Executive Summary

The case of Federal Reserve vs. Bo Zhang 2011 has raised question on numerous elements concerning data security and software piracy control. U.S. Government needs to focus on extending the legislations for improving the data security in the context of protection intellectual properties. Commercial software comes under the categorization of Digital Millennium Copyright Act that extends legal protections for software. Intention to copy the software source code does not provide justification for excluding the person from the damages that are to be applicable under Software Piracy Act.

Federal departments say that the existence of vast data software is a threat to privacy, and that clearer laws are needed to ensure that personal information is protected. The databases that companies maintain are vulnerable to misuse by the government and theft by criminals. Case of Zhong vs. FRD comes under the electronic vandalism where software or data is deliberately damaged/theft, or where the operation of the computer system is affected. Zhang admitted that he had used the code for his private business, teaching computer programming. Therefore, defense argued that the court cannot charge him under the cyber crime act that considers the data theft under surveillance or spying terms. Individuals companies can take steps to strengthen their software privacy, and minimize the possibility of source code theft or unauthorized access to their financial records. The data theft has become an important social problem which the US government has to deal with it in order to have a smooth and fair economy.

Quasi-Government - Federal Reserve Article

“Federal Reserve contractor charged with source code theft”

Introduction

This paper presents an analysis of the case Federal Reserve vs. Bo Zhang 2011. This case is being handled by the Office's Complex Frauds Unit. Assistant U.S. Attorneys Niketh Velamoor and Nicholas Lewin are in charge of the prosecution. The case surrounds the piracy of software Government-wide Accounting and Reporting Program (GAW) that is currently owned and operated by the U.S. Department of the Treasury.

Discussion of the Plaintiff's/Government's Arguments

Federal departments say that the existence of vast data software is a threat to privacy, and that clearer laws are needed to ensure that personal information is protected. The databases that companies maintain are vulnerable to misuse by the government and theft by criminals, they contend. The increased concentration of data elevates the threat, they say, and laws need to be updated to reflect that reality. Supporters of regulation add that the problem is not adequately addressed, partly due to the lack of awareness that most people have of software privacy.

Federal Reserve department made arguments that Bo Zhang had stolen the source code of software that keeps track of large exchanges of money between the U.S. government agencies between May and August 2011. This comes under the electronic vandalism where software or data is deliberately damaged, or where the operation of the computer system is affected.

The risks associated with computers take two principal forms. First, there is a risk of failure. Designing a computer-based system, particularly when it requires extensive software development, tends to be so complex that it is difficult even to ...