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CLOUD COMPUTING - LEGAL ISSUES

                                           Mihkel Miidla

                                           27 September 2011
                                       ICEGOV2011, Tallinn, Estonia




                   Who we are?                                         ESTONIA LATVIA LITHUANIA BELARUS




                    Leading regional business law firm
                    with fully integrated offices in                       Tallinn
                    Estonia, Latvia, Lithuania and Belarus                ESTONIA

                    Established in 1995, today SORAINEN                    Riga
                    numbers more than 120 lawyers and                     LATVIA
                    tax advisers
                                                                        Vilnius
                    First law firm in the Baltic States and           LITHUANIA

                    Belarus where a quality management                                  Minsk
                    system has been implemented under                                  BELARUS

                    ISO 9001 standards
                    Serviced more than 7,500 local and
                    international corporate clients and
                    advised on close to 35,000 transactions
                                                                                  www.sorainen.com




www.sorainen.com                                                                                          1
Categories of issues                                       ESTONIA LATVIA LITHUANIA BELARUS




                       Data Privacy and Security
                       Contracts and Liability
                       Compliance




                                                                                        www.sorainen.com




                   Data Privacy and Security                                  ESTONIA LATVIA LITHUANIA BELARUS




                       Data location and ownership
                        – Practical issues: (i) In which country is the data stored? (ii) Who may
                          have access? (iii) Jurisdiction and national security interests.
                       Cross-border data transfers of personal data
                        – Requirements of the national Personal Data Protection Act;
                        – In the EU national data protection laws are based on Directive
                          95/46/EC;
                        – Different implementation in each Member State;
                        – Transfer of personal data generally allowed within the EU/EEA and
                          to countries with adequate levels of personal data protection. US
                          ‘Safe Harbour’ program;
                        – The data controller must ensure that appropriate technological,
                          organisational and physical measures are taken to protect the
                          personal data.


                   4
                                                                                        www.sorainen.com




www.sorainen.com                                                                                                 2
Contracts and liability                                        ESTONIA LATVIA LITHUANIA BELARUS




                       Selection of typical risks and issues that need to be
                       addressed already in the service contract:
                        –   Data backups and restoring;
                        –   Disaster recovery;
                        –   Service levels (e.g. availability, performance, etc);
                        –   Compliance with security requirements and standards;
                        –   Security breach handling;
                        –   Data handling upon bankruptcy;
                        –   Audit rights;
                        –   Interoperability issues;
                        –   Exit strategy (and avoidance of lock-in).




                   5                                                                        www.sorainen.com




                   Contracts and liability II                                     ESTONIA LATVIA LITHUANIA BELARUS




                       Liability
                        – Limitations on the liability of the service provider;
                        – Liability of the client.


                       Who is the actual service provider?
                        – Determine the rights and obligations of each party
                        – Is there a direct contractual relationship with the cloud provider?


                       Enforceability of civil contracts
                        – Governing law
                        – Jurisdiction
                        – Enforceability of foreign court decisions and arbitral awards

                   6
                                                                                            www.sorainen.com




www.sorainen.com                                                                                                     3
Compliance                                                                   ESTONIA LATVIA LITHUANIA BELARUS




                        National rules for archiving / public records;
                        Interoperability with other eGovernement services and
                        other national requirements imposed on eGovernment
                        services;
                        Access to public information (freedom of information);
                        Liability as a data controller of personal data;
                        Public procurement requirements
                         – The tender documents must be well prepared;
                         – Distortion of competition must be avoided.




                    7                                                                                     www.sorainen.com




                   Contacts                                                                     ESTONIA LATVIA LITHUANIA BELARUS




                                                       Thank You!
                                                         Mihkel Miidla
                                                           Associate
                                                    phone +372 6 400 959
                                                    mobile +372 56 622 985
                                                  Mihkel.Miidla@sorainen.com


