Data Privacy and Cybersecurity

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Covington has an industry-leading data privacy and cybersecurity practice. Described by Chambers and Partners as an “accomplished group of privacy and data security practitioners” that “provides dynamic, practical, real-world advice,” we specialize in helping clients address complex, cutting-edge challenges to managing data privacy and cybersecurity risk. We regularly draw upon our cross-disciplinary expertise to provide efficient and effective counseling and representation. Our work ranges from assisting large, multinational clients in conducting privacy and security audits—to assess the ways in which they collect, handle, and protect their customers’ and employees’ personal information—to providing regulatory compliance advice in connection with specific business practices.

Our practice provides exceptional coverage of all of the substantive areas of privacy and data security, including IT/technology, data security, financial privacy, health privacy, employment privacy, litigation and transactions. Our client list contains a broad range of leading companies across numerous sectors, including consumer products, banking and financial services, health care, Internet services, pharmaceuticals, and telecommunications.

With global data privacy and cybersecurity attorneys based in Washington, New York, San Francisco, London, Brussels, and Beijing, our multi-lingual team has represented clients worldwide on a full range of legal, regulatory, and legislative matters involving privacy and cybersecurity issues.

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Global privacy assessment

On behalf of one of the world’s leading consumer electronics and technology companies, we completed a comprehensive global privacy audit under the laws of the United States, the European Union, and China, including an assessment of the data collection, use, and sharing practices of numerous business units (including HR data), cross-border data transfers, and adopting a going-forward privacy governance and risk-management approach and corresponding policies and procedures.

LinkedIn Privacy Class Action

Achieved dismissal of a putative class action against LinkedIn alleging violations of the Stored Communications Act and state law. The complaint asserted that LinkedIn disclosed LinkedIn user identification numbers and LinkedIn URL addresses to third party advertising companies, which allowed those companies to correlate the identity of a user with his or her previously anonymous Web browsing history.

Representation of Microsoft in Landmark Case Involving Data Stored Abroad

Successfully challenged U.S. government warrant seeking data stored in Ireland. After a favorable decision from the Second Circuit—and while the Supreme Court was reviewing the case—Congress enacted the CLOUD Act, a modernized framework for cross-border data requests. See United States v. Microsoft Corporation, No. 17-2 (U.S.).

AOL Privacy Class Action

Achieved dismissal of a putative class action against AOL alleging violations of the Wiretap Act, Video Privacy Protection Act, and numerous state laws. The suit alleged unauthorized collection of personal information from the plaintiffs’ computers using “Flash cookies” and unlawful disclosure of video viewing information to third parties.

Advice on the monitoring of employee communications

Conducted a pan-European and selective U.S. survey of laws and regulations affecting an employer’s right to monitor employee’s Internet use and review electronic communications. We have also advised numerous clients on the law governing call recording and access to (and disclosure of) employee e-mail, including in connection with several personal crises and actions.

Binding Corporate Rules for global pharmaceutical company

Assisting GSK plc in its adoption of Binding Corporate Rules (BCRs) in order to permit the company to transfer personal data globally. We helped develop GSK’s privacy compliance program, obtain the UK data protection authority’s approval and continue assisting GSK during the subsequent implementation.

Cable One Privacy Class Action

Achieved dismissals of three putative class actions against Cable One, a cable and Internet service provider, in litigation involving claims under the Wiretap Act, the Computer Fraud and Abuse Act, and related state laws. The litigation arose out of a third party’s test of a system using “deep packet inspection” for the purpose of serving targeted advertisements.

Addressing Regulatory Enforcement Actions

We have addressed regulatory investigations and enforcement actions from regulators in the United States, Europe, and Asia following data breaches. These have included investigations or formal enforcement proceedings brought by the Federal Trade Commission, State Attorneys General, and the Securities and Exchange Commission in the United States, and by data protection authorities and sector-specific regulators across Europe and Asia.

Global compliance

Conducted a detailed review of the human resources operations of a large pharmaceutical company to assess compliance with data protection and privacy laws and regulations in both the U.S. and EU, in anticipation of possible certification under the U.S.-EU Safe Harbor regime. Our extensive written report described potential compliance issues and recommended specific remedial actions.

BBVA in Acquisition of Simple

Representation of Banco Bilbao Vizcaya Argentaria, an international financial group based in Spain, in its acquisition of financial technology company Simple. The $117 million acquisition is part of BBVA's strategy to lead the technology-driven change that is transforming the financial services industry. According to Francisco González, Chairman and CEO of BBVA, Simple will reinforce BBVA’s “global digital transformation while BBVA will provide the means to help Simple maximize its outstanding growth potential.”

CBS Corp. v. FCC.

Covington successfully represented CBS against a threat by the FCC to make hundreds of thousands of pages of highly confidential programming contracts and negotiation materials available to hundreds of third parties. The D.C. Circuit ruled in favor of CBS, stating the FCC’s decision was “both substantively and procedurally flawed.”

Confidential data leak

Provided guidance to a major technology and manufacturing company in connection with the unauthorized posting of employee personal information on a third-party webpage. Our efforts on behalf of the client included working with Internet service providers to remove the posted information and providing notice to potentially affected individuals and applicable state regulators.

Cross-border trade, anti-corruption, and data compliance

Advising a major petrochemical company regarding its establishment of an integrated compliance program, with particular focus on the areas of U.S. and European trade controls, anti-corruption, and data privacy. Our representation includes assistance with establishing a corporate compliance office, assessing risks in these areas, drafting the necessary policies and procedures tailored to company risks and operations, and implementing the program through training and assessment.

Emerging policy issues

Worked directly with, and appeared before national and regional privacy authorities, such as the European Commission, the EU Article 29 Working Party, and the Council of Europe, both to address emerging policy issues in the data privacy field, such as data retention, radio frequency identification (RFID), Big Data, facial recognition, security breach legislation and biometrics, and to defend individual clients.

Employee data breach support

Fair Credit Reporting Act (FCRA)

Advising several of the largest bank holding companies in the U.S. on compliance with the FCRA. Advising major consumer reporting agencies and trade associations on the requirement of the FCRA. Successfully representing numerous consumer reporting agencies and financial services providers in CFPB and FTC supervisory and enforcement actions relating to FCRA. Representing numerous firms in connection with the acquisition of FCRA-regulated businesses, including due diligence and preparation of merger and acquisition documents.

Gramm-Leach-Bliley Act (GLBA) and State Financial Privacy Laws

We have advised the largest and most sophisticated banks, consumer reporting agencies, and financial services companies on the collection, use and disclosure of nonpublic personal information under GLBA, that California Financial Information Privacy Act, and similar laws, including the development and implementation of privacy notices.

HR operations audit for multinational pharmaceutical client

Conducted a detailed review of the human resources operations of a large pharmaceutical company to assess compliance with data protection and privacy laws and regulations in both the US and EU, in anticipation of possible certification under the US-EU Safe Harbor regime. Our extensive written report described potential compliance issues and recommended specific remedial actions.

Microsoft Privacy Class Action

Achieved summary judgment for Microsoft in a putative class action alleging unauthorized collection of geolocation information from the plaintiffs’ mobile devices. After a claim under the Wiretap Act was dismissed at the pleadings stage, we successfully obtained summary judgment on a remaining claim under the Stored Communications Act.

Multi-defendant Flash Tracking Privacy Class Action

Achieved dismissal of a putative class action against Microsoft, CBS, Microsoft, McDonald’s, and Mazda alleging violations of the Wiretap Act, Computer Fraud and Abuse Act, and state laws. The complaint alleged that an online ad network used Flash cookies and other tracking mechanisms to build user profiles for the purpose of serving targeted advertising.

Privacy audit for oil and gas multinational in preparation for BCR approval

Managing a privacy audit of a U.S.-based multinational in the oil and gas industry in preparation for its BCR approval with the Dutch data protection authority as the lead authority, including reviewing and providing advice on the BCRs and the implementation strategy and assisting this client in the preparation and roll-out of various compliance tools in the framework of the BCRs.

Protection of employee personal information

Representing global pharmaceutical company in “test” case involving BCR and CBPR interoperability

Representing Merck in one of the first “test” cases involving interoperability between BCRs and APEC’s Cross-border Privacy Rules (CBPR). The case will establish a precedent for cross-border transfers of personal data for both the EU and Asia-Pacific Region.

