, that is certainly possible.  The long answer is that many companies start with open source software, then add their own proprietary code to it.  If they redistribute, they are typically required by the applicable open source license to include their code with it, but many companies use it entirely internally.

I&#039;m oversimplifying here, and not passing any opinion on what happened in this case, but the end result that many users of open source software have no intention of redistributing, and may make proprietary additions without good documentation on how to distinguish between the two.  It&#039;s not good programming practice, but I would guess that this occurs often.</description>
		<content:encoded><![CDATA[<p>@Christofurio, the short answer is yes, that is certainly possible.  The long answer is that many companies start with open source software, then add their own proprietary code to it.  If they redistribute, they are typically required by the applicable open source license to include their code with it, but many companies use it entirely internally.</p>
<p>I&#8217;m oversimplifying here, and not passing any opinion on what happened in this case, but the end result that many users of open source software have no intention of redistributing, and may make proprietary additions without good documentation on how to distinguish between the two.  It&#8217;s not good programming practice, but I would guess that this occurs often.</p>
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		<title>By: Christofurio</title>
		<link>http://blogs.reuters.com/felix-salmon/2012/02/17/aleynikov-goes-free/comment-page-1/#comment-36174</link>
		<dc:creator>Christofurio</dc:creator>
		<pubDate>Mon, 20 Feb 2012 17:01:04 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.reuters.com/felix-salmon/?p=12231#comment-36174</guid>
		<description>Question: is it plausible that someone could have sought to download or transfer open source material, and as an accidental byproduct of that effort downloaded or transferred other, proprietary, information with which the open source stuff was, so to speak, intertwined?

I ask because looking over some of the documents in the case, it does appear that the defense made various arguments about the intent necessary to satisfy the criminal statute.   

I also ask because I know zip about programming. 

Would appreciate help. 

Thanks.</description>
		<content:encoded><![CDATA[<p>Question: is it plausible that someone could have sought to download or transfer open source material, and as an accidental byproduct of that effort downloaded or transferred other, proprietary, information with which the open source stuff was, so to speak, intertwined?</p>
<p>I ask because looking over some of the documents in the case, it does appear that the defense made various arguments about the intent necessary to satisfy the criminal statute.   </p>
<p>I also ask because I know zip about programming. </p>
<p>Would appreciate help. </p>
<p>Thanks.</p>
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