Given the explosive growth of cloud computing, it should be no surprise that it presents numerous legal issues for businesses. Two of the most significant are privacy concerns and the implications of cloud computing for pretrial discovery.
As with other forms of "outsourcing," businesses' duties to protect private or
confidential data do not end with their transfer of the data to third-party vendors for storage or processing. A recent report from the World Privacy Forum, "Cloud Computing and Privacy," highlights a number of important privacy issues raised by cloud computing that corporate users of cloud computing should keep in mind. [
Access the report]
The New York Law Journal article concludes with:
As cloud computing becomes more understood and more widely utilized, counsel will focus on both privacy and discovery issues to a greater extent than they are doing so currently, which will lead to negotiated resolution of issues and, on occasion, litigation and court decisions.
As with many issues of technology, counsel will need to understand not just the legal precedent concerning cloud servers, but also the particular facts concerning their business' use of cloud servers, the type of data that is stored in the cloud, and the location and document retention practices of the service provider.
Share your thoughts?