Collection

eDiscovery Trends: Alon Israely, Esq., CISSP of BIA

 

This is the second of the LegalTech New York (LTNY) Thought Leader Interview series.  eDiscoveryDaily interviewed several thought leaders at LTNY this year and asked each of them the same three questions:

  1. What do you consider to be the current significant trends in eDiscovery on which people in the industry are, or should be, focused?
  2. Which of those trends are evident here at LTNY, which are not being talked about enough, and/or what are your general observations about LTNY this year?
  3. What are you working on that you’d like our readers to know about?

Today’s thought leader is Alon Israely.  Alon is a Senior Advisor in BIA’s Advisory Services group and when he’s not advising clients on e-discovery issues he works closely with BIA’s product development group for its core technology products.  Alon has over fifteen years of experience in a variety of advanced computing-related technologies and has consulted with law firms and their clients on a variety of technology issues, including expert witness services related to computer forensics, digital evidence management and data security.

What do you consider to be the current significant trends in eDiscovery on which people in the industry are, or should be, focused?

I think one of the important trends for corporate clients and law firms is cost control, whether it’s trying to minimize the amount of project management hours that are being billed or the manner in which the engagement is facilitated.  I’m not suggesting going full-bore necessarily, but taking baby steps to help control costs is a good approach.  I don’t think it’s only about bringing prices down, because I think that the industry in general has been able to do that naturally well.  But, I definitely see a new focus on the manner in which costs are managed and outsourced.  So, very specifically, scoping correctly is key, making sure you’re using the right tool for the right job, keeping efficiencies (whether that’s on the vendor side or the client side) by doing things such as not having five phone calls for a meeting to figure out what the key words are for field searching or just going out and imaging every drive before deciding what’s really needed. Bringing simple efficiencies to the mechanics of doing e-discovery saves tons of money in unnecessary legal, vendor and project management fees.  You can do things that are about creating efficiencies, but are not necessarily changing the process or changing the pricing.

I also see trends in technology, using more focused tools and different tools to facilitate a single project.  Historically, parties would hire three or four different vendors for a single project, but today it may be just one or two vendors or maybe even no vendors, (just the law firm) but, it’s the use of the right technologies for the right situations – maybe not just one piece of software, but leveraging several for different parts of the process.  Overall, I foresee fewer vendors per project, but more vendors increasing their stable of tools.  So, whereas a vendor may have had a review tool and one way of doing collection, now they may have two or three review tools, including an ECA tool, and one or two ways of doing collections. They have a toolkit from which they can choose the best set of tools to bring to the engagement.  Because they have more tools to market, vendors can have the right tool in-their-back-pocket whereas before the tool belonged to just one service provider so you bought from them, or you just didn’t have it.

Which of those trends are evident here at LTNY, which are not being talked about enough, and/or what are your general observations about LTNY this year?

{Interviewed on the first morning of LTNY} I think you have either a little or a lot of – depending on how aggressive I want to be with my opinion – that there seems to be a disconnect between what they’re speaking about in the panels and what we’re seeing on the floor.  But, I think that’s OK in that the conference itself, is usually a little bit ahead of the curve with respect to topics, and the technology will catch up.  You have topics such as predictive coding and social networking related issues – those are two big ones that you’ll see.  I think, for example, there are very few companies that have a solution for social networking, though we happen to have one.  And, predictive coding is the same scenario.  You have a lot of providers that talk about it, but you have a handful that actually do it, and you have probably even fewer than that who do it right.  I think that next year you’ll see many predictive coding solutions and technologies and many more tools that have that capability built into them.  So, on the conference side, there is one level of information and on the floor side, a different level.

What are you working on that you’d like our readers to know about?

