Category: Encryption

Some businesses object to the use of cloud storage of electronic data because of a fear that employees of the storage provider (or others) could access the businesses’ data stored in the cloud.  Even if the data is encrypted, this fear can still exist if the cloud storage service holds the key necessary to decrypt the data.  Continue reading

In my last post, I discussed whether data maintained in a cloud storage or computing platform can be said to be confidential.  This is important because the Texas Uniform Trade Secrets Act requires the owner of a trade secret to undertake reasonable steps to maintain the confidentiality of the trade secret.  I am not aware of a reported case opinion analyzing how to satisfy that requirement for data stored in the cloud.  Therefore, we do not yet know whether Texas courts will require a user of cloud storage or computing services to take extra precautions to protect the secrecy of their trade secrets.  Nevertheless, because encryption is a relatively easy solution to the problem of cloud service providers having the ability to access or disclose their customers data, it strikes me as a smart business practice to take advantage of that solution. Continue reading