This document provides an overview of e-discovery and why it should be a priority for organizations. Key points include: - E-discovery is the process of identifying, preserving, and producing electronic information for legal cases. It is important due to the large volume of electronic data and growing legal obligations. - Getting the right e-discovery capabilities can help organizations respond more effectively to lawsuits, potentially avoid lawsuits, and reduce costs of email management and litigation. - The document outlines important e-discovery lessons from past court cases and why data from multiple sources may need to be included in e-discovery processes.

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The Concise Guide to E-Discovery
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An Osterman Research White Paper
Published January 2010
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2. The Concise Guide to E-Discovery
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Why Focus on E-Discovery?
Discovery is the process of identifying, preserving, collecting, reviewing, analyzing and
producing information during civil and criminal legal actions. The goal of discovery is to
obtain information that will be useful in developing relevant information for pre-trial
motions and for the trial itself. Information sought during discovery can include
documents, testimony and other information that may be deemed necessary by a court,
although not all discovery is court-imposed.
E-discovery is simply the extension of the discovery process to information that is stored
electronically, including email, instant messages, word processing files, spreadsheets,
social networking content, and any other electronic information that may be stored on
desktops, laptops, file servers, mainframes, smartphones, employees’ home computers
or on a variety of other platforms.
E-discovery is becoming much more important in the context of civil litigation – for
example:
• A study by Gibson, Dunn & Crutcher LLP1 found that courts applied more sanctions
in 2009 than they did in 2008. In fact, more than one-half of the opinions issued
during the first five months of 2009 focused on consideration of sanctions and 36%
of these actually resulted in sanctions.
• Roughly three out of four discovery orders today require email to be produced as
part of the discovery process.
• E-discovery today represents 35% of the total cost of litigation2, and companies that
fail to produce emails and other electronic content in a timely or appropriate manner
face the risk of paying millions of dollars in sanctions and fines, not to mention loss
of corporate reputation, lost revenue and embarrassment.
• Even companies that ultimately prevail in a lawsuit can still be sanctioned for poor e-
discovery practices.
Organizations can also use e-discovery tools outside the context of just civil litigation.
These uses include, but are not limited to, helping to manage and avoid employee
misbehavior and legal actions; helping an organization to comply with its regulatory
obligations; preserving intellectual property, knowledge and other data; storage
management; and avoiding embarrassing data loss or leaks.
Getting control of e-discovery starts with a) understanding why e-discovery is important,
b) gaining insights into the issues and regulations that are most pertinent, and then c)
creating strategies, capabilities and technologies to meet needs that will also help
manage corporate data properly.
1
2009 Mid-Year Update on E-Discovery Cases
2
Source: Pillsbury Winthrop Shaw Pittman LLP
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ABOUT THIS WHITE PAPER
The goal of this white paper is to provide an introduction to the key areas involved in
developing an e-discovery capability and to help organizations plan to become better
prepared for the rigors of the e-discovery process. Note that the goal of this report is
not to offer legal advice or legal opinions on specific legal issues related to e-discovery,
and it should not be used in this manner.
Key questions answered in this white paper include:
• Should e-discovery be a top priority for your company?
• What can the right e-discovery capabilities do for your company?
• What are the key e-discovery issues to understand?
• What should you do next?
This document was sponsored by six vendors of archiving, email management, e-
discovery and related technologies: Google, Guidance Software, Mimosa Systems,
Recommind, Sherpa Software and Smarsh. Information on each of these vendors is
provided at the end of this document.
Should E-Discovery Be a Top Priority for Your
Company?
First, let’s examine the question, should e-discovery be a top priority for your company
or organization?
WHAT ARE “DISCOVERY” and “E-DISCOVERY”
Discovery is “the compulsory disclosure of pertinent facts or documents to the opposing
party in a civil action, usually before a trial begins.3” E-discovery is simply the extension
of this well-established process to the electronic content that an organization might
possess, including email messages, instant messages, word processing files,
spreadsheets, presentations, purchase orders, contracts, social networking content, files
stored in collaboration systems, and all other electronic content to which an organization
might have access. Further, e-discovery may extend to all of the devices on which this
data might be stored, including desktop computers, laptops, smartphones, backup tapes
and systems, servers of all types and even employees’ home computers, although not
necessarily for some systems that are determined to be inaccessible.
ELECTRONIC CONTENT IS GROWING BY LEAPS AND BOUNDS
Businesses and individuals create, receive and store large and growing amounts of
information:
• IBM estimates that 15 petabytes of data is created every day.
3
The American Heritage® Dictionary of the English Language, Fourth Edition
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• An analysis conducted by the University of California at Berkeley determined that
93% of all information today is created in an electronic format.
• The American Records Management Association (ARMA) has estimated that more
than 90% of records created today are electronic.
• More than 70% of electronic information is never printed.
Unified communications and unified messaging systems will make these problems
significantly worse as they add additional data to the already crowded mix of data types
that organizations must retain and manage.
In addition, organizations of all types are creating and using new types of electronic
content at an ever increasing pace. These newer types of content include collaboration-
related content created by document management and collaboration tools; social
networking tools like blogs, Twitter, LinkedIn and Facebook; new types of electronic
content like digital media and new software programs; structured data sources like
databases; and the other content types that are emerging or will be created during the
next few years.
ORGANIZATIONAL REQUIREMENTS
It is critical for any organization to understand the obligations that it faces with regard
to the retention and disposition of electronic data. These obligations include:
• Responding to e-discovery requests quickly
Formal court-ordered requests will almost always have an associated deadline.
