Scenario A large US company recently outsourced its IT functions and has begun to use cloud computing vendors, or other service providers, to store or process data. The company’s general counsel is concerned about any additional risks the company may face when responding to e-discovery requests, such as discovery penalties for inadequate preservation or incomplete disclosure, waiver of legal privileges and improper disclosure of confidential information to third parties. The general counsel is seeking ways to mitigate these risks through contract terms and advance planning.

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