In response to escalating cybercrime, the Clarifying Lawful Overseas Use of Data (CLOUD) Act was enacted to grant law enforcement agencies increased access to foreign electronic data relevant to certain criminal investigations. Specifically, the CLOUD Act aims to remove impediments faced by U.S. law enforcement when trying to access data stored by U.S. companies overseas, and, similarly, difficulties faced by foreign law enforcement when attempting to obtain data stored in the U.S.
Below, Robert deBrauwere, Co-Chair of Pryor Cashman's Digital Media Group, examines the context in which the CLOUD Act was created; the legal risks foreign companies should consider when hiring U.S.-based operators that store data overseas; and offers recommendations for companies struggling to decide where their data should be stored.
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