Developments in Global Data Protection & Transfer: How They - - PowerPoint PPT Presentation

developments in global data protection transfer how they
SMART_READER_LITE
LIVE PREVIEW

Developments in Global Data Protection & Transfer: How They - - PowerPoint PPT Presentation

Developments in Global Data Protection & Transfer: How They Impact Third-Party Contracts Rebecca Eisner Gabriela Kennedy Partner Partner and Head of Asia IP & TMT +1 312 701 8577 +852 2843 2380 reisner@mayerbrown.com


slide-1
SLIDE 1

Developments in Global Data Protection & Transfer: How They Impact Third-Party Contracts

Rebecca Eisner

Partner +1 312 701 8577

reisner@mayerbrown.com

June 7, 2016

Gabriela Kennedy

Partner and Head of Asia IP & TMT +852 2843 2380 gabriela.kennedy@mayerbrownjsm.com

Lei Shen

Senior Associate +1 312 701 8852 lshen@mayerbrown.com

Mark Prinsley

Partner +44 20 3130 3900] mprinsley@mayerbrown.com

slide-2
SLIDE 2

Rebecca S. Eisner Partner Rebecca S. Eisner is the Partner in Charge of the Chicago office of Mayer Brown LLP and a member of the firm’s Business & Technology Sourcing

  • group. Her practice focuses on complex global cloud and emerging

technologies, outsourcing and technology transactions, privacy, data protection and data transfers, Internet and e-commerce law issues. She is a frequent writer and speaker on outsourcing, cloud computing and privacy and data protection topics.

Speakers

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 2

data protection topics. Gabriela Kennedy Partner Gabriela Kennedy is a partner of Mayer Brown JSM and head of the Asia IP and TMT group. She is also co-leader of Mayer Brown's global Intellectual Property

  • practice. She is based in Hong Kong, practising intellectual property, privacy ,

media, information technology and telecommunications law. Gabriela advises extensively on technology and data protection issues in Hong Kong and throughout Asia, particularly in relation to business processing outsourcing, the cross-border transfer of data, data compliance and data breaches.

slide-3
SLIDE 3

Mark A. Prinsley Partner Mark A. Prinsley is a partner of Mayer Brown and head of the Intellectual Property & IT group in London as well as the outsourcing practice. He is regularly named as a leading individual in the areas of business process

  • utsourcing, information technology and intellectual property by Chambers' UK

and Global guides. His practice involves acting for customers at all stages of

  • utsourcing transactions with a particular focus on the financial services sector.

Speakers

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 3

Lei Shen Senior Associate Lei Shen is a senior associate in the Cybersecurity & Data Privacy and Business & Technology Sourcing practices in Mayer Brown's Chicago office. Lei focuses her practice on data privacy and cybersecurity, technology and business process outsourcing, and information technology transactions. Lei is a Certified Information Privacy Professional in U.S. privacy law (CIPP/US) and a member of the International Association of Privacy Professionals (IAPP).

slide-4
SLIDE 4

EUROPE: IMPLICATIONS OF THE GENERAL DATA OF THE GENERAL DATA PROTECTION REGULATION

slide-5
SLIDE 5
  • Implementation

– Regulation adopted and published 27 April 2016 and replaces existing EU data privacy regime in May 2018

  • Key changes

– Territorial scope/application – Compliance obligations

EU General Data Protection Regulation

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 5

Compliance obligations – Rights of data subjects – Sanctions for breach – International transfers

slide-6
SLIDE 6
  • New law is by way of EU Regulaon ̶ should result in a largely harmonised posion

throughout all EU countries

  • Applies to processing of personal data

– (a) in the context of the activities of a controller or processor established in the EU, irrespective of where the processing takes place; – (b) of data subjects who are in the EU by controllers or processors not established in the EU where the processing relates to offering goods or services to the data subjects

Territorial Scope/Application

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 6

the EU where the processing relates to offering goods or services to the data subjects

  • r monitoring the behaviour in the EU of

data subjects – NOTE: It applies to Data Processors and Data Controllers

slide-7
SLIDE 7
  • “Privacy by design” concept builds on current technical and organisational security

measures’ obligations on data controllers

  • More sophisticated requirements for the contractual arrangements between a data

controller and a data processor

  • Formal record-keeping obligations on controllers and processors, records to be
  • pen to inspection by information commissioner
  • Data privacy impact assessments for high-risk processing

Compliance Obligations

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 7

  • Data privacy impact assessments for high-risk processing
  • Data privacy officers required in some situations
slide-8
SLIDE 8
  • Greater transparency of nature of processing

– more information to be made available – clear and concise explanations required – likely emergence of “washing instructions” icons

  • Right to be forgotten

Enhanced Rights of Data Subjects

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 8

  • Right to be forgotten

– impact on information made publicly available

  • Data portability

– for data an individual has provided to the data controller and where the processing is carried

  • ut by automated means
  • Right to object to processing

– potential impact on the “legitimate interests” ground for processing personal data – absolute right to object to processing for direct marketing

slide-9
SLIDE 9
  • Personal data breaches

– presumption that Information Commissioner must be notified within 72 hours of the controller becoming aware of the breach – processor under obligation to notify the controller – notification of data subjects only required where there is a high risk to the rights and freedoms of the data subject

  • Administrative fines

Data Breach and Sanctions (and International Transfers)

