A discussion on how information technology companies are becoming more vulnerable to lawsuits as the technology progresses and as the way that the information is handled comes under question
The following paper argues that as technology advances and information issues escalate, it is clear that future questions regarding business and personal rights and ownership of technology and applications will be settled and law about these new channels will be settled, not only in the marketplace, but also in the courts.
“Information technology companies are becoming more vulnerable to lawsuits as the technology progresses and as the way that the information is handled comes under question and under fire. Companies, their officers and their boards are vulnerable to lawsuits because of the growing number of statutes and business contacts requiring adequate IT data protection, as well as case law established in related legal areas. They are presumed to have this liability as they are assumed to have sufficient knowledge about hacker attacks and other potential breaches of information security and the reliability of their products to make the customers’ information and other related assets a matter of fiduciary duty. Most contracts that establish strategic alliances, partnerships and joint ventures between companies contain clauses for shared information and it is presumed that juries will soon be applying established product liability and premises liability standards to cases in which losses to customer information or other assets suffered on one party’s systems because of another company’s failure to maintain adequate operations, access and data security.”