Third Party Discovery of Foreign Bank Records Should First Proceed Under the Hague Convention

Where U.S. litigation discovery obligations were argued to be in conflict with foreign civil and criminal privacy statutes, many recent opinions found that discovery should proceed under the Federal Rules over the protest of the foreign data custodians. See, e.g., Gucci Amer., Inc. v. Curveal Fashion, No. 09 Civ. 8458, 2010 WL 808639 (S.D.N.Y. Mar. 8, 2010) (compelling the third-party U.S. parent of a foreign bank to produce documents located at its subsidiary despite claims that such production was illegal under Malaysian law) discussed further in prior blog posts here and here. However, in SEC v. Stanford International Bank Ltd, the court departed from this pattern in finding that discovery should first proceed under the Hague convention “in the interest of comity.” Civil Action No. 3:09–CV–0298–N, 2011 WL 1378470 at *14 (N.D.Tex. April 6, 2011).

Continue Reading...

Let us tell you how we see this going down: White House publishes cybersecurity legislative proposal

On May 12, 2011, the Obama Administration released its legislative proposal concerning cybersecurity. The proposal comes almost two years after the President identified cyber threats and protecting our digital infrastructure as “one of the most serious economic and national security challenges we face as a nation” in his Cyberspace Policy Review. The Administration’s legislative proposal includes a number of proposals to update existing federal cybersecurity laws and regulations in order to protect the Nation against cyber threats. The stated focus of the proposal is to shore up cybersecurity measures to protect the American people, the Nation’s critical infrastructure, and the Federal Government’s networks and computers while providing a framework for safeguarding individual privacy and civil liberties.

Continue Reading...

COPPA Violations? Cop a Settlement for $3 Million

Playdom, Inc., an online game company owned by Disney Enterprises, Inc., and Playdom’s Chief Executive Officer, Howard Marks (the “Defendants”), agreed to pay $3 million to settle charges brought by the Federal Trade Commission (“FTC”) that they violated the Children’s Online Privacy Protection Act (“COPPA”) by collecting, using and disclosing the personal information of children under the age of 13 without their parents’ prior, verifiable consent.  According to the FTC’s settlement announcement, the $3 million settlement is the largest civil penalty ever for a COPPA violation.

Continue Reading...