Additionally, it is almost always true that the longer and more manual the process,
the more costly and subject to human error it will be.
• Understanding what can be accessed and what is not accessible
This is especially painful if this information is not readily known at the start of the
process.
• Being able to discover a growing variety of content.
As outlined in this paper, new types of electronic content are being created or
received by organizations. This means having both a strategy for, and the tools to
identify, manage and organize this content is critically important.
IMPORTANT E-DISCOVERY LESSONS TO LEARN
There are a large and growing number of cases and decisions that are relevant to
consider in the context of e-discovery which highlight some of the common e-discovery
mistakes to avoid, including the following:
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• You can win a lawsuit and still lose on e-discovery issues
Keithley v. Homestore, Inc.
Kevin Keithley v. The Home Store.com, Inc., 2008 U.S. Dist. LEXIS 61741 (August
12, 2008)
Keithley won on summary judgment, but still had to pay $283,000 in fees for failing
to preserve produce required electronic evidence.
• Using a work computer can eliminate privelige
Alamar Ranch v. City of Boise
Alamar Ranch, LLC v. City of Boise, 2009 WL 3669741 (D. Idaho Nov. 2, 2009)
This case held that emails sent by a non-party to a lawyer are not protected by
attorney-client privelige if a company policy exists that emails sent using company
facilities are subject to monitoring.
• If you withhold emails, the sanctions can be significant
Qualcomm, Inc. v. Broadcom Corporation
No. 05-CV-1958-B(BLM), 2007 WL 2296441 (S.D. Cal. August 6, 2007)
Although Qualcomm initially prevailed in this case, it was discovered after the ruling
that thousands of emails were withheld during the case; the Court awarded $8.5
million in attorney’s fees and costs against Qualcomm.
• If all you have is backup tapes, you might still be required to produce data
Disability Rights Council of Greater Washington v. Washington Metropolitan Area
Transit Authority
2007 U.S. Dist. LEXIS 39605
Production of email from backup tapes was ordered by the Court at the expense of
the producing party. The Court also noted that the Safe Harbor provisions of Rule
37(e) do not apply if data destruction is not suspended after a litigation hold.
Omnicare, Inc. v. Mariner Health Care Mgmt. Co.
2009 WL 1515609
The court ruled in this case that just because “ESI is now contained on backup tapes
instead of in active stores does not necessarily render it not reasonably accessible.”
• You might need to produce metadata in addition to electronic documents
Ryan v. Gifford
Civ. No. 2213-CC, 2007 WL 4259557 (Del. Ch., Nov. 30, 2007)
The Court ordered “the production of documents identified in plaintiffs’…motion to
compel in a format that will permit review of metadata, as plaintiffs have clearly
shown a particularized need for the native format of electronic documents with
original metadata.”
• Your employees’ home computers might be subject to e-discovery
Orrell v. Motorcarparts of America, Inc.
2007 WL 4287750 (W.D.N.C. Dec. 5, 2007)
The court ordered the production of a plaintiff’s home computer for forensic
examination.
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• You might have to produce data, no matter how difficult it is or how much
it costs
Auto Club Family Insurance Co. v. Ahner
2007 WL 2480322 (E.D. La. August 29, 2007)
“Like other courts that have addressed this issue, this court will not automatically
assume that an undue burden or expense may arise simply because electronic
evidence is involved.” FRCP Rules 34 and 45 “were amended…to provide for routine
discovery of electronically stored information from parties and non-parties. In fact,
whether production of documents is unduly burdensome or expensive turns primarily
on whether it is kept in an accessible or inaccessible format (a distinction that
corresponds closely to the expense of production). But in the world of electronic
data, thanks to search engines, any data that is retained in a machine
readable format is typically accessible.” [Emphasis added]
• Don’t intentionally delete data that might be discoverable
Ameriwood Ind., Inc. v. Lieberman
2007 WL 5110313 (E.D. Mo. July 3, 2007)
The defendants in this case deleted electronic content and used disk-scrubbing
software on a number of hard drives a short time before they were to be provided to
a forensic expert in a case involving misappropriation of trade secrets. The court
entered a judgment for the plaintiff and ordered the defendant to pay the plaintiff’s
attorney fees and other costs.
Micron Technology, Inc. v. Rambus, Inc.
C.A. No. 00-792-SLR (January 9, 2009)
Rambus’ “aggressive” document deletion policy destroyed documents that the court
ruled it had a duty to preserve, resulting in the court’s sanction that certain patents
were not enforceable against Micron.
YOUR DATA COULD BE ANYWHERE
It is also important to understand that content that is subject to e-discovery could be
anywhere in your organization – on email servers, file servers, collaboration servers,
desktop PCs, laptops, notebooks, netbooks, employees’ home computers, thumbdrives,
iPods, CDs, DVDs, backup tapes, etc. Consequently, it is vital that organizations
planning for or managing e-discovery take into consideration every potential venue and
media type where discoverable data might be stored.
KEY TAKEAWAYS
Although there are hundreds of cases that can be cited in the context of e-discovery,
Osterman Research believes that these cases focus on five relevant e-discovery lessons
that organizations of all sizes should heed:
1. A failure to diligently search for and assess relevant content during the e-discovery
phase of a legal action can have serious, negative consequences.
2. Legal protections, such as the Safe Harbor provisions of the FRCP, are not
necessarily afforded to parties that do not adequately protect data to which a legal
hold has been applied.
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3. Metadata, as discussed in this white paper, is an important component of the data
that must be evaluated and presented during e-discovery.
4. Data sources that must be searched during e-discovery can be far-reaching,
including employees’ home computers.
5. The difficulty of accessing ESI will not necessarily shield parties from their obligation
to produce this data.
In general, recent surveys by Osterman Research and others demonstrate that
organizations simply are not retaining as much data as they need to retain, nor are they
implementing policies, procedures, and technologies to protect themselves from the
consequences that might ensue.
What Can The Right E-Discovery Capabilities
Do for Your Company?
Let’s next examine what the right e-discovery capabilities can do for your company or
organization.
RESPOND TO LAWSUITS MORE EFFECTIVELY
The right e-discovery capabilities can help you respond to lawsuits more effectively. E-
discovery tools will help you understand what content you have available. The right tools
can also streamline the e-discovery process.
BE PROACTIVE TO HELP YOU AVOID LAWSUITS
ALTOGETHER
The right e-discovery capabilities can help an organization to be proactive in two
important ways:
• Avoiding lawsuits altogether by ensuring that, through the use of analytics,
corporate policies are being followed on an ongoing (and, perhaps, near real-time)
basis. This allows an organization to monitor employee behavior for potentially
actionable statements or activities, and to adjust corporate policies on-the-fly to
minimize the potential for legal action.
• If a legal action has already been initiated, good e-discovery capabilities can help an
organization to perform early case assessment to understand a legal position early
on, sometimes to an organization’s advantage over the opposition. This might
include reviewing the likelihood of victory very early in the case, allowing an
organization either to settle quickly and avoid significant legal fees or an adverse
judgment; or giving decision makers confidence that they can prevail and thereby
minimize the likelihood of an adverse judgment.
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In short, good e-discovery capabilities can help decision makers to make the right
decisions armed with better information, thereby minimizing the negative impact of a
legal action, significantly reducing legal fees, and significantly reducing disruption to
normal business operations.
REDUCE THE COSTS OF EMAIL AND RECORDS
MANANGEMENT
The right e-discovery capabilities can help an organization reduce the overall costs of
email and records management. These include:
• Shortening the e-discovery process, resulting in hard cost savings of internal staff
time.
• Avoiding significant external legal counsel expenses.
• Driving down other related costs such as legal judgements, fines, and public
relations damage from negative press.
Another important aspect of a good e-discovery capability is its ability to reduce storage
management difficulties. Osterman Research has found that most of the leading
problems involved in managing email systems are focused on storage-related problems,
such as large attachments sent through email, increasing use of attachments and email
itself, and storing content on live email servers. The right archiving, litigation hold and
related solutions can dramatically reduce storage costs and provide a number of other
email management benefits well beyond just e-discovery.
Key E-Discovery Issues to Understand
Next, let’s consider the key e-discovery issues to understand.
THE ELECTRONIC DISCOVERY REFERENCE MODEL (EDRM)
The Electronic Discovery Reference Model (EDRM) Project, diagrammed in the following
figure, was a response to the relatively few standards and lack of generally accepted
guidelines for the process of e-discovery that existed prior to its development. The
team that developed the EDRM was facilitated by George Socha (Socha Consulting LLC)
and Tom Gelbmann (Gelbmann & Associates), and included 62 organizations, among
whom were software developers, law firms, consulting firms, professional organizations
and large corporations.
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Electronic Discovery Reference Model
Begun in May 2005, the EDRM Project had as its goal the creation of a framework for
the “development, selection, evaluation and use of electronic discovery products and
services”. The EDRM, which was placed into the public domain in May 2006, is designed
to help organizations manage the process of e-discovery from the initial stages of
managing electronic information through to its presentation.
The development of the EDRM was important because it represented a major step
forward in the standardization of the e-discovery process. Standardization will become
increasingly important for e-discovery for several reasons, most notably because of the
growth in quantity and diversity of ESI and the large number of entities that will need to
process this data (internal and external legal counsel, senior managers, archiving
vendors, outside forensics firms and others).
Following development of the EDRM was the EDRM XML project in the 2006-2007
timeframe. The goal of this project was to “provide a standard, generally accepted XML
schema to facilitate the movement of electronically stored information (ESI) from one
step of the electronic discovery process to the next, from one software program to the
next, and from one organization to the next. The EDRM XML 2 project continued the
development of the EDRM XML schema for metadata, developing protocols for the
number of electronic files that are preserved in their native format, and developing a
compliance validation tool, among other projects.
The EDRM is divided into eight sections that focus on the process of managing an
ediscovery effort:
• Identification
Understand the “inventory” of ESI that might be relevant in a particular legal action
and that might have to be presented during discovery. At this point in the process,
discovery demands, disclosure obligations and other pertinent claims and demands
are reviewed and considered. The goal at this stage of the process is to understand
the universe of information that might be required in order to respond to appropriate
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ediscovery requests and then determine the subset of information that will be
relevant for further processing.
• Preservation
This is a critical step that ensures that ESI is protected from spoliation and
modification, such as through the imposition and enforcement of a legal hold on all
relevant ESI. If spoliation does occur, the consequences can be expensive. For
example, in the case of Leon vs. IDX Systems Corporation [2006 U.S. App. LEXIS
23820 (9th Cir. Sept. 20, 2006)], the plaintiff deleted 2,200 files from the laptop
computer his employer had issued to him. The court dismissed the case and
awarded the defendant $65,000 for the spoliation.
• Collection
During this phase, all relevant ESI is collected from the various sources that contain
it, including messaging archives, backup tapes, file servers, desktops, laptops,
employees’ home computers, smartphones and other sources.
• Processing
At this point, collected data should be de-duplicated in order to reduce the amount
of data that must be processed during subsequent phases of the discovery process.
Collected data should also be prioritized into a) that content that will likely be
relevant later in the process and b) content that will likely not be relevant. At this
point, decision makers may want to convert ESI into a form that will permit the most
efficient and thorough review of its contents.
• Review
The review phase includes redacting ESI as appropriate, evaluating the content for
its relevance, determining if specific items are subject to attorney-client privilege,
etc.
• Analysis
This phase involves a variety of activities, including determining exactly what the ESI
means in the context of the legal action at hand, developing summaries of relevant
information, determining the key issues on which to focus, etc.
• Production
The production of data involves delivering the relevant ESI to any parties or systems
that will need it. It also includes the activities focused on delivering ESI in the
appropriate form(s), including DVDs, CD-ROMs, paper, etc.
• Presentation
The presentation of ESI is a key consideration at various points of the e-discovery
process – as information is reviewed, analyzed, produced, etc. The specific forms of
presentation for ESI will vary widely depending on the content; how, where and by
whom the content will be presented; and other factors.
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THE FEDERAL RULES OF CIVIL PROCEDURE
The FRCP are a set of rules focused on governing court procedures for managing civil
suits in the United States district courts. While the United States Supreme Court is
responsible for creating and managing the FRCP, the United States Congress must
approve these rules and any changes made to them.
One of the most important drivers for e-discovery has been the new set of amendments
to the FRCP that went into effect on December 1, 2006. These changes represented
several years of debate at various levels and are having a significant impact on
electronic discovery and the management of electronic data within organizations that do
business in the United States. The changes to the FRCP require organizations to
manage their data in such a way that this data can be produced in a timely and
complete manner when necessary, such as during legal discovery proceedings.
The amendments to Rules 16, 26, 33, 34, 37, 45 and revisions to Form 35 are aimed at
electronically stored information (ESI). The amendments attempt to deal with the
important issues presented by ESI, including:
• ESI is normally stored in much greater volume than are hard copy documents.
• ESI is dynamic, in many cases modified simply by turning a computer on and off.
• ESI can be incomprehensible when separated from the systems that created it.
• ESI contains non-apparent information, or metadata, that describes the context of
the information and provides other useful and important information.
The changes reflect the reality that discovery of email and other ESI is now a routine,
yet critical, aspect of every litigated case:
• First, the amendments treat ESI differently.
• Second, they require early discussion of and attention to electronic discovery.
• Third, they address inadvertent production of privileged or protected materials.
• Fourth, they encourage a two tiered approach to discovery – deal with reasonably
accessible information and then later with inaccessible data.
• Finally, they provide a safe harbor from sanctions by imposing a good faith
requirement.
Unlike many information retention requirements in specific industries, such as those
imposed upon broker-dealers, hedge fund managers and investment advisors by the
Securities and Exchange Commission (SEC) and the Financial Industry Regulatory
Authority (FINRA), the FRCP apply to virtually all organizations in all industries, including
private, public and non-profit organizations. In short, if an organization can have a civil
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lawsuit filed against it, then the FRCP should figure prominently in that organization’s
data management strategy.
For more information on the FRCP, please see The Impact of the New FRCP
Amendments on Your Business, available at www.ostermanresearch.com.
FEDERAL RULES OF EVIDENCE
The Federal Rules of Evidence (FRE), formally enacted in 1975, are a set of rules that
determine how evidence is presented during trial in the US federal courts. These rules
are focused primarily on the initial presentation of evidence during trials. Individual
states may use these rules as the basis for their own rules of evidence, or they may
adopt a different set of rules for presenting evidence at trial. It is important to note that
for purposes of presenting evidence, a printed or otherwise human-readable version of
electronic evidence is considered to be an original and can be presented at trial
according to FRE Rule 1001(3).
Authentication is a very important part of the e-discovery process because its goal is to
prove that a document is what its presenter claims it to be – a true and verifiable
representation of an electronic document. Authentication for electronic content is even
more critical than for paper-based documents, since electronic documents are more
easily altered. Therefore, in order to prove the authenticity of a particular electronic
document, such as an email, those submitting this evidence must provide affidavits or
otherwise demonstrate that an original document was not modified after the fact.
Despite the admissibility of electronic evidence in court proceedings, the authenticity of
electronic records is a major issue that many organizations have not considered
adequately. A classic case in point is Vinhnee vs. American Express Travel Related
Services Company, Inc. In this case, American Express sought payment for more than
$40,000 in charges on two credit cards from a California resident who had filed for
bankruptcy protection. However, because American Express could not prove the
authenticity of the electronic statements it presented during trial, it lost the case even
without the plaintiff being present.
