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E X E C U T I V E O V E R V I E W
© 2015 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.
Data Law 2015
THE OUTLOOK FOR DATA E-DISCOVERY, PRIVACY AND PROTECTION
KEY FINDINGS
ƒƒ US IT vendors are at a competitive disadvantage in international business due to international perceptions about
the lack of data privacy protection in the US.
ƒƒ Data discovery, privacy and protection will continue to grab media headlines and public concern in 2015. Never-
theless, corporate organizations will continue to treat data legal exposure and regulatory compliance as a form of
legalized gambling, not wanting to pump money into endeavors where there’s no tangible return on investment
– despite the lessons of The Home Depot, Sony, Target and TJX.
ƒƒ Although many argue that comprehensive information governance (IG) is an effective way to address these legal
and regulatory challenges, for the third year in a row, data from our annual 451 Research survey indicates IG is
still not a corporate priority, leaving many corporate organizations exposed to legal liability and monetary losses.
ƒƒ We expect both the e-discovery amendments in the US and the EU GDPR to be approved in 2015. However, we
predict the effect of the US e-discovery amendments will be minimal, and the EU regulations would not take effect
until 2017. In addition, we caution that, although the GDPR was approved by the European Parliament in March
2014, it must still be approved by the European Council, and political pressures could affect ultimate passage.
As legal changes continue to multiply across the globe, new alarm over data privacy and almost daily data
breaches made data law a critical topic during 2014 – and there will be more of the same in 2015. In this
report, we analyze developments in e-discovery, data privacy and data protection; look ahead to upcoming
data legal landmines in 2015; and analyze how these laws affect corporate business.
FEB 2015
© 2015 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.
451 RESEARCHE X E C U T I V E O V E R V I E W
REPORT SNAPSHOT
TITLE			 Data Law 2015
ANALYST		 David Horrigan, Esq., Analyst and Counsel,
			 Information Governance and Compliance
RELEASE DATE	 February 2015
LENGTH		 25 pages
ABOUT THIS REPORT
Increasing concern over data breaches and privacy made data law a critical concern in
2014, and its importance is only set to increase. However, our research shows corpo-
rate organizations are not giving data governance the attention it deserves. Only a
third of senior executives believe information governance is very important.
This report reviews data from 451 Research’s ChangeWave and TheInfoPro services to
examine the state of data law in 2014 and how it will evolve in 2015. The coming year
is set to be a time of significant change in the world of data law, in both the US and the
world at large.
Data Law 2015
© 2015 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.
TABLE OF CONTENTS
SECTION 1: EXECUTIVE SUMMARY	 1
1.1 INTRODUCTION  .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 1
1.2 KEY FINDINGS .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 2
1.3 METHODOLOGY .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 3
SECTION 2: AN OVERVIEW OF DATA LAW: DISCOVERY, PRIVACY
AND PROTECTION	 4
2.1 DEFINING DATA LAW .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 4
Figure 1: The Three Components of Data Law . . . . . . . . . . . . . . . . . . . . . 4
2.1.1 Data Discovery .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5
2.1.2 Data Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1.3 Data Protection .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 7
SECTION 3: DATA DISCOVERY LAW IN 2015	 8
3.1 US FEDERAL RULES OF CIVIL PROCEDURE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8
Figure 2: Various Bodies Must Approve Amendments to the US Federal
Rules of Civil Procedure .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .  10
Figure 3: 2014 US E-Discovery Decisions  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12
SECTION 4: DATA PRIVACY LAW IN 2015	 14
4.1 EU GENERAL DATA PROTECTION REGULATION  .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .  14
4.2 US-EU SAFE HARBOR FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . 17
4.3 ADDITIONAL INTERNATIONAL DATA PRIVACY LAW DEVELOPMENTS  .  .  .  .  .  . 18
Figure 4: Data Privacy Rulings Around the World .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 18
SECTION 5: DATA PROTECTION LAW IN 2015	 19
5.1 EU GENERAL DATA PROTECTION REGULATION  .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .  19
5.2 US DATA BREACH LAWS AND REGULATIONS .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 19
5.3 DATA BREACH ENFORCEMENT .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   . 21
Figure 5: Data Breach Enforcement Under the Federal Trade Commission Act .  .  .  .  . 23
SECTION 6: CONCLUSIONS	 25
INDEX OF COMPANIES	 26
© 2015 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.
