April 2011 Archives

Apple's Consumer-Tracking Controversy Illustrates Importance of End User Agreements

April 28, 2011


Apple Inc. has sent a letter to Congress, saying it must collect the controversial tracking data that has some privacy experts warning consumers about the iPhone and iPad tracking their whereabouts, according to The Consumerist.

Chicago technology attorneys understand how important it is to make sure user service agreements, privacy statements, and other legal documents protect companies from legal penalties as they deploy next-generation technologies. In this case, Apple prudently made sure its end user agreement or clickwrap agreement provided it with the authority to collect and maintain user location data.
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Bloomberg News reports the revelation that the company tracks up to a year's worth of a user's movements, and stores them in an unencrypted file, could lead to greater regulatory scrutiny in both the United States and Europe.

Apple has said it saves the location of WiFi hotpots and cell phone towers used by the equipment to provide a better user experience (such as not having to login a password each time you use a wireless system at home or work).

PC Magazine reports that Apple has agreed to encrypt the data in the next version of its operating system. The company acknowledged that the data is sent to Apple, so that it can maintain a crowd-sourced list of wi-fi hotspots and cell phone towers. But it said the actual location of the user can be up to 100 miles away, depending on a tower's location and other variables.

Google's Street View mapping service has run up against similar privacy concerns. The company was fined $147,000 in France last month for violating that country's privacy rules.

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Chicago Business Attorneys Best Suited to Handle Technology Agreements

April 22, 2011


The service interruptions experienced by Amazon this month has companies debating the merits of using remote computer services that are beyond their control, according to The New York Times.

A Chicago business lawyer should be consulted when establishing such third-party agreements or when a company fails to fulfill their obligations under a terms of service level agreement (SLA). Such contracts and agreements in Chicago should address system availability, redundancy and compensation. Remedies should also be addressed as part of outsourcing agreements.
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"This is a wake-up call for cloud computing," analyst Matthew Eastwood told the Times. "It will force a conversation in the industry."

Not only should companies take a look at what services they are sending off site, they should carefully determine what crucial information or services need to remain inhouse. They must also take a look at the contracts covering cloud computing services, as well as how much to pay for backup and recovery services.

Amazon has a side business offering computer resources to businesses and is now an early leader in the growing business of cloud computing for companies large and small, including Netflix and Pfizer. The companies hit hardest by Amazon's service interruption were reportedly newer companies focused on growth, which are less likely to have extensive backup and recovery services.

Businesses reported various problems, from being unable to access data, to sites being shut down. The problems appear to have originated from Amazon's data center in Northern Virginia, near Dulles airport. Data center experts likened the interruption to the computing equivalent of an airline crash.

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