                   Estonia                  Latvia                    Lithuania                    Belarus
                   Pärnu mnt 15             Kr. Valdemāra iela 21     Jogailos 4                   ul Nemiga 40
                   10141 Tallinn            LV-1010 Riga              LT-01116 Vilnius             220004 Minsk
                   phone +372 6 400 900     phone +371 67 365 000     phone +370 52 685 040        phone +375 17 306 2102
                   fax     +372 6 400 901   fax     +371 67 365 001   fax     +370 52 685 041      fax     +375 17 306 2079
                   estonia@sorainen.com     latvia@sorainen.com       lithuania@sorainen.com       belarus@sorainen.com



                                                                                                          www.sorainen.com




www.sorainen.com                                                                                                                   4

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Tutorial 4 mihkel miidla

  • 1. CLOUD COMPUTING - LEGAL ISSUES Mihkel Miidla 27 September 2011 ICEGOV2011, Tallinn, Estonia Who we are? ESTONIA LATVIA LITHUANIA BELARUS Leading regional business law firm with fully integrated offices in Tallinn Estonia, Latvia, Lithuania and Belarus ESTONIA Established in 1995, today SORAINEN Riga numbers more than 120 lawyers and LATVIA tax advisers Vilnius First law firm in the Baltic States and LITHUANIA Belarus where a quality management Minsk system has been implemented under BELARUS ISO 9001 standards Serviced more than 7,500 local and international corporate clients and advised on close to 35,000 transactions www.sorainen.com www.sorainen.com 1
  • 2. Categories of issues ESTONIA LATVIA LITHUANIA BELARUS Data Privacy and Security Contracts and Liability Compliance www.sorainen.com Data Privacy and Security ESTONIA LATVIA LITHUANIA BELARUS Data location and ownership – Practical issues: (i) In which country is the data stored? (ii) Who may have access? (iii) Jurisdiction and national security interests. Cross-border data transfers of personal data – Requirements of the national Personal Data Protection Act; – In the EU national data protection laws are based on Directive 95/46/EC; – Different implementation in each Member State; – Transfer of personal data generally allowed within the EU/EEA and to countries with adequate levels of personal data protection. US ‘Safe Harbour’ program; – The data controller must ensure that appropriate technological, organisational and physical measures are taken to protect the personal data. 4 www.sorainen.com www.sorainen.com 2
  • 3. Contracts and liability ESTONIA LATVIA LITHUANIA BELARUS Selection of typical risks and issues that need to be addressed already in the service contract: – Data backups and restoring; – Disaster recovery; – Service levels (e.g. availability, performance, etc); – Compliance with security requirements and standards; – Security breach handling; – Data handling upon bankruptcy; – Audit rights; – Interoperability issues; – Exit strategy (and avoidance of lock-in). 5 www.sorainen.com Contracts and liability II ESTONIA LATVIA LITHUANIA BELARUS Liability – Limitations on the liability of the service provider; – Liability of the client. Who is the actual service provider? – Determine the rights and obligations of each party – Is there a direct contractual relationship with the cloud provider? Enforceability of civil contracts – Governing law – Jurisdiction – Enforceability of foreign court decisions and arbitral awards 6 www.sorainen.com www.sorainen.com 3
  • 4. Compliance ESTONIA LATVIA LITHUANIA BELARUS National rules for archiving / public records; Interoperability with other eGovernement services and other national requirements imposed on eGovernment services; Access to public information (freedom of information); Liability as a data controller of personal data; Public procurement requirements – The tender documents must be well prepared; – Distortion of competition must be avoided. 7 www.sorainen.com Contacts ESTONIA LATVIA LITHUANIA BELARUS Thank You! Mihkel Miidla Associate phone +372 6 400 959 mobile +372 56 622 985 Mihkel.Miidla@sorainen.com Estonia Latvia Lithuania Belarus Pärnu mnt 15 Kr. Valdemāra iela 21 Jogailos 4 ul Nemiga 40 10141 Tallinn LV-1010 Riga LT-01116 Vilnius 220004 Minsk phone +372 6 400 900 phone +371 67 365 000 phone +370 52 685 040 phone +375 17 306 2102 fax +372 6 400 901 fax +371 67 365 001 fax +370 52 685 041 fax +375 17 306 2079 estonia@sorainen.com latvia@sorainen.com lithuania@sorainen.com belarus@sorainen.com www.sorainen.com www.sorainen.com 4