Cloud Computing: A cluster of complex liability issues
This article addresses cloud computing liability issues related to contract, torts, intellectual property and data protection laws. It distinguishes the different types of providers according to their level of involvement in the decision making processes and the potential liability flowing from such actions. Such assessment is of particular importance in relation to intellectual property infringements carried out in the cloud. Additionally the possible scenarios and extent of claims for damages based on a breach of contract or tortious conduct are highlighted. In order to reduce potential liability appropriate contractual and organizational measures are suggested. New insurance forms are also becoming a viable option in limiting the amount of exposure.