451 RESEARCHE X E C U T I V E O V E R V I E W
ABOUT 451 RESEARCH
451 Research is a preeminent information technology research and advisory
company. With a core focus on technology innovation and market disruption,
we provide essential insight for leaders of the digital economy. More than 100
analysts and consultants deliver that insight via syndicated research, advisory
services and live events to over 1,000 client organizations in North America,
Europe and around the world. Founded in 2000 and headquartered in New
York, 451 Research is a division of The 451 Group.
© 2015 451 Research, LLC and/or its Affiliates. All Rights Reserved. Reproduction and distribution of
this publication, in whole or in part, in any form without prior written permission is forbidden. The
terms of use regarding distribution, both internally and externally, shall be governed by the terms
laid out in your Service Agreement with 451 Research and/or its Affiliates. The information contained
herein has been obtained from sources believed to be reliable. 451 Research disclaims all warran-
ties as to the accuracy, completeness or adequacy of such information. Although 451 Research may
discuss legal issues related to the information technology business, 451 Research does not provide
legal advice or services and their research should not be construed or used as such. 451 Research
shall have no liability for errors, omissions or inadequacies in the information contained herein or for
interpretations thereof. The reader assumes sole responsibility for the selection of these materials to
achieve its intended results. The opinions expressed herein are subject to change without notice.
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451 Research - Data Law 2015 - The Outlook for Data E-Discovery, Privacy and Protection - Executive Summary

  • 1. E X E C U T I V E O V E R V I E W © 2015 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED. Data Law 2015 THE OUTLOOK FOR DATA E-DISCOVERY, PRIVACY AND PROTECTION KEY FINDINGS ƒƒ US IT vendors are at a competitive disadvantage in international business due to international perceptions about the lack of data privacy protection in the US. ƒƒ Data discovery, privacy and protection will continue to grab media headlines and public concern in 2015. Never- theless, corporate organizations will continue to treat data legal exposure and regulatory compliance as a form of legalized gambling, not wanting to pump money into endeavors where there’s no tangible return on investment – despite the lessons of The Home Depot, Sony, Target and TJX. ƒƒ Although many argue that comprehensive information governance (IG) is an effective way to address these legal and regulatory challenges, for the third year in a row, data from our annual 451 Research survey indicates IG is still not a corporate priority, leaving many corporate organizations exposed to legal liability and monetary losses. ƒƒ We expect both the e-discovery amendments in the US and the EU GDPR to be approved in 2015. However, we predict the effect of the US e-discovery amendments will be minimal, and the EU regulations would not take effect until 2017. In addition, we caution that, although the GDPR was approved by the European Parliament in March 2014, it must still be approved by the European Council, and political pressures could affect ultimate passage. As legal changes continue to multiply across the globe, new alarm over data privacy and almost daily data breaches made data law a critical topic during 2014 – and there will be more of the same in 2015. In this report, we analyze developments in e-discovery, data privacy and data protection; look ahead to upcoming data legal landmines in 2015; and analyze how these laws affect corporate business. FEB 2015
  • 2. © 2015 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED. 451 RESEARCHE X E C U T I V E O V E R V I E W REPORT SNAPSHOT TITLE Data Law 2015 ANALYST David Horrigan, Esq., Analyst and Counsel, Information Governance and Compliance RELEASE DATE February 2015 LENGTH 25 pages ABOUT THIS REPORT Increasing concern over data breaches and privacy made data law a critical concern in 2014, and its importance is only set to increase. However, our research shows corpo- rate organizations are not giving data governance the attention it deserves. Only a third of senior executives believe information governance is very important. This report reviews data from 451 Research’s ChangeWave and TheInfoPro services to examine the state of data law in 2014 and how it will evolve in 2015. The coming year is set to be a time of significant change in the world of data law, in both the US and the world at large.
