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Legal issues in Commercial and Business Considerations

Any organisation dealing with sensitive/personal information must regulate this information carefully to avoid legal disputes in case of any discrepancies. Legal contracts must be drawn to ensure that the liability of data is shifted to the side of the user and the organisation is insulated from any issues pertaining to content such as copyright infringement, illegal data, and classified information.
Businesses need to have expectations right when it comes to legal issues related to the cloud. What kind of information does the user/employees of a company store in the cloud are to be strictly monitored and regulated. If the company does not have such resources to mediate, then it should have Terms and Agreements duly signed by the user - so that the liability of content/data stored on the cloud is on the user. This way, the business can avoid legal issues. Content issues that may arise includes Copyright infringement, illegal data, classified information etc.
One classic example could be WikiLeaks. It is a website primarily dedicated to provide secret and classified information from corporations and governments. It is currently hosted in servers located in Sweden's former nuclear bunkers, the location for which is unknown. The data is also spread across distributed servers in the world. This way, the cloud service provider has ensured that the data is safe and secure and untraceable. The reason why it is kept like it is because, the cloud service provider that hosts WikiLeaks may get into too much legal trouble because of the content that is being published on the site. Most content are classified by Government across the globe or sensitive information related to major corporations or military secrets. What protects the hosting service provider is the legal agreement and contracts. This way, the legal battle is only on Julian Assange who is the founder of WikiLeaks and not on the cloud service provider.

Compliance Issues

Data compliance is critical in the cloud and is in fact a major area of concern for organisations moving to the cloud. Compliance in the cloud can be categorised into two types
i. Geographic compliance
ii. Industry compliance

i. Geographic compliance:

 With the flow of personal data across borders, geographic locations play a vital role in the storage and processing of data. For instance, what may seem right in the US may be a breach in Canada or Europe. Also different regions within the same country may follow a different set of compliance measures.

ii. Industry compliance: 

Some industries like healthcare and finance pose very stringent compliance measures while working in the cloud. These compliance measures are practiced to make the regulation of sensitive data more centralized.
To avoid any legal issues that might arise from compliance matters, organisations must,
  • Analyse the data to be moved to the cloud. Data that is prone to maximum risk must be kept internal or in the private cloud.
  • Draw a compliance checklist and ensure the cloud provider has the capabilities to protect data with the right compliance framework.
  • Conduct an audit to ensure that compliance measures offered by the provider have been implemented in real.

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