Cybersecurity

On April 25, 2024, the UK’s Investigatory Powers (Amendment) Act 2024 (“IP(A)A”) received royal assent and became law.  This law makes the first substantive amendments to the existing Investigatory Powers Act 2016 (“IPA”) since it came into effect, and follows an independent review of the effectiveness of the IPA published in June 2023.Continue Reading Changes to the UK investigatory powers regime receive royal assent

In six months’ time, on 17 October 2024, Member State laws that transpose the EU’s revised Network and Information Systems Directive (“NIS2”) will start to apply.  As described in more detail in our earlier blog post (here), NIS2 significantly expands the categories of organizations that fall within scope of EU cybersecurity legislation. This new, cross-sector law imposes additional and more granular security and incident reporting rules, enhanced governance requirements that apply to organizations’ “management bodies,” and creates a stricter enforcement regime.Continue Reading NIS2 implementation enters the final stretch – six months to deadline

In recent months, the European Court of Justice (“CJEU”) issued five judgments providing some clarity on the scope of individuals’ rights to claim compensation for “material and non-material damage” under Article 82 of the GDPR. These rulings will inform companies’ exposure to compensation claims, particularly in the context of the EU’s Collective Redress Directive, but open questions remain about the quantum of compensation courts will offer in these cases and we expect both the CJEU and national courts to deliver additional case-law clarifying this topic in the coming year (for more information on recent CJEU cases related to compensation, see our previous blog posts here and here).

  • In VB v Natsionalna agentsia za prihodite (C-340/21), the CJEU concluded that individuals may have suffered “non-material damage”—and therefore be able to claim compensation—if they can demonstrate that they feared future misuse of personal data that was compromised in a personal data breach.  
  • In VX v Gemeinde Ummendorf (C-456/22), the CJEU found that there is no de minimis threshold for damage, below which individuals cannot claim for compensation.
  • In BL v MediaMarktSaturn (C-687-21), the CJEU restated its existing case-law, and expanded upon its analysis in VB by clarifying that alleged harms cannot be “purely hypothetical”.
  • In Kočner v Europol (C-755/21), the CJEU awarded non-material damages of €2000 for the publication in newspapers of transcripts of “intimate” text messages.
  • In GP v Juris GmbH (C-741/21), the CJEU found that where one processing activity infringes multiple provisions of the GDPR, this should not allow claimants to “double-count” the harm they suffered.

We provide further detail on each case below.Continue Reading Rounding up Five Recent CJEU Cases on GDPR Compensation

This quarterly update highlights key legislative, regulatory, and litigation developments in the first quarter of 2024 related to artificial intelligence (“AI”), connected and automated vehicles (“CAVs”), and data privacy and cybersecurity.  As noted below, some of these developments provide industry with the opportunity for participation and comment.Continue Reading U.S. Tech Legislative, Regulatory & Litigation Update – First Quarter 2024

On March 27, 2024, the U.S. Cybersecurity and Infrastructure Security Agency’s (“CISA”) Notice of Proposed Rulemaking (“Proposed Rule”) related to the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (“CIRCIA”) was released on the Federal Register website.  The Proposed Rule, which will be formally published in the Federal Register on April 4, 2024, proposes draft regulations to implement the incident reporting requirements for critical infrastructure entities from CIRCIA, which President Biden signed into law in March 2022.  CIRCIA established two cyber incident reporting requirements for covered critical infrastructure entities: a 24-hour requirement to report ransomware payments and a 72-hour requirement to report covered cyber incidents to CISA.  While the overarching requirements and structure of the reporting process were established under the law, CIRCIA also directed CISA to issue the Proposed Rule within 24 months of the law’s enactment to provide further detail on the scope and implementation of these requirements.  Under CIRCIA, the final rule must be published by September 2025.

The Proposed Rule addresses various elements of CIRCIA, which will be covered in a forthcoming Client Alert.  This blog post focuses primarily on the proposed definitions of two pivotal terms that were left to further rulemaking under CIRCIA (Covered Entity and Covered Cyber Incident), which illustrate the broad scope of CIRCIA’s reporting requirements, as well as certain proposed exceptions to the reporting requirements.  The Proposed Rule will be subject to a review and comment period for 60 days after publication in the Federal Register. Continue Reading CISA Issues Notice of Proposed Rulemaking for Critical Infrastructure Cybersecurity Incident Reporting

Yesterday, the European Parliament approved the Cyber Resilience Act (“CRA”), which sets out cybersecurity requirements for “products with digital elements” (“PDEs”) placed on the EU market.  The term PDE is defined broadly to include both hardware and software products, such as antivirus software, VPNs, smart home devices, connected toys, and wearables.  The approved text is available here.Continue Reading The Cyber Resilience Act is One Step Closer to Becoming Law

On February 26, 2024, the U.S. National Institute of Standards and Technology (“NIST”) published version 2.0 of its Cybersecurity Framework.  Originally released in 2014 and updated in 2018 and now 2024, the NIST Cybersecurity Framework (“CSF” or “Framework”) “offers a taxonomy of high-level cybersecurity outcomes that can be used by any organization — regardless of its size, sector, or maturity — to better understand, assess, prioritize, and communicate its cybersecurity efforts.”  Globally, organizations, industries, and government agencies have increasingly relied upon the Framework to establish cybersecurity programs and measure their maturity.  NIST had proposed some potentially significant updates to the Framework in a Concept Paper published on January 19, 2023, which this Version 2.0 follows. Continue Reading NIST Publishes the Cybersecurity Framework 2.0

The recently agreed Cyber Resilience Act isn’t the only new EU cybersecurity rule set to be published this December: by the end of the year, the European Commission is expected to adopt its draft regulations to establish a European cybersecurity certification scheme (“ECCS”). Continue Reading EU cyber regulation wave quietly rolls on – Commission set to finalize new cyber standards

Yesterday, the European Commission, Council and Parliament announced that they had reached an agreement on the text of the Cyber Resilience Act (“CRA”). As a result, the CRA now looks set to finish its journey through the EU legislative process early next year. As we explained in our prior post about the Commission proposal, the CRA will introduce new cybersecurity obligations for a range of digital products sold in Europe. We’ll provide a more detailed summary of the agreed text once it is finalized and published but in this post we set out a brief summary of key provisions. In terms of timing, the CRA will come into force over a phased transition period starting in late 2025.
Continue Reading The EU’s Cyber Resilience Act Has Now Been Agreed

Earlier this month, the New York Department of Financial Services (“NYDFS”) announced that it had finalized the Second Amendment to its “first-in-the-nation” cybersecurity regulation, 23 NYCRR Part 500.  This Amendment implements many of the changes that NYDFS originally proposed in prior versions of the Second Amendment released for public comment in November 2022 and