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Ask HN: I found documents on the backseat of a taxi. Can I legally use them?
I have found some printouts. Assuming they relate to some company on the stock market how can I ensure I do not pollute my Intellectual Property / avoid sentencing for insider trading or use of unauthorized information?
General question - what makes confidential confidential?
Is it enough to write it on sheet of paper? And how about other pages that don't have this clause?
General, open-ended question... Thanks.
- pseingatl 13y ago1. The texts are subject to copyright. You have to treat them as you would any other copyrighted text. 2. You can trade on the information in the capital markets. The information was disclosed to you inadvertently. You are not an insider, you did not conspire with anyone to to violate the law. 3. The physical papers still belong to the owner. You may have custody of them, but you do not own them. With respect to trading, this is no different than walking down the street and hearing someone say that "Company X is a good buy." 4. You have a duty to return the documents, but you have no duty not to read them. In fact, you have to read them in order to be able to return them.
- ColinWright 13y agoThe better to understand your reply, I have a few questions: 1. Are you a lawyer? 2. If so, in what jurisdiction is your qualification valid? 3. What if the taxi in question is in Zurich, say? 4. Are you going to qualify your answer in any way, or is it absolute?
- mschuster91 13y agoIt 'd be best if you ask a real, qualified lawyer in the country you're resigning. In most countries though, you're under duty to return the documents to the owner ASAP, and you're eligible to some kind of compensation according to the value of the documents.
- pests 13y agoI don't think that is his main concern. In the original post he seems concerned about the legality of information learned, not so much document ownership or lost and found rights.
- PeterisP 13y agoEven so, the details that aren't supplied in the question (which jurisdiction exactly? what kind of information was it?) are more important than the few details that are listed (where the information was found, that those are printouts). If you want an useful answer, you need to tell more details to a relevant lawyer; currently this question can only get answers that are either useless or dangerous.
- rwallace 13y ago> 2. You can trade on the information in the capital markets. The information was disclosed to you inadvertently. Be careful of acting on that idea; just because something is morally reasonable doesn't make it legal. I heard of a case once where someone sold shares based on happening to see a factory on fire through an airplane window, and a court found it to be insider trading. Sure, maybe that case wasn't representative; I'm not a lawyer - but consult someone who is, before assuming that sort of thing is legal.
- Dylan16807 13y agohttp://fubarinc.blogspot.com/2013/08/inside-out-more-on-insider-trading.html http://fubarinc.blogspot.com/2013/08/inside-out-more-on-insi... That plane thing seems to have been an erroneous hypothetical.
- james1071 13y agoYou have not got a clue what you are talking about.
- chris_wot 13y agoYou can trade on the information in the capital markets. The information was disclosed to you inadvertently. You are not an insider, you did not conspire with anyone to to violate the law. Wrong, wrong, wrong! In SEC vs. Texas Gulf Sulfur Co., those who had access to information not available to the general public and who used it to their advantage were seen to be insiders. [1] In United States vs Carpenter, the judge stated that "It is well established, as a general proposition, that a person who acquires special knowledge or information by virtue of a confidential or fiduciary relationship with another is not free to exploit that knowledge or information for his own personal benefit but must account to his principal for any profits derived therefrom." [2] 1. http://www.casebriefs.com/blog/law/corporations/corporations-keyed-to-klein/the-duties-of-officers-directors-and-other-insiders/securities-and-exchange-commission-v-texas-gulf-sulphur-co/2/ http://www.casebriefs.com/blog/law/corporations/corporations... 2. http://en.wikipedia.org/wiki/Insider_trading#Court_decisions http://en.wikipedia.org/wiki/Insider_trading#Court_decisions
- smalter 13y agoit appears to me that you're misunderstanding those cases. in texas gulf sulfur, the defendants were officers at the company. they were directors at texas gulf sulfur and they were trading on texas gulf sulfur stock. they have a fiduciary duty to the company that a stranger doesn't have. that's what the judge in carpenter is referring to. if you acquire the info by virtual of a fiduciary relationship, you aren't free to trade on that info. in texas gulf sulfur, they had the fiduciary relationship to the company because they were officers at that company. not so here.
- CamperBob2 13y agoSo I have a fiduciary relationship with some guy who was in too big a hurry to jump out of my taxi? Fascinating.
- ck2 13y agoI have just found your netbook on the backseat of a taxi with it already logged into your bank account. So that makes it okay to transfer your life savings to my account, right?
- steholmes 13y agoNot the same situation at all.
- kefka 13y agoNo, his netbook+bank account situation does indeed show similarities to the main question. If you read between the lines, it amounts to "What is the minimum legal standard I have to follow to make money on this questionably gotten X?" That's a sad question to have to ask.
- Dylan16807 13y agoThe blame for the sad situation goes to stock markets and stock market regulations in the first place. They make it illegal to know things about companies.
