Volume 24 (2013) / Issue 5
As a result of technologic innovation and optimization, the advent of cloud computing may change the way we work, communicate with each other and share information. In the cloud-based environment, access to computing resources (such as storage, processing and software) has shifted from an internal network to a public network in particular in the public cloud environment. It may challenge the allocation of responsibility among cloud providers, cloud customers and cloud users. Subsequently it may affect the attribution of title to data controllers and data processors. This paper undertakes primary research and provides insights into the significant yet complicated determination of the validity of jurisdiction clauses for cloud service contracts and the intertwined issues regarding the balance between the cloud interoperability and the protection of data privacy and intellectual property rights. It addresses key legal challenges faced by cloud computing providers and users today and proposes possible solutions to establish greater legal certainty in cloud computing service contracts with reference to the current practice in the EU and US. In general, this paper argues that although the deployment of cloud computing may complicate the determination of jurisdiction when disputes arise, a well-negotiated and sophisticated service contract of cloud computing may minimise such risk.
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