Responding to Sophisticated Advanced Persistent Theat ("APT") Attacks

We have directed the investigations and response into APT attacks from state-sponsored actors and sophisticated criminal groups targeting intellectual property and other proprietary information. These attacks, and the responses, have spanned multiple industries and global companies, with investigations covering four continents.

Pre-Incident Advice and Assessments

We regularly advise clients on compliance with information security requirements and best practices, including, among others, governance best practices, vendor contract terms and due diligence, the implementation of information security controls to satisfy regulatory requirements, and the conduct of vulnerability assessments.

FTC Investigation Involving Microsoft's Passport Internet Authentication Service

Microsoft in the FTC’s groundbreaking investigation and agreement related to Microsoft’s Passport Internet authentication service, which was the FTC’s first consent agreement under Section 5 of the FTC Act to impose information security commitments related to the protection of personal information.

Development of Internal Guidelines for Law Enforcement Requests

Regularly assist global businesses in developing internal guidelines for responding to law enforcement requests, including by identifying and advising on relevant legal obligations and assessing best practices for responding to government requests for customer data. We help clients develop procedures for addressing conflict-of-law issues that arise when receiving law enforcement requests from countries worldwide, with an eye toward creating efficient and scalable solutions.

Global Privacy Audit for Leading Consumer Electronics and Technology Companies

Litigated Successful Constitutional Challenge

On behalf of Microsoft, successfully challenged a gag order statute that allows courts to forbid technology companies from telling their customers about demands for their data under the Electronic Communications Privacy Act (ECPA). The lawsuit resulted in nationwide reform of the government's practices under the statute. See Microsoft Corporation v. United States Department of Justice, No. 2:16-cv-00538-JLR (W.D. Wash.).

Litigation Resulting in New Rules on Customer Access to Government Data Demands

Representation of technology client in Foreign Intelligence Surveillance Court litigation challenging restrictions on technology company disclosures about government surveillance. The litigation resulted in new rules that allow technology companies to give their customers more information about how often the government demands customer data. See In re Motion to Disclose Aggregate Data Regarding FISA Orders, Misc. No. 13-04 (FISA Ct. 2014).

Privacy “health checks”

Conducted privacy “health checks” for clients to assess their compliance with privacy and data security laws, particularly those in the 28 Member States of the European Community; where appropriate, we have designed remediation programs that include, for example, filing notifications to local privacy regulators, fulfilling obligations to furnish notice, and ensuring compliance with local data security regulations.

Review of the right to monitor Internet and electronic communications

Conducted a pan-European and selective US survey of laws and regulations affecting an employer’s right to monitor employee’s Internet use and review electronic communications. We have also advised numerous clients on the law governing call recording and access to (and disclosure of) employee e-mail, including in connection with several personal crises and actions.

Advising Europe's Largest Purchasing and Marketing Association

Advising Europe’s largest purchasing and marketing association in industrial B2B, E/D/E (Einkaufsbüro Deutscher Eisenhändler GmbH) on the implementation of an electronic marketplace for tool-supply (www.toolineo.de), including complex data protection and electronic payment services issues.

Advising Multinational Technology Companies and Associations on Proposed E-evidence Regulation

Advising a number of multinational technology companies and trade associations on the European Commission's proposed Electronic Evidence Directive and Electronic Evidence Regulation, which would facilitate the ability of EU law enforcement authorities to compel U.S.-based online service providers to disclose user data in criminal investigations.

Significant Privacy Case Before the Irish High Court

The Irish High Court referred the validity of the Standard Contractual Clauses used as a basis to transfer data and specifically whether they are compatible with the EU treaties to the EU Court of Justice. This is an amicus brief where we will appear on behalf of our client alongside the U.S. Government in making submissions before the EU Court of Justice.

Successful Representation of Microsoft in Privacy Battle

Represented Microsoft in successfully opposing a subpoena seeking the emails of a deceased customer. Following briefing and a hearing, the Court embraced Microsoft's balanced approach to this nuanced issue of digital privacy, holding that Microsoft could not be compelled by subpoena to produce the emails but was free to do so voluntarily in accordance with its policies.

Huawei Privacy Class Action

Defending Huawei, a Chinese mobile handset maker, in a putative class action alleging violations of the Wiretap Act, Stored Communications Act, and various state laws. The suit stems from the allegation that third-party mobile analytics software transmitted data about mobile device users’ activities to other parties without authorization.

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China Releases First Draft of Personal Information Protection Law

On October 21, 2020, the National People's Congress (“NPC”), China’s top legislative body, released its first draft of the Personal Information Protection Law (the “Draft Law”) for public comment (official Chinese version available here). The period for public comment ends on November 19, 2020 and comments can be submitted through NPC’s official website.

French Court of Cassation Decides That an Employer Can Use a Facebook Post to Dismiss an Employee

On September 30, 2020, the French Court of Cassation (“Court”) ruled in favor of an employer that dismissed an employee because of the contents of a Facebook post (the decision is available here, in French). In particular, the employee in this case posted a photograph of a new clothing collection of the employer on a...… Continue Reading

French Supervisory Authority Releases Strict Guidance on the Use of Facial Recognition Technology at Airports

On October 9, 2020, the French Supervisory Authority (“CNIL”) issued guidance on the use of facial recognition technology for identity checks at airports (available here, in French). The CNIL indicates that it has issued this guidance in response to a request from several operators and service providers of airports in France who are planning to...… Continue ...

Inside Privacy Audiocast: Episode 6 – View from Johannesburg Part II: Top Data Policy Trends to Look Out For in Africa

Recently, there has been a significant level of attention given to data protection and privacy matters on the Continent, and in the just the past year, we have seen new laws proposed or enacted in places like Nigeria, Egypt, Kenya, and of course South Africa, although prior to that, places like Morocco, Ghana and Mali...… Continue Reading

California AG Settlement Suggests Privacy and Security Practices of Digital Health Apps May Provide Fertile Ground for Enforcement Activity

In a new post on the Covington Digital Health blog, our colleagues discuss California Attorney General Xavier Becerra’s recent settlement against Glow, Inc., resolving allegations that the fertility app had “expose[d] millions of women’s personal and medical information.” The post explains the allegations and settlement terms, as well as takeaways for providers ...

California Attorney General Releases New Proposed Modifications to California Consumer Privacy Act Regulations

On Monday, the California Attorney General (“AG”) proposed a third set of modifications to the recently enacted California Consumer Privacy Act (“CCPA”) regulations. Interested parties have until October 28 to file comments in response. These proposed modifications are the latest effort in an extensive rulemaking process that has lasted more than a year. Most ...

FCC Announces Section 230 Rulemaking

FCC Chairman Pai announced today that the FCC will move forward with a rulemaking to clarify the meaning of Section 230 of the Communications Decency Act (CDA). To date, Section 230 generally has been interpreted to mean that social media companies, ISPs, and other “online intermediaries” have not been subject to liability for their users’...… Continue Reading

CISA and MS-ISAC Release Joint Guide on Ransomware

On September 30, 2020, the Cybersecurity and Infrastructure Security Agency (“CISA”) and the Multi-State Information Sharing and Analysis Center (“MS-ISAC”) released a joint guide synthesizing best practices to prevent and respond to ransomware. This guide was published the day before OFAC and FinCEN released their coordinated guidance on ransomware attacks ...

DOJ Proposes Legislation to Limit Section 230 Immunity

The Department of Justice has released a draft bill to amend Section 230 of the Communications Decency Act of 1996, joining the chorus of voices seeking to limit the statute’s liability protections (covered here, here, here, and here). The DOJ’s draft bill incorporates recommendations from its June 2020 report analyzing Section 230, as well as...… Continue ...

Inside Privacy Audiocast: Episode 5 – View From Johannesburg Part I: GDPR vs. POPIA – What Should Businesses Be Considering?

On June 22, 2020, the South African President announced that certain provisions of POPIA would take effect on July 1, provisions which most regard as essential to the statute, such as those imposing conditions on the lawful processing of personal information, procedures for handling complaints, and general enforcement provisions. Only days later, the South ...

New Guidelines for Companies from German Supervisory Authority (DPA-BW) following Schrems II

On September 7, 2020, the German data protection supervisory authority for Baden-Wuerttemberg (“DPA-BW”) released new guidelines following the Schrems II judgment on how companies should transfer data to third countries. For a more in-depth summary of the CJEU’s Schrems II decision, please see our previous blog post here and our audiocast episode here. The ...