  • 3. Data Law 2015 © 2015 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED. TABLE OF CONTENTS SECTION 1: EXECUTIVE SUMMARY 1 1.1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 KEY FINDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.3 METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 SECTION 2: AN OVERVIEW OF DATA LAW: DISCOVERY, PRIVACY AND PROTECTION 4 2.1 DEFINING DATA LAW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Figure 1: The Three Components of Data Law . . . . . . . . . . . . . . . . . . . . . 4 2.1.1 Data Discovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.1.2 Data Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.1.3 Data Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 SECTION 3: DATA DISCOVERY LAW IN 2015 8 3.1 US FEDERAL RULES OF CIVIL PROCEDURE . . . . . . . . . . . . . . . . . . . 8 Figure 2: Various Bodies Must Approve Amendments to the US Federal Rules of Civil Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Figure 3: 2014 US E-Discovery Decisions . . . . . . . . . . . . . . . . . . . . . . . . 12 SECTION 4: DATA PRIVACY LAW IN 2015 14 4.1 EU GENERAL DATA PROTECTION REGULATION . . . . . . . . . . . . . . . . 14 4.2 US-EU SAFE HARBOR FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . 17 4.3 ADDITIONAL INTERNATIONAL DATA PRIVACY LAW DEVELOPMENTS . . . . . . 18 Figure 4: Data Privacy Rulings Around the World . . . . . . . . . . . . . . . . . . . 18 SECTION 5: DATA PROTECTION LAW IN 2015 19 5.1 EU GENERAL DATA PROTECTION REGULATION . . . . . . . . . . . . . . . . 19 5.2 US DATA BREACH LAWS AND REGULATIONS . . . . . . . . . . . . . . . . . . 19 5.3 DATA BREACH ENFORCEMENT . . . . . . . . . . . . . . . . . . . . . . . . 21 Figure 5: Data Breach Enforcement Under the Federal Trade Commission Act . . . . . 23 SECTION 6: CONCLUSIONS 25 INDEX OF COMPANIES 26
  • 4. © 2015 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED. 451 RESEARCHE X E C U T I V E O V E R V I E W ABOUT 451 RESEARCH 451 Research is a preeminent information technology research and advisory company. With a core focus on technology innovation and market disruption, we provide essential insight for leaders of the digital economy. More than 100 analysts and consultants deliver that insight via syndicated research, advisory services and live events to over 1,000 client organizations in North America, Europe and around the world. Founded in 2000 and headquartered in New York, 451 Research is a division of The 451 Group. © 2015 451 Research, LLC and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication, in whole or in part, in any form without prior written permission is forbidden. The terms of use regarding distribution, both internally and externally, shall be governed by the terms laid out in your Service Agreement with 451 Research and/or its Affiliates. The information contained herein has been obtained from sources believed to be reliable. 451 Research disclaims all warran- ties as to the accuracy, completeness or adequacy of such information. Although 451 Research may discuss legal issues related to the information technology business, 451 Research does not provide legal advice or services and their research should not be construed or used as such. 451 Research shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice. New York 20 West 37th Street, 6th Floor New York, NY 10018 Phone: 212.505.3030 Fax: 212.505.2630 San Francisco 140 Geary Street, 9th Floor San Francisco, CA 94108 Phone: 415.989.1555 Fax: 415.989.1558 London Paxton House (5th floor), 30 Artillery Lane London, E1 7LS, UK Phone: +44 (0) 207 426 0219 Fax: +44 (0) 207 426 4698 Boston 125 Broad Street, 4th Floor Boston, MA 02109 Phone: 617.275.8818 Fax: 617.261.0688