In the closing days of August, two federal appeals courts issued noteworthy decisions at the intersection of workplace conduct, computer law and online platforms. The two opinions were released during a period of time this past summer amidst the continuing flurry of AI-related case developments and perhaps did not get wide media attention (but which might prove to be important cases in the future).
- Second Circuit – CDA Section 230. The court ruled that a software platform was not entitled to CDA Section 230 immunity – at least at the early stage in the case – based on allegations that it actively contributed to the unlawful software content at issue by manufacturing and distributing an emissions-control “defeat devices.” (U.S. v. EZ Lynk, SEZC, No. 24-2386 (2d Cir. Aug. 20, 2025)). The opinion’s discussion of what it means to be a “developer” of content has implications for future litigation that might involve generative AI, app stores, marketplaces, and IoT ecosystems, where certain fact patterns could blur the line between passive hosting and active co-development.
- Third Circuit – CFAA and Trade Secrets: Days later, the Third Circuit issued an important decision (subsequently amended, with minor changes that did not change the holding) that further develops CFAA case law post-Van Buren. The court held that CFAA liability, an anti-hacking statute, does not extend to workplace computer use violations. (NRA Group, LLC v. Durenleau, No. 24-1123 (3d Cir. Aug. 26, 2025) (vacated by Oct. 7, 2025 amended opinion), reh’g en banc denied (Oct. 7, 2025)). The court also addressed and rejected a novel claim of trade secret misappropriation based on access to account passwords.
Together, the cases show how courts continue to interpret the reach of technology-related statutes in contexts never contemplated when those laws were first enacted.
