Goldman Code Theft Case Shows Vulnerability of IT IP

Without presuming to preempt the jury by judging the rights of the case, the prosecution of former Goldman Sachs employee Sergey Aleynikov shows how vulnerable vital systems-related intellectual property can be to the actions of rogue employees.

Prosecutors in the case are asking the presiding federal judge to seal the courtroom to prevent the exposure of trade secrets associated with Goldman's trading platform, according to a Reuters news story. Meanwhile, the defense is seeking access to the Goldman platform, including source code, in order, Aleynikov's lawyer says, to demonstrate that "the materials he is alleged to have stolen do not constitute a trade secret…"

The case begs the question of what controls may be put in place to prevent and detect unauthorized copying of code, especially large amounts of code, by employees who need access to that code.

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio