What is Information Technology Law?
Information technology law provides the legal framework for collecting, storing, and disseminating electronic information in the global marketplace. Attorneys practicing in this area of the law represent individuals and businesses from all different industries. They help structure information technology transactions in a way that maximizes the client’s economic benefit while ensuring regulatory compliance. A great deal of emphasis is also placed on anticipating potential sources of dispute between the parties to a transaction, and crafting agreements that address these concerns, thereby reducing the risk of litigation.
When disputes arise in the field of information technology that cannot be resolved outside of the court system, a lawyer specializing in these types of cases can prove a powerful advocate compared to a general legal practitioner. Information technology law firms tend to hire lawyers with practical experience working in the industry prior to entering the legal profession. With such a background, a lawyer is more effective at explaining technical concepts to a judge or jury, and he or she will likely have contacts within the industry that make finding consultants and expert witnesses less difficult. Clearly, information technology law is a niche practice. Those looking to hire an attorney should bear this in mind.
Software Licensing Issues
Businesses often change or update their operating software in an effort to keep pace with technology. Switching software programs can lead to greater profitability, but it can also present any number of legal pitfalls for unsuspecting business managers. For example, a typical software licensing contract will contain provisions relating to performance warranties, installation and troubleshooting, user training, limited liability and indemnification of the vendor, infringement disclaimers, payment and finance terms, and more. Despite the complexity of these agreements, some software company representatives purposefully wait to provide a copy until shortly before the sale closes.
Owners and managers who find themselves presented with a licensing agreement that they do not completely understand should resist pressure from the sales representative to sign the document with little or no time for meaningful review. Any “deadline” imposed by the vendor is likely nothing more than a high pressure sales tactic. There is simply too much at stake in the event the software fails to meet the needs of the business. The wisest course of action is to demand additional time, and hire an information technology attorney to analyze the contract and to point out terms that should be negotiated.
Data Privacy and Security
Much of the litigation that occurs in the field of information technology results from enterprises failing to keep customer and employee information secure. Now that it is primarily stored in digital format, sensitive information is susceptible to theft on a scale unimaginable in previous generations. Hackers and other cyber criminals routinely target financial institutions, e-commerce websites, and ordinary businesses, sometimes gaining access to thousands of customers’ data all at once. This can lead to various legal claims, from government enforcement actions to class action consumer lawsuits.
Companies that have any presence on the internet should act proactively to avoid these problems. Information technology lawyers are available to audit security systems and policies, and to recommend any necessary changes. If a breach has already occurred, an experienced legal team can represent companies in investigations by the FTC or state attorneys general, and defend against civil litigation brought by private parties. Data privacy and security issues can arise at any time. To succeed in today’s business environment, it is critical to stay ahead of the curve and make safeguarding digital information a priority.
Electronic Signature Laws
Another growing area of concern for many businesses involves electronic signatures. Like digital storage, electronic signature software has the potential to dramatically streamline operations for businesses willing to embrace new technology. At the same time, care must be taken to avoid compromising sensitive customer data and/or violating government regulations on the subject. With respect to electronic signature laws, business owners should be aware of at least the following two pieces of legislation: the Uniform Electronic Transactions Act (UETA), and the Electronic Signatures in Global and National Commerce Act (ESIGN).
Nearly every state has adopted UETA in some form, while ESIGN was passed at the federal level. Together, these laws allow companies to replace traditional paper signature documents with electronic forms. Customers can agree to contractual terms with the click of a computer mouse, speeding up the turnaround time for a transaction considerably. However, UETA and ESIGN require businesses that use electronic signatures to comply with rules relating to customer consent disclosures, record retention, and document reproduction capabilities. Again, engaging an attorney to conduct a compliance review in this area is highly recommended. (- HG.org)
Law Daily 