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In Cloud Computing

Responding to Stored Communications Act Demands Under the CLOUD Act

by 4 Mins Read

In the global digital economy, companies increasingly face conflicts between legal demands to produce data and local laws that restrict production of data. Congress recently enacted the CLOUD Act to address these conflicts in the context of the Stored Communications Act, 18 U.S.C. §§ 2701-2712 (“SCA”). Under the SCA, companies have struggled with how to respond to United States Government (“USG”) demands for data held in foreign jurisdictions where such disclosure may violate local laws…

In Cloud Computing

Myth 10: Vendor has and should accept unlimited liability for data security breaches

by 2 Mins Read

Fact is that service providers may not always be able to limit their liability vis-à-vis the data subjects in scenarios where they contract with corporate customers and not the data subjects themselves. If hackers gain unlawful access to information residing in a hosted database, the service provider may be liable directly vis-à-vis the data subjects under negligence theories (if and to the extent economic harm resulting from data access is covered by tort liability under…