Companies need to consider carefully what they expect of their ASPs and work that into a contract, keeping in mind that there is no one standard legal format for setting up such an agreement. Another important but often unforeseen legal problem is which jurisdiction applies when there is a problem. Nathan gave the example of a company that publishes content defaming a competitor on its site. If the competitor downloads the information in Idaho, local law may apply, even if the servers are in Virginia and the company responsible for the content is based in New York. Insuring data is a critical and often overlooked aspect as well, Nathan said.
Some states consider data a tangible asset, and therefore a company can sue to recover damages.
Some states, however, don't consider data a tangible asset, and companies need to protect themselves. Few insurance companies offer insurance for data loss, but they are out there, Nathan said. Click here to learn more. Find out at a free Windows XP launch event starting 10.25.01. Computerworld Inc. All rights reserved.