An important case that deals with the authenticity of ESI is Lorraine v. Markel American
Insurance Co. [2007 U.S. Dist. LEXIS 33020 (D. Md. May 4, 2007)]. This case involved
a dispute between the owner of a ship that had been struck by lightning and the insurer
of the ship. Although the insurance company paid for the damages, the ship’s owner
subsequently found additional damage and made a second claim, which the insurance
company disputed. During arbitration, the damages awarded to the plaintiff were
reduced by $22,000. While both parties presented email evidence during arbitration,
Chief Magistrate Judge Paul W. Grimm who presided over the case found that the email
evidence presented could not be authenticated. In his ruling, the judge wrote:
“…there are five distinct but interrelated evidentiary issues that govern
whether electronic evidence will be admitted into evidence at trial or
accepted as an exhibit in summary judgment practice. Although each of
these rules may not apply to every exhibit offered…each still must be
considered in evaluating how to secure the admissibility of electronic
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evidence to support claims and defenses. Because it can be expected
that electronic evidence will constitute much, if not most, of the evidence
used in future motions practice or at trial, counsel should know how to
get it right on the first try.”
“computerized data ... raise unique issues concerning accuracy and
authenticity ... The integrity of data may be compromised in the course of
discovery by improper search and retrieval techniques, data conversion,
or mishandling.”
In short, Judge Grimm ruled that for ESI to be approved for use as evidence, a
variety of FRE rules must be taken into consideration, including Rules 104, 401,
403, 801, 901, 902 and 1001-1008.
STATE LAWS IN THE UNITED STATES BASED ON FRCP
The FRCP represents just the tip of the iceberg: many US states have already passed, or
will soon pass, their own version of the FRCP for civil litigation that takes place within
their respective state court systems. For example:
• Minnesota modified its Rules of Civil Procedure, effective July 1, 2007, establishing
procedures for the discovery of ESI.
• New Jersey adopted the new FRCP e-discovery rules effective September 1, 2006.
• Texas adopted Rule of Civil Procedure 196.4 in 1999, which states, in part, “to
obtain discovery of data or information that exists in electronic or magnetic form, the
requesting party must specifically request [it] and specify the form in which the
requesting party wants it produced.”
• Other states that have integrated the new FRCP amendments into their respective
statutes include Utah, Louisiana, Arizona, Montana and Indiana.
• A number of other states are also considering enhancements to their civil procedure
laws that will focus more on ESI. Among these states are Washington, Alaska,
Florida, Illinois, Kansas, Connecticut, Ohio and Virginia.
LAWS OUTSIDE OF THE UNITED STATES AND CANADA
While e-discovery in North American legal proceedings is difficult enough, laws in other
parts of the world can significantly complicate e-discovery (often referred to as “e-
disclosure” outside of the United States). For example:
• The European Commission Directive 95/46/EC, adopted in October 1995, was
designed to standardize the protections for data privacy among all of the member
states of the European Union and to protect individuals’ right to privacy. The
Directive focuses on the processing of individual’s data within the EU, but also
applies to any entity outside of the EU to whom this data might be provided, such as
during an ediscovery exercise. The Directive does not permit data to be provided to
anyone whose national laws do not adequately safeguard privacy rights.
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• France imposes even more stringent requirements than Directive 95/46. French
Penal Code, Law No 80 – 538 imposes fines and/or jail time for those who seek,
request or disclose information intended to develop evidence for foreign legal
proceedings.
• Blocking statutes, such as the French law noted above, have been in place for many
years in various countries and were enacted specifically to block discovery
proceedings. For example, blocking statutes exist in Ontario, Canada (Business
Records Protection Act), the United Kingdom (The Shipping and Commercial
Documents Act) and the Netherlands (Economic Competition Act).
• Australia’s Supreme Court of Victoria, in its Practice Note No. 1 of 20074 (February
2007), strongly suggested that parties to a legal action should consider using
technology to improve the efficiency of legal proceedings, including e-discovery.
The Federal Court of Australia has gone further and developed e-discovery rules
similar to those contained in the new amendments to the FRCP.
• India’s Technology Act of 2000 modified the country’s rules of evidence, effectively
expanding the scope of electronic data in e-discovery efforts and widening parties’
obligations for producing electronic data.
What Should You Do Next?
While the information above presents an interesting background and insights, it is
important to understand that the information must be put into action rather than being
left as a theoretical exercise. Here are some ways to help harvest this new information’s
potential into valuable actions and results for your organization.
UNDERSTAND WHY E-DISCOVERY IS IMPORTANT TO YOUR
BUSINESS
First, understand why e-discovery is important to your business or organization. A
myriad of external laws and factors as well as common e-discovery risks and scenarios
could apply to your business. Additionally, each organization will have a unique mix of
policies, processes, business operations, and technologies.
So, an accurate baseline snapshot of e-discovery and corresponding expenditures today
within your organization will help you develop, priortize, and justify changes and
investments moving forward.
FOCUS ON THE PROBLEMS YOUR PEERS HAVE HAD IN
RESPONDING TO E-DISCOVERY REQUESTS
Next, focus on the problems your peers are having in responding to e-discovery
requests. That is, understanding the common costs, risks, and potential problems based
on your organization peer group based on industry, size and geography can help avoid
problems and will lead you to best practices.
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An overall information risk management process focused on e-discovery is an important
best practice that will help an organization to identify the risks it faces and help it to
mitigate these risks. The advantages of establishing an information risk management
process are that it will make senior management aware of the risks associated with e-
discovery, aid in the development of policies focused on managing or mitigating risks,
improve the methods by which information assets are managed, improve information
security, and assist organizations in choosing the appropriate technology to manage e-
discovery and information security.
ESTABLISH DATA RETENTION AND DELETION SCHEDULES
FOR ALL CONTENT TYPES
Also, establish data retention and deletion schedules for all content types. It is
important for any organization to retain all of the electronic data that it will need for
current and anticipated e-discovery and other retention requirements. However, many
organizations, either by overspecifying the amount of data they must retain and/or not
establishing appropriate data deletion policies, retain more information than is
necessary. This can result in dramatically higher e-discovery costs because more data
must be reviewed, as well as unnecessarily high storage costs. Have the legal team
review to ensure compliance with regulatory and statuatory requirements.
