Using the words of Max Weber «the rationalization and systematization of the law in general and … the increasing calculability of the functioning of the legal process in particular, constituted one of the most important conditions for the existence of … capitalistic enterprise, which cannot do without legal security»[39]. Dennis Garcia – Associate General Counsel, Microsoft Inc. almost every major US internet or software company. [39] Quoted in D.M. Cloud technologies often provide the basic technological platform for server-based applications (eg, a retailer’s payment system or a bank’s accounting system). Usiamo Mailchimp come piattaforma per gestire la nostra newsletter. When it comes to information generated inside the cloud, however, the situation changes. Exploitation of system and software vulnerabilities within … [2] M. Valsania, Microsoft, ricavi oltre i 100 miliardi grazie al cloud, Il Sole 24 Ore, 20 July 2018, available at: http://www.ilsole24ore.com/art/finanza-e-mercati/2018-07-20/microsoft-bilancio-alto-grazie-cloud-ricavi-oltre-100-miliardi-072229.shtml?uuid=AED0rkPF, [4] Compared to the same trimester in 2017, [5] T. Mell – P. Grance, The NIST Definition of Cloud Computing, US Department of Commerce, 2012, [6] B. Halpert, Auditing Cloud Computing: A Security and Privacy Guide, John Wiley & Sons, 2011, p. 2, [9] See P. Kumar – R. Kumar, Optimal resource allocation approach in cloud computing environment, 2016 2nd International Conference on Next Generation Computing Technologies (NGCT), Dehradun, 2016, pp. Any bank considering a move to cloud must first ensure that it is compliant, and is continually taking the necessary steps to comply, with the Banking Cloud Rules. On this matter, see also the Proposal for a Directive of the European Parliament and of the Council on the protection of individuals with regard to the processing of personal data by competent authorities for the purposes of prevention, investigation, detection or prosecution of criminal offences or the execution of criminal penalties and the free movement of such data n. 12555/15, available at: http://data.consilium.europa.eu/doc/document/ST-12555-2015-INIT/en/pdf, [36] A full list of companies is available at: https://www.privacyshield.gov/list, [37] P. Van Eeche, Cloud Computing Legal issues, DLA Piper, 2014. For SaaS services, however, excluding the applicability of the GDPR without sufficient grounds, could turn into a delicate and possibly dangerous decision – not only for the possible fines that go up to €20 million or 4% of the worldwide annual revenue (whichever is higher), but also for the reputation of the company. However, all this does not come for free, and the legal implications of this technology are delicate, numerous and often hidden in complexity. According to Oppenheim (2011), “ All EU member states have data protection laws that are broadly similar, as they are obliged to implement the EU Directive on data protection, but even in these cases, the laws aren’t identical” (p. 26). In similar cases, for instance in scenarios of loss of data, the company might suffer financial damage due to the compensation that would have to provide to the customer both for the actual loss as well as for the loss of profits as a consequence of the breach. We then analysed litigation where PAEs were plaintiffs. Cliccando iscriviti confermi di sapere che le tue informazioni saranno trasferite a Mailchimp per essere processate. The physical layer is the hardware necessary to support the cloud services (such as servers, wires, physical infrastructures and storage capacity)[11], while the abstraction layer is the algorithm (software) which allows the interaction between the physical components. We’ve discussed cloud computing risks at some length, so it’s helpful to remember whatis at risk. No one would think that putting data in the cloud would be able to change its ownership status[31], that is – among others – protected under copyright law. . Bringing back the initial question, what are the legal issues that arise from cloud computing and its multiple-layer structure? 144 Nuovo Codice Privacy – D.lgs 196/2003 aggiornato al D.lgs 101/2018. What Information is Regulated?, Queen Mary University of London, School of Law Legal Studies Research Paper, 2011, [13] Jamsa, Cloud computing, Jones & Bartlett Publishers, 2012, p. 6, [14] Defining IaaS, PaaS and SaaS, IBM, 2018, available at: https://www.ibm.com/cloud/learn/iaas-paas-saas, [18] K. Selden, Rethinking the Cloud: Legal Aspects of Cloud Solutions, University of Colorado, Technical Services Law Librarian, 2013, p. 34, [20] See A.S.Y. As broadly written cloud-related patent claims may cover an unforeseeable range of solutions that run on the Cloud, companies which use cloud computing technologies face an unpredictable level of legal risk. In the second part there will be an overview of the most relevant issues around cloud computing and its three service layers. Services in the Cloud. But it carries risks, both technical and legal. The Banking Cloud Rules also set out comprehensive guidelines which banks must follow in order to comply with the regulator’s requirements on the use of cloud computing and/or offshoring of data. In the EU, the Directive 2000/31/EC (E-Commerce directive) protects cloud providers with an exception for liability in case the cloud provider only engages in the activity of caching[38] data (thus, when it does not modify of have actual knowledge and control over the information). The ability to engage in Cloud Computing is not limited by the specific location of the remote server, although some of the factors noted above, including