- pbnjay 13y agono, that would be wire fraud...
- Dylan16807 13y agoNo, this is about whether it's okay for you to remember how much money is in the account, and act on that in some manner in the future. Nobody is stealing anything. They can have the pieces of paper back if they want them.
- ck2 13y agoOkay, I found your netbook with your entire life's work of research, literally decades, into a new material which apparently you are about to patent. So I will just email myself a copy of your work and patent it before you can. No harm then right, it is just a copy.
- edw519 13y ago"Legal" does not necessarily = "Right". So forget about what's legal and just do what's right. You are in a unique time and place in history (as evidenced by your presence here) to build something out of nothing and provide great value to others. So why don't you just forget about what you found and instead spend your precious energy building something? As for the documents, either return them or destroy them and please move on. For everyone's sake.
- smalter 13y agoit's not obvious that trading on material, non-public information that you overheard is unethical. it's basically the same thing as winning the lottery, and i wouldn't not cash in lottery winnings because i have the opportunity to build something of great value to others (that's neither here nor there). it's not even obvious that insider trading should be illegal (http://business.time.com/2013/07/26/why-is-insider-trading-even-illegal/ http://business.time.com/2013/07/26/why-is-insider-trading-e...). (not particularly relevant, but i do think certain types of insider trading should definitely be illegal but the scope is debatable.)
- jacques_chester 13y agoSee a lawyer. Seriously. See a lawyer. People on the internet are not lawyers; if they are lawyers, their main advice is go see a lawyer. Law is a profession of tiny details with huge consequences. Those tiny details vary from place to place and from subject to subject. Even lawyers have lawyers. If I learnt one and only one important lesson from my time in law school, it's this: If you have a question of law, go see a lawyer. I mean it.
- badclient 13y agoEven doctors have doctors and barbers have barbers. So?
- jacques_chester 13y agoYou've added an example in doctors, actually. If a GP has cancer, he or she will go see an oncologist instead of just going on dimly recalled med school courses. The oncologist will see a sports physician about the shoulder injury from rugby, the sports physician sees an opthamologist about their slight ocular degeneration and so on and so forth. Law is a sufficiently large field (remember, the problem domain is "all interactions between humans") that it requires specialisation and so, in fact, lawyers must frequently consult with other lawyers. OP may get an answer from a general practice solicitor. Or that lawyer may need to consult another lawyer. Until he or she sees a lawyer it's not clear to us lay folk. Does this ever annoy you? You're good with computers, can you make a poster for me? It annoys me (well, these days I find it funny). Special subjects require specialists.
- ratsimihah 13y ago> tiny details with huge consequences. This reminds me of tax filling. > Even lawyers have lawyers. Do accountants have accountants too?
- DonPellegrino 13y agoYes, many (most?) accountants that don't specialize in personal accounting and tax filing recognize the value in having someone more knowledgeable than them take care of documents with a large impact on their lives.
- dmourati 13y agoDocuments left on a taxi seat can be characterized as mislaid. That is, the paper was intentionally put on the seat and forgotten. http://ir.lawnet.fordham.edu/cgi/viewcontent.cgi?article=1179&context=flr http://ir.lawnet.fordham.edu/cgi/viewcontent.cgi?article=117... Confidentiality is a an agreement between parties not to disclose information to a third party. You are now talking about the unintended disclosure of confidential information. Since you are not a party to the confidentiality agreement, it is impossible to enforce against you. As far as insider trader, I don't suspect a random person who stumbled upon such data lawfully could be found guilty of any crime for using it. Moving from an absolutely legal treatment of the problem to an ethical/moral one. What you want to happen if you were the owner of those documents? Something to consider.
- ramchip 13y ago> As far as insider trader, I don't suspect a random person who stumbled upon such data lawfully could be found guilty of any crime for using it. That sounds like terrible advice to me. See this for example: http://www.investopedia.com/articles/03/100803.asp http://www.investopedia.com/articles/03/100803.asp > Oftentimes, people accused of the crime claim that they just overheard someone talking. Take for example a neighbor who overhears a conversation between a CEO and her husband regarding confidential corporate information. If the neighbor then goes ahead and makes a trade based on what was overheard, he or she would be violating the law even though the information was just "innocently" overheard: the neighbor becomes an insider with a fiduciary duty and obligation to confidentiality the moment he or she comes to possess the nonpublic material information. Since, however, the CEO and her husband did not try to profit from their insider knowledge, they are not necessarily liable of insider trading. In their carelessness, they may, however, be in breach of their confidentiality.
- cowsandmilk 13y agoPlease explain how anything in your link classifies this as insider trading. My interpretation is that finding information in a taxi means I am not a corporate insider, therefore I could not be guilty of insider trading. Note, I agree with the currently most upvoted comment that you should see a lawyer. If you wouldn't make enough money by trading on this information to make seeing a lawyer worth it, then it isn't worth taking the risk of making the trade.