BIA has a new product called TotalDiscovery.com, the industry’s first SaaS (software-as-a-service), on-demand collection technology that provides defensible collections.  We just rolled it out, we’re introducing it here at LegalTech and we’re starting a technology preview and signing up people who want to use the application or try it.  It’s specifically for attorneys, corporations, service providers – anyone who’s in the business and needs a tool for defensible data collection performed with agility (always hard to balance) – so without having to buy software or have expert training, users simply login or register and can start immediately.  You don’t have to worry about the traditional business processes to get things set up and started.  Which, if you think about it on the collections side of e-discovery it means that  the client’s CEO or VP of Marketing can call you up and say “I’m leaving, I have my PST here, can you just come get it?” and you can facilitate that process through the web, download an application, walk through a wizard, collect it defensibly, encrypt it and then deliver a filtered set, as needed, for review..

The tool is designed to collect defensibly and to move the collected data – or some subset of that data –to delivery, from there you would select your review tool of choice and we hand it off to the selected review tool.  So, we’re not trying to be everything, we’re focused on automating the left side of the EDRM.  We have loads to certain tools, having been a service provider for ten years, and we’re connecting with partners so that we can do the handoff, so when the client says “I’m ready to deliver my data”, they can choose OnDemand or Concordance or another review tool, and then either directly send it or the client can download and ship it.  We’re not trying to be a review tool and not trying to be an ECA tool that helps you find the needle in the haystack; instead, we’re focused on collecting the data, normalizing it, cataloguing it and handing if off for the attorneys to do their work.

Thanks, Alon, for participating in the interview!

And to the readers, as always, please share any comments you might have or if you’d like to know more about a particular topic!

eDiscovery Searching: Proximity, Not Absence, Makes the Heart Grow Fonder

Recently, I assisted a large corporate client where there were several searches conducted across the company’s enterprise-wide document management systems (DMS) for ESI potentially responsive to the litigation.  Some of the individual searches on these systems retrieved over 200,000 files by themselves!

DMS systems are great for what they are intended to do – provide a storage archive for documents generated within the organization, version tracking of those documents and enable individuals to locate specific documents for reference or modification (among other things).  However, few of them are developed with litigation retrieval in mind.  Sure, they have search capabilities, but it can sometimes be like using a sledgehammer to hammer a thumbtack into the wall – advanced features to increase the precision of those searches may often be lacking.

Let’s say in an oil company you’re looking for documents related to “oil rights” (such as “oil rights”, “oil drilling rights”, “oil production rights”, etc.).  You could perform phrase searches, but any variations that you didn’t think of would be missed (e.g., “rights to drill for oil”, etc.).  You could perform an AND search (i.e., “oil” AND “rights”), and that could very well retrieve all of the files related to “oil rights”, but it would also retrieve a lot of files where “oil” and “rights” appear, but have nothing to do with each other.  A search for “oil” AND “rights” in an oil company’s DMS systems may retrieve every published and copyrighted document in the systems mentioning the word “oil”.  Why?  Because almost every published and copyrighted document will have the phrase “All Rights Reserved” in the document.

That’s an example of the type of issue we were encountering with some of those searches that yielded 200,000 files with hits.  And, that’s where proximity searching comes in.  Proximity searching is simply looking for two or more words that appear close to each other in the document (e.g., “oil within 5 words of rights”) – the search will only retrieve the file if those words are as close as specified to each other, in either order.  Proximity searching helped us reduce that collection to a more manageable number for review, even though the enterprise-wide document management system didn’t have a proximity search feature.

How?  We wound up taking a two-step approach to get the collection to a more likely responsive set.  First, we did the “AND” search in the DMS system, understanding that we would retrieve a large number of files, and exported those results.  After indexing them with a first pass review tool that has more precise search alternatives (at Trial Solutions, we use FirstPass™, powered by Venio FPR™, for first pass review), we performed a second search on the set using proximity searching to limit the result set to only files where the terms were near each other.  Then, tested the results and revised where necessary to retrieve a result set that maximized both recall and precision.

The result?  We were able to reduce an initial result set of 200,000 files to just over 5,000 likely responsive files by applying the proximity search to the first result set.  And, we probably saved $50,000 to $100,000 in review costson a single search.

