This presentation highlights the key legal risks and their implications in cloud computing. Cloud is inherently multi-jurisdictional, encompassing, remote hosting and processing of the data. This gives rise to multiple legal issues including security and privacy of the data, IP Rights, data portability, contractual limitations, risk mitigation and jurisdictional disputes.
As the cloud involves remote hosting and data accessibility by multiple parties, security and privacy remains the biggest concern for the companies. Businesses should look at issues ranging from physical location of the data centers, protection of the data against any adversity and intrusion, and access rights management.
The cloud servers are often located in different countries, which results in trans- border Data Flow. Each country has its own set of legal rules and regulations regarding data protection and privacy policies and the same can bring in complications in form of conflicting laws and jurisdictional disputes. Issues pertaining to IP rights, trade secrets and ownership of the data placed in the cloud require utmost attention. Termination and exit clauses are critical to the contract in the clouds. Interoperability of the data in the event of termination of services of a vendor is an important aspect to be considered in the contracts.