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Legal Issues around Cloud Computing

legal issues with cloud storage

Legal Issues around Cloud Computing

Cloud computing brings amazing advantages and benefits companies. But it also brings some challenges. There are several legal issues that you must consider when moving into the cloud. Let’s see which are the most challenging legal issues around cloud computing and how to overcome them.

Security Procedures

The majority of companies which implemented cloud solutions and services do not have security procedures in place. Also, they lack measures to approve or evaluate cloud applications. When adopting the BYOD trend for example, organizations needed these security procedures more than ever. General data security trainings, multiple levels of security, rigorous procedures to use one’s own device and to transfer or copy data are some of the options available to protect data in organizations. The bottom line is that security procedures must be established according to every company’s objectives and workflow.

Third-Party Access Issues

Third-party involvement could be a risk. All third parties using a multi-tenant shared cloud are using the same administration interface, so make sure you use multi-factor authentication and enhanced security. Also, look for HIPAA-compliant providers – a business associate agreement (BAA) with a third-party vendor who accesses Protected Health Information (PHI) is necessary to ensure privacy and security requirements. A partnership with a HIPAA solutions provider that signs a BAA is an efficient method to ensure this goes smoothly and everything is secure. And don’t forget to analyze the terms and conditions before signing up for a cloud-based service.

Intellectual Property Rights

Intellectual Property Rights differ from one country to another, so it is not very clear what intellectual property laws will apply in the cloud computing environment. Make sure you know the regulations and rights of the country where you store your data. The provider you choose should know how to protect the intellectual property it stores and how to avoid potential infringement pitfalls.

Confidential Data Theft Attacks

Data stored in the cloud might be compromised or breached. Therefore, most cloud computing providers also offer the customer different levels of security protection, which allows for more enhanced security. Encryption might have failed to protect data from theft attacks, but there are other methods that you can implement. Some examples include monitoring data access in the cloud to detect abnormal data access patterns. The customer must understand the cloud provider’s disclosure policy and how quickly they would disclose the breach. Most of the U.S. states have security breach disclosure laws requiring the provider to inform the customers when their data has been compromised.

The Service Level Agreement should mention many of these legal issues. You must understand all the terms of the cloud’s provider and consider the enterprise’s needs and objectives before signing an agreement.

What are your thoughts on this topic? Did you ever deal with any of the legal issues mentioned in this article? Really curious to hear how you solved the problem. Feel free to add your opinions in the comments section below.

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