IMPLEMENT A LEGAL HOLD CAPABILITY
If a legal action is anticipated or once it is underway, it is vital that an organization
immediately begin to identify and preserve all relevant data, such as all email sent from
senior managers to specific individuals, outside legal counsel, the subject of a legal
action, etc. A properly configured e-discovery capability will allow organizations to
immediately place a hold on data when requested by a court or regulator, or on the
advice of legal counsel, and retain it for as long as necessary.
If an organization is not able to adequately place a hold on data when required, it can
encounter a variety of serious consequences, ranging from embarrassment to serious
legal sanctions or fines. Litigants that fail to preserve email properly are subject to a
wide variety of consequences, including reputational harm, additional costs for third-
parties to review or search for data, court sanctions, directed verdicts or instructions to
a jury that it can view a defendant’s failure to produce data as evidence of culpability.
DEPLOY TOOLS THAT WILL ENABLE YOUR ORGANIZATION
TO BE PROACTIVE
Next, deploy tools that will enable your organization to be proactive. As outlined above,
these tools will ensure that all necessary data is accessible and reviewable early in the
lifecycle of a case. Your organization will control the use of tools that may have
differing levels of business value. The right technology will help classify data as it is
created and then discover content wherever it exists. These can include, but are not
limited to, email servers, file servers, local machines, and other sources like mobile
devices. Good tools will also create a complete e-discovery repository and deduplicate
the data. For example, true single-instance storage can reduce the size of some data.
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16. The Concise Guide to E-Discovery
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UNDERSTAND THAT BACKUP TAPES ARE NOT YOUR
“ARCHIVE”
Finally, understand that backups and archiving are not the same thing. Particularly for
e-discovery purposes, do not assume that having good backup procedures are
synonymous with good archiving practices.
Almost all organizations perform regular backups of their email system, file servers and
other data repositories. While many organizations believe that these backups constitute
an “archive” of their business information, this is not the case. A traditional backup
takes periodic “snapshots” of active data so that deleted or destroyed records can be
recovered, such as after the failure of a server’s hard disk or an application upgrade
gone awry. Most backups are retained typically for no more than 60 to 90 days as
subsequent backups on tape or disk are recycled or overwritten.
There are fundamental problems with using backups as an archive, including that
backups constitute “raw” content and lack any sort of indexing, the integrity of backup
tapes is not guaranteed, and because backups capture a snapshot of data, information
generated and deleted between backups will not be captured.
While backups are a critical and necessary component of an organization’s data
management strategy, they are not a substitute for an archive. In short, a backup is
designed to preserve data for short periods in support of the physical infrastructure that
an organization maintains, while an archive is designed to preserve information on a
long-term basis in support of more strategic corporate objectives.
Summary
E-discovery capabilities are no longer an option – they are a critical “must have”
capability that will enable organizations to respond to legal actions and be much more
proactive about how legal actions, regulatory audits and related activities are managed.
New statutes at all levels of government focused on ESI, as well as a growing body of
court rulings, are making the discovery and presentation of electronic data more
important.
In order to satisfy e-discovery obligations, organizations should be fully aware of their
current and anticipated information retention and deletion obligations, become more
proactive about how they retain and manage their data, implement the right technology
that can preserve data, allow legal holds to be implemented as soon as they are
necessary, and take the other steps necessary to minimize the risks of non-compliance
with e-discovery obligations.
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17. The Concise Guide to E-Discovery
Sponsors of This White Paper
Google Message Discovery, powered by
Postini, goes beyond the functionality of our
security offering to give you maximum control
and flexibility over your electronic records
archive, meeting discovery, and compliance
objectives.
Google, Inc.
1600 Amphitheatre Pkwy. Google Message Discovery is a secure, hosted
Mountain View, CA 94043 email archiving service that allows you to cost-
+1 650 253 0000 effectively protect and access archived email
www.google.com data. Google Message Discovery enables you
to:
• Create a centralized and searchable email repository for your organization
• Quickly search across the archive to collect email for legal discovery
• Secure your email from spam, viruses, and other threats
Google Message Discovery is delivered in an on-demand, Software as a Service (SaaS)
model, so you don’t have to worry about planning for current and future storage
capacity needs – Google does it for you. By storing your messages in Google’s secure
and geographically redundant data centers, you can ensure that messages will not be
lost in the event of an onsite server failure. You can archive all mail without worrying
whether you have enough disk space and eliminate storage quota headaches by
allowing users to access historical mail. In addition, by offloading excessive mail from
your existing servers, you can decrease backup windows and reduce recovery times.
With Google Message Discovery, access to all your archived messages is always at your
fingertips. What’s more, legal, human resources, and compliance staff does not need to
rely on IT personnel to conduct searches and inquiries. Google’s easy-to-use web-based
interface lets anyone – even end users – manage and search the message archive
according to policy and depending on specific roles and authorizations. And because
Google Message Discovery saves all messages based on your defined retention policies,
indexes them, and stores them in a centralized repository, you can quickly and easily
pinpoint relevant messages, place them on litigation hold to disable message deletion,
and share as needed with legal counsel, law enforcement officers, or regulatory officials.