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 9

  • Administrative fines

– up to 4% of worldwide annual turnover or €20 million, whichever is the greater. BUT many qualifications on likely level of fines

  • Direct legal remedies

– greater clarity as to potential for direct proceedings. Consumer class actions possible

  • International transfers

– current regime continues – but that is not the whole story!

slide-10
SLIDE 10

ASIA: CONSTANT CHANGE ASIA: CONSTANT CHANGE

slide-11
SLIDE 11

The Emergence of Privacy Legislation

Proposed/draft data privacy law Current overarching data privacy law Piecemeal approach

China Japan

  • S. Korea

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 11

Amendment Bill approved in 2015 and will come into force by 2017

Thailand India Taiwan Hong Kong Malaysia The Philippines Singapore Indonesia

slide-12
SLIDE 12

China Japan

  • S. Korea

Stringent data localisation restrictions Partial data localization restrictions No restrictions

Data Localisation

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 12

Thailand India Taiwan Hong Kong The Philippines Singapore Indonesia Malaysia

slide-13
SLIDE 13

China Japan

  • S. Korea

Personal Data Cross-Border Transfer Restrictions

Specific cross-border transfer restrictions Specific cross-border restrictions not yet in force Some cross-border restrictions Applies to sensitive data only

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 13

Thailand India Taiwan Hong Kong Malaysia

The Philippines – must ensure third-party provides comparable level of protection

Singapore Indonesia

Bill approved in 2015 and will come into force by 2017

slide-14
SLIDE 14

China Japan

  • S. Korea

Marketing Restrictions

Specific direct marketing restrictions No specific direct marketing restrictions

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 14

Thailand India Taiwan Hong Kong Singapore Indonesia Malaysia The Philippines

slide-15
SLIDE 15
  • Data localisation

– China and Indonesia

  • Cybersecurity

– HK – HKMA initiated Cybersecurity Fortification Initiative in May 2016, SFC issued Circular on Cybersecurity in March 2016 – China – draft Cybersecurity Law

Emerging Trends

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 15

China – draft Cybersecurity Law – Singapore – new Cybersecurity Act will be tabled in Singapore’s parliament in 2017 – Philippines – Sept 2015, National Cybersecurity Inter-Agency Committee and National Cybersecurity Coordination Centre formed

slide-16
SLIDE 16
  • Biometric / sensitive data

– India –25 March 2016, law passed enabling federal agencies to access Aadhaar database scheme – HK – Electronic Health Record Sharing System (March 2016); guidelines on handling biometric data in July 2015 – Japan – 2015 amendments to introduce restrictions on sensitive personal data in PDPA (come into force in 2017)

Emerging Trends (Cont.)

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 16

(come into force in 2017)

slide-17
SLIDE 17

US: DATA BREACH NOTIFICATION LAW NOTIFICATION LAW UPDATES AND RESPONSE TO SAFE HARBOR

slide-18
SLIDE 18
  • Recent Updates to US Data Breach Notification Laws
  • Invalidation of Safe Harbor and Rejection of Privacy

Shield

Recent US Developments Overview

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 18

slide-19
SLIDE 19
  • Recent updates to US Data Breach Notification Laws

– Expansion of the Definition of Personal Data – Encryption Exceptions and Requirements – Notification Timeframes – Requirements for the Contents of Breach Notices

US Data Breach Notification Laws

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 19

slide-20
SLIDE 20
  • Expansion of the Definition of Personal Data

– Additional elements added to scope – Outliers in recent updates:

  • California: data collected by an automated license

plate recognition system

US Data Breach Notification Laws

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 20

  • North Dakota: work ID number with security or

access code

  • Wyoming: birth or marriage certificates
slide-21
SLIDE 21
  • Encryption Exceptions and Requirements

– Definition of encryption – Removal of encryption safe harbor

  • If encryption code is compromised
  • Regardless of whether data was encrypted or not

US Data Breach Notification Laws

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 21

  • Regardless of whether data was encrypted or not
slide-22
SLIDE 22
  • Notification Timeframes

– Specific timeframes for notification of consumers – Data owner notification timeframe vs. data processor notification timeframe

US Data Breach Notification Laws

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 22

slide-23
SLIDE 23
  • Requirements for Contents of Breach Notices

– California – Illinois

US Data Breach Notification Laws

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 23

slide-24
SLIDE 24
  • Safe Harbor Invalidation
  • Rejection of Privacy Shield

– Article 29 Working Party – European Parliament – European Data Protection Supervisor

Safe Harbor Invalidation and Rejection of Privacy Shield

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 24

slide-25
SLIDE 25
  • EU Model Clauses (but with caution)
  • Binding Corporate Rules (BCRs)
  • Derogations listed in Article 26 of EU Data Protection Directive

– Data Subject Consent

  • Approval from Data Protection Authority (DPA)

Other Transfer Mechanisms

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 25

slide-26
SLIDE 26

QUESTIONS

Rebecca Eisner

Partner +1 312 701 8577

reisner@mayerbrown.com

Gabriela Kennedy

Partner and Head of Asia IP & TMT +852 2843 2380 gabriela.kennedy@mayerbrownjsm.com

Lei Shen

Senior Associate +1 312 701 8852 lshen@mayerbrown.com

Mark Prinsley

Partner +44 20 3130 3900] mprinsley@mayerbrown.com

The Age Of Disruption

HOW EMERGING TECHNOLOGIES AND CYBERSECURITY ARE TRANSFORMING SOURCING 26