SaaS suppliers are increasingly using data centres located in Switzerland to host SaaS software and store customer data. In light of recent media revelations about “prism” and the already existing concerns over access to customer data under the Patriot Act and FISA this could be an increasing trend. The advantages of hosting SaaS data in Switzerland are summarised below.
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SaaS Agreements – FAQs – Prism
In light of recent and ongoing “prism” revelations, SaaS suppliers are having to deal with numerous queries about the safety of SaaS customer data. Many customers mistakenly believe that by using a non-US data centre their SaaS customer data is safe against disclosure to the US authorities. Below is a summary of the most common concerns being raised by SaaS customers.
Continue readingSaaS Agreements – FAQs – Data Controller
It is important for a SaaS supplier to understand the legal obligations imposed upon a data controller when negotiating a SaaS agreement as the duties of a data controller are not the same as the duties of a data processor. In a SaaS relationship the supplier is always the data processor of the SaaS customer. The SaaS customer is always the data controller. Below is a summary of the obligations of a data controller.
Continue readingSaaS Agreements – Data Protection – Prism and US Laws
SaaS suppliers should be aware of relevant US laws when outsourcing SaaS services (data storage and hosting) to US companies or companies located in the USA. SaaS customers are becoming increasingly concerned about outsourcing in the USA following media reports about “Prism”. Namely, that the National Security Agency (NSA) accesses personal data stored on the servers of Microsoft, Apple, Google, Yahoo, Facebook and a few other major US public companies. Below is a summary of the most relevant US laws that SaaS suppliers should be aware of.
Continue readingSaaS Agreements – Data Protection – HIPAA
On January 25th 2013, the US Department of Health and Human Services modified the rules of the Health Insurance Portability and Accountability Act 1996 (“HIPAA”). HIPAA applies to any SaaS suppliers who process protected health information (“PHI”) on behalf of customers to whom the Act applies, regardless of whether or not the SaaS supplier is located in the USA.
Continue readingSaaS Agreements – Data Protection – Safe Harbor Still Adequate
Recently, the Department of Commerce’s International Trade Administration (ITA) – a US government body – published a document confirming that any SaaS suppliers based in the US (and/or SaaS suppliers using a data centre located in the US) who are “safe harbor” registered must be recognised as having an “adequate” level of data protection. The ITA rejected the view that EU data protection authorities can unilaterally refuse to recognise safe harbor certification as a valid means of demonstrating that a SaaS supplier based in the US (and/or SaaS suppliers using a data centre located in the US) has an adequate level of data protection.
Continue readingSaaS Agreements – Data Protection – FISA Customer Concerns
SaaS suppliers who use US public cloud providers to store, process or host their SaaS customer’s data as part of their SaaS services may now experience customers raising concerns about the risk of disclosure to, and monitoring of, their data by the US government under the Foreign Intelligence Amendments Act (FISA).
Continue readingSaaS Agreements – Data Protection – Cyber Security Issues
SaaS Customers are increasingly raising questions about the security provisions that SaaS suppliers include in their SaaS agreements and insisting on including onerous rights of audit to monitor and check compliance. Under the UK’s Data Protection Act (DPA) SaaS customers (data controllers) are required to take appropriate technical and organisational measures to prevent the:
unauthorised or unlawful processing of personal data; and
accidental loss, destruction or damage to personal data.
In order to comply with these duties and avoid substantial fines SaaS customers need to ensure that SaaS suppliers have adequate security measures in place to prevent data protection breaches from occurring.
Continue readingSaaS Agreements – FAQs – Transferring Data Outside the EEA
When negotiating a SaaS agreement with SaaS customers you will often need to transfer customer data outside of the EEA (European Economic Area). This could be at the request of your customer or more usually because you have a sub-contractor such as a data centre located outside of the EEA. SaaS suppliers should be aware of the following in order to comply with their duties under the Data Protection Act.
Continue readingSaaS Agreements – Data Protection – Changes to BCRs
The Article 29 Working Party, which represents the European data protection authorities (DPAs), recently announced that data processors (i.e. SaaS suppliers) can now use binding corporate rules (BCRs) to transfer personal data outside the European Economic Area (EEA). Previously the use of BCRs was limited to data controllers (i.e. SaaS customers).
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