The use of cloud computing in the practice of law. Topics discussed are the advantages and disadvantages of cloud technology, key legal concerns, perspectives of law societies, and various practice management tips.

1. Canadian Legal Technology Forum
St. Andrew’s Club and Conference Centre | Toronto
September 23, 2014
GETYOUR HEAD INTHE CLOUDS!
THE USE OF CLOUD COMPUTING INTHE PRACTICE OF LAW

2. 2
Prepared for
Canadian Legal Technology Forum
St. Andrew’s Club and Conference Centre | Toronto
September 23, 2014

3. 3
Prepared by
Davis LLP is a full-service
business law firm that
delivers cost-effective
advice and efficient service
in over 50 practice areas.
www.davis.ca
SkyLaw is a boutique
corporate law firm offering
sophisticated legal and
strategic advice to public
and private companies.
www.skylaw.ca

4. • Kevin West is the founder of SkyLaw,
an innovative boutique corporate law
firm in Toronto.
• After clerking for Justice Binnie at the
Supreme Court of Canada, Kevin
practiced with Sullivan & Cromwell in
New York and Australia and as a
partner at Davies in Toronto.
• Kevin obtained his LLB from Dalhousie
University in 1998.
4
Presented by
KevinR.West
Founder,
SkyLaw Professional
Corporation

5. 5
Kevin R.West
Timeline

6. • Acquisition of Corriente Resources Inc. by Tongling Nonferrous Metals
Group Holdings Co. Ltd and China Railway Construction Corporation
Limited for $679 million.
• Acquisition of Northern Peru Copper Corp. by China Minmetals
Nonferrous Co. Inc. and Jiangxi Copper Company for $455 million.
• Xstrata plc hostile take-over of Falconbridge Limited for $24 billion.
• Acquisition of PetroKazakhstan Inc. by China National Petroleum
Corporation for $4.2 billion.
• Royal Bank of Canada’s acquisition of Centura Banks, Inc. for $2.3 billion.
6
Kevin R.West
SelectedTransactions List

7. • Kelly Friedman is a partner in Davis LLP’s
Toronto office.
• Kelly is an experienced litigator with
unique expertise in electronic information
issues, including electronic discovery (e-
discovery), data security and privacy.
• Kelly is known for her efficient, no-
nonsense approach to problem solving
and dispute resolution.
• In 2011, Kelly was named as one of
Canadian Lawyer's "Top 25 Most
Influential Lawyers in Canada".
7
Presented by
KellyFriedman
Partner,
Davis LLP

8. 8
Kelly Friedman
Kelly is a recognized leader in electronic discovery and data
management issues:
• She is an expert advisor to Standards Council of Canada, Canada’s
member body in the International Organization for
Standardization (ISO) network, advising and negotiating with
respect to international standards on information technology
security and e-discovery.
• She is the co-editor of ISO 27050-3, Code of practice for
electronic discovery, being part 3 of a developing international
electronic discovery standard.

9. 9
Kelly Friedman (cont.)
• From 2010 to 2014, Kelly acted as Chair of the Canadian working
group of the non-profit think-tank“The Sedona Conference®”
(Sedona Canada) which developed national electronic discovery
principles. Kelly continues to be an active member of the Steering
Committee of Sedona Canada, as well as an active member of The
Sedona Conference Working Group on International Electronic
Information Management, Discovery and Disclosure.
• Kelly is a member of Ontario’s E-Discovery Implementation
Committee (EIC), which prepares model documents to guide
litigators and the judiciary in Ontario, and she is Vice-Chair of the
EIC’s Conference Planning Subcommittee.

10. 10
TOPICS
I. What is Cloud Computing?
II. Advantages of Cloud Computing
III. Disadvantages of Cloud
Computing
IV. Legal Concerns
V. Perspectives of Law Societies
VI. Practice Management Tips
Image
Credit:
ITS
Sheffield
<www.its-­‐sheffield.com/service>

11. • Cloud computing is a powerful tool for today’s law
practice
• Consider the nature of your practice and your
clients to determine the best solution for your firm
• Choose reputable service providers
Examples: Microsoft Office 365, ShareFile, LinkedIn,
Evernote, Asana, etc.
KEY POINTS
11

12. KEY POINTS (cont.)
• Always consider your professional obligation to
maintain client confidentiality
• Change passwords frequently
• Ensure all information is securely backed up off site
12

13. 13
WHAT IS CLOUD COMPUTING?

