Tag Archives: liability

A Reasonable Security Blanket

Fear the data breach.  Companies large and small worry that a security lapse compromising personal information may hurt their customers or employees and expose the organization to costly liability and a damaged reputation.  But recent developments suggest that comfort may still be found in keeping privacy promises and keeping up with “reasonable security” best practices. … Continue Reading

The Legal Implications of BYOD (Part II) – Preparing Personal Device Use Policies

In our last "bring your own device" post we explored some of the key security, privacy and incident response issues related to BYOD. These issues are often important drivers in a company's decision to pursue a BYOD strategy and set the scope of personal device use within their organization. If the risks and costs associated with BYOD outstrip the benefits, a BYOD strategy may be abandoned altogether. One of the primary tools (if not the most important tool) for addressing such risks are BYOD-related policies. Sometimes these policies are embedded within an organization's existing security and privacy policy framework. More frequently, however, companies are creating separate personal device use policies that stand alone or work with/cross-reference existing company security, privacy and incident response polices. This post lays out the key considerations company lawyers and compliance personnel should take into account when creating personal device use policies and outlines some of the important provisions that are often found in such policies. … Continue Reading

EMI v. Comerica: Court Finds Bank’s Security is Commercially Reasonable — Bank Loses Motion for Summary Judgment

An odd result -- we know. We previously reported on the lawsuit filed by Experi-Metal, Inc. ("EMI") and the subsequent motion for summary judgment (and briefs) filed by Comerica Bank to have the case dismissed. As reported in July, the U.S. District Court for the Eastern District of Michigan has issued a ruling on Comerica's motion for summary judgment. To make a long story short, the Court denied Comerica's motion and this case appears headed toward trial (or potentially settlement). In the course of its ruling the Court found that Comerica had utilized commercially reasonable security procedures. However, that ruling had more to do with the language in Comerica's contracts than an actual substantive analysis of the reasonableness of Comerica's security. In this blogpost, we take a look at the Court's ruling. … Continue Reading

EMI v. Comerica: Comerica’s Motion for Summary Judgment

Back in February 2010, we reported on an online banking lawsuit filed by by Experi-Metal Inc. ("EMI") against Comerica (the "EMI Lawsuit"). As you might recall this case involved a successful phishing attack that allowed the bad guys to get the EMI's online banking login credentials and wire transfer about $560,000 from EMI's account (the original amount was $1.9 million, but Comerica was able to recover some of that). The bad guys were able to foil Comerica's two factor token-based authentication with a man in the middle attack. Comerica did not reimburse EMI for the loss, and this lawsuit resulted. In April 2010, Comerica filed a motion for summary judgment in order to dismiss the case. The motion has been fully briefed by both sides, and this blogpost looks at the arguments being made by the parties … Continue Reading

What’s in Google’s SaaS Contract with the City of Los Angeles? Part Three.

This blogpost is the third (and final) in our series analyzing the terms of Google's and Computer Science Corporation's ("CSC") cloud contracts with the City of Los Angeles. In Part One, we looked at the information security, privacy and confidentiality obligations Google and CSC agreed to. In Part Two, the focus was on terms related to compliance with privacy and security laws, audit and enforcement of security obligations, incident response, and geographic processing limitations, and termination rights under the contracts. In Part Three, we analyze what might be the most important data security/privacy-related terms of a Cloud contract (or any contract for that matter), the risk of loss terms. This is a very long post looking at very complex and interrelated contract terms. If you have any questions feel free to email me at dnavetta@infolawgroup.com … Continue Reading

Information Security Clauses and Certifications – Part 1

Service contracts that involve protected personal information should include provisions allocating responsibility for protecting that information and responding to security breaches. Increasingly, this means incorporating specific references to applicable laws and information security standards, and often certifications of conformance. … Continue Reading
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