cloud computing legal issues

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2. 3. Legal Issues in Cloud ComputingLiabilityLawCompliance Copyright Data Portability 4. Why Cloud Computing Cloud Computing services offer lowbarrier to entry and easy scalingpossibilities. Easy click-wrap agreements Agility/ Flexibility of Technology Always ON ubiquitous Real Time Information and Immediatefeedback 5. Compliance of Cloud Computing Auditing requirements Many contracts impose auditing possibilities that include physical inspection how can these auditingrequirements be complied with when geographicallydecentralized cloud services are used? Applicable Law & Competent courtIf outside own country, any litigation can becomeprohibitively expensive . . What happens in case of bankruptcy of thecloud computing service provider? 6. Compliance as per The IT Rules, 2011 The intermediary shall observe following due diligence whiledischarging his duties, namely : (1) The intermediary shall publish the rules and regulations,privacy policy and user agreement for access or usage of theintermediarys computer resource by any person. (2) Such rules and regulations, terms and conditions or useragreement shall inform the users of computer resource not tohost, display, upload, modify, publish, transmit, update orshare any information that . If such hosting reported action to be taken in 36 hours FACTS : Drop Box , Rapid Share, Gmail Storage containsinfinite pornography, pirated s/w , songs etc 7. Law for Cloud Computing Service Cloud computing service providers are intermediaryas per The IT Act, 2000 S2(1)(w) "Intermediary" with respect to anyparticular electronic records, means any person whoon behalf of another person receives, stores ortransmits that record or provides any service withrespect to that record and includes telecom serviceproviders, network service providers, internet serviceproviders, web hosting service providers, searchengines, online payment sites, online-auction sites,online market places and cyber cafes; 8. Indemnity Issues in Cloud Computing We and our licensors shall not be responsible for any service interruptions, including, withoutlimitation, power outages, system failures or other interruptions, including those that affect the receipt, processing, acceptance, completion or settlement of any payment services. (...)Neither we nor any of our licensors shall be liable toyou for any direct, indirect, incidental, special, consequential or exemplary damages, including, but not limited to, damages for loss of profits, goodwill, use, data or other losses (...)Who will indemnify the Customer or the user ? 9. Agreement Clauses in Cloud Service You are utilizing a shared disk modeland we cannot RISK the chance yourthird party may interfere with otherclients using the same platform. What happensto risk mitigation ? 10. Legal Liability of Cloud Providers Including India many jurisdictions, cloud providers canbe held liable for the illegal data they may be hostingEscape Routes no liability for services that consist of the storage of electronic information under the condition that the provider has No knowledge or awareness of illegal nature. ..and removes or blocks illegal data when it doesgain knowledge or become aware of illegal nature Liability protection does not prevent so-calledinjunctions, which can be as costly and 11. Loss Of Location in Cloud Computing With Indian Investigation agencies, Loss of location islikely to cripple cybercrime investigations at a very earlystage. The Budapest Convention on Cybercrime alreadyfeatures a legal principle which overrules location as alegal connecting factor: Consent. Article 32 of theBudapest Convention states: Article 32 Trans-border access to stored computerdata with consent or where publicly available India not a Signatory to Convention on Cybercrime 12. Letter rogatory an option The Interpol can take necessary follow upsteps for this the local police issues lettersrogatory under the provisions of Section 166 ACr 13. Data Portability on Cloud Who is really managing my companys sensitiveinformation? What are their internal security practices? Howwell do they handle incident response? How reliable is the infrastructure that providesthe service? Are they prone to service outages? How can my service provider recover my cloudstuff? What is H/W & S/W Portability of my DATA ? 14. Copyright Issues for Data on Cloud Cloud storage as offered by and otherproviders like Dropbox do offer some of thefeatures of file sharing that a recent court rulingfound illegal. RIAA v/s LimeWire.(Recording Industry Association of America) RIAA?? which took NAPSTER DOWN) 15. 16. 17. Thank Youprashant.mali@cyberlawconsulting.comMobile :


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