14. 14
WHAT IS CLOUD COMPUTING?
Image
Credit:
Fletcher,
David.
CloudTweaks.com.
<www.cloudtweaks.com/2012/10/the-­‐lighter-­‐side-­‐of-­‐the-­‐cloud-­‐obscurity>
I.What is Cloud Computing?

15. WHAT IS CLOUD COMPUTING? (cont.)
• Cloud computing is the practice of using a network
of remote servers hosted on the internet to store,
manage and process data
• Access to data and applications occurs online
rather than through a local device
Examples:
Ÿ Email services like Gmail and Outlook.com
Ÿ Data services like iCloud and ShareFile
15
I.What is Cloud Computing?

16. • SaaS is software that is accessed through websites
rather than directly through computers
Examples:
Ÿ Online office services like Microsoft Office 365
and Google Docs
Ÿ Online creative suites like Adobe Creative Cloud
16
WHAT IS SOFTWARE AS
A SERVICE (SaaS)?
I.What is Cloud Computing?

17. HOWWE USE IT
17
Image
Credit:
RaO-­‐report.com
<raO-­‐report.com/region-­‐global/cloud-­‐compuRng-­‐companies-­‐the-­‐next-­‐new-­‐business-­‐fronRer/aTachment/new-­‐business-­‐cloud-­‐compuRng-­‐diagram-­‐small>
I.What is Cloud Computing?

18. HOW ITWORKS
18
• A cloud service provider stores
information on its own physical
server
• Consumers access the server
through online websites
or applications as needed
• It functions much like an
electricity grid
Image
Credit:
Cubeelite.com
<www.fingertecblog.com/2013/12/cloud-­‐compuRng-­‐myths-­‐oh-­‐please.html>
I.What is Cloud Computing?

19. 19
ADVANTAGES OF CLOUD COMPUTING

20. KEY ADVANTAGES
• Decreased Costs
• Accessibility
• Collaborative Platforms
• All-in-one Practice Management Services
• Email Archiving
• Disaster Recovery Services
• Saves Paper & Space
II. Advantages of Cloud Computing
✓
20

21. DECREASED COSTS
• Used only on an‘as needed’basis
• No upfront outlays
• No ongoing maintenance or upgrades
• IT services are often included
• No extra cost for use from multiple computers
• Many services are free
21
II. Advantages of Cloud Computing

22. ACCESSIBILITY
• Access from almost anywhere on almost any
computer or device
• 24/7 services
• Accessible by multiple people
22
II. Advantages of Cloud Computing

23. COLLABORATIVE PLATFORMS
• Easily share documents, data and services
• Allow colleagues, clients and other parties to work
on the same project in an easy and functional
manner
• Only one version of the document exists even with
multiple contributors
Examples:
Ÿ Microsoft Office 365 (SharePoint)
23
II. Advantages of Cloud Computing

24. ALL-IN-ONE PRACTICE
MANAGEMENT SERVICES
• Reduce redundancy
• Work more efficiently
• Create consistency
24
II. Advantages of Cloud Computing

25. EMAIL ARCHIVING
• Store and locate data and communications quickly
and easily
• Central repository
• Synchronization
• Automatic filtering, filing and organizing
• Access from almost any computer or browser
25
II. Advantages of Cloud Computing

26. DISASTER RECOVERY SERVICES
• Significantly faster recovery times
• Cost effective recovery
• Disaster recovery is often included as a free service
26
II. Advantages of Cloud Computing

27. SAVES PAPER & SPACE
• An effective virtual filing system
• Maintain the physical records of executed originals
and material correspondence only
• Hard copies of documents can be produced on an
as needed basis
• Virtual data rooms give instant access without the
cost of printing
27
II. Advantages of Cloud Computing

28. 28
DISADVANTAGES OF CLOUD COMPUTING

29. KEY DISADVANTAGES
• Risk of Technical Failures
• Loss of Control
• Lack of Transparency
• Privacy & Security Risks
III. Disadvantages of Cloud Computing
29

30. RISKS OFTECHNICAL FAILURES
• Access failures
Ÿ Telecommunications connection
Ÿ Cloud server
Ÿ General computer malfunction
• Data loss and corruption
30
III. Disadvantages of Cloud Computing

