The White House issued this memorandum to corporate executives and business leaders this week in which it stresses the need for urgent vigilance in implementing many of the best information security best practices we commonly discuss on our Privacy and Data Security Insights blog.  The memo contains good information that any business of any size should consider and implement as quickly as possible to bolster its defenses to what has been an onslaught of ransomware attacks in the past year.  

Continue Reading White House Memo Stresses Need For Vigilance in Defending Against Ransomware Attacks

Taft Appellate attorneys Jon Olivito and Michael Robertson recently wrote about a U.S. Court of Appeals for the Sixth Circuit decision that clarified the scope of conduct that could potentially expose any consumer business to immense liability.

In Thomas v. TOMS King (Ohio), LLC, No. 20-3977 (6th Cir. May 11, 2021), a consumer sued a defendant business alleging a violation of the Fair and Accurate Credit Transactions Act of 2003 (FACTA). The plaintiff alleged the defendant had violated the
Continue Reading Sixth Circuit Helps Businesses by Joining Sister Circuits in Identity Theft Case

Guess what?  Last Thursday, the first Thursday in May, was World Password Day. Right? You didn’t even know it.  We in the Privacy and Data Security Practice Group thought it would be a perfect opportunity to talk about the importance of the most basic, but still effective way to safeguard your accounts and data. In the early days of the internet, a simple password was all you might need to adequately protect the one or two accounts you might have had. Your desktop login, your email, and maybe some early version of social media. Password security was taken so lightly; it wasn’t unusual for passwords to be stored in a plain text file on a desktop or on a sticky note at your desk. Those days are over. Well, they should be.

Continue Reading Celebrating World Password Day. Responsibly.

In March 2020, the U.S. Department of Health and Human Services’ (HHS) Office of the National Coordinator for Health IT (ONC) finalized two rules which established extensive healthcare data sharing policies related to the 21st Century Cures Act’s information blocking provision and adopted new health information technology certification requirements to enhance patients’ access to their health information.

Largely in response to the COVID-19 public health emergency, in October 2020, HHS released an interim rule which provides healthcare systems some flexibility and time to adapt to pandemic-related challenges. The interim rule extends the compliance dates and timeframes necessary to meet specific requirements related to information blocking and Conditions and Maintenance of Certification (CoC/MoC). The interim final rule also adopts updated standards and makes technical corrections and clarifications to the ONC Cures Act Final Rule.


Continue Reading Closing In On Impact: April 2021 Compliance Date For Information Blocking and Health IT Certification Requirements

On February 3, 2021, the Virginia Senate passed the Virginia Consumer Data Protection Act (“VCDPA” or the “Act”). Upon approval from Governor Ralph Northam, Virginia will be the second state in the nation to adopt a comprehensive data privacy law. This proposed legislation places Virginia alongside California at the forefront of domestic data privacy regulations.

In 2020, California changed the landscape of data privacy laws in the United States with the California Consumer Privacy Act (CCPA). The CCPA, a result of a ballot initiative by California, introduced the idea of widespread data subject rights for American consumers. Nearly three years later, Virginia is securing the second place spot with its enactment of the VCDPA. The Act mirrors the CCPA and the European Union’s General Data Protection Regulation (GDPR) in many ways. For instance, the Act contains a broad definition of “personal data.” It imposes certain fundamental processing principles, such as purpose limitation and data minimization rules, on businesses that process personal data. It also provides Virginia consumers with new rights to access, correct, delete, and request processing modifications with respect to their personal data.

Once signed into law, the VCDPA will be effective January 1, 2023. In the meantime, companies doing business in Virginia should start actively thinking of ways to incorporate VCDPA requirements into their existing privacy policies and procedures. The key features of the VCDPA are summarized below.
Continue Reading And Then There Were Two: The Commonwealth of Virginia Joins California in Enacting Comprehensive Privacy Rights Law

Over the years on Taft’s Privacy and Data Security Insights, we have written on the risk of data breaches and the specific impact on privacy, or the compromise of confidentiality of personally identifiable information. However, many clients forget to also consider the value in other information they possess, specifically proprietary information, information subject to trade secret, and intellectual property. Today we will discuss how failing to account for intellectual property in your data security program can be costly, especially in the event of a data breach.

