Third-Party Bank Remains Caught Between an Order Compelling Production and Malaysian Law - Coercive Sanctions Recommended

Our April 1, 2010 blog entry discussed the March 8, 2010 Order in Gucci Amer., Inc. v. Curveal Fashion, No. 09 Civ. 8458 (S.D.N.Y.) (the “Order”), compelling the third-party U.S. parent (the “U.S. Parent”) of a foreign bank, to produce documents located at its subsidiary, despite claims that such production was illegal under Malaysian banking secrecy laws.  The entry concluded by noting that:

This opinion illustrates the no-win situation that foreign corporations continue to be placed in by the tension between U.S. courts and foreign law, and underscores the importance of raising foreign-law based discovery objections as early and in as detailed a manner as possible in order to maximize the chances of successfully navigating this conflict.

Id. Subsequent history in this matter further illustrates the seriousness of this predicament.

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FTC to Investigate Digital Copy Machine Privacy Risks

On May 11, 2010, the Federal Trade Commission responded to a letter previously submitted by Congressman Edward Markey which voiced concern over privacy risks relating to digital copiers.

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Possible Consequences to a Third Party for Violating a Foreign Blocking Statute Outweighed by Plaintiff's Need for Banking Records to Enforce a Judgment

On March 8, 2010 the U.S. District Court for the Southern District of New York issued the latest opinion addressing the conflict between U.S. discovery laws and foreign blocking statutes.  In Gucci Amer., Inc. v. Curveal Fashion, No. 09 Civ. 8458, 2010 WL 808639 (S.D.N.Y. Mar. 8, 2010), the court compelled the third-party U.S. parent (the "U.S. Parent") of a foreign bank, to produce documents located at its subsidiary despite claims that such production was illegal under the Malaysian law.

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Data Privacy Day, Privacy After Hours

For anyone who will be in Los Angeles on Data Privacy Day, January 28, 2009, please join me for IAPP's Privacy After Hours at the X bar in Century City, 6-8 p.m.  Please RSVP to me at tforsheit@proskauer.com.

X bar, Hyatt Regency Century Plaza, 2025 Avenue of the Stars, Los Angeles, CA 90067, 310.551.3332, http://www.hyatt.com/gallery/xbar/index.html

Department of Education Issues Final Regulations Amending FERPA

The Family Educational Rights and Privacy Act (20 U.S.C. 1232g; 34 CFR Part 99) (“FERPA”) imposes various requirements on educational institutions regarding the privacy of personally identifiable information contained in education records of students.  On December 9, 2008, the U.S. Department of Education (“DOE”) published final rules amending the regulations that implement FERPA.   

 

Originally proposed on March 28, 2008, the DOE published a notice which proposed various changes to FERPA and its implementing regulations “to implement various statutory changes made to FERPA to implement two recent US Supreme Court decisions, to respond to changes in information technology, and to address other issues identified through the Department’s experience in administering FERPA.”  (73 FR 74806).  According to the DOE, approximately 121 parties submitted comments in response to the March, 2008 NPRM.  The Final Rules become effective January 8, 2009.

 

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Breach Litigation Developments Webinar

Early this month I discussed recent developments in data breach litigation at a webinar hosted by Debix.  You can listen to the webinar at any time by following the instructions here.

All of us in Proskauer's Privacy and Data Security Practice Group wish you a peaceful and happy holiday.

Privacy under the 44th President? Will the New Administration Bring a New Playbook?

 

As we prepare to welcome both the 44th President and a revamped Congress to Washington, it is time to consider what privacy under the new administration will look like. Barack Obama polled strongly on the campaign trail as the candidate most likely to advance individual privacy rights, but are the pollsters a good indicator what privacy will look like under the new administration?    Here are some of our thoughts about what we may see in the next four years.

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DHS Says Infrastructure More Vulnerable to Cyber Attacks; Private Businesses Told to Be Vigilant

Businesses are on notice to pay more attention to computer security in order to protect business assets and private information, and to thwart infiltrations that threaten interconnected computers.  And help is available from the United States Computer Emergency Readiness Team (“US-CERT”).

Department of Homeland Security (“DHS”) Secretary Michael Chertoff and Assistant Secretary of Cybersecurity Greg Garcia recently warned that an uptick in cyber attacks  reveal a growing threat to critical U.S. infrastructure and private networks. Garcia warned that hackers “are making massive efforts to compromise computer systems on a global scale,” a reference to the fifty percent in crease in cyber-attacks between 2006 and 2007.  Chertoff called upon businesses to help protect networks and infrastructure from infiltration and data theft.  Secretary Chertoff remarked, “There's no question this is the vulnerability of the 21st century.” Continue Reading...

Discovery Ruling Raises Significant Privacy and E-Discovery Concerns

In a recently unsealed order, Central District of California Magistrate Judge Jacqueline Chooljian ruled that data contained in a computer server’s Random Access Memory (RAM) is “electronically stored information” for purposes of Federal Rule of Civil Procedure 34. She also ordered the defendant to begin logging the contents of certain servers’ RAM and producing the logs. 

 

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