Code can’t be stolen under federal law, court rules

The government’s effort to prosecute corporate espionage was dealt a setback today when a federal appeals court ruled that downloaded code did not qualify as stolen under a federal theft statute.

The 2nd U.S. Circuit Court of Appeals in New York ruled today that former Goldman Sachs programmer Sergey Aleynikov was wrongly charged with theft of property under the National Stolen Property Act, which makes it illegal to steal trade secrets.