Intellectual property and specifically patent protection is a critical component for the success of many U.S. businesses, both large and small. As the desire to obtain patent protection grows, so too does the occurrence of data theft and other data breaches.  Therefore, companies need to know whether an invention is still patentable if the propriety information underlying the invention is the subject of a data breach or other cyber security failure. The question applies whether a data breach is accidental or malicious and whether it is perpetrated by an outside source or by an employee of the company.  The answer is the same: the patent rights are likely forfeited.


Continue Reading Data Breaches Ain’t Just About Privacy: Risking the Loss of Patent Rights by Data Breach with Subsequent Disclosure

The number of internet users in China has rapidly increased to over 900 million individuals as of March 2020.  As internet availability continues to rise in China and the country’s digital community grows in virtually all industries and populations, the People’s Republic of China is keying into the fact that foreign and domestic businesses seeking to capitalize on China’s market must adhere to rules regarding processing and transferring personal information across China’s borders.

On October 21, 2020, the National People’s Congress Standing Committee unveiled its draft Personal Information Protection Law (PIPL) to the public for view and comment.  If enacted, PIPL will be China’s comprehensive law on the protection of personal data.  The necessity of PIPL was cited in part by the National People’s Congress Standing Committee due to China’s explosive growth of information integration and the amount of personal data collected.  The Committee asserted that protection of its citizen’s personal information was of utmost importance for economic development and that there needed to be clear requirements in order to strengthen personal information protection.  Interestingly, PIPL provides numerous data protection principles similar to those we have seen enacted under the European Union’s General Data Protection Regulation and the California Consumer Privacy Act.  Specifically, the draft PIPL appears to take on general principles of transparency, fairness, limitations of purpose for data processing, retention limitations, and accountability.  Some of the more notable items within the draft PIPL include:
Continue Reading China’s Personal Information Protection Law (PIPL) – Data Privacy in the Land of Big Data

Each month, new developments in European privacy law demonstrate both how the times are changing, and how the 2010 Standard Contractual Clauses are increasingly antiquated.  Last month, the Commission of the European Union (the “Commission”) published two preliminary implementing decisions:

(1) a draft new set of standard contractual clauses for transfers of personal data from the EU to third countries (the “Cross-Border SCCs”); and

(2) a draft of new standard contractual clauses for certain clauses in controller-processor data processing agreements (“DPAs”) pursuant to Article 28(7) of the General Data Protection Regulations (“GDPR”).

Both drafts, available here, were widely anticipated following the Court of Justice of the European Union (“CJEU”) Schrems II decision, which invalidated the EU-US Privacy Shield framework for cross-border data transfer. Once approved, these new clauses will replace the previous standard contractual clauses used by organizations as an appropriate safeguard for making international transfers of personal data under GDPR.


Continue Reading Oh the Times (and the Clauses), They are a-Changing’

As we all prepare for what will undoubtedly be an unconventional holiday season, many of us are turning to our computers to check off items on our shopping list instead of bundling up to head to the mall. Online shoppers around the nation have already made the strongest showing in history with $10.8 billion in sales on Cyber Monday alone, which amounts to a 15.1% increase from last year, while foot traffic in brick and mortar stores was down 42.3% for Black Friday weekend. With the recent spikes in COVID-19 cases around the country, staying home and having those packages delivered right to your door step might seem like the safest way to go, but cyber criminals are pouncing at the online shopping frenzy to steal consumers’ personal and financial information.

This increased threat has been a common thread throughout 2020, as we saw cyber criminals amp up their tactics during the early days of the coronavirus crisis and when Americans received their CARES Act stimulus checks. Indeed, the bad guys are not taking a break because of COVID-19.  The FBI reports that cybercrimes are up an astonishing 400% this year. Now it is more important than ever to understand how these criminals operate and how you can avoid falling victim to these crimes so that you can keep your celebrations holly and jolly.
Continue Reading ‘Tis the Season…for Scams and Cybersecurity Threats

Taft partner Scot Ganow will be one of the presenters for “What we wish clients would do about business email compromise,” on Oct. 29, 2020. The one-hour seminar brings together cybersecurity and risk management professionals to examine business email compromise including a real-world case study, the ramifications of an attack, and how to arm your business against would-be opportunists.

Register to attend here.
Continue Reading Taft Partner to Speak on Business Email Compromise