I also often use proximity searches as alternatives to phrase searches to broaden the recall of those searches to identify additional potentially responsive hits.  For example, a search for “Doug Austin” doesn’t retrieve “Austin, Doug” and a search for “Dye 127” doesn’t retrieve “Dye #127”.  One character difference is all it takes for a phrase search to miss a potentially responsive file.  With proximity searching, you can look for these terms close to each other and catch those variations.

So, what do you think?  Do you use proximity searching in your culling for review?  Please share any comments you might have or if you’d like to know more about a particular topic.

eDiscovery Best Practices: Database Discovery Pop Quiz ANSWERS

 

So, how did you do?  Did you know all the answers from Friday’s post – without “googling” them?  😉

Here are the answers – enjoy!

What is a “Primary Key”? The primary key of a relational table uniquely identifies each record in the table. It can be a normal attribute that you expect to be unique (e.g., Social Security Number); however, it’s usually best to be a sequential ID generated by the Database Management System (DBMS).

What is an “Inner Join” and how does it differ from an “Outer Join”?  An inner join is the most common join operation used in applications, creating a new result table by combining column values of two tables.  An outer join does not require each record in the two joined tables to have a matching record. The joined table retains each record in one of the tables – even if no other matching record exists.  Sometimes, there is a reason to keep all of the records in one table in your result, such as a list of all employees, whether or not they participate in the company’s benefits program.

What is “Normalization”?  Normalization is the process of organizing data to minimize redundancy of that data. Normalization involves organizing a database into multiple tables and defining relationships between the tables.

How does a “View” differ from a “Table”?  A view is a virtual table that consists of columns from one or more tables. Though it is similar to a table, it is a query stored as an object.

What does “BLOB” stand for?  A Binary Large OBject (BLOB) is a collection of binary data stored as a single entity in a database management system. BLOBs are typically images or other multimedia objects, though sometimes binary executable code is stored as a blob.  So, if you’re not including databases in your discovery collection process, you could also be missing documents stored as BLOBs.  BTW, if you didn’t click on the link next to the BLOB question in Friday’s blog, it takes you to the amusing trailer for the 1958 movie, The Blob, starring a young Steve McQueen (so early in his career, he was billed as “Steven McQueen”).

What is the different between a “flat file” and a “relational” database?  A flat file database is a database designed around a single table, like a spreadsheet. The flat file design puts all database information in one table, or list, with fields to represent all parameters. A flat file is prone to considerable duplicate data, as each value is repeated for each item.  A relational database, on the other hand, incorporates multiple tables with methods (such as normalization and inner and outer joins, defined above) to store data efficiently and minimize duplication.

What is a “Trigger”?  A trigger is a procedure which is automatically executed in response to certain events in a database and is typically used for keeping the integrity of the information in the database. For example, when a new record (for a new employee) is added to the employees table, a trigger might create new records in the taxes, vacations, and salaries tables.

What is “Rollback”?  A rollback is the undoing of partly completed database changes when a database transaction is determined to have failed, thus returning the database to its previous state before the transaction began.  Rollbacks help ensure database integrity by enabling the database to be restored to a clean copy after erroneous operations are performed or database server crashes occur.

What is “Referential Integrity”?  Referential integrity ensures that relationships between tables remain consistent. When one table has a foreign key to another table, referential integrity ensures that a record is not added to the table that contains the foreign key unless there is a corresponding record in the linked table. Many databases use cascading updates and cascading deletes to ensure that changes made to the linked table are reflected in the primary table.

Why is a “Cartesian Product” in SQL almost always a bad thing?  A Cartesian Product occurs in SQL when a join condition (via a WHERE clause in a SQL statement) is omitted, causing all combinations of records from two or more tables to be displayed.  For example, when you go to the Department of Motor Vehicles (DMV) to pay your vehicle registration, they use a database with an Owners and a Vehicles table joined together to determine for which vehicle(s) you need to pay taxes.  Without that join condition, you would have a Cartesian Product and every vehicle in the state would show up as registered to you – that’s a lot of taxes to pay!

