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SEC Adopts New Guidance on Public Company Cybersecurity Disclosures and Insider Trading

Earlier today, our colleagues David Engvall, Keir Gumbs, Reid Hooper, and Matthew Wood in the Securities and Capital Markets practice group posted the below article on the SEC’s new statement and interpretive guidance on public company cybersecurity disclosures and insider trading on the Cov Financial Services blog.  The original article can be read here. On … Continue Reading

FTC Releases 2017 Privacy and Data Security Report

On January 18, the Federal Trade Commission released its annual Privacy and Data Security Update, highlighting its enforcement efforts in 2017.  The report discusses significant enforcement efforts in the areas of privacy, data security, credit reporting and financial privacy, international enforcement, children’s privacy, and telemarketing.  The report also highlights the FTC’s efforts in advocacy, rulemaking, guidance, … Continue Reading

California Bill Would Mandate Expedient Software Updates for Credit Bureaus

Following the Equifax data breach in 2017, there has been heightened awareness surrounding how credit reporting agencies handle consumers’ personal information. At the same time, recent high-profile attacks, such as the “WannaCry” ransomware attacks, have focused media and regulatory attention on vulnerabilities associated with unpatched systems. In response to these two concerns, on January 10, … Continue Reading

House Passes Cyber Vulnerability Disclosure Reporting Act

On January 9, the House of Representatives passed the Cyber Vulnerability Disclosure Reporting Act by voice vote.  The Act directs the Secretary of the U.S. Department of Homeland Security (“DHS”) to prepare a report describing the policies and procedures that DHS developed to coordinate the cyber vulnerability disclosures.  Under the Homeland Security Act of 2002 … Continue Reading

Digital Health Checkup: Key Questions to Consider in the Digital Health Sector

Covington’s global cross-practice Digital Health team has posted an illuminating three-part series on the Covington Digital Health blog that covers key questions entities should be asking as they seek to fit together the regulatory and commercial pieces of the complex digital health puzzle. In the first part of the series, the Digital Health team answers key regulatory questions … Continue Reading

NIST Releases Updated Draft of Cybersecurity Framework

On December 5, 2017, the National Institute of Standards and Technology (“NIST”) announced the publication of a second draft of a proposed update to the Framework for Improving Critical Infrastructure Cybersecurity (“Cybersecurity Framework”), Version 1.1, Draft 2. NIST has also published an updated draft Roadmap to the Cybersecurity Framework, which “details public and private sector … Continue Reading

English High Court Finds Supermarket Liable for Data Breach by Employee in First Successful Privacy Class Action

On December 1, 2017, the High Court of England and Wales found the fourth-largest supermarket chain in the UK, Wm Morrisons (“Morrisons”), vicariously liable for a data breach caused by the intentional criminal actions of one of its employees, namely the leaking of payroll information online. The breach affected almost 100,000 Morrisons employees and the … Continue Reading

The Supreme Court Arguments in Carpenter Show that It May Be Time to Redefine the “Third-Party Doctrine”

On Wednesday, the Supreme Court heard oral arguments in Carpenter v.  U. S., a case that involved the collection of 127 days of Petitioner Thomas Carpenter’s cell site location information as part of an investigation into several armed robberies.  We attended the argument to gain any insights into how the Supreme Court may resolve this … Continue Reading

Information Technology Industry Council Releases Artificial Intelligence Principles Calling for Industry Responsibility, Flexible and Supportive Government Policies, and Cross-Sector Collaboration

On October 24, the Information Technology Industry Council (ITI) released a set of policy principles to guide the technology industry and governments in their approach to artificial intelligence (AI). The organization—which includes Amazon, Apple, Facebook, Google, Intel, and Microsoft—intends for its guidelines to help AI meet its potential to solve important problems while minimizing any … Continue Reading

EU Commission Concludes Privacy Shield “Adequate” in first Annual Review

The European Commission has today published its Report on the first annual review of the EU-U.S. Privacy Shield (the Report is accompanied with a Staff Working Document, Infographic, and Q&A).  The Commission concludes that Privacy Shield continues to ensure an adequate level of protection for personal data transferred from the EU to Privacy Shield-certified companies … Continue Reading

Deputy Attorney General Rod Rosenstein Warns Against Warrant-Proof Encryption

In a speech delivered at the United States Naval Academy on October 10, Deputy Attorney General Rod Rosenstein waded into the public debate between data privacy and law enforcement interests.  As part of a discussion moderated by former Covington cybersecurity attorney Jeff Kosseff, Rosenstein’s remarks discussed cyber issues facing law enforcement with a particular focus … Continue Reading

Kicking Off Cybersecurity Awareness Month

As Covington kicks off Cybersecurity Awareness Month with a series of weekly articles, preventative tips, and Q&As developed by our cybersecurity practice professionals, it’s worth recollecting how much our cybersecurity landscape has changed over the last twenty-plus years, and how the law has responded to these evolving challenges. Although the late 1990s saw the first … Continue Reading