- losethos 13y agohttp://en.wikipedia.org/wiki/Norm_(mathematics) http://en.wikipedia.org/wiki/Norm_(mathematics) Taxi Driver Norm is listed under "other norms"
- Theodores 13y agoWhy legally? A couple of days ago I found a wallet with what looked like £40 (Didn't count it), travelcard and bank cards in it. I could have taken the money and put it the rest in the bin. I could have even skimmed the credit/debit cards and gone on a spending spree! But I did not. I went to the local shop and enquired - 'do you know this guy?' The wallet owner actually lived in the flats above the shop and the wallet was returned. To the owner of the wallet this was an unexpected turn up for the books - his faith in human nature restored etc. - fine, but not a tangible benefit to me (unless there is a god). However, there actually is a tangible benefit, one that I did not think of when I enquired in the shop. The owner of the shop now knows that I will do the right thing for a complete stranger that happens to have lost a wallet. Hence, if I lose my wallet and cannot afford so much as a pint of milk, I can expect a favour from him, i.e. some necessities on credit until I can sort out my wallet. All I am saying is that there may be benefits to returning the documents, benefits that you have not thought of.
- manojlds 13y agoDoes using the information on the document mean whoever misplaced is going to lose something? Probably not. My point is, the OP's case and your example about the wallet are not the same. PS: if I were the OP I would try to return or destroy them.
- tonfa 13y ago> Does using the information on the document mean whoever misplaced is going to lose something? Probably not. Depending on information, how it is used, etc. I can imagine him losing his job.
- notahacker 13y agoMore to the point, why does it matter whether the people being taken advantage of are the ones who originally lost the document? If the information has value to the OP other than satisfying personal curiosity, it's likely to be because they can exploit those who stand to lose from its disclosure, especially given the way the original post was worded. If the OP has found information that will genuinely allow him to place stock trades at an advantage to the rest of the market then some people are going to lose something.
- wtvanhest 13y agoJacques_chester is correct, but I'll provide an additional warning. If you use the information to buy or sell stocks, and it is confidential and material that is very liky to be a violation of insider trading. If I were you, I would consider handing back to their investor relations and try to build a new contact. It may work, it may not.
- bsullivan01 13y agoFirst thing I would have done, NOT F*CKING POST on HN. The person that lost it reads too and so do his friends. Second, if you wanted to you might used part of it you would have to be very careful and pair it with something totally yours. Oh, and laws vary from country to country. Ethics are a different thing
- lostlogin 13y agoAh, this is very close to >don't be a dick<. Why is it so hard to get people to follow this rule?
- smalter 13y agoyou should see a lawyer. but the black letter law as of when i was a lawyer (2010) is that you can trade on an overheard conversation (see the switzer case involving the famed oklahoma football coach). you don't have a fiduciary duty to the company and you don't inherit the duty from the tipper because the tipper tipped without personal benefit. edit a reliable reference (contra some of the other sources cited in this thread): http://www.concurringopinions.com/archives/2009/08/insider-trading-dear-guy-speaking-behind-me-in-the-loud-voice.html http://www.concurringopinions.com/archives/2009/08/insider-t...
- reginaldjcooper 13y agoWhat is wrong with you? Ask a lawyer.
- kefka 13y agoI'll answer your question with a situation I had happen to me recently. Two of us were working at the local hackerspace late night. We had some trash we took out to the dumpster, and we saw a desktop tower. It had a bit of dried mud on it, so it was probably there no more than a few hours. I take it in, and I put it in the 'dedicated desktop testing area' (read: wherever there was a keyboard/mouse/monitor). I was expecting some massive dead machine. Nope. there was a 80GB hard drive, cd/dvd, RAM, CPU.. Everything was there, and it boot right into WinXP. Then the ohshit factor came into play. On the desktop there were icons for "Anthem Insurance Quoter", "Blue Cross Quotes".... and Client List.xls.pdf . That list alone had 500 names, SSN, DOB, address, and phone numbers. And there even more files with more identities as well. So, what do I do? Oh, and I also found the agent's name along with his license number. Nifty. He googles to about 2.5 miles away. So.. is this a discarded machine, or was this a drop site after a theft? I don't know, and powering it up didn't tell me. There wasn't any security on the machine at all, so anybody could have plugged in a USB storage and copied without fear of logs. I took it to the police. That's not because of the hardware, but because they can alert the users on this machine of possible identity theft and take appropriate steps. (Yes, I do know where on Tor to sell identities like this. And the quality of these would have been roughly 100$/per. And I'm poor, but damned if I'll be unethical like that.)