Best of all, it’s hosted by Google. So there’s no hardware or software to download,
install or maintain. Google Message Discovery improves litigation readiness, eases IT
administration burdens, and lowers the total cost of ownership compared to software or
appliance based solutions.
©2010 Osterman Research, Inc. 16

18. The Concise Guide to E-Discovery
!!
Guidance Software is recognized globally as the
world leader in eDiscovery and other digital
investigations.
Our EnCase® software solutions provide the
Guidance Software foundation for corporate government and law
215 North Marengo Avenue enforcement organizations to conduct thorough
Suite 250 and effective computer investigations of any
Pasadena, CA 91101 kind, including intellectual property theft,
+1 866 973 6577 incident response, compliance auditing and
www.guidancesoftware.com responding to eDiscovery requests—all while
maintaining the forensic integrity of the data.
We also offer customized services in eDiscovery, incident response, computer forensics,
evidence presentation and trial testimony, utilizing a team of former law enforcement
professionals, eDiscovery and litigation support experts, information assurance
specialists and project managers who have front-line, hands-on experience in all areas
of digital investigations.
Guidance Software trains over 6,000 corporate, law enforcement and government
professionals annually in the areas of computer forensics, enterprise forensics,
eDiscovery, and computer incident response. Courses and materials are offered in a
variety of languages in Guidance Software facilities worldwide, through partners and
online.
Our customers are corporations and government agencies in a wide variety of industries,
such as financial and insurance, technology, defense, energy, pharmaceutical,
manufacturing and retail. More than 100 of the Fortune 500 and over half of the Fortune
50 use EnCase solutions, including: Allstate, Chevron, Ford, General Electric, Honeywell,
Mattel, Northrop Grumman, Pfizer, UnitedHealth Group, Viacom and Wachovia.
Guidance Software is recognized by industry analysts such as Gartner, Forrester and IDC
as a worldwide leader in digital investigations.
Mimosa enables enterprises to harness the
value of their unstructured and semi-structured
information, and improves business process
performance and productivity. As the
Mimosa Systems recognized visionary in enterprise content
3200 Coronado Drive archiving, Mimosa is driving innovation in the
Santa Clara, CA 95054 industry and is continually delivering cutting-
+1 408 970 9070 edge solutions to address the evolving needs of
www.mimosasystems.com customers around collaboration,
communication, productivity and social media.
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19. The Concise Guide to E-Discovery
Mimosa Systems delivers next-generation content archiving solutions with its
NearPoint™ solution platform. Mimosa NearPoint is the industry's most comprehensive
solution unifying email archiving, file archiving, and SharePoint archiving with recovery
and storage consolidation.
With policy-based retention and a sophisticated eDiscovery application, Mimosa
NearPoint enables enterprises to reduce risk, lower eDiscovery costs, and enforce
corporate governance and compliance. Mimosa NearPoint enables IT to gain control
over their enterprise content deployment, reduce storage costs, increase data availability
and improve operational efficiencies.
• Mimosa NearPoint™ for Microsoft® Exchange provides complete capture of
Exchange information with multiple capture methods, full-text indexing, global single
instancing, and flexible and granular retention and disposition management. End-
users have self-service access to enterprise information via Outlook, OWA, web
browsers and a variety of hand-held devices. For legal, compliance and records
management, Mimosa provides a powerful set of applications for in-house
eDiscovery and case management, content monitoring and supervision and
automated retention and classification. Exchange Administrators use NearPoint for
storage optimization, PST archiving, and coarse and fine-grain recovery.
• Mimosa NearPoint for SharePoint provides a comprehensive solution to manage the
breadth of SharePoint content types with unified archiving, recovery, and
eDiscovery, while maintaining seamless end-user access to archived information.
Mimosa NearPoint for SharePoint protects your entire SharePoint farm and recover
an entire farm, server or an individual list item with only a few clicks.
• Mimosa NearPoint File System Archiving (FSA) provides archiving, stubbing, end-user
secure search, eDiscovery and content monitoring across files and document types
residing on a variety of platforms.
The Mimosa next-generation architecture is unique and differentiated in the industry due
to its scalability, ease of implementation and use, and no load on production content
systems. The Mimosa platform is built on a highly scalable and cost-effective grid
architecture designed for global deployments of hundreds of thousands of users with
high data volumes.
The Mimosa platform is offered as a stand-alone or fully integrated solution for email,
files and SharePoint. It is extended with value-added applications: eDiscovery, Content
Monitoring, Advanced Retention and Classification, PST archiving, Tiered Storage and
Disaster Recovery.
Mimosa NearPoint is an open platform enabling the ingestion and access of content by a
variety of third-party eDiscovery and Records Management applications. Mimosa
NearPoint serves as an information management platform for corporate eDiscovery
products and processes.
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20. The Concise Guide to E-Discovery
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Recommind is the leader in sophisticated
search, review and analysis software that
provides the most accurate and automated
tools available, giving people and organizations
access to the information they need instantly.
Recommind, Inc.
170 Columbus Ave., Suite 310 Global 500 corporations like Bertelsmann, BMW,
San Francisco, CA, 94133 Novartis, Pfizer, Staples and global law firms
+1 415 394 7899 like Cleary Gottlieb, DLA Piper, Fulbright &
www.recommind.com Jaworski, Morrison & Foerster, O’Melveny &
Myers, Orrick and Shearman & Sterling rely on
Recommind’s products to quickly and accurately
search, organize, and review their critical documents and matters. With faster access to
the right information, organizations can save time and money, increase the value of
information assets, reduce corporate risk and improve competitiveness and profits.
