1. Best Practices for Long Term Digital Archival In the beginning there was a stone and a tablet… Peter Mojica VP, Product Strategy, Mgmt AXS-One Inc. www.axsone.com
23. I should’ve considered the bigger picture… CIO on the run. . . c’ya CIO on the run. . . c’ya I should’ve considered the bigger picture… CIO CIO CIO CIO
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25. May 2005 Mar 2007 Print this article Close This Window Morgan Stanley case highlights e-mail perils Fri May 20, 2005 5:45 PM BST By Michael Christie MIAMI (Reuters) - The $1.45 billion judgement against Morgan Stanley for deceiving billionaire Ronald Perelman over a business deal has a lesson all companies should learn -- keeping e-mails is now a must, experts say . Banks and broker-dealers are obliged to retain e-mail and instant messaging documents for three years under U.S. Securities and Exchange Commission rules. But similar requirements will apply to all public companies from July 2006 under the Sarbanes-Oxley corporate reform measures. At the same time, U.S. courts are imposing increasingly harsh punishments on corporations that fail to comply with orders to produce e-mail documents, the experts said . Where judges once were more likely to accept that incompetence or computer problems might be to blame, they are now apt to rule that non-compliance is an indication a company has something to hide. "Morgan Stanley is going to be a harbinger," said Bill Lyons, chief executive officer of AXS-One Inc. <AXO.A>, a provider of records retention software systems. "I think general counsels around the world are going to look at this as a legal Chernobyl .“ Wednesday's $1.45 billion verdict against Morgan Stanley in West Palm Beach, Florida, was the product of just such a negative ruling on e-mail retention, which is also expected to form the backbone of the Wall Street firm's appeal. Circuit Court Judge Elizabeth Maass, frustrated at Morgan Stanley's repeated failure to provide Perelman's attorneys with e-mails, handed down a pretrial ruling that effectively found the bank had conspired to defraud Perelman when he sold Coleman Co. to appliance maker Sunbeam Corp. in 1998. Morgan Stanley was working for Sunbeam, which entered bankruptcy in 2001, rendering worthless the shares Perelman had received in part payment for Coleman. In a rare step, Maass switched the burden of proof to Morgan Stanley, and instructed the jury solely to decide whether Perelman had relied on Morgan Stanley. Morgan Stanley says that ruling denied it a fair trial. But Eric Rosenberg, a former litigator with Merrill Lynch and now president of e-mail policy consultants LitigationProofing, said Maass was within her rights to rule as she did and could have even taken a more drastic step of issuing a default judgement and taking the verdict out of the jury's hands. Other cases have also resulted in rulings on e-mails. Last July, U.S. District Judge Shira Scheindlin found that Swiss bank UBS <UBSN.VX> had willfully destroyed potential e-mail evidence in a sex discrimination case brought by equity saleswoman Laura Zubulake. The judge ordered UBS to pay Zubulake's costs, and a jury later awarded her $29.2 million. Experts said e-mail retention could be a double-edged sword if not accompanied by corresponding training for employees on the legal implications of e-mails they send. When New York Attorney General Eliot Spitzer investigated the research divisions of Wall Street firms five years ago, he fined Morgan Stanley a little under $10 million for not having a proper e-mail retention policy in place. Merrill Lynch, however, which did have good backup systems and was able to produce relevant e-mails, had to pay over $100 million because some e-mails contained compromising material. "I guess I would put it as 'no good deed went unpunished'," said former Merrill Lynch counsel Rosenberg. Jay Ritter, a professor of finance at the University of Florida, said a danger was that among millions of legitimate e-mails, investigators might find one flippant comment from a low-level manager and take it as reflecting company policy. "There's a reason why certain people, why lawyers like to talk on the phone rather than have any written record of conversations," Ritter said.
34. The Industry for Archival As it relates to our long term digital records management of ESI What Do Canals and Railroads Have in Common With the Archival and Compliance Industry ? * Andy Grove, Intel CEO conference 2001 I recently heard Andy Grove, of Intel, say "The convergence of computers, telephones, and cable TV is like water meeting land - new life forms are likely to be created ." TIME
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36. Is this the problem? if yes, then we are spending 100% of our time to solve a very small percentage of the problem the reality is that companies trust their employees and most all employees do the right thing, trust is not the issue
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Editor's Notes
Andy Grove of Intel says that there have been three great stories of the introduction of technology in ways that have transformed the economy, that have led to boom and bust cycles. One is canals, late 18th century, early 19th century, brought down the price of coal 85% in a very, very short period of time. About 100 years later, railroads entered into not just consciousness but into the economy in England and the United States. And now, the Internet. Well, canals were funded with public money in many places. It was usually a municipal or state enterprise to build a canal. The railroads in the United States were funded in significant part by the gift of one-tenth of the public property of America to about 37 separate companies in order to incentivise them to build railroads. Those are the rights of way that they owned for many, many years and ended up giving away to immigrants in order to put customers out there where they were building the railroads. So, the notion that politics or policy, the legal culture, however you want to define it, the notion that shapes and creates opportunity, that's as old as there was ever technology. Convergence: Business and Technology