Lindsey Tonsager Named California Trailblazer by The Recorder

SAN FRANCISCO— The Recorder has named Covington’s Lindsey Tonsager to its second annual list of “California Trailblazers.” The list profiles 50 lawyers who made significant marks on the practice, policy, and technological advancement of their practice. As head of Covington’s West Coast Privacy and Cybersecurity practice, Ms. Tonsager helps some of the world’s ...

Attorneys say Defense Dept. must provide more transparency on audit results from CMMC program

Susan Cassidy is quoted in Inside Cybersecurity regarding the request from contractors for greater transparency on audit results from the DoD’s Cybersecurity Maturity Model Certification program. Ms. Cassidy says she is concerned about how the relationship will work between the prime and subcontractor. “All contractors will need to have a basic assessment [under ...

Contractors Seek Clarity On DOD Cybersecurity Rule

Susan Cassidy spoke with Law360 about protection of CUI forms in the Cybersecurity Maturity Model Certification. Ms. Cassidy says, “Bottom line, they still have never defined CUI in a way that's meaningful. It's the bedrock of the whole rule. And contractors really want to comply, I believe. They don't want their systems to be hacked. But the definition really ...

Covington Represents Amentum in Acquisition of DynCorp International

WASHINGTON—Covington represented leading defense contractor Amentum on government contracts and other regulatory matters in its just-announced deal to acquire DynCorp International, a worldwide leader in aviation and logistics support service. Together, the two companies will create one of the largest providers of mission critical support services. The ...

Brazil, Canada Lead Surge In Global Privacy Law Expansion

Kurt Wimmer spoke with Law360 about the recent global changes to privacy law. He says, “It's been quite busy in parliaments around the world on the privacy front, and part of the reason for that is the fact that when the GDPR went into effect, a lot of countries saw that and said, 'This is a real development. Now it's our turn to think about what we're going to ...

English High Court Awards Damages for Quasi-Defamation Data Claim

The English High Court has recently awarded damages in a data privacy case, with two features of particular interest1. First, the nature of the claim is more reminiscent of a claim in defamation than for data privacy breaches, which is a development in the use of data protection legislation. Secondly, the damages awarded (perhaps influenced by the nature of the ...

Covington Names New Co-Chair of Data Privacy Practice Based in Brussels

BRUSSELS–Covington has named Dan Cooper to lead its European data protection practice as co-chair of the firm’s global Data Privacy & Cybersecurity Practice, and he has relocated to Brussels to be closer to the institutions and courts that govern the European data privacy landscape. The firm has more than 100 lawyers focused on data privacy and cybersecurity ...

EU-U.S. privacy rift leaves businesses in disarray

David Bender is quoted in Axios regarding the EU-U.S. Privacy Shield, which was recently struck down in Europe, but still stands in the U.S. Mr. Bender says, “It's a tough situation for a lot of companies. Frustrated and confused is how I'd describe the general mood.”

U.S. Regulators Continue to Administer and Enforce the Privacy Shield

On July 16, 2020, the Court of Justice of the European Union struck down the EU-U.S. Privacy Shield (“Privacy Shield”) in the Schrems II decision. Even though Schrems II invalidated the Privacy Shield with immediate effect as a matter of EU law, U.S. regulators swiftly indicated that they will continue to administer the Privacy Shield and that self-certified ...

China unveils draft Data Security Law

Yan Luo is quoted in Global Data Review regarding China’s proposed data law intended to protect national security and the development of the digital economy. Ms. Luo says the law marks “a step forward” in establishing a regulatory framework for data security in China. She notes that the proposal has a particular focus on the governance of “important data”, ...

Return to Workplace: Privacy Considerations in Europe

Covington's European privacy team offers insights on the current state of play with respect to the intersection of European data privacy laws, and the transition around Europe and further abroad as government lockdown restrictions are lifted and companies begin to plan their return-to-work programs. In this on-demand briefing, we cover the guidance and positions ...

EU's Highest Court Upholds Standard Contract Clauses, but Strikes Down Privacy Shield

BRUSSELS-- Today, the European Court of Justice (“CJEU”) issued a landmark decision striking down the EU-U.S. Privacy Shield — an agreement between EU and U.S. authorities authorizing transfers of EU personal data to the United States — but upholding the validity of standard contractual clauses (“SCCs”), another mechanism that EU-based organizations use to ...

Tech firms like Facebook must restrict data sent from EU to US, court rules

Lisa Peets spoke with The Guardian about the European Court of Justice’s decision to invalidate the EU-U.S. Privacy Shield, in which social media companies could be prevented from sending data to the United States from Europe. Ms. Peets says the ruling is not a total halt on data transfers between the EU and U.S. The court upheld the use of “standard contractual ...

Schrems II sparks data transfer chaos and confusion

Lisa Peets is quoted in Global Data Review regarding the European Court of Justice’s decision to invalidate the EU-US Privacy Shield. Ms. Peets, who represented software trade body BSA as an intervening party, says companies are unlikely to immediately stop their SCCs – saying that “halting existing transfers would be all but impossible from a practical ...

Top EU Court Strikes Down Popular Data Transfer Tool

Lisa Peets spoke with Law360 about European Court of Justice’s invalidation of the EU-U.S. Privacy Shield. Ms. Peets, who represented the Software Alliance, says the decision to reject the Privacy Shield without holding arguments on the merits of the tool — an issue that wasn't directly before the high court in this dispute — was “disappointing to many.” She ...

Facebook Data Case: EU's Top Court Quashes US-EU 'Privacy Shield'

Lisa Peets is quoted in Law.com regarding the European Court of Justice’s judgment in the EU-U.S. Privacy Shield. Ms. Peets says that the judgment means that the 5,000 or so U.S. companies signed up to the Privacy Shield will have to find an interim solution until EU and U.S. officials have worked out a new data protection deal. “The invalidation of the Privacy ...

Chinese data protection: the move towards a comprehensive law

Yan Luo spoke with Global Data Review about China’s new provisions regarding the right to privacy and protection of personal information. Ms. Luo notes that the privacy provisions in the code are stated “only at a high level” – though she does point out that the provisions “remain consistent with [the] Cybersecurity Law.” She says the Civil Code and its privacy ...

Chinese law may require companies to disclose cyber-security preparations outside China

Yan Luo is quoted in Computer Weekly regarding China’s new draft data security law. Ms. Luo says, “China is considering allowing the law to have an extra-territorial effect that we have not seen before. They want to counteract the extra-territorial effect of U.S. law.” She adds that the law may require a technical audit of a company’s cyber security and to ...

Covington Represents Piramal in $490M Sale of Stake in Pharmaceutical Unit

WASHINGTON—Covington represented Piramal Enterprises Limited (PEL) in the sale of a 20% stake in Piramal Pharma Limited (Piramal Pharma), a wholly owned subsidiary of PEL that will contain its pharmaceutical businesses, to CA Clover Intermediate II Investments, an affiliated entity of CAP V Mauritius Limited, an investment fund managed and advised by affiliated ...

California Attorney General Finalizes CCPA Regulations

On June 1, California Attorney General Xavier Becerra announced that he has submitted to the Office of Administrative Law the final regulations implementing the California Consumer Privacy Act (“CCPA”). While the final regulations do not make any changes to the second modified version of the regulations released in March, the commentary released by the Attorney ...

Employers must consider privacy protections as they roll out contact-tracing tools

Libbie Canter is quoted in Med City News regarding the privacy concerns for employers seeking to track employees in order to limit the spread of COVID-19. Ms. Canter says when it comes to contact tracing and location monitoring, companies should be cautious in the questions they ask and how much data they collect. She adds, “Companies need to think about not ...

Return to Workplace in Europe: Resource Guide

As businesses across Europe prepare to reopen following the COVID-19 lockdown, Covington is providing practical resources and guidance on the broad array of issues companies face as employees return to the workplace, including employment, privacy, competition, policy, environmental and regulatory considerations at the EU level, with a focus on Germany and the ...

Africa's Lack of Data Protection and Cybercrime Laws Has Created Deep Vulnerabilities. But Is Change On The Way?

Robert Kayihura is quoted in The American Lawyer regarding COVID-19's impact on the urgent need for African cyber laws. Mr. Kayihura says, “Only nine African countries have data protection legislation and another 22 have draft regulations pending.” He adds that the impetus for change appears to be increasing, not least by way of an ambitious plan to create a ...

Creepy Technologies Invade European Post-Pandemic Workplaces

Daniel Cooper spoke with Bloomberg about new wearable technology devices that alert users when they are within close proximity of someone with COVID-19. Mr. Cooper notes that businesses are walking a fine line between keeping people safe and protecting their privacy. The absence of clear guidance from European regulators is forcing companies -- who could also be ...