If you didn’t know the answers to most of these questions, you’re not alone.  But, to effectively provide the information within a database responsive to an eDiscovery request, knowledge of databases at this level is often necessary to collect and produce the appropriate information.    As Craig Ball noted in his Law.com article Ubiquitous Databases, “Get the geeks together, and get out of their way”.  Hey, I resemble that remark!

So, what do you think?  Did you learn anything?  Please share any comments you might have or if you’d like to know more about a particular topic.

eDiscovery Best Practices: Database Discovery Pop Quiz

 

Databases: You can’t live with them, you can’t live without them.

Or so it seems in eDiscovery.  On a regular basis, I’ve seen various articles and discussions related to discovery of databases and other structured data and I remain very surprised how few legal teams understand database discovery and know how to handle it.  A colleague of mine (who I’ve known over the years to be honest and reliable) even claimed to me a few months back while working for a nationally known eDiscovery provider that their collection procedures actually excluded database files.

Last month, Law.com had an article written by Craig Ball, called Ubiquitous Databases, which provided a lot of good information about database discovery. It included various examples how databases touch our lives every day, while noting that eDiscovery is still ultra document-centric, even when those “documents” are generated from databases.  There is some really good information in that article about Database Management Software (DBMS), Structured Query Language (SQL), Entity Relationship Diagrams (ERDs) and how they are used to manage, access and understand the information contained in databases.  It’s a really good article especially for database novices who need to understand more about databases and how they “tick”.

But, maybe you already know all you need to know about databases?  Maybe you would already be ready to address eDiscovery on your databases today?

Having worked with databases for over 20 years (I stopped counting at 20), I know a few things about databases.  So, here is a brief “pop” quiz on database concepts.  Call them “Database 101” questions.  See how many you can answer!

  • What is a “Primary Key”? (hint: it is not what you start the car with)
  • What is an “Inner Join” and how does it differ from an “Outer Join”?
  • What is “Normalization”?
  • How does a “View” differ from a “Table”?
  • What does “BLOB” stand for? (hint: it’s not this)
  • What is the different between a “flat file” and a “relational” database?
  • What is a “Trigger”?
  • What is “Rollback”? (hint: it has nothing to do with Wal-Mart prices)
  • What is “Referential Integrity”?
  • Why is a “Cartesian Product” in SQL almost always a bad thing?

So, what do you think?  Are you a database guru or a database novice?  Please share any comments you might have or if you’d like to know more about a particular topic.

Did you think I was going to provide the answers at the bottom?  No cheating!!  I’ll answer the questions on Monday.  Hope you can stand it!!

eDiscovery Trends: 2011 Predictions — By The Numbers

 

Comedian Nick Bakay”>Nick Bakay always ends his Tale of the Tape skits where he compares everything from Married vs. Single to Divas vs. Hot Dogs with the phrase “It's all so simple when you break things down scientifically.”

The late December/early January time frame is always when various people in eDiscovery make their annual predictions as to what trends to expect in the coming year.  We’ll have some of our own in the next few days (hey, the longer we wait, the more likely we are to be right!).  However, before stating those predictions, I thought we would take a look at other predictions and see if we can spot some common trends among those, “googling” for 2011 eDiscovery predictions, and organized the predictions into common themes.  I found serious predictions here, here, here, here and here.  Oh, also here and here.

A couple of quick comments: 1) I had NO IDEA how many times that predictions are re-posted by other sites, so it took some work to isolate each unique set of predictions.  I even found two sets of predictions from ZL Technologies, one with twelve predictions and another with seven, so I had to pick one set and I chose the one with seven (sorry, eWEEK!). If I have failed to accurately attribute the original source for a set of predictions, please feel free to comment.  2) This is probably not an exhaustive list of predictions (I have other duties in my “day job”, so I couldn’t search forever), so I apologize if I’ve left anybody’s published predictions out.  Again, feel free to comment if you’re aware of other predictions.

