In an increasingly global economy users want to pay close attention to jurisdiction laws in case there are any disputes. Laws around data ownership are more defined in the US, and odds of recovering losses elsewhere are slim to none.
One of the most famous examples of jurisdiction disputes, one that continues today, pertains to Kim Dotcom and his file sharing site Megaupload. Five major movie studios recently filed a lawsuit against Dotcom, who is stuck in New Zealand under threat of extradition from the US. Despite the best efforts of the studio lawyers, New Zealand's protection makes it unlikely this case will come to a fruitful resolution.
"It can be long drawn out process if you have a dispute in countries where laws aren't favorable to protecting corporate identities," says Kamal Shah, VP of product at Skyhigh Networks.
[For more on terms and service complications, see Everyone's Doing It, But Is It Legal?.]
Becca Lipman is Senior Editor for Wall Street & Technology. She writes in-depth news articles with a focus on big data and compliance in the capital markets. She regularly meets with information technology leaders and innovators and writes about cloud computing, datacenters, ... View Full Bio