- deleted 13y ago[deleted]
- smoyer 13y agoIf no one knows you have the documents, you can probably trade on confidential information, compete with the company, file a patent before them etc, and I think you stand very little chance of getting caught. I'd recommend reading them and burning them so there is no chance you can be connected to them. But here's the thing ... if you do something you believe is wrong, illegal or immoral, you'll still have to live with yourself. Being human, having empathy (what if you'd lost your confidential papers), being sympathetic and generally operating within the folkways and mores of society serves a purpose. People who can operate without any of these qualities are classified as sociopaths. So my recommendation isn't to talk to a lawyer, or take any actions related to the papers. Burn them (preferably without reading them) and keep your inward smile. Living with yourself is more enjoyable if you actually like yourself (and find yourself likeable). EDIT: Posted this at the same time as kefka ... read his response for a real life application of what I've written. And nice to meet you kefka!
- asveikau 13y agoI think you have this thing backwards. Personally if I found something in a cab my first reaction would be "that sucks, I bet someone is really frustrated about this. I would hate that to happen to me." Your immediate reaction seems to be "how can I turn this into money without legal consequences?" Did you ever consider just doing nothing? Trying to return them?
- yason 13y agoDon't ask around these questions because nobody knows you have them. If only you get rid of the printouts you're safe because nobody can prove anything so basically you're free to do what you feel is right. After the printouts are gone and you do happen to remember what they said, there's absolutely no way to connect that information to you. The owner of the papers might want them back though, so consider that too, please. You can return them in an anonymous envelope if you want your identity to not be disclosed.
- harshaw 13y agoSomewhat related but tangential: What would happen if we had a "double blind" system where people could receive insider trading information based on karma points? The idea is that a system would anonymously give out insider trading information to one or more people with the highest amount of karma. The granter of the stock tip would get a corresponding boost (or drop) in karma based on the value of the knowledge but couldn't benefit from the insider information directly with the exception in the future they would have a greater likely hood of getting anonymous insider information based on their karma point count. example: 1) Alice creates an anomymous tip that Apple stock is likely to drop due to an unexpected sales decrease of the iphone 6. 2) The system establishes an initial weight for the stock tip based on company valuation and reliability of Alice. 3) The system identifies a user or set of users with the highest current karma points. Bob is one of these users. Bob's karma point total is reduced by the value of the recommendation. 4) Later on after banking a large number of points Alice is given a tip that Tesla stock is expected to rise. Alice is able to profit on this insider knowledge without... really having insider knowledge This is somewhat akin to profiting off of documents in the back seat of a taxi. Since this seems like somewhat of an obvious system I wonder if it is practiced in real life and what law enforcement does to counter it....
- popegaryt 13y agoit is not only a legal question. More importantly it is a question of ethics. Additionally I do not hear anything regarding whether you attempted to return the documents to the company no doubt named within said docs. My recommendation is to return to owner
- james1071 13y agoThe answer is not to get caught.
- kkjain 13y ago[ (Ur on HN => ur top 1% of world on # of v v important metrics and intellectual gifts) + (Ur asking advice => u have instincts and ability) ] => high oppty cost of ur time. My_Op => prob huge neg val even thinking about this. Long Term: moral reasons aside, its simply highly unlikely to net add personal value. Short Term: payoff is blindingly quantifiable, but lots of hidden costs easy to overlook => not a good likely outcome situation. Ex 1: "not wasting energy with lawyers" is a luxury, both massively positive value and systematically + tragically under-valued by general people
- chris_wot 13y agoIf the information is not available to the general public and you use it, then that's insider trading. Don't use the documents to trade. If the documents were misplaced, and you take them, then that's theft. Hand them in to the police. Don't use them.
- ChuckMcM 13y agoThere are three answers here; 1) You identify the source of the documents (not necessarily who they refer to but who created them) and you return them. 2) You turn them into a nearby law enforcement office and get a receipt. 3) You destroy them and forgot you ever saw them. #1 it is important to know the source, if you go by the company in the printouts and the source was an SEC auditor who was looking into the company, then returning them to the company being audited would screw up the SEC audit. In #2 it is important to get a receipt because if the documents are part of a larger problem going on you will want to be able to prove you held them for a very short time as you transferred them to the police. Anything else and whether or not you did anything with them you will be part of the investigation. And #3, they were lost in the first place, someone knows they are lost and are dealing with that. That just finishes a path they were already on. [1] Under no circumstances do you try to profit from the discovery as that will make you a criminal in the eyes of the law. That stuff always turns out badly. [1] Note my wife suggested that you might give them to the Taxi driver to take back to their lost and found so if the owner called in looking for them they would have them handy.
- anywherenotes 13y agoQuestion about returning documents: OP stated these are printouts, so what is the point of returning them if the original owner can just print them out again? Wouldn't returning the documents actually put that person in trouble, because their superior will know this information was misplaced - or is it the point to notify superiors?