Here are some of the common themes:

  • Cloud and SaaS Computing: Six out of seven “prognosticators” indicated that adoption of Software as a Service (SaaS) “cloud” solutions will continue to increase, which will become increasingly relevant in eDiscovery.  No surprise here, given last year’s IDC forecast for SaaS growth and many articles addressing the subject, including a few posts right here on this blog.
  • Collaboration/Integration: Six out of seven “augurs” also had predictions related to various themes associated with collaboration (more collaboration tools, greater legal/IT coordination, etc.) and integration (greater focus by software vendors on data exchange with other systems, etc.).  Two people specifically noted an expectation of greater eDiscovery integration within organization governance, risk management and compliance (GRC) processes.
  • In-House Discovery: Five “pundits” forecasted eDiscovery functions and software will continue to be brought in-house, especially on the “left-side of the EDRM model” (Information Management).
  • Diverse Data Sources: Three “soothsayers” presaged that sources of data will continue to be more diverse, which shouldn’t be a surprise to anyone, given the popularity of gadgets and the rise of social media.
  • Social Media: Speaking of social media, three “prophets” (yes, I’ve been consulting my thesaurus!) expect social media to continue to be a big area to be addressed for eDiscovery.
  • End to End Discovery: Three “psychics” also predicted that there will continue to be more single-source end-to-end eDiscovery offerings in the marketplace.

The “others receiving votes” category (two predicting each of these) included maturing and acceptance of automated review (including predictive coding), early case assessment moving toward the Information Management stage, consolidation within the eDiscovery industry, more focus on proportionality, maturing of global eDiscovery and predictive/disruptive pricing.

Predictive/disruptive pricing (via Kriss Wilson of Superior Document Services and Charles Skamser of eDiscovery Solutions Group respective blogs) is a particularly intriguing prediction to me because data volumes are continuing to grow at an astronomical rate, so greater volumes lead to greater costs.  Creativity will be key in how companies deal with the larger volumes effectively, and pressures will become greater for providers (even, dare I say, review attorneys) to price their services more creatively.

Another interesting prediction (via ZL Technologies) is that “Discovery of Databases and other Structured Data will Increase”, which is something I’ve expected to see for some time.  I hope this is finally the year for that.

Finally, I said that I found serious predictions and analyzed them; however, there are a couple of not-so-serious sets of predictions here and here.  My favorite prediction is from The Posse List, as follows: “LegalTech…renames itself “EDiscoveryTech” after Law.com survey reveals that of the 422 vendors present, 419 do e-discovery, and the other 3 are Hyundai HotWheels, Speedway Racers and Convert-A-Van who thought they were at the Javits Auto Show.”

So, what do you think?  Care to offer your own “hunches” from your crystal ball?  Please share any comments you might have or if you’d like to know more about a particular topic.

eDiscovery Case Law: Pension Committee

This holiday week, we’re taking a look back at some of the cases which have had the most significance (from an eDiscovery standpoint) of the year.  The first case we will look at is The Pension Committee of the Montreal Pension Plan v. Banc of America Securities, LLC, 29010 U.S. Dist. Lexis 4546 (S.D.N.Y. Jan. 15, 2010) (as amended May 28, 2010), commonly referred to as “Pension Committee”.

In “Pension Committee”, New York District Court Judge Shira Scheindlin defined negligence, gross negligence, and willfulness from an eDiscovery standpoint and cementing her status as the most famous “Judge Scheindlin” in New York (as opposed to “Judge Judy” Sheindlin, who spells her last name without a “c”).  Judge Scheindlin titled her 85-page opinion Zubulake Revisited: Six Years Later.  The

This case addresses preservation and spoliation requirements of the plaintiff and information which should have been preserved by the plaintiffs after the lawsuit was filed. Judge Scheindlin addresses in considerable detail, defining the levels of culpability — negligence, gross negligence, and willfulness in the electronic discovery context.