31. LOSS OF CONTROL
Big picture concerns about loss of control:
• “Cloud computing is the style of computing in
which the users can rent infrastructure, platform or
software services from other vendors without
requiring the physical access to them. It divides the
responsibilities of managing technologies between
two different stakeholders who can be
geographically situated in different corners of the
world.”
31
Karthick
Ramachandran,
Thomas
Margoni,
Mark
Perry,
“Clarifying
Privacy
in
the
Clouds”,
CYBERLAWS
2011:
The
Second
InternaRonal
Conference
on
Technical
and
Legal
Aspects
of
the
e-­‐Society,
p.
3&
4,
IARIA,
2011
III. Disadvantages of Cloud Computing

32. LOSS OF CONTROL (cont.)
• The“[c]loud computing paradigm requires
disturbing levels of trust by users in the servers that
hold their information. Unless there is some means
of totally obfuscating the data, the user needs to
trust that the data stored by the CSP will be used by
them only for the purposes for which it is intended
to be used.”
32
Karthick
Ramachandran,
Thomas
Margoni,
Mark
Perry,
“Clarifying
Privacy
in
the
Clouds”,
CYBERLAWS
2011:
The
Second
InternaRonal
Conference
on
Technical
and
Legal
Aspects
of
the
e-­‐Society,
p.
3&
4,
IARIA,
2011
III. Disadvantages of Cloud Computing

33. LACK OFTRANSPARENCY
• Lack of transparency with respect to cloud service
provider processes, procedures and practices,
including whether or not cloud service providers
sub-contract any of the processing
• Lack of transparency makes it difficult to conduct a
proper risk assessment and to enforce rules
(regarding privacy, RIM, etc.)
33
III. Disadvantages of Cloud Computing

34. LACK OFTRANSPARENCY (cont.)
• Cost drivers
Ÿ Cloud customers are under great pressure to
reduce costs
Ÿ Cloud service providers are under great pressure
to capitalize investment costs
Ÿ To keep prices low, cloud service
providers are more likely to offer
standard terms
34
III. Disadvantages of Cloud Computing

35. PRIVACY & SECURITY RISKS
35
• Breaches of cloud service provider security
• Internet connection breaches
Ÿ Denial of service attacks
Ÿ Eavesdropping
Ÿ DNS spoofing
III. Disadvantages of Cloud Computing

36. 36
LEGAL CONCERNS

37. KEY LEGAL CONCERNS
• Privacy Compliance in the Cloud
• Security Breaches in the Cloud
IV. Legal Concerns
Image
Credit:
www.ecominfotech.biz/images/cloud-­‐7.jpg
37

38. PRIVACY COMPLIANCE INTHE CLOUD
38
IV. Legal Concerns
Image
Credit:
hTp://mscorp.blob.core.windows.net/mscorpmedia/2014/05/ProtecRng-­‐Data-­‐and-­‐Privacy-­‐in-­‐the-­‐Cloud.jpg
Do you know where your personal information is?

39. PRIVACY COMPLIANCE INTHE CLOUD (cont.)
39
• Key privacy obligations at risk in the cloud
Ÿ Consent
Ÿ Retention
Ÿ Accuracy
Ÿ Individual Access
Ÿ Safeguard [Security]
Ÿ Notification
Ÿ Jurisdiction (Legislation / guidelines prohibiting extra-provincial
transfer and triggering obligations in multiple jurisdictions)
IV. Legal Concerns

40. PRIVACY COMPLIANCE INTHE CLOUD (cont.)
40
IV. Legal Concerns
The Canada.com case:
“Assistant Commissioner emphasizes the importance of
organizations assessing the risks that could jeopardize
the security and confidentiality of customer personal
information when it is transferred to foreign-based
third-party service providers. It is essential that
organizations using third-party service providers
outside Canada use contractual or other means to
provide a comparable level of protection while the
information is being processed by the third party.”
[Findings under the Personal Information Protection and Electronic Documents Act (PIPEDA), PIPEDA Case Summary #2008-394, available at http://
www.priv.gc.ca/cf-dc/2008/394_20080807_e.asp

41. SECURITY BREACHES INTHE CLOUD
41
IV. Legal Concerns
Image
Credit:
Burg,
Jason.
Blog.ViewpointCS.com.
<hTp://blog.viewpointcs.com/category/cloud-­‐compuRng/>