US lawmakers propose temporary COVID-19 privacy law

Libbie Canter is quoted in Global Data Review regarding a bill that would regulate contact-tracing apps and similar projects geared towards tracking the spread of COVID-19. Ms. Canter says the bill is narrow in scope, but where it does apply, the protections are stronger than those offered by state laws like the CCPA. She raises questions about how the bill ...

COVID-19 Issues for Return to the Workplace

As businesses prepare for a return to the workplace (RTW) following COVID-19 closures, our team has created this high-level summary list of current and anticipated issues related to reopening. For additional guidance, please visit our COVID-19 Legal and Business Toolkit or reach out to us at COVID19@cov.com. Links to sections with more information about these ...

U.S. AI and IoT Legislative Update - First Quarter 2020

Though it seems like the distant past now, in this update we detail the notable legislative events from the first quarter of 2020 on artificial intelligence (“AI”), the Internet of Things (“IoT”), cybersecurity as it relates to AI and IoT, and connected and autonomous vehicles (“CAVs”). Prior to the slowdown in non-COVID related legislation that accompanied the ...

China’s new cybersecurity rules could hit foreign service providers

Yan Luo spoke with the South China Morning Post about new Chinese guidelines for operators of “critical information infrastructure,” requiring them to undergo a cybersecurity review process for any procurements that could have national security implications. According to Ms. Luo, the criteria may push companies to stay away from multinational providers that are ...

China Toughens Procurement Rules for Tech Equipment

Yan Luo is quoted in The Wall Street Journal regarding China’s tough, new adoption of cybersecurity rules for buyers of technology equipment, which could place foreign tech products at a disadvantage in the Chinese market. Ms. Luo says the prospect of potentially lengthy reviews may prompt Chinese companies to stay away from foreign products and services.

Privacy Challenges Against FATCA Face Uphill Battle

Michael Lloyd is quoted in Law360 regarding the implications of EU data protection laws on the U.S. Foreign Account Tax Compliance Act’s requirements. Mr. Lloyd says there has been very little, if any, traction for cases against FATCA in the U.S. He adds, “Those cases went nowhere in the U.S. They didn’t survive and there has been no real challenge.”

Two Covington Partners Named Among Top 30 Data Breach Response Lawyers

WASHINGTON—Cybersecurity Docket has named David Fagan and Ashden Fein to its “Incident Response 30” for 2020. The list features “30 of the best data breach response lawyers in the business.” Mr. Fagan co-chairs the firm’s Data Privacy and Cybersecurity Practice. He has counseled companies on responding to some of the most sophisticated documented cyber-based ...

The Coming Wave Of Privacy Actions In The Wake Of COVID-19: Six Things To Know

As the world moves online during the COVID-19 pandemic, companies’ privacy and security practices are coming under increased scrutiny. Because class actions often follow such scrutiny, as demonstrated by lawsuits recently filed against Google and Zoom, companies should keep the following six developments on their radar as they rush to meet the demands of our new ...

Morrisons Ruling Leaves Door Open For Data Breach Suits

Mark Young spoke with Law360 about a UK Supreme Court case involving the intentional breach of customer data information by an employee at Morrisons. The court ruled Morrisons will no longer have to pay a fine. Mr. Young says this is the “dual-edged result” of the Supreme Court judgment. Although a company is off the hook if an employee “goes off the deep end” ...

Morrisons not liable for rogue employee data breach

Daniel Cooper spoke with Global Data Review about a UK high court case involving the deliberate breach of personal information by a supermarket employee from Morrisons. The court ruled that the supermarket was not liable for the actions of the employee. Mr. Cooper described the decision as “dual-edged” and said that “when coupled with the Lloyd Court of Appeal ...

New York SHIELD Act Data Security Requirements Become Effective

On March 21, 2020, the data security requirements of the New York Stop Hacks and Improve Electronic Data Security (SHIELD) Act (the “Act”) became effective. These provisions require businesses that own or license computerized data that includes the “private information” of New York residents to maintain “reasonable” security measures. Generally speaking, the ...

Telcos share location data for coronavirus efforts

Dan Cooper spoke with Global Data Review about how telecommunications companies are providing data regulators location data to track the effects of social distancing in the wake of coronavirus. Mr. Cooper told GDR that the measures in Europe are “not too much of a concern” from a privacy perspective as the data being used by authorities is anonymized and ...

Democrats Want to Prevent Coronavirus Credit Report Harm

David Stein spoke with Bloomberg about legislation from Senate Democrats to shield U.S. citizens from negative credit reporting for the duration of the new coronavirus crisis. Three senators are looking to throw out a rule where credit bureaus are required under the Fair Credit Reporting Act to collect negative information. Mr. Stein says, “To the extent that ...

Some FBI spying powers in limbo with lapse of Freedom Act

Trisha Anderson spoke with Global Data Review about Congress’s lapse in renewing the Freedom Act while dealing with COVID-19. Ms. Anderson told GDR if Congress doesn’t renew the business records provision, the FBI will have to operate with pre-Patriot Act surveillance tools. She adds that the FBI would still be able to obtain business records via grand jury ...

COVID-19: Legal and Business Toolkit

Recapture of Excess COVID-19 Payroll Tax Credits Addressed in New Regs Recapture of Excess COVID-19 Payroll Tax Credits Addressed in New Regs As the legal, regulatory, and commercial implications of coronavirus COVID-19 continue to evolve, our lawyers and advisors are helping clients navigate the complex considerations that companies around the world are ...

Revised CCPA regulations slightly more business-friendly, experts say

Libbie Canter is quoted in Global Data Review regarding the California Attorney General Xavier Beccera’s revisions to the California Consumer Privacy Act’s (CCPA) regulations. The revisions have left many businesses concerned and with unanswered questions. Ms. Canter says despite the revisions “ambiguities” remain for entities that collect data from third ...

Audit Process Remains A Mystery In DOD Cybersecurity Plan

Susan Cassidy is quoted in Law360 regarding the DoD’s implementation of cybersecurity requirements for defense contractors. Ms. Cassidy says that questions about the process, such as who will audit the thousands of contractors that need to be certified for cybersecurity compliance, how they will be audited and what options they will have if they disagree with an ...

AI and Attorney Obligations Are Still Outpacing the Law

Lee Tiedrich spoke with Legaltech News about lawyers’ obligations pertaining to the law and artificial intelligence. Ms. Tiedrich indicated that much like the internet in the 1990s, the growth of technologies such as AI continues to outstrip the development of the law. The lack of absolute regulatory clarity raises the stakes for organizations. “You need to be ...

Brexit Day Marks a Beginning, Not an End

This evening, at 11:00 p.m. GMT, the UK will leave the European Union. Brexit day marks a beginning, not an end. The UK today embarks on a complex process of negotiating new arrangements for trade and cooperation with the EU and partners around the world. Regulatory divergence seems inevitable, given that the UK will want to make its own decisions on existing ...

Brexit and Data Protection - What Now for the UK?

At 11 p.m. tonight, the UK will officially leave the EU. Although this is a significant milestone in the development of the UK’s data protection framework, the UK will remain very closely linked to the EU in the short term at least, and for many the change may be imperceptible.

US House privacy bill differs from Senate counterparts

Lindsey Tonsager is quoted in Global Data Review regarding a recently released draft privacy bill from the US House Committee on Energy & Commerce which differs from current Senate bills. With roughly a quarter of House Democrats coming from California, Ms. Tonsager told GDR that there will be major opposition to pre-emption in the House. “We’ve already seen the ...

ICO hits electronics retailer with maximum pre-GDPR fine

Daniel Cooper is quoted in Global Data Review regarding the UK ICO’s decision to fine DSG Retail £500,000 under pre-GDPR data protection law. The fine stems from the company being compromised by a cyberattack affecting at least 14 million people. Mr. Cooper says, “the ICO's imposition of a maximum fine appears due, in part, to the fact that it felt DSG should ...

California's New Privacy Rule Will Impact Financial Institutions

Michael Nonaka spoke with WatersTechnology about the impact of the California Consumer Privacy Act on financial institutions. Mr. Nonaka says, “There are exemptions [in the CCPA] for information that is covered by the GLBA. This is consumer information used by FIs, including broker-dealers. But there is not a broad exemption that just takes out the entirety of ...

