Cloud Computing and Business: A JD Supra Legal Reader

For your reference, here’s what lawyers and law firms are writing about cloud computing. A business law reading list:

A Legal Guide to Cloud Computing (by Scott & Scott LLP):

“Even though cloud computing promises huge cost savings, the risks
associated with cloud computing are significant. One of the main
characteristics of a cloud-based service is that customer data is being
stored and processed by the vendor. This basic design feature creates
business risks, regulatory responsibilities, and legal risks which need
to be identified and addressed by both the customer and the vendor.
Each party must completely understand these risks in order to have a
successful cloud computing deal…” Read more>>

Safely Storing Confidential Customer Data in the Cloud (by Dinsmore & Shohl):

“…Businesses should understand, both from a legal and
technological perspective, how to use cloud computing safely to store
personal data about their customers. Some privacy and data security laws have been in place for years.
For instance, HIPAA regulates the privacy and security of medical
information, the Graham-Leach-Bliley Act controls how financial
institutions must safeguard customer data, and the European Union’s
privacy directives regulate…” Read more>>

Who is Mining the Store? Corporate Governance and Data Privacy/Security Issues (by Fox Rothschild):

“The key component to the successful implementation of cloud computing is the agreement between the customer and the third-party service provider. To avoid costly mistakes, a customer must craft an agreement that addresses anticipated problems such as: (i) where will the data reside and will it be backed up? (ii) who will have access to the data and will there be different levels of access? (iii)who will supervise the project and will there be monitoring and auditing of the policies and procedures? and (iv) what security measures are in place?” Read more>>

Cloud Computing: The Issues Are Cloudy in the Clouds (by John Watkins):

Includes “a list of issues that one might wish to consider asking a vendor or otherwise considering in entering into a possible cloud computing arrangement: What contractual obligation will you assume to protect my data? What contractual obligation will you assume regarding uptime, if any?”  Read more>>

How a data-escrow agreement with your hosting provider can potentially save your business (by Jason Molder):

“…the hosting provider is typically required to mirror the data you store with it (at an agreed-upon frequency) with yet another third party, the data escrow agent. The data escrow agent then holds a copy of the data, should access to it ever be necessary. Both the data escrow agreement with your hosting provider, and the terms of the actual escrow agreement with the data escrow agent, should address in detail who can access the data, when, and under what terms.” Read more>>

When Cloud Computing Meets E-Discovery Obligations (by Carlton Fields):

“A company utilizing a cloud vendor should make every effort to avoid a situation in which it is charged with the ability to preserve and produce electronically stored information (ESI) but lacks the authority – or at least the clear authority – to discharge its obligations…” Read more>>

Protecting Innovation in Cloud Computing (by Christopher Palermo):

“…does cloud computing require fundamental changes in the way that practitioners approach patent drafting and claiming, or other issues of innovation or intellectual property protection? This article concludes that the answer is no, but that special sensitivity is needed to the particular technical context of cloud computing inventions in performing the ordinary services of patent counsel.” Read more>>

Cloud Computing and Outsourcing: Is Data Lost in the Fog? (by Morrison & Foerster):

Written June, 2009 – “…at this point in its development, outsourced cloud computing fails to
address important questions of legal risk associated with knowing where
data is stored and transmitted. This Alert discusses several of these
issues, which must be considered by companies turning to third-party
cloud computing solutions.” Read more>>

The Ethics and Security of Cloud Computing (by Jack Newton, Clio):

Focused on considerations in the legal profession, but offering insights and perspective of value to all businesses. Includes overviews of the benefits of cloud, ethics issues, a security checklist, a privacy checklist… Read more>>

(Also see from Clio: Is Cloud Computing Green Computing?)

Related: On Cloud Computing and the Legal Profession


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(Anything to add? Let me know.)