choice of law clauses, and concerns about access to data in the event of a service interruption or an emergency, may be implicated by the location of the storage server and the extent of backup service provided by the vendor. Cloud computing has many legal and ethical issues that is preventing its adoption to world wide. Elasticity: defined as the ability to «scale rapidly outward and inward commensurate with demand». Here are six key questions to consider before sailing off into the public cloud. The most controversial case, for instance, happens in data mining cases where the cloud generates/finds new content. The same applies to services interruption and a myriad of other examples concerning customers’ data. Potrai cancellare la tua iscrizione in qualsiasi momento cliccando il link presente in calce a ogni nostra email. Cloud companies usually provide one or more service layers to their clients; these services can contain both a physical as well as an abstraction layer. (e) the provider acts expeditiously to remove or to disable access to the information it has stored upon obtaining actual knowledge of the fact that the information at the initial source of the transmission has been removed from the network, or access to it has been disabled, or that a court or an administrative authority has ordered such removal or disablement […]». Nevertheless, a company’s cloud-based applications or services may still relate to those early patents. This course covers the sixth domain of the exam: Legal, Risk and Compliance. This poses some threats for its reputation as well as it exposes the company to civil liability that might arise because of the breach. Trubek, Max Weber on Law and the Rise of Capitalism, Yale Law School Legal Scholarship Depository, 1972, Avendo preso visione dell'informativa sulla Privacy di CyberLaws, presto il mio consenso ad essere contattato per la newsletter e altre iniziative di marketing di CyberLaws. Security issues. If a data breach wasn’t bad enough, there is an even worse cloud security threat - it can … In fact, not only the company would have to declare the breach to the supervisory authority[33], but also to the data subject[34]. In a word, the Cloud Computing Data Center IT Asset Disposition (ITAD) Market report provides major statistics on the state of the Cloud Computing Data Center IT Asset Disposition (ITAD) industry with a valuable source of guidance and direction … ORLANDO -- Enterprises that store data with cloud providers may no longer have physical control over it, but they're still on the hook legally for its protection and security. Operational 4. Many of these cloud server technologies were developed and patented several years before cloud computing was widely adapted for multiple industries. This is a co-published article whose content has not been commissioned or written by the IAM editorial team, but which has been proofed and edited to run in accordance with the IAM style guide. Adopting this view could definitely bring an advantage to large companies, particularly to those that offer services such as IaaS or PaaS. Let’s think about information ownership, for instance. Tim Pohlmann Defendants involved in multiple cloud-related patent litigation included: However, the defendants that were sued by PAEs included: The results confirmed that PAE litigation in the cloud space clearly targets industry leaders, and that a wide range of industries is involved in cloud computing patent litigation. In the case of the US, the cloud provider need to be indicated in the “Privacy shield list”[36] available on the official International Trade Administration of the U.S. Department of Commerce. Recalling that cloud computing services and products often operate using multiple systems and technologies, the data suggests that these services and products have an increased risk of litigation, since the patented cloud technologies at their core were once subject to legal action. False Advertising; Unfair and Deceptive Practices. [33] Pursuant to article 33 of the GDPR, «In the case of a personal data breach, the controller shall without undue delay and, where feasible, not later than 72 hours after having become aware of it, notify the personal data breach to the supervisory authority competent in accordance with Article 55, unless the personal data breach is unlikely to result in a risk to the rights and freedoms of natural persons». So, through this article I will explain to you the legal risks involved in Windows 8 cloud computing. The legal risks of cloud services Introduction. Companies increasingly store sensitive data in the cloud. © 2020 CyberLaws. CommentThis research is an extract of an ongoing study around patent activities in the space of cloud computing. As it is pointed out by P. Paschalidis, Freedom of Establishment and Private International Law for Corporations, UOP Oxford, 2012, par. Vendor 5. Australian Cloud providers have been given a boost following warnings from a legal expert on the risks associated with hosting data offshore. Multitenancy: which allows the service to be available – through virtualization and resource pooling – over a wide set of devices. As covered entities maintain and transmit more and more data electronically, cloud computing may become attractive and cost-effective. What is technically easy, however, could bring serious legal complications, and in the same way that the cloud environment is made by different layers of services (Software, Platform and Infrastructure as a service), it is also made by several layers of risks which include every thinkable area of the law. 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