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Data Mapping: The Common Thread Between Litigation Preparedness and Data Security

In today's world, most business activity creates electronically stored information ('ESI') ' whether it's an e-mail, document, voice-mail or database transaction ' and the exponentially increasing volume and diversity of those digital files at corporations represents exponentially increasing corporate risk.

Virtually every legal action today relies heavily on the discovery of electronically stored information. Beyond explicitly declaring electronically stored information as discoverable, the recent amendments to the Federal Rules of Civil Procedure ('FRCP') also require litigants to know what potentially relevant ESI they have, where it is, how it's maintained and what it will cost to produce. The rules require parties to make 'intelligent and informed' decisions related to data preservation, discovery and form of production early in a case. This means that businesses must have its ESI house in order before litigation is pending.

However, according to a survey of corporate counsel attorneys, only 7% of them rate their companies as prepared for the electronic discovery amendments to the FRCP. Meanwhile, according to a survey conducted by Computerworld at the end of 2006, approximately 42% of the 170 IT managers and staffers surveyed said they did not know the status of their company's preparation for the new rules, while 32% said their company was not at all prepared. This lack of preparedness is not surprising since, until recently, many in-house legal departments have taken a back seat and let outside counsel manage their discovery needs.

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