Issues that constituted negligence according to Judge Scheindlin’s opinion included:

  • Failure to obtain records from all employees (some of whom may have had only a passing encounter with the issues in the litigation), as opposed to key players;
  • Failure to take all appropriate measures to preserve ESI;
  • Failure to assess the accuracy and validity of selected search terms.

Issues that constituted gross negligence or willfulness according to Judge Scheindlin’s opinion included:

  • Failure to issue a written litigation hold;
  • Failure to collect information from key players;
  • Destruction of email or backup tapes after the duty to preserve has attached;
  • Failure to collect information from the files of former employees that remain in a party’s possession, custody, or control after the duty to preserve has attached.

The opinion also addresses 1) responsibility to establish the relevance of evidence that is lost as well as responsibility to prove that the absence of the missing material has caused prejudice to the innocent party, 2) a novel burden-shifting test in addressing burden of proof and severity of the sanction requested and 3) guidance on the important issue of preservation of backup tapes.

The result: spoliation sanctions against 13 plaintiffs based on their alleged failure to timely issue written litigation holds and to preserve certain evidence before the filing of the complaint.

Scheindlin based sanctions on the conduct and culpability of the spoliating party, regardless of the relevance of the documents destroyed, which has caused some to label the opinion as “draconian”.  In at least one case, Orbit One Communications Inc. v. Numerex Corp., 2010 WL 4615547 (S.D.N.Y. Oct. 26, 2010)., Magistrate Judge James C. Francis concluded that sanctions for spoliation must be based on the loss of at least some information relevant to the dispute.  It will be interesting to see how other cases refer to the Pension Committee case down the road.

So, what do you think?  Is this the most significant eDiscovery case of 2010?  Please share any comments you might have or if you’d like to know more about a particular topic.

eDiscovery Tips: SaaS and eDiscovery – More Top Considerations

Friday, we began talking about the article regarding Software as a Service (SaaS) and eDiscovery entitled Top 7 Legal Things to Know about Cloud, SaaS and eDiscovery on CIO Update.com, written by David Morris and James Shook from EMC.  The article, which relates to storage of ESI within cloud and SaaS providers, can be found here.

The article looks at key eDiscovery issues that must be addressed for organizations using public cloud and SaaS offerings for ESI, and Friday’s post looked at the first three issues.  Here are the remaining four issues from the article (requirements in bold are quoted directly from the article):

4. What if there are technical issues with e-discovery in the cloud?  The article discusses how identifying and collecting large volumes of data can have significant bandwidth, CPU, and storage requirements and that the cloud provider may have to do all of this work for the organization.  It pays to be proactive, determine potential eDiscovery needs for the data up front and, to the extent possible, negotiate eDiscovery requirements into the agreement with the cloud provider.

5. If the cloud/SaaS provider loses or inadvertently deletes our information, aren’t they responsible? As noted above, if the agreement with the cloud provider includes eDiscovery requirements for the cloud provider to meet, then it’s easier to enforce those requirements.  Currently, however, these agreements rarely include these types of requirements.  “Possession, custody or control” over the data points to the cloud provider, but courts usually focus their efforts on the named parties in the case when deciding on spoliation claims.  Sounds like a potential for third party lawsuits.

6. If the cloud/SaaS provider loses or inadvertently deletes our information, what are the potential legal ramifications?  If data was lost because of the cloud provider, the organization will probably want to establish that they’re not at fault. But it may take more than establishing who deleted the data. – the organization may need to demonstrate that it acted diligently in selecting the provider, negotiating terms with established controls and notifying the provider of hold requirements in a timely manner.  Even then, there is no case law guidance as to whether demonstrating such would shift that responsibility and most agreements with cloud providers will limit potential damages for loss of data or data access.

7. How do I protect our corporation from fines and sanction for ESI in the cloud?  The article discusses understanding what ESI is potentially relevant and where it’s located.  This can be accomplished, in part, by creating a data map for the organization that covers data in the cloud as well as data stored within the organization.  Again, covering eDiscovery and other compliance requirements with the provider when negotiating the initial agreement can make a big difference.  As always, be proactive to minimize issues when litigation strikes.