European Commission takes cautious approach on AI liability

Daniel Cooper spoke with Global Data Review about the European Commission’s recommended changes to artificial intelligence liability rules. Mr. Cooper says the commission is keen to stress that the conclusions drawn from the report remain those of the expert group only. “One has to assume that the commission wants to be careful to test the waters first and gauge ...

California's privacy law arrives to confusion and costs for businesses

Lindsey Tonsager spoke with the Financial Times about the California Consumer Privacy Act (CCPA) and the different ways companies are trying to comply with the new law. Addressing some companies’ efforts to create self-serve portals to handle users’ privacy requests, Ms. Tonsager says, “This works fine but if you get a high spike of data access requests — right ...

Lawyers, Ask These 10 Questions During Digital Health Ideation

Covington has created a list of Top 10 Questions for Ideation of Digital Health Solutions that can help lawyers contribute to the digital health ideation process. Our clients increasingly apply agile product and business development methodologies when they are developing digital health solutions. "Ideation" is part of that process and involves the rapid ...

AG Publishes Opinion on the Validity of the EU Standard Contractual Clauses

On December 19, 2019, Advocate General (“AG”) Henrik Saugmandsgaard Øe handed down his Opinion in Case C-311/18, Data Protection Commissioner v Facebook Ireland and Maximillian Schrems (“Schrems II”). The AG’s Opinion provides non-binding guidance to the Court of Justice of the EU (“CJEU”) on how to decide the case.

AI Resists Ethics and Explanation. So Why Is It Still Used?

Lee Tiedrich is quoted in Legaltech News regarding the continued use of artificial intelligence, despite ethics concerns. Ms. Tiedrich says that companies could put in “good governance processes to manage the [AI] product design, development and implementation in accordance with their ethnical principles.” She also noted that to limit bias, it is also necessary ...

New privacy initiative aimed at 2020 ballot costing money and certainty

Lindsey Tonsager is quoted in Daily Journal regarding a new voter initiative designed to improve consumer privacy in California. Ms. Tonsager says, “The new ballot initiative has introduced some uncertainty into the conversation for businesses. There has been a real whiplash throughout the whole process of the CCPA. It was enacted back in 2018, and its already ...

European Countries Reluctant To Challenge FATCA

Atli Stannard is quoted in Law360 regarding the U.S. Department of the Treasury’s claims of European Union banks violating privacy and anti-discrimination laws when they share customer information with the IRS. EU countries may negotiate with the Treasury Department, but only if they receive larger cross-border effort against tax avoidance. Mr. Stannard says, ...

Arbitration Cybersecurity Protocol Outlines Best Practices

Micaela McMurrough is quoted in Law360 regarding a recently unveiled cybersecurity protocol guidelines aimed at arbitrators, institutions and arbitration users on topics including baseline security measures. Ms. McMurrough says, "We tried to build in flexibility [so that the] document can be used as guidance, rather than something that's prescriptive.”

IAPP: 'Sale' Under CCPA May Not Be as Scary as You Think

As the effective date of the California Consumer Privacy Act looms closer, companies are grappling with the significance of the law and its definitions. One defined term in particular, “sale,” has sparked heated debate between industry and consumer advocates, and even within the legal profession. While much has been said about this term, more needs to be said. ...

DOD's Haste May Spell Turbulent Start For Cybersecurity Plan

Susan Cassidy spoke with Law360 about the Department of Defense’s goal for its Cybersecurity Maturity Model Certification (CMMC) and its impact on join bid contractors. Ms. Cassidy says such teaming arrangements are already complicated and can take years to put together for big defense procurements. Although the DOD has said cybersecurity compliance will be ...

US-UK Data Sharing Agreement Might Not Soothe Law Firms’ Cloud Concerns

Trisha Anderson spoke with Legaltech News about a bilateral data access agreement, a new mechanism of the CLOUD Act and its effect on law firms. A year after the CLOUD Act, the first data-sharing agreement is most relevant to U.K. law enforcement agencies having access to the vast data held by U.S.-based tech companies, says Ms. Anderson. She adds, “The most ...

Will China’s revised cybersecurity rules put foreign firms at risk of losing their secrets?

Yan Luo is quoted in the South China Morning Post regarding China's revised cybersecurity rules. Ms. Luo says many of the relevant cybersecurity requirements are “not that out of the global norm”, and unlikely to be a challenge for firms that already has “robust cybersecurity programmes.”

California Attorney General Releases Draft CCPA Regulations

On October 10, 2019, California state attorney general Xavier Becerra announced the release of proposed implementing regulations concerning the California Consumer Privacy Act (CCPA). Interested stakeholders can submit written comments until December 6, 2019 at 5 PM (Pacific Time). In addition, four public hearings will be held on December 2nd (Sacramento), ...

Federal Trade Commission Hosts Workshop to Review the Children’s Online Privacy Protection Rule

On Monday, the Federal Trade Commission held a workshop to examine whether to update the FTC’s rule adopted under the Children’s Online Privacy Protection Act (“COPPA Rule”). The Future of the COPPA Rule: An FTC Workshop featured a range of speakers and panelists, including representatives from industry, consumer groups, and academia.

Landmark Case Opens the Door to UK Data Protection Consumer Class Actions

On October 2, 2019, the English Court of Appeal handed down a landmark judgment in Lloyd v Google LLC [2019] EWCA Civ 1599 (“Lloyd”) concerning Google’s alleged misuse of the personal data of over 4 million iPhone users via cookies placed on the Safari browser.

EU Cookie Ruling Tightens Leash On Ad Tech Staple

Kristof Van Quathem is quoted in Law360 regarding a European Court of Justice’s decision to increase web cookie consent measures. Mr. Van Quathem says, “It’s unfortunate that the court didn’t address that point because it’s commercially and politically a very sensitive topic, on which there is a lot of uncertainty right now, and it’s a question that could have ...

Meet Covington's Cybersecurity Practice

Boards and CEOs at companies of all sizes operating around the world list cybersecurity as one of the top concerns keeping them up at night. Cyber threats are in the news on a daily basis and we hear about data breaches all the time. But our practice often helps clients respond to cyber incidents that are much broader than data breaches; they range from small ...

CCPA Amendments Would Ceate Independent Enforcer

Lindsey Tonsager spoke with Global Data Review about proposed amendments to the California Consumer Privacy Act filed by Alastair Mactaggart of the Californians for Consumer Privacy. Ms. Tonsager said that given the time and resources spent on preparing staff within California’s office of the attorney general for the CCPA, she was “baffled” to see the proposal ...

Californian privacy law looms large for 500,000 US companies

Lindsey Tonsager is quoted in the Financial Times regarding the California Consumer Privacy Act’s effect on businesses in the state and around the world. Ms. Tonsager says, “Once the new law takes effect, the California attorney-general will overnight become one of the most powerful privacy regulators in the world.” She adds, “Companies that already had to apply ...

Trustworthiness of AI in Law Debated at International Roundtable

Lee Tiedrich recently participated in the “AI and the Rule of Law Roundtable” in Athens and spoke with Bloomberg Law about with the event, which was , focused on ensuring that AI tech works as intended—and that those who implement and operate such systems are competent to do so. Ms. Tiedrich says, “Although the Roundtable participants came from different ...

California Passes Final Version of CCPA, but Questions Remain

Lindsey Tonsager spoke with Global Data Review about the recently-passed California Consumer Privacy Act. Ms. Tonsager says the issues the attorney general need to clarify include what a “do not sell my personal information” link should look like on company websites, how that link should be formatted, and where it should be placed. One of the most important ...

FTC's YouTube Settlement Another Sign of COPPA Enforcement Heating Up

Lindsey Tonsager is quoted in Legaltech News regarding Google’s settlement with the FTC involving violations of the Children's Online Privacy Protection Act. Ms. Tonsager says, “This is the first FTC settlement that dealt with behavioral advertisements against a platform that just hosts third-party content.” She noted FTC Commissioner Rebecca Kelly Slaughter’s ...

WirtschaftsWoche Names Covington Top IT Law Firm in Germany

FRANKFURT—WirtschaftsWoche, Germany’s leading business weekly news magazine, has named Covington as the top law firm for IT law and Dr. Lars Lensdorf, a partner in Covington’s Frankfurt office, to its list of top IT lawyers in Germany. Dr. Lensdorf focuses his practice on IT law, outsourcing, digitalization and industry 4.0, IT related bank regulatory matters, ...

