more on Firms Look to Limit Liability for Online Security Breaches

[Dave Farber <dave () farber net>]

-----Original Message-----
From: Stephen Anspach <sanspach () epoll com>
Date: Fri, 05 Mar 2004 11:01:11 
To:dave () farber net
Subject: Re: [IP] Firms Look to Limit Liability for Online Security Breaches

dave -

        i recently gave a talk to the beverly hills bar association on SB1386 
(California Civil Code sec. 1798.82), which is california's data 
privacy law referred to in the WP article ("...considering a federal 
equivalent of a California law that requires companies to disclose 
breaches of unencrypted data").  the topic of the discussion was what 
businesses should do to comply with the law, implementation of 
solutions, and the best legal advice that can be given to clients.

        i'd suggest that anybody interested in seeing how federal legislation 
may proceed examine California Civil Code sec. 1798.82 
(http://tinyurl.com/3drlz) carefully, as the federal law may be closely 
modeled upon it.  while the intention and proactive effort of the 
SB1386 authors should be applauded, there are some complications with 
the statute as it currently stands (e.g. lack of definition of an 
*acceptable* level of encryption) and some items that may present 
difficulties in compliance ("substitute notice" could be particularly 
onerous if one does not have proper contact information for the 
individuals in their database, etc).

- stephen


On Mar 5, 2004, at 6:28 AM, Dave Farber wrote:

> -----Original Message-----
> From: Tim Finin <finin () cs umbc edu>
> Date: Fri, 05 Mar 2004 08:23:43
> To:dave () farber net
> Subject: Firms Look to Limit Liability for Online Security Breaches
>
> Today's Washington Post has a long article on the trend
> for companies to try to limit liability for security
> failures.
> [snip]
>
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