Let’s face it, cloud and SaaS solutions are here to stay and they are becoming increasingly popular for organizations of all sizes to avoid the software and infrastructure costs of internal solutions.  Being proactive and including corporate counsel up front in decisions related to SaaS selections will enable your organization to avoid many potential problems down the line.

So, what do you think?  Does your company have mechanisms in place for discovery of your cloud data?  Please share any comments you might have or if you’d like to know more about a particular topic.

eDiscovery Tips: SaaS and eDiscovery – Top Considerations

 

There was an interesting article this week regarding Software as a Service (SaaS) and eDiscovery entitled Top 7 Legal Things to Know about Cloud, SaaS and eDiscovery on CIO Update.com, written by David Morris and James Shook from EMC.  The article, which relates to storage of ESI within cloud and SaaS providers, can be found here.

The authors note that “[p]roponents of the cloud compare it to the shift in electrical power generation at the turn of the century [1900’s], where companies had to generate their own electric power to run factories.  Leveraging expertise and economies of scale, electric companies soon emerged and began delivering on-demand electricity at an unmatched cost point and service level.”, which is what cloud components argue that the SaaS model is doing for IT services.

However, the decision to move to SaaS solutions for IT services doesn’t just affect IT – there are compliance and legal considerations to consider as well.  Because the parties to a case have a duty to identify, preserve and produce relevant electronically stored information (ESI), information for those parties stored in a cloud infrastructure or SaaS application is subject to those same requirements, even though it isn’t necessarily in their total control.  With that in mind, the article looks at key eDiscovery issues that must be addressed for organizations using public cloud and SaaS offerings for ESI, as follows (requirements in bold are quoted directly from the article):

  1. Where is ESI actually located when it is in the ethereal cloud or SaaS application?  It’s important to know where your data is actually stored.  Because SaaS providers are expected to deliver data on demand at any time, they may store your data in more than one data center for redundancy purposes.  Data centers could be located outside of the US, so different compliance and privacy requirements may come into play if there is a need to produce data from these locations.
  2. What are the legal implications of e-discovery in the cloud? Little case law exists on the subject, but it is expected that the responsibility for timely preservation, collection and production of the data remains with the organization at party in the lawsuit, even though that data may be in direct control of the cloud provider.
  3. What happens if a lawsuit is in the US but one company’s headquarters is in another country? Or what if the data is in a country where the privacy rules are different?  The article references one case – AccessData Corp. v. ALSTE Technologies GMBH , 2010 WL 318477 (D. Utah Jan. 21, 2010) – where the German company ALSTE cited German privacy laws as preventing it from collecting relevant company emails that were located in Germany (the US court compelled production anyway).  So, jurisdictional factors can come into play when cloud data is housed in a foreign jurisdiction.

This is too big a topic to cover in one post, so we’ll cover the other four eDiscovery issues to address in Monday’s post.  Let the anticipation build!

So, what do you think?  Does your company have ESI hosted in the cloud?  Please share any comments you might have or if you’d like to know more about a particular topic.

eDiscovery Trends: Facemail Unlikely to Replace Traditional Email

In a November post on eDiscoveryDaily, we reported that Facebook announced on November 15 that it’s rolling out a new messaging system, including chat, text messaging, status updates and email (informally dubbed “Facemail”) that would bring messaging systems together in one place, so you don’t have to remember how each of your friends prefers to be contacted.  Many have wondered whether Facemail would be a serious threat to Google’s Gmail, Yahoo Mail and Microsoft Live Hotmail, given that Facebook has a user base of 500 million plus users from which to draw.  And, there was considerable concern raised by eDiscovery analysts that Facebook plans to preserve these messages, regardless of the form in which they are generated, forever.