District Court Dismisses Multiple Counts in FTC’s Complaint Against D-Link

On September 19, 2017, the U.S. District Court for the Northern District of California dismissed three of the six counts in the Federal Trade Commission’s (“FTC’s”) January 2017 complaint against D-Link Systems, Inc., allowing the FTC until October 20, 2017 to amend its complaint. The FTC’s complaint alleged that D-Link engaged in unfair and deceptive … Continue Reading

Digital Health Check-Up: Key Questions Market Players Should Be Asking

On our sister blog, CovingtonDigitalHealth, our global cross-practice digital health team has launched a three-part series on the key questions the technology, life sciences and communications industries should be considering as they fit together the regulatory and commercial pieces of the complex digital health puzzle.  Read the first post in the series here.… Continue Reading

Recent Cases on E-Mail “Spoofing” Coverage Highlight the Impact of Specific Crime Policy Wordings

By Benjamin Duke, Matt Schlesinger, and Scott Levitt [This article was also published as a Client Alert.] Two recent federal district court decisions involving computer “spoofing” scams highlight the uncertainty about whether such incidents may be covered under standard “computer fraud” provisions in widely used crime insurance forms. The conflicting results in these cases provide … Continue Reading

Ninth Circuit Holds That Spokeo Plaintiff Has Standing to Proceed on Claim Over Inaccurate Information

The closely watched lawsuit alleging Spokeo, Inc., violated the Fair Credit Reporting Act (“FCRA”) may proceed, after a federal appeals court ruled — on remand from the Supreme Court — that publication of the inaccuracies alleged by the plaintiff would constitute a sufficiently “concrete” harm to give the plaintiff standing to sue in federal court.  … Continue Reading

Is The Hutchins Indictment Over Malware Unconstitutional?

By Alex Berengaut [This article also was published in Law360.] In May 2017, the “WannaCry” malware was used to launch a worldwide ransomware cyberattack. WannaCry encrypted files on victim computers and demanded a ransom payable in bitcoin to provide the encryption key. The attack was stopped when a British security researcher, Marcus Hutchins, accidentally discovered … Continue Reading

NIST Releases Fifth Revision of Special Publication 800-53

By Susan Cassidy, Jenny Martin, and Catlin Meade The National Institute of Standards and Technology (“NIST”) released on August 15, 2017 its proposed update to Special Publication (“SP”) 800-53.  NIST SP 800-53, which was last revised in 2014, provides information security standards and guidelines, including baseline control requirements, for implementation on federal information systems under … Continue Reading

A Summary of the Recently Introduced “Internet of Things (IoT) Cybersecurity Improvement Act of 2017”

On August 1, 2017, a bipartisan group of Senators introduced legislation (fact sheet) that would establish minimum cybersecurity standards for Internet of Things (“IoT”) devices sold to the U.S. Government.  As Internet-connected devices become increasingly ubiquitous and susceptible to evolving and complex cyber threats, the proposed bill attempts to safeguard the security of executive agencies’ … Continue Reading

D.C. Circuit: Data Breach Plaintiffs Plausibly Allege ‘Substantial Risk’ of
ID Theft Sufficient to Support Standing

Customers’ allegations that they face a substantial risk of identity theft as a result of a 2014 data breach are sufficiently plausible to allow their suit against health insurer CareFirst to proceed, the U.S. Court of Appeals for the D.C. Circuit held in an August 1 decision. CareFirst discovered in April 2015 — and announced … Continue Reading

Department of Justice Releases Guidance for Vulnerability Disclosure Programs

Last week, the U.S. Department of Justice (“DOJ”) released a voluntary framework for organizations to use in the development of a formal program to receive reports of network, software, and system vulnerabilities, and to disclose vulnerabilities identified in other organizations’ environments.  This framework provides private entities a series of steps to establish a formal program … Continue Reading

California Bill Poised to Change Regime Governing the Internet of Things

A bill pending in the California legislature, if passed, would create new obligations for manufacturers of “connected devices.” S.B. 327 (also known as the “Teddy Bear and Toaster Act”) would operate somewhat differently than existing laws, such as the California Online Privacy Protection Act (“CalOPPA”). Security obligations. Manufacturers of connected devices that sell those devices … Continue Reading

CJEU: EU-Canada proposed agreement on the transfer of Passenger Name Record data does not conform to EU data protection law standards

By Dan Cooper and Rosie Klement On July 26, 2017, the Court of Justice of the EU (CJEU) published Opinion 1-15 (the “Opinion”) on the proposed agreement between the European Union and Canada on the transfer and processing of passenger name record (“PNR”) data (the “Agreement”).  The Agreement was signed in 2014, but the CJEU … Continue Reading
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