Why Is the US Not Yet a Leader in Crypto Regulation? — Experts Answer

Michael Nonaka spoke with CoinTelegraph to discuss cryptocurrency regulation in the U.S. Mr. Nonaka says, "The U.S. Financial Crimes Enforcement Network issued its first guidance addressing cryptocurrency companies in 2013, and since then regulatory action for digital assets has been slow to develop but has picked up in the past few years as an increasing ...

Keeping Up with the Tech: Behind the FTC's COPPA Review

Lindsey Tonsager spoke with Legaltech News about the FTC’s public request for comment on the Children’s Online Privacy Protection Act (COPPA). Ms. Tonsager said, “Regardless of whether the FTC is looking at the rule or not, I think the common best practice is to collect only the information that you need. The data minimization helps regardless if the regulator ...

China Releases Updated Draft Encryption Law for Public Comment

On July 5, 2019, China’s Standing Committee of the National People's Congress (NPC) published a new draft Encryption Law (“the draft Law”) for public comment. The draft Law, if enacted as drafted, would bring significant new changes to China’s commercial encryption regime.

EU’s Highest Court Hears Case on the Validity of the EU Standard Contractual Clauses

On July 9, 2019, the European Court of Justice (“ECJ”) heard oral argument in Case C-311/18, Data Protection Commissioner v Facebook Ireland and Maximillian Schrems (“Schrems II”). The primary question before the ECJ is whether the European Commission’s standard contractual clauses (“SCCs”) are valid for transfers of personal data to the United States.1 Given ...

Covington Represents BSA in Landmark Data Protection Case Before Europe's Highest Court

BRUSSELS—Today, a team of Covington lawyers argued before the European Court of Justice in a landmark data protection case, Case C-311/18, Data Protection Commissioner v Facebook Ireland and Maximillian Schrems (“Schrems II”). The case has significant ramifications for any organization that relies on the standard contractual clauses (“SCCs”) to transfer personal ...

Wanted: Lawyers Who Understand AI

Lindsey Tonsager is quoted in the Wall Street Journal regarding the initiative to increase artificial intelligence legal practices. Ms. Tonsager says data is the fuel that drives artificial intelligence, but it can come with legal restrictions. Companies acquiring datasets need to be sure their contracts give them the right to use the data to train algorithms. ...

Asia's Complex Compliance Landscape

Eric Carlson spoke with Pharmaceutical Executive about the compliance challenges prevalent in the Asia-Pacific region. On the emergence of general compliance in the region, Mr. Carlson says, “When I first moved to Beijing in 2008, there were only a couple of dozen people who had compliance on their business card. It just wasn’t a job in China then. Ten years ...

Daily Journal Names Lindsey Tonsager One of California’s Top AI Lawyers

SAN FRANCISCO—The Daily Journal has named Lindsey Tonsager to its 2019 “Top Artificial Intelligence Lawyers,” recognizing the top artificial intelligence lawyers in California. Ms. Tonsager co-chairs the firm’s Artificial Intelligence Initiative, which is a cross-functional practice advising companies developing or utilizing AI technologies. She is advising ...

Anti-Money-Laundering Watchdog Calls for Stronger Cryptocurrency Regulations

Michael Nonaka is quoted in The Wall Street Journal regarding the Financial Act Task Force’s request to virtual currency firms to develop procedures for sharing customer information with other financial institutions. Mr. Nonaka says that some crypto companies have invested heavily in compliance, others have a long way to go to build the systems necessary for ...

Dust has yet to settle two years after Chinas landmark cybersecurity law

Yan Luo was quoted in Technode regarding China's evolving cybersecurity framework. Ms. Luo says foreign companies operating in China are pursing compliance through tailoring their existing global cybersecurity program to fit China's regulatory environment.

Feds Send Clear Message With Flurry Of Fintech Cases

Anne Termine is quoted in Law360 regarding the SEC’s enforcement on fintech and cryptocurrency matters. Ms. Termine says, “From my perspective, having a no-fine case is a pretty big deal. And I think the SEC wanted to make pretty clear that it was a big deal that this was a self-report and that [the company was] recognizing the SEC jurisdiction, that they were ...

Expert Q&A on the EU Cybersecurity Act

Mark Young participated in a Q&A with Thomson Reuters about the EU Cybersecurity Act and its new cybersecurity certification schemes for information and communication technology products, services, and processes, especially internet of things devices. The interview also discusses how the Act supports the EU Directive on the Security of Network and Information ...

Inside The Legal Battle For The Future Of Fintech

Michael Nonaka is quoted in Law360 regarding the OCC and New York Department of Financial Services’ legal battle over how the fintech industry will be regulated. Mr. Nonaka says, “The litigation challenging the OCC's authority to issue a special purpose fintech charter certainly has delayed the process for nondepository fintech firms to apply and receive ...

Connected and Automated Vehicles Webinar Series: Levering Data in a Connected World

This webinar covered such topics as: Securing rights to use data created by connected and automated vehicles (CAVs); Key elements of a data strategy for connected and autonomous vehicles; the data risks involved with CAVs including privacy, cybersecurity, and law enforcement; and best practices in negotiating commercial agreements involving data.

Going Over the Top

Trisha Anderson spoke with the Global Data Review about the U.S.’s encryption law and its role electronic communication. According to Ms. Anderson, authorities in the U.S. have only general legal tools to seek access to encrypted data. Some traditional U.S. investigative tools, issued through courts and codified in law enforcement procedures, contain general ...

The Internet of Things: Legal Issues, Policy, & Practical Strategies

Our cross-disciplinary Internet of Things initiative contributed to the ABA's first book on IoT, The Internet of Things: Legal Issues, Policy, & Practical Strategies. Laura Kim and Jennifer Johnson authored the chapter “U.S. Regulatory Framework for IoT,” with contributions from Sarah Wilson (product safety); Wade Ackerman, Elizabeth Guo, Christopher Hanson, ...

The Transparent Business Barometer: Preparing for the End of Easy Data

Yan Luo was acknowledged as an advisory board member for the special report The Transparent Business Barometer: Preparing for the End of Easy Data, published by the Economist Intelligence Unit. The report revealed key trends in data privacy and cyber security on global businesses through the survey of hundreds of business executives across China, the U.S., ...

China Releases Draft Amendments to the Personal Information Protection Standard

On February 1, 2019, China’s National Information Security Standardization Technical Committee (“TC260”) released a set of amendments to GB/T 35273-2017 Information Technology – Personal Information Security Specification (“the Standard”) for public comment. The comment period ends on March 3.

Quantum computing and cryptography: credible threat or scaremongering?

Trisha Anderson is quoted in Global Data Review regarding developments in cryptography. Ms. Anderson says that though the report “sounds a gloomy note,” she is optimistic that cryptography will keep pace with developments in quantum computing. She adds that we have to “assume that adversaries are collecting encrypted data that they could decrypt in the future. ...

NIST Seeks Comment on Security for IoT Sensor Networks

The National Institute of Standards and Technology (“NIST”) is seeking comments on its draft project on securing sensor networks for the Internet of Things (“IoT”). Organizations and individuals concerned with the security of IoT sensor networks are invited to comment on the draft through March 18, 2019.

The Noise About “Silent Cyber” Insurance Coverage

In the wake of destructive cyber incidents over the past few years, the insurance industry and its regulators have focused more attention on so-called “silent cyber” exposures in traditional property/casualty insurance policy forms and started taking steps to reduce or specifically address those exposures. We explain here what “silent cyber” means, and what the ...

China Privacy Developments in 2018

The past year was a particularly significant one for the development of Chinese privacy law. During 2018, the Chinese government systematically established the country’s regulatory requirements for cybersecurity and data privacy and continued to implement the Cybersecurity Law, which took effect on June 1, 2017.

2019 Outlook OCC: May Need to Bend on Community Investment Metric

Michael Nonaka is quoted Bloomberg Law regarding the Office of the Comptroller of the Currency’s 2019 revamped rules for banks’ community investments. Mr. Nonaka says, “It’ll be interesting to see what the next step is in the rulemaking process, and that will reveal whether there are these differences.” He said the agencies are likely to come together on some ...

Georgetown Tech Hub Hires Ex-FTC Commish, Covington Atty

Terrell McSweeny is quoted in Law360 regarding being named a distinguished fellow at Georgetown Law's Institute for Technology Law & Policy. Ms. McSweeny says, "I am thrilled to join the important discussion on technology law and policy at the Institute. As an alum, I am looking forward to contributing to the excellent work Georgetown Law School [is] doing ...