However, Facemail isn’t likely to replace users’ current email accounts, according to an online poll currently being conducted by the Wall Street Journal.  More than 61 percent of over 4,001 participants who have taken the poll so far said they wouldn’t use Facebook Messages as their primary email service.  18.4 percent of voters said that they would use it as their primary email, with 20.5 percent indicating that they were not sure.  You can cast your vote here.  I just voted, so these numbers reflect “up-to-the-minute” poll results (as of 5:52 AM CST, Wednesday, December 08, that is).

Facebook CEO Mark Zuckerberg envisions the Facemail model of email, instant messaging and SMS text messages as a simpler, faster messaging model than email’s traditional subject lines and carbon copies, which Zuckerberg considers to be “antiquated”.

Whether Facemail develops as a serious threat to Gmail, Hotmail or Yahoo Mail (or even Microsoft Outlook or Lotus Notes) remains to be seen.  However, at least a couple of industry analysts think that it could become a significant development.

“A powerful, unified presence manager would also enable the user to express how he’d like to communicate, and to manipulate that ‘how’ and ‘when’ availability to different types of contacts,” industry analyst David Card stated in a post on GigaOm.com.  “If Facebook establishes Messages as a user’s primary tool to manage presence across multiple communications vehicles, it would be an incredibly sticky app, with huge customer lock-in potential.”

Gartner analyst Matt Cain told eWEEK.com, “It will have little impact at first on the public portal email vendors because it is a barebones email service. But if Facebook makes it the equivalent of these other services, it will have a significant deleterious impact on competing email services”.

As stated in the earlier post, it’s important to have a social governance policy in place to not only address new mechanisms such as Facemail, but all social media mechanisms that might be in use by your employees.

So, what do you think?  Do you plan to consider using Facemail as your primary email service?  Please share any comments you might have or if you’d like to know more about a particular topic.

eDiscovery Trends: Facemail and eDiscovery

Email is dead.

So says Facebook founder Mark Zuckerberg.  “It’s too formal,” he declared, announcing his company’s new messaging service last week in San Francisco.

Facebook announced last week that it’s rolling out a new messaging system, including chat, text messaging, status updates and email (surprise!).  Zuckerberg touts it as a way of bringing messaging systems together in one place, so you don’t have to remember how each of your friends prefers to be contacted.  Will the integrated product (informally dubbed “Facemail”) that some have called “Gmail killer” be a serious threat to Gmail, MSN and Yahoo Mail?  Maybe.  With 500 million plus users, Facebook certainly has a head start towards a potentially large user base.

However, some caveats to consider from a business standpoint:

  1. Facemail messages will be clustered by sender instead of by subject, which they consider to be “antiquated”.  May be great from a social standpoint, but not so good when you need to follow the thread of a conversation with multiple people.
  2. Unified messaging is not an entirely new concept.  Just last year, Google introduced Google Wave, designed to “merge key features of media like e-mail, instant messaging, wikis, and social networking”.  Earlier this year, Google announced plans to scrap Google Wave after it failed to gain a significant following.  It will be interesting to see whether Facebook can succeed where Google failed.
  3. From an eDiscovery perspective, the potential concern is that Facebook plans to preserve these messages, regardless of the form in which they are generated, forever.  So, if your company has a retention policy in place, these communications will fall outside of that policy.

Is it time to panic?  It might be tempting to overreact and ban the use of Facemail and other outside email and social media sites, but that seems impractical in today’s social media climate.

A better approach is to have a policy in place to govern use of outside email, chat and social media that covers what employees should do (e.g., act responsibly and ethically when participating in online communities), what employees should not do (e.g., disclose confidential information, plagiarize copyrighted information, etc.) and the consequences for violating the policy (e.g., lost customers, firings, lawsuits, etc.).  We will talk more about a social governance policy in an upcoming post.  In the meantime, here is a reference to our September post for information on requesting information from Facebook via civil subpoena.

So, what do you think?  Does your company have a social governance policy?  Please share any comments you might have or if you’d like to know more about a particular topic.

P.S. – So, what happened to the architect behind Google Wave, Lars Rasmussen?  He just joined Facebook.  Interesting, huh?  🙂