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The Federal Energy Regulatory Commission (“FERC”) issued a final rule (Order No. 887) directing the North American Electric Reliability Corporation (“NERC”) to develop new or modified Reliability Standards that require internal network security monitoring (“INSM”) within Critical Infrastructure Protection (“CIP”) networked environments.  This Order may be of interest to entities that develop, implement, or maintain hardware or software for operational technologies associated with bulk electric systems (“BES”).…

Continue Reading FERC Orders Development of New Internal Network Security Monitoring Standards

On September 14, 2022, the Director of the Office of Management and Budget (“OMB”) issued a memorandum to the heads of executive branch departments and agencies addressing the enhancement of security of the federal software supply chain.  The memorandum applies to all software (other than agency-developed software) developed or experiencing major version changes to be operated “on the agency’s information systems or otherwise affecting the agency’s information,” and requires new self-attestations from software vendors before that software can be used by agencies.  …

Continue Reading OMB Issues Memorandum on Self-Attestations by Software Developers of Secure Software Development Practices and Collection of Software Bill of Materials

On September 12, 2022, the U.S. Cybersecurity and Infrastructure Security Agency (“CISA”) published a Request for Information, seeking public comment on how to structure implementing regulations for reporting requirements under the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (“CIRCIA”).  Written comments are requested on or before November 14, 2022 and may be submitted through the Federal eRulemaking Portal: http://www.regulations.gov.…

Continue Reading CISA Requests Public Comment on Implementing Regulations for the Cyber Incident Reporting for Critical Infrastructure Act

On September 15, 2022, the European Commission published a draft regulation that sets out cybersecurity requirements for “products with digital elements” (PDEs) placed on the EU market — the Cyber Resilience Act (CRA). The Commission has identified that cyberattacks are increasing in the EU, with an estimated global annual cost of €5.5 trillion. The CRA aims to strengthen the security of PDEs and imposes obligations that cover:

  1. the planning, design, development, production, delivery and maintenance of PDEs;
  2. the prevention and handling of cyber vulnerabilities; and
  3. the provision of cybersecurity information to users of PDEs.

The CRA also imposes obligations to report any actively exploited vulnerability as well as any incident that impacts the security of a PDE to ENISA within 24 hours of becoming aware of it.

The obligations apply primarily to manufacturers of PDEs, which include entities that develop or manufacture PDEs as well as entities that outsource the design, development and manufacturing to a third party. Importers and distributors of PDEs also need to ensure that the products comply with CRA’s requirements.

The requirements apply for the lifetime of a product or five years from its placement on the market, whichever is shorter. Due to the cross-border dimension of cybersecurity incidents, the CRA applies to any PDEs that are placed on the EU market—regardless of where they are manufactured—and imposes new mandatory conformity assessment requirements. The proposed regulation will now undergo review and potential approval in the Council of the EU and the European Parliament. Its provisions would apply fully within two years after entry into force, potentially in late 2026. We set out more detail and commentary below based on our initial review of the proposal.…

Continue Reading EU Publishes Draft Cyber Resilience Act

The UK Government’s (UKG) proposals for new, sector-specific cybersecurity rules continue to take shape. Following the announcement of a Product Security and Telecommunications Infrastructure Bill and a consultation on the security of apps and app stores in the Queen’s Speech (which we briefly discuss here), the UKG issued a call for views on whether action is needed to ensure cyber security in data centres and cloud services (described here).

In recent weeks, the UKG has made two further announcements:

  • On 30 August 2022, it issued a response to its public consultation on the draft Electronic Communications (Security measures) Regulations 2022 (Draft Regulations) and a draft Telecommunications Security code of practice (COP), before laying a revised version of the Draft Regulations before Parliament on 5 September.
  • On 1 September 2022, it issued a call for information on the risks associated with unauthorized access to individuals’ online accounts and personal data, and measures that could be taken to limit that risk.

We set out below further detail on these latest developments.

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Continue Reading A packed end to the UK’s cyber summer: Government moves forward with telecoms cybersecurity proposals and consults on a Cyber Duty to Protect

On Episode 19 of Covington’s Inside Privacy Audiocast, Dan Cooper and and Yan Luo discuss the key provisions of China’s draft SCCs, compare the draft legislation with the GDPR, and talk through actions that companies should be considering in order to comply with the new cross-border data requirements.

This audiocast episode is repurposed from a…

After several twist and turns, on July 7th Intel Corp. succeeded in achieving final dismissal of class claims alleging that Intel knew about purported security vulnerabilities in its microprocessors and failed to disclose or mitigate those vulnerabilities.  The case, In Re Intel Corp. CPU Marketing, Sales Practices and Products Liability Litigation, 3:18-md-02828, had…

On July 5, 2022, the Cybersecurity and Infrastructure Security Agency (“CISA”) and the National Institute of Standards and Technology (“NIST”) strongly recommended that organizations begin preparing to transition to a post-quantum cryptographic standard.  “The term ‘post-quantum cryptography’ is often referred to as ‘quantum-resistant cryptography’ and includes, ‘cryptographic algorithms or methods that are assessed not to be specifically vulnerable to attack by” a CRQC (cryptanalytically relevant quantum computer) or a classical computer.  NIST “has announced that a new post-quantum cryptographic standard will replace current public-key cryptography, which is vulnerable to quantum-based attacks.”  NIST does not intend to publish the new post-quantum cryptographic standard for commercial products until 2024 but urges companies to begin preparing now by following the Post-Quantum Cryptography Roadmap. …

Continue Reading CISA and NIST Urge Companies to Prepare to Transition to a Post-Quantum Cryptographic Standard

On June 23, 2022, the German Federal Office for Information Security (“Office”) published technical guidelines on security requirements for healthcare apps, including mobile apps, web apps, and background systems.  Although the technical guidelines are aimed at healthcare app developers, they contain useful guidance for developers of any app that processes or stores sensitive…

The UK Government has issued a “call for views” on the current level of physical, technical and organizational security provided by data center operators (i.e. colocation service providers, not businesses that operate their own data centers) and cloud service providers (including providers of infrastructure-as-a-service, platform-as-a-service, and managed services). The Government intends to use…