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Managing Data Security Risks in Outsourcing Contracts
Corporate America's love affair with outsourcing and the global trend-line in data protection law are on a collision course. The globalization of service-based economies is accelerating, as both onshore and offshore vendors of outsourced services offer savings and efficiencies that companies cannot ignore. At the same time, countries that seek to ride the wave of outsourcing to grow their local economies are under pressure to enact privacy and data laws resembling Western-style fair information practices. And in the current election year environment, legislators in the United States are likely to seek further controls on companies that send their customer data (and jobs) overseas. Companies that are thinking about outsourcing the processing or storage of customer data, or other protected information, are well-advised to do thorough diligence on both applicable data protection laws, and on their vendors' abilities to comply with those laws, before entering into outsourcing agreements. Although the risk of privacy and data protection violations cannot be eliminated in outsourcing relationships, properly drafted data security provisions in an outsourcing contract can clearly allocate the parties' respective duties and mitigate a customer's exposure to the threat of data security breaches.
The Data Risks in Outsourcing
The phenomenon of corporate outsourcing has morphed in recent years from transfers of various core information technology operations, such as data processing and storage, software development, and disaster recovery, to include a broad range of “business processes,” including finance and accounting, customer service, human resources, and procurement. Regardless of the type of outsourcing transaction, consumer and employee data for which the corporate customer may be responsible under applicable data protection laws is typically shared with the outsourcing vendor (and/or with the vendor's subcontractors).
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.