Implementation of Privacy by Design and Technical and Organizational Security Measures: The Data Masking Solution

The European Union is working on a revised set of rules for its data protection framework. The concept and principles of “privacy by design” has been incorporated in this draft. We will assess how data masking can be considered an effective data security measure and whether data masking fulfills privacy by design principles. Data masking is not encryption. It is a technique that provides for the replacement of real data with fictitious but realistic data in test environments.

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New Brazilian Data Protection Bill Adopts Data Breach Notification Regime

"Metrô-Linha Vermelha" (Photo by "mlsirac"; shot on Sept. 11, 2010 in Sao Paulo, Brazil). Available at http://www.flickr.com/photos/mlsirac/4988830112/ (Creative Commons "Attribution-NonCommercial-NoDerivs 2.0 Generic (CC BY-NC-ND 2.0)" license.)

The new Brazilian Data Protection bill currently in discussion provides a whole new approach to data protection for the country. It also follows the current trend of several countries, the European Union included, by adopting a data breach notification regime. The text would make companies liable without the need to prove omission or negligence. Currently they are only liable to the extent of damages resulting from the misuse of information leaked or stolen due to a data security breach.

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Are ‘clouds’ located outside the European Union unlawful?

A central aspect of every cloud service contract is the security of data processing. It is therefore important, if only for liability reasons, that responsibility for specific security measures be clearly assigned. This can be done by using security service level agreements between the cloud service provider and its client that clearly assign who is responsible for which particular security measure.
Storing data in a cloud located outside the EU raises specific legal compliance issues. According to some experts, such clouds are even unlawful. There are, however, some ways to make sure that, even if a data controller stores data into a cloud located in a third country, he is still in compliance with German data protection law. A data exporter must use, in order to satisfy the adequate level of data protection requirement, specific standard contractual clauses for all contracts with a cloud service company located outside the EU. Binding corporate rules are the alternative solution, though only for private clouds.

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