Legal Issues on The Cloud

Another issue is that of intellectual property and the security of trade secrets. The solution to this is encryption. Many vendors encrypt data so that external parties may not access the information. However individuals may take additional precautions by encrypting it before uploading. Another issue where reading the terms of a contract may be of benefit is third party access. Some vendors have clauses where select parties may be granted access to the information stored. However this must be disclosed in a vendor agreement.

Legal Issues on The Cloud

Along the lines of physical damage, being that you are not in possession of the servers you must rely on the vender for security. Hacking has become an evermore-increasing threat to data integrity and being that the data is hosted on the Internet it is seemingly more vulnerable. The scope of this matter has garnered more attention recently; as a result companies are offering cyber insurance,where in the event of a breach the customer would be compensated on behalf of the vendor.

Legal Issues on The Cloud

Being that you are not physically in position of the servers hosting your data where does the responsibility of your data lie? Given Google as an example, their 10-Q states “Our systems are vulnerable to damage or interruption from earthquakes, terrorist attacks, floods….. “ This is another issue that is vendor specific and it may be the case that you would lose your data, furnishing the question should you back up your back ups? However this is not necessary as many vendors uphold stringent policies to store data in multiple locations and maintain security of said locations.

Legal Issues on The Cloud

As the cloud intends to reach everyone everywhere an issue arises of the physical location of your data. This is of importance as regulation differs from region to region and depending on where you data is physically stored lies the jurisdiction. Giving rise to the question if a legal dispute arises who has jurisdiction your location or your vendors? The answer depends on you individual vendor agreement.