US official highlights role of encryption in hacking scheme

Trisha Anderson is quoted in Global Data Review regarding cyber and ransomware attacks. Ms. Anderson said that while the use of technologies like Tor and Bitcoin pose challenges to law enforcement by “raising the level of investigative effort and sophistication required to identify and locate cyber criminals,” the indictment in the SamSam Ransomware cyberattacks ...

Artificial Intelligence: Useful—But Risky, Deloitte Survey Says

Lee Tiedrich spoke with Legaltech News regarding a recent survey on the legal and regulatory risks of artificial intelligence. Ms. Tiedrich suggested clients take a global perspective when assessing what laws are relevant to a particular AI program. She notes that artificial intelligence is not limited to a single jurisdiction, and clients should seek advice on ...

SEC Report Calls for Better Internal Accounting Controls for Cyber-Related Threats

On October 16, 2018, the Securities and Exchange Commission (the “Commission”) issued a Section 21(a) report of investigation (the “Report”) warning public companies about the importance of assessing the likelihood of cyber-related threats when designing internal accounting controls. The Report described the Division of Enforcement’s investigation of nine ...

Court of Appeal upholds 'surprising' Morrisons data leak ruling

Daniel Cooper spoke with The Law Society Gazette regarding a UK Court of Appeal decision that could make employers vicariously liable for employees’ actions even if they had taken preventative steps and bore no criminal responsibility. Mr. Cooper said the employer should bear the enterprise risk and assume liability for the actions of its employees, as long as ...

What California's new law on internet-connected devices means for Bay Area tech companies

Lindsey Tonsager is quoted in the San Francisco Business Times regarding California’s new cybersecurity bill regulating internet-connected devices. Ms. Tonsager believes the vagueness of the “reasonable” standard makes the law flexible. She says, “It’s really helpful that the legislation acknowledges flexibility in identifying which standards are reasonable. ...

Yan Luo Named to Global Data Review's “40 Under 40”

BEIJING — Global Data Review has named Covington’s Yan Luo to its inaugural “40 Under 40” list, recognizing the 40 individuals who represent the best and the brightest of the data law bar around the world. Based in the firm’s Beijing office, Ms. Luo advises clients on a broad array of regulatory matters in connection with data privacy, international trade, ...

Calif. Starts Ball Rolling With Novel Internet Of Things Law

Lindsey Tonsager is quoted in Law360 regarding California’s newly enacted rules mandating security features for internet-connected devices. Makers of IoT devices will be required under Senate Bill 327 to equip products with "reasonable security features." Ms. Tonsager says, "The 'reasonable security' standard is quite flexible, which is good when operating in a ...

Disputes Eye: Hunting krakens – As finance and Russian work slows veteran litigators look to key trends and opportunities

Louise Freeman spoke with Legal Business regarding the latest trends in disputes. She highlights the growing potential for litigation from the rise in cyberattacks impacting major companies. Ms. Freeman observed ‘The UK courts are increasingly adapting to deal with this kind of litigation,’ and points to the Clarkson v Person or Persons Unknown High Court case ...

Lateral Watch

Terrell McSweeny is quoted in Am Law Litigation Daily regarding her move to the firm. “I am excited to join a firm that is well positioned to guide clients through the increasingly complex global antitrust, cybersecurity and consumer protection landscape,” said Ms. McSweeny.

Former FTC Commissioner McSweeny Joins Covington

WASHINGTON— Terrell McSweeny has joined Covington as a partner in the Antitrust and Competition Law and Data Privacy and Cybersecurity Practice Groups in Washington. Ms. McSweeny most recently served as a Commissioner at the Federal Trade Commission. Ms. McSweeny has held senior appointments in the FTC, Department of Justice, White House, and United States ...

Former FTC Commissioner, Obama Admin. Adviser Lands at Covington

Deborah Garza is quoted in The National Law Journal regarding Terrell McSweeny joining the firm. Ms. Garza says, “Having served both at the FTC and in the Antitrust Division, Terrell has an exceptionally broad base of experience to draw upon in helping clients understand and manage the antitrust enforcement, privacy, and data security issues. She also has ...

McSweeny joins Covington

Terrell McSweeny and Deborah Garza are quoted in Global Competition Review regarding Ms. McSweeny’s move to the firm. Ms. McSweeny says that Covington is a “wonderful fit” due to its bench of former DOJ and FTC lawyers. She added that it will be good to work with colleagues who have had similar experiences. Ms. Garza praised McSweeny’s excellent reputation and ...

Former FBI official joins Covington

Trisha Anderson and James Garland are quoted in Global Investigations Review regarding Ms. Anderson rejoining the firm. Mr. Garland believes Ms. Anderson will be a valuable asset to helping navigate the U.S. Cloud Act. He says, “Trisha has that ability to spot the pain points for both the clients and the government and help figure out a way forward. Sometimes ...

Leading National Security Lawyer Rejoins Covington

WASHINGTON—Trisha B. Anderson, an experienced national security and cybersecurity lawyer who has held senior positions at multiple federal agencies, has rejoined Covington as a partner in Washington. Ms. Anderson most recently served as Principal Deputy General Counsel of the Federal Bureau of Investigation, where she handled complex national security and cyber ...

Covington Advises Sensyne Health on IPO and Pioneering Strategic Agreements

LONDON—Covington has advised Sensyne Health on medical device regulatory and data protection matters in connection with its £60 million IPO on London’s AIM market. The firm also represented Sensyne Health in negotiating strategic research and data processing agreements with the Chelsea and Westminster Hospital NHS Foundation Trust, the Oxford University ...

Three Covington Lawyers Named Among Law360's "Rising Stars"

WASHINGTON— Law360 named Covington lawyers Alexander Berengaut, Michael Nonaka, and Ursula Owczarkowski to its list of “2018 Rising Stars.” This annual recognition honors top attorneys under 40 “whose legal accomplishments transcend their age.” Alex Berengaut represents clients in civil litigation, international arbitrations, and government enforcement ...

US Treasury Calls for Consumer Protection in Fintech Industry

David Stein is quoted in Global Data Review regarding the U.S. Department of Treasury’s recommendation to introduce data protection regulations in the fintech industry. Mr. Stein suggested that such a law may have to be modeled on existing state-level legislation. He says, “There likely would be pressure to enhance existing federal data security laws that apply ...

Fintechs Hope Treasury Boost for 'MaddenFix' Leads to Action

Michael Nonaka is quoted in Bloomberg Law on the fintech industry’s enthusiasm regarding the Treasury Department’s recommendation that Congress support the “valid when made” doctrine. Mr. Nonaka adds, “The [recommendation] shows that these issues are not going away and that the uncertainty created from a growing body of inconsistent court opinions isn't a stable ...

OCC Will Accept Fintech Charter Applications

Michael Nonaka is quoted in Law360 regarding the Office of the Comptroller of the Currency accepting applications for special-purpose national bank charters from financial technology companies. Mr. Nonaka says it will be a while before any fintech firms operate as national banks, and they may ultimately decide the special purpose charter does not suit their ...

Covington Advises GSK on 23andMe Collaboration and $300M Investment

SILICON VALLEY—Covington advised GlaxoSmithKline on its multi-year collaboration with and $300 million equity investment in 23andMe. GSK will become 23andMe’s exclusive collaborator for drug target discovery programs. The collaboration will focus on research and development of innovative new medicines and potential cures using human genetics as the basis for ...

China Seeks Public Comments for Draft Regulations on Cybersecurity Multi-level Protection Scheme to Implement the Cybersecurity Law

On June 27, 2018, China’s Ministry of Public Security (“MPS”) released for public comment a draft of the Regulations on Cybersecurity Multi-level Protection Scheme (“the Draft Regulation”). The highly anticipated Draft Regulation sets out the details of an updated Multi-level Protection Scheme, whereby network operators (defined below) are required to comply ...

California Passes Expansive Consumer Privacy Law

On June 28, 2018, the Governor of California signed the California Consumer Privacy Act of 2018 (“CCPA”). The new law is the most comprehensive data privacy statute in the United States and introduces significant privacy requirements for covered businesses. The CCPA takes effect on January 1, 2020, but based on comments from both the public-interest and business ...

California lawmakers wallop tech companies on privacy

Lindsey Tonsager is quoted in a Politico article regarding a bill passed by California lawmakers that imposes stricter consumer privacy rules on companies. Should the California law trigger other states to put their own restrictions on consumer privacy, industry lobbyists and advocates will likely look to Congress to create consistent standards, says Tonsager. ...

How Can We Make Best Use of Health Data?

