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When Your Data Goes Viral: Insurance for Data Breaches
Data breaches are part of the technological age. Indeed, 2013 was dubbed the year of the “mega breach,” and in 2014, as of October, there had been 621 publicly reported data breaches, exposing 77,890,487 records. See, Identity Theft Resource Center, 2014 Data Breach Category Summary (Oct. 21, 2014). In early October 2014, JPMorgan Chase reported a data breach affecting as many as 76 million households and 7 million small businesses, making it one of the largest data breaches ever reported.
A data breach typically involves the unauthorized release or access of personal or confidential information. Personal information includes names, addresses, Social Security numbers, financial information, or health information. In addition to personal information, a data breach can also jeopardize a company's confidential information such as client records, trade secrets, privileged legal information, or employee records. Although many associate data breaches with hackers or cyberattacks, human error, such as a mistake in computer coding or losing a company laptop, also have resulted in significant breaches. A 2014 study concluded that 44% of data breaches were from malicious or criminal attacks against an organization, but 31% resulted from employee negligence and 25% resulted from system glitches.
The losses associated with data breaches are significant. The total average cost from breaches in 2014 was $5.9 million, with each lost or stolen record estimated to cost an organization $201. See, Ponemon Inst., LLC, 2014 Cost of Data Breach Study: United States 17 (2014). In addition to lost profits, companies involved in a breach face reputational harm and may face physical damage to their technology systems, software, or hardware. They also incur the cost of remediating the harm to individuals or organizations whose information was disclosed, providing them with notice of the breach, a call center for information, credit monitoring, and identity fraud recovery services. Victims of a data breach also may incur costs retaining specialized breach response firms to help identify and repair the cause of the breach, and public relations agencies to restore their image. Additionally, they may face the costs associated with lawsuits over the breach, and administrative actions against them.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.