CLOUD COMPUTING
Cloud Computing generally helps reducing costs as there exists no need to invest in hardware and other physical infrastructure, and the data is stored on a secure location wherein the users only pay for what they use, and hence, there are no licensing fees associated with cloud computing.
However, there are some important legal issues surrounding cloud computing, which are relevant for business owners who are using cloud or who are planning to shift to the cloud.
One of the major issues is that the data may be stored in any country and in case a conflict arises between the cloud vendor and the customer, an important question could be that which country’s court system will settle the dispute.
Secondly, in case a privacy breach occurs due to a fault of cloud vendor, issues regarding liability coverage policy taken up by the vendor may arise. In recent times, the scope of breach of privacy has widened considerably in the field of cyber insurance. For example, some insurance carriers offer coverage even for breach of minor information and the customer is compensated on behalf of the cloud vendor.
Intellectual Property Rights protection may become a major issue may arise in case date (like songs, videos, photographs, literature, etc) is created by user, and it gets misused or infringed.
In certain case, the vendor may grant some privileged third parties access to the stored data and the identity of such parties, if any, may not be disclosed to the customer. As a standard practice, the customer should always be informed before the vendor allows third parties to access the stored data.
In case you wish to obtain customized consultancy and advice regarding cloud computing, please feel free to mail us at info@techcorplegal.com.