42. SECURITY BREACHES INTHE CLOUD (cont.)
42
• Liability arising from security breaches
• Individual and class actions
• Service providers using the cloud have to rely on
the security of each of the cloud participants
receiving personal information
• How do you do due diligence in the cloud to
ensure adequate security is in place?
IV. Legal Concerns

43. 43
PERSPECTIVES OF LAW SOCIETIES

44. PERSPECTIVES OF LAW SOCIETIES
• “A lawyer is not expected to anticipate the criminal
activity or theft of solicitor-client communications
on the Internet any more than mail theft.”
(Federation of Law Societies of Canada, Nov. 1999)
• No law society has prohibited the use of cloud
computing
• Lawyers should consider whether cloud computing
could be a useful tool to discharge professional
responsibilities
44
V. Perspectives of Law Societies

45. 45
PRACTICE MANAGEMENTTIPS

46. SELECTING A CLOUD SERVICE PROVIDER
• Consider service provider’s reputation
• Review security and storage methods
• Evaluate business structure and risks
• Document your evaluation of the provider
• Perform ongoing reviews of your provider
46
VI. Practice ManagementTips

47. QUESTIONS FORYOUR SERVICE PROVIDER
• Can I get my data back in a format I am able to use if
you go bankrupt or terminate your service, for
example for non-payment?
• Can I easily migrate my data to a new platform?
• How much downtime is there for maintenance?
47
VI. Practice ManagementTips

48. QUESTIONS FORYOUR SERVICE PROVIDER (cont.)
• How do you ensure my data is secure?
Note: Always use a secure site starting with“https:”
• Will you permanently delete my data upon request?
• Can you maintain privilege?
• Will I be notified in the event of a security breach?
48
VI. Practice ManagementTips

49. QUESTIONS FORYOUR SERVICE PROVIDER (cont.)
• Am I able to access my data on demand?
• Who has access to my data and for what purposes?
• How do you backup data?
• Do you mine my data for personal information?
49
VI. Practice ManagementTips

50. QUESTIONS FORYOUR SERVICE PROVIDER (cont.)
• Do you allow me to maintain ownership over my
data?
• Do you archive my data?
• What remedies are permitted for non-compliance?
50
VI. Practice ManagementTips

51. LOCATION OF DATA
• Consider both the likelihood and gravity of access
by government agencies or other third parties
• Review the availability of remedies, such as an
injunction to prevent disclosure
• Evaluate law pertaining to privacy, privilege and
data storage
51
VI. Practice ManagementTips

52. LOCATION OF DATA (cont.)
52
• Decide appropriateness on a case-by-case basis
• Consider client’s own obligations
Example: Public sector in NS
and BC cannot store data
outside its jurisdiction
Image
Credit:
Trigon
Technology
<www.trigon.com/cloud-­‐services>
VI. Practice ManagementTips

53. RETAINER AGREEMENTS & CONSENT
• Informed client consent
• Sample engagement letter language:
“Your confidential information may be stored in electronic
format on servers that are controlled by third parties and
that may be located in jurisdictions outside Canada. You
consent to the offsite storage of electronic data on such
servers and to communication of your confidential
information with third parties for this purpose.”
• Privacy policy
53
VI. Practice ManagementTips

54. BACKING UP & PASSWORDS
54
Image
Credit:
Channelpro-­‐SMB.
<hTp://www.channelprosmb.com/playbook/cloud_security>
• Perform
regular
backups
• Store
backups
in
a
fire
safe,
safety
deposit
box
• Maintain
physical
records
of
originals,
material
correspondence
and
accounRng
data,
especially
trust
account
ledgers
• Change
passwords
frequently
VI. Practice ManagementTips

55. QUESTIONS OR COMMENTS?
Please Contact Us
55
Kevin
West
Founder,
SkyLaw
Professional
CorporaRon
Tel:
416.644.3190
E-­‐mail:
kevin.west@skylaw.ca
LinkedIn:
www.linkedin.com/in/
kevinrobertwest
Kelly
Friedman
Partner,
Davis
LLP
Tel:
416.369.5263
E-­‐mail:
kfriedman@davis.ca
LinkedIn:
www.linkedin.com/pub/
kelly-­‐friedman/2a/950/589