Global data security rules 'threaten software services'

2009-10-15

Rules intended to protect against data breach intrusions in different countries make it increasingly difficult to provide software services globally, it has been claimed.

Differing data rules are making it difficult to provide data services, according to a Microsoft official.

A growing patchwork of laws is "very confusing" for information service providers, the company's senior vice-president and general counsel Brad Smith explained to Reuters.

Part of the problem is the increasing convergence of information on computer systems globally, such as between banks and other services providers with confidentiality obligations.

Mr Smith told the news agency: "The trade rules will need to change in order for these benefits to continue to flow around the planet."

He used the example of the confusion that could arise if one country requires emails to be stored for up to a year for security purposes, while another may require them to be deleted after six months.

Global data rules came under scrutiny earlier this year, following a successful IT intrusion that exposed the details of up to 100 million card payment transactions stored by Heartland Payment Systems to hackers.

At the time, technical experts suggested that the data breach could set a new record in terms of lost details.

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