costs of data security

What is reasonable protection for sensitive commercial data?

This question was posed by Matthew Prewitt in Law Technology News today. His article presents a panel discussion from American Lawyer Media’s Seventh Annual IP Trademark, Copyright & Licensing Counsel Forum in New York, in which the panelists discuss ways to balance the benefits and costs of data security. LCG Director, Andrew Frisbie offered the following comments:

“Very timely article. Kevin Cranman (G/C Ericsson Television, Inc.) alludes to two very important strategies: 1) Identify whatneeds to be protected and 2) Identify who should get access to the protected information. LCG has investigated numerous insider data theft situations over the years that have resulted in the loss of trade secrets and other sensitive data, so I will add that there is an investigative benefit to Mr. Cranman’s strategies as well. Employees present the biggest risk of loss when it comes to trade secrets and other sensitive information – often as their employment ends. When these strategies are in place, a company can save time and reduce costs when investigating the potential loss of sensitive information. When considering “reasonable protection” for sensitive commercial data, one has to accept that there is no ironclad solution. Technology, training, policies, procedures, and NDAs are all components of a protection strategy. Having a plan in place to quickly identify if the loss of sensitive information actually occurred, who took the information, and how they removed it from the company is critical. If the company has already identified what constitutes protected information and has taken steps to control access to it, the investigation can be more focused, thereby reducing the time and cost it takes to remedy.”

If your company is struggling with how to balance the benefits and cost of data security and how to mitigate the risk of insider data theft, call LCG today to find out how we can help.

To see the full LTN article click here.


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