one thing I ought to add to this is that the practice of emailing yourself a 
copy of your work when you move jobs is absolutely rife in the industry, from 
spreadsheet models to client lists - I have never actually done it myself but 
am regarded as being some sort of weird monklike character for not doing so - 
and although technically illegal under the noncompetes and relevant employment 
law, is almost never chased up by the employers (on the basis that we are all 
grownups who know that our paths will cross again in the future so no point 
bringing the lawyers in).  This must have been a really egregious case for GS 
to act as they did.

best
dd




-----Original Message-----
From: "[email protected]" [[email protected]]
Date: 07/09/2009 04:57 AM
To: [email protected]
Subject: Re: [Pen-l] Re: Employee emulates thieving employer

this is a very very grey area that up until now nobody in the industry has 
wanted to explore.  In general, *algorithms* are pieces of mathematics which 
can't be patented.  You can, usually, get around this by getting a *software* 
patent, where you file for a patent on "a device consisting of a computer and 
software, the software capable of doing bla bla bla".  But the financial 
industry doesn't do this, out of the assumption that by the time you got round 
to filing the patent, the algorithms would be outdated.  The way banks usually 
protect their algo systems is as "trade secrets" by a) making the developers 
sign really really aggressive non-disclosure agreements (which this guy pretty 
certainly broke, which is the crime he's done) and b) stuffing their mouths 
with dollar bills - if anyone's looking for an example to illustrate clasroom 
discussions of the efficiency wage, this is a great one.  So Doug's right that 
this stuff is protected, but it's protected by employment law more than by IP 
law.

.  If anyone's interested in the question of "what are these algorithms 
anyway", this is a good white paper on the general subject of algo trading.

http://www.themistrading.com/article_files/0000/0348/Toxic_Equity_Trading_on_Wall_Street_12-17-08.pdf

best
dd




-----Original Message-----
From: "Doug Henwood" [[email protected]]
Date: 07/07/2009 11:14 AM


 I'm  
no lawyer, but trading algorithms must be protected under IP law, no?)  



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