Monthly Archives: May 2014

Outsourcing Data Management: The Risk.

Owing to a lack of knowledgeable or skilled staff or simply due to wanting to shift the risk, many businesses have their data managed by third parties. Database administrators help businesses manage, maintain, monitor and secure their data, among other important functions. Having the help of a database administrator can be invaluable to a business. When businesses choose to outsource their data management, database administration companies can take on the responsibility on behalf of the business. As with all services purchased, a contract will be drafted to outline the relationship-to-be and expectations upon the cessation of services among all other contractual needs. A recent English Court of Appeal case has brought to light some things that British companies outsourcing database and data management should be aware of.

Datateam, a publishing company had employed the database management services of Your Response, database administrators. Their contract was partially oral and written but failed to denote what a reasonable notice period was for cancellation of services. When Datateam gave what Your Response deemed to be too short of notice to end their contract and had outstanding fees, Your Response did not return the electronic database that they had been maintaining as a lien. The lower court determined that the Your Response was entitled to exercise a possessory lien over the database, but Datateam appealed arguing that the lien was incorrect as the database was intangible property and thus a possessory lien was not allowed. The Court of Appeal decision does not stray from the common law and in an age when most documents are stored electronically parties must take extra precaution during their negotiation and bargaining phase to contract for these types of situations.

If your business’ data is managed by a third party or is looking at the option, then please contact us so that you can be confident that your contract will protect your interests in a similar case. Data protection is essential to protecting your business interests. Check out our latest e-book, Data Privacy: A Practical Guide. It is the perfect guiding tool for a small-to-medium-sized business tackling data privacy issues. Available at:


Big News in the EU: Court Strikes Down Data Retention Directive.

The European Union has been praised for being so forward with their data privacy laws, however, one law that was designed to aid in the apprehension of terrorists in the wake of terror scares and threats in the past decade, has been struck down by the Court of Justice of the European Union. The Court explained that whilst national security concerns are indeed very important and very alive, that personal privacy and data protection was in this case, more important.

The directive that was struck down is called the Data Retention Directive. The Directive required that internet service providers and telecom companies retain data for up to two years. The Court found that this requirement was a “wide-ranging and particularly serious interference” with the fundamental rights to communication, private life and protection of personal data. The Court opined that some data could be retained but data that was in violation of the fundamental rights was to be left. This certainly speaks loudly to how the European courts value data protection. In defence of upcoming trials, Google has said that they believe that the courts will not uphold strict data protection laws and thus rule in their favour… perhaps they ought to re-think their statements.

If your company has a presence online and is concerned that it is not meeting the standards set forth in legislation about gathering and protecting customer or user data, or perhaps you have international users and customers and worry about different legal standards from the differing jurisdictions, then please contact us for more assistance. Also, check out our newest e-book, Data Privacy: A Practical Guide, available at this link: . This guide is the perfect way to get your business started on the path to complete data security for your customers and employees. With easy access to the authors for follow-up or more specific jurisdictional advice and updates, this e-books is the perfect read for any business.

Cayman Islands Companies.

For those wishing to form an offshore business, the Cayman Islands is probably the first place considered, and for good reason. One of the most well known major offshore financial centres, the Cayman Islands, a British Overseas Territory attracts businesses and individuals trying to take advantage of the island’s tax policy. For some companies incorporated in the Cayman Islands, there is no corporate income tax. For this reason, many others top businesses list their address with the Securities and Exchange Commission as George Town, Cayman Islands. So many companies find it advantageous to be incorporated in the Cayman Islands, in fact, that there are more registered companies in Cayman than there are people!

The biggest benefit to incorporating in the Cayman Islands shouldn’t be thought of as tax avoidance, but rather as raising capital and becoming a global business. If a business is able to take the money that would have gone to taxes and invest in their business, there is an obvious benefit. For years, the US government in particular, has been trying to find a way to get these clever companies to pay taxes in the US and has painted them as unpatriotic and tax-avoiding, but it is completely legal.

If you are interested in incorporating your business in the Cayman Islands, then please contact us. Not only do we have years of experience on the Island but retain many contacts that can prove helpful during the incorporation process. Please, don’t hesitate to contact with questions.