SaaS Agreements – Data Protection – EU US Privacy Shield

A new privacy agreement called the Privacy Shield has been agreed by the US and EU to replace the safe harbour scheme. The Privacy Shield is based upon safe harbour but has additional protections, particularly with regard to public authority access to personal data. The Privacy Shield must now be reviewed by the European Commission before it can be relied upon and adopted by SaaS suppliers or customers. The European Commission is currently assessing whether or not the Privacy Shield provides adequate protection in accordance with EU data protection laws. This process is expected to take up to 3 months.

Continue reading

SaaS Agreements – Data Protection – Microsoft must disclose data on EU server

Many SaaS customers falsely believe that if their SaaS data is stored in a data centre located in the EU it will be protected against disclosure to the US authorities. This is incorrect. The recent US court ruling against Microsoft has confirmed the position, namely that SaaS suppliers and SaaS customers who use data centres located in the EU, owned by US companies, cannot prevent US authorities from accessing their data.

Continue reading

SaaS Agreements – Terms and Conditions – Safe Harbor Adequacy

European data protection authorities have recently raised serious reservations about the effectiveness of the safe harbour scheme and its ability to adequately protect SaaS customer data to the same standard as European data protection laws. If you are a SaaS supplier and are considering/or are already using a company located in the US to provide part of your SaaS services i.e. for hosting, you should be aware of the existence and limitations of the safe harbor scheme.

Continue reading

SaaS 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 reading