Axcelerate™ eDiscovery is a revolutionary automatic coding, review and analysis product
that dramatically improves the way litigation review and analysis is conducted. Using its
unique First-Pass Review™ and One-Click Coding™ functionality, Axcelerate eDiscovery
is able to automatically assess document responsiveness, privilege and issue relation
before the review process begins, drastically reducing the amount of time required to
organize and conduct document review and analysis while simultaneously increasing
review accuracy and consistency.
Recommind is headquartered in San Francisco, California, and has offices in New York,
Chicago, Boston, Atlanta, London and Bonn, Germany.
For nearly 10 years, Sherpa Software has been
providing award-winning software specifically
designed to address E-discovery, email, and
PST management, archiving, and compliance
requirements for Microsoft Exchange and Lotus
Notes environments. Sherpa’s products are
designed to streamline administrative
Sherpa Software processes while offering flexible management
456 Washington Road architectures and reasonable pricing models to
companies of any size.
Suite 2
Bridgeville, PA 15017 Sherpa’s Discovery Attender
www.sherpasoftware.com Discovery Attender is a tool that fits into your
discovery implementation plan. It allows in-
house talent to perform legal discovery on PST files, Exchange mail stores, NSF files and
file servers in a cost-effective, efficient, reproducible manner. With minimal training,
you can deploy Discovery Attender to find, collect and cull messages, attachments and
files using your own hardware and in-house expertise.
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21. The Concise Guide to E-Discovery
Key Features
This application features a quick installation and intuitive search setup with a robust
feature set unmatched for the price. Discovery Attender can automate searches across
multiple data stores to produce significant time savings. In addition, the flexibility of the
criteria will help answer the most challenging of requests. Searches can be customized
by keywords (including wildcards, Boolean, proximity, regular expressions and more),
addresses, dates and sizes over many common file formats.
Why use Sherpa’s tools with in-house processing?
• Time savings: Respond quickly by automating the retention, archiving and
discovery processes.
• In-house operation: Utilize existing resources to maintain control of the
processes and fulfill requirements.
• Defensible: Establish recognized, repeatable processes for the collection and
preservation of data.
• Targeted: Solutions created specifically for either an Exchange or Notes
environment.
• Cost-effective: Target specific areas to reduce cost, manage data efficiently and
automate processes with a favorable pricing model.
You wouldn’t tackle Mount Everest without the help of a Sherpa, so why tackle E-
discovery without Sherpa Software? For detailed product descriptions, free white papers
or a free trial download of Discovery Attender, visit www.sherpasoftware.com or call 1-
800-255-5155 to speak with a Sherpa Software Sales Representative.
Smarsh is the managed service leader in
secure, innovative and reliable email archiving
solutions for litigation preparedness,
compliance and records retention and mail
server data management. Smarsh’s hosted
Smarsh offering is a full-service email management
921 SW Washington St. tool, an essential resource in early-case
Suite 540 assessment and a proactive and cost-effective
Portland, OR 97205 alternative to traditional e-discovery
+1 866 762 7741 procedures.
www.smarsh.com
Administration of Smarsh’s proprietary
solutions for message archiving, compliance
and security is consolidated within the secure, Web-based Smarsh Management
Console. The system enables clients to:
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22. The Concise Guide to E-Discovery
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• Centralize organizational email in a searchable archive
• Search and produce evidentiary-quality messages on-demand in seconds
• Analyze complete audit trails for every message and archive administrator session
• Review and classify each message (based on company policy) in the archive
• Enforce corporate retention policies
• Classify messages for legal hold
The SaaS (software as a service) delivery model enables clients to eliminate IT
infrastructure costs and minimize operating burden, while benefiting from Smarsh’s
expertise and experience in hosting large volumes of mission-critical client data.
Customizable solutions fit the needs, budgets and technological infrastructure of any
organization and are matched with unrivaled customer support and service.
Founded in 2001, Smarsh growth has been recognized at both the local and national
level. In 2008 and 2009, the company was named to the Inc. 500, Inc. magazine’s
annual analysis of the fastest-growing companies in the United States. Deloitte honored
Smarsh with a spot on its Technology Fast 500 list for 2009 and the Portland Business
Journal recently ranked Smarsh No. 1 in its 2009 growth rankings for the state of
Oregon.
© 2010 Osterman Research, Inc. All rights reserved.
No part of this document may be reproduced in any form by any means, nor may it be distributed without the permission
of Osterman Research, Inc., nor may it be resold or distributed by any entity other than Osterman Research, Inc., without
prior written authorization of Osterman Research, Inc.
Osterman Research, Inc. does not provide legal advice. Nothing in this document constitutes legal advice, nor shall this
document or any software product or other offering referenced herein serve as a substitute for the reader’s compliance
with any laws (including but not limited to any act, statue, regulation, rule, directive, administrative order, executive
order, etc. (collectively, “Laws”)) referenced in this document. If necessary, the reader should consult with competent
legal counsel regarding any Laws referenced herein. Osterman Research, Inc. makes no representation or warranty
regarding the completeness or accuracy of the information contained in this document.
THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND. ALL EXPRESS OR IMPLIED
REPRESENTATIONS, CONDITIONS AND WARRANTIES, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE, ARE DISCLAIMED, EXCEPT TO THE EXTENT THAT SUCH DISCLAIMERS ARE
DETERMINED TO BE ILLEGAL.
©2010 Osterman Research, Inc. 21