Kristof Van Quathem participated in a Financial Times podcast to discuss the impact of the General Data Protection Regulation on medical research and health technology companies. According to Van Quathem, "One of the main concerns I think that we see in the research circle is the uncertainty that is being created by the GDPR, and in particular, when it comes to ...

GDPR Has Companies Big and Small Racing to Comply

Henriette Tielemans is quoted by The Wall Street Journal in an article regarding the upcoming deadline for companies to comply with the General Data Protection Regulation. “Companies are struggling with the concrete deliverables—the record of processing activities, the transfer agreements, the notices, the website—because of the sheer volume,” says Tielemans. ...

ISO and U.S. NIST Focus on Privacy by Design

Susan Cassidy is quoted in a Global Data Review article regarding the focus on privacy by design by the International Organization for Standardization and the U.S. National Institute of Standards and Technology. Cassidy says that the anecdotal evidence she has from speaking to her private sector clients is that they are increasingly considering NIST guidelines, ...

Covington Hires Ex-Wilson Sonsini Tech Deals Pro

Suzanne Bell and Tom DeFilipps are quoted in a Law360 article regarding Bell's arrival to Covington's Technology Transactions practice. Bell says she is excited to join Covington and looks forward to helping it build its tech practice and advise clients on incorporating new technologies into their businesses. “The firm’s collaborative approach will allow me to ...

BTI Names Smith, Sperling, and Topol "Client Service All-Stars"

WASHINGTON—The BTI Consulting Group has named Covington lawyers Andrew Smith, Jonathan Sperling, and Allan Topol to its 2018 “Client Service All-Stars” list, which recognizes “the leaders in superior client service.” Mr. Smith, based in Washington, advises clients on retail financial services, credit reporting, privacy, technology, and e-commerce issues. He ...

Covington Nabs Veteran Tech Dealmaker From Wilson Sonsini

The Recorder highlights the arrival of Suzanne Bell to Covington's Technology Transactions practice. Bell says she was attracted to the firm's strong regulatory practice given the increased intersection between the technology sector and government regulations. Bell adds that she is looking forward to using her experience in technology transactions to assist ...

What will happen on May 26? We asked Helen Dixon

Henriette Tielemans participated in a session at the Global Privacy Summit and is quoted in an IAPP article regarding what happens once GDPR goes into effect. "For a lead regulator for the one-stop shop, you need a mean establishment. You lose a lot of the benefits of the GDPR if you're unable to come up with what your main establishment is," Tielemans said.

China’s internet lenders fall foul of data privacy rules

Yan Luo is quoted in a Financial Times article regarding survey findings that suggest that more than half of Chinese internet finance lenders are failing to comply with data privacy regulations. According to Luo, “Investors should certainly expect more government scrutiny on their business model from a data protection perspective."

Irish Regulator To Eye Transparency In GDPR Enforcement

Henriette Tielemans spoke at an IAPP event and is quoted in a Law360 article regarding the Irish privacy authority's focus once GDPR takes effect. According to Tielemans, while “the GDPR has 150 articles, and businesses are worried about all 150 of them,” companies are most concerned about the regulators’ ability to issue massive fines of up to 4 percent of ...

FTC Signals Tougher Stance on Mobile Privacy Protection

Yaron Dori is quoted in an E-Commerce Times article regarding the FTC's recent report on mobile privacy protection. According to Dori, "The FTC is limited in its ability to bring enforcement actions against telecommunications carriers because of the 'common carrier' exemption in the FTC Act." A federal appeals court recently ruled that this exemption does not ...

Covington Opens Frankfurt Office

LONDON—Covington will open an office in Frankfurt, Germany on April 3 led by eight partners. Frankfurt will be the firm’s third European office and will work closely with the firm’s five offices in the United States, its three offices in Asia, and its offices in the Middle East and Africa. “Covington will offer German companies a unique capability to help them ...

FTC Recommends Greater Transparency, Better Recordkeeping and Further Streamlining of Mobile Security Practices

Yaron Dori is quoted by The Cybersecurity Law Report in an article regarding the FTC's report, “Mobile Security Updates: Understanding the Issues." “The FTC has long been interested in data security and the extent to which consumer data—especially personally identifiable or sensitive consumer data—is protected from unauthorized disclosure,” say Dori. Dori calls ...

Covington’s Henriette Tielemans Receives Prestigious Data Privacy Award

BRUSSELS—Henriette Tielemans, co-chair of Covington’s global Data Privacy and Cybersecurity practice, has today received the IAPP Privacy Vanguard Award, the industry's top honor, for her lifelong services to the data privacy community. The International Association of Privacy Professionals (IAPP) is the world’s largest and most comprehensive global information ...

GDPR drives global privacy compliance now, but still unclear whether it will become de facto global standard, experts say

Lindsey Tonsager recently spoke at the BCLT Privacy Law Forum in Silicon Valley is quoted in an mLex article discussing whether GDPR will automatically become a global privacy standard. Tonsager said that working with companies that depend on AI technology to become compliant with the GDPR “is incredibly, incredibly challenging." Commenting on modifications to ...

What Every Defense Contractor Should Know About Insurance for Cyberattacks

Cyberattacks targeting defense contractors illustrate the need for cybersecurity, for thoughtful planning—and for insurance when security and planning prove insufficient. Understanding your insurance policies before things go wrong can help ensure financial protection when they do.

The five-minute management idea: wearable tech

Daniel Cooper is quoted in a Chartered Management Institute article regarding wearable technology. Providing the legal perspective, Cooper says, "Any employer processing personal information is subject to a range of obligations–this includes making sure they’re very transparent about what they collect, ensuring they have a legal basis for processing that data. ...

SEC Adopts New Guidance on Public Company Cybersecurity Disclosures and Insider Trading

On February 21, 2018, the U.S. Securities and Exchange Commission (the “Commission”) approved a statement and interpretive guidance that provides the Commission’s views on a public company’s disclosure obligations concerning cybersecurity risks and incidents (the “2018 Commission Guidance”).

Futures Regulator, Broker Settle Lax Cybersecurity Charges

Anne Termine is quoted in a Bloomberg Law article regarding the settlement reached with AMP Global Clearing LLC following charges from the CFTC stating that AMP's failure to diligently supervise a cybersecurity vendor resulted in a data breach. According to Termine, cybersecurity is “an area of increasing concern and scrutiny for the CFTC as it goes directly to ...

Wade Ackerman and Aaron Lewis Named Among LA's Most Influential Diverse Lawyers

LOS ANGELES—The Los Angeles Business Journal recognized Wade Ackerman and Aaron Lewis in its second annual list of the most influential diverse lawyers in Los Angeles. The list recognizes 50 "stellar diverse lawyers in the LA region." In Mr. Ackerman’s profile, the Business Journal emphasized his work in the FDA regulatory space. The profile noted that “with a ...

IAB/4A’s Release Draft Standard Addendum for Digital Video Advertising in TV Long Form Video for Public Comment

Digital advertising typically involves a vast network of publishers, advertisers and their agencies, advertising exchanges and networks, technology platforms, and measurement and data analytics providers. To help streamline the commercial dealings of all of these parties in this complex ecosystem, advertising industry self-regulatory groups have developed ...

Covington Represents Bacardi in Acquisition of Patrón Tequila

WASHINGTON—Covington advised Bacardi Limited in its definitive agreement to acquire Patrón Spirits International AG and its PATRÓN® brand, the world’s top-selling ultra-premium tequila, from John Paul DeJoria, a founder of Patrón. The transaction reflects an enterprise value for Patrón of $5.1 billion. The transaction follows the successful relationship the ...

Feds to Ramp Up Online Purchasing Presence

Susan Cassidy is quoted in an E-Commerce Times article regarding efforts to create an online marketplace for government purchasers. "One model that was discussed would require a portal provider to contract with GSA to provide an online interface. Under this approach, suppliers would then sign up to use the portal, potentially via a contract with the portal ...

Russian hacker claims there's proof of his DNC breach

Susan Cassidy is quoted in Politico Pro's "Morning Cybersecurity" newsletter regarding the December 31st deadline for defense contractors to meet minimum cybersecurity requirements for the systems they operate for the Pentagon. According to Cassidy, the cybersecurity rule presents “a problem for DoD because there’s a lot of subjectivity in what is ‘adequate ...

5 Cybersecurity And Privacy Policies To Watch In 2018

Kristof Van Quathem and Yan Luo are quoted in a Law360 article regarding cybersecurity and privacy policies to watch in 2018. Commenting on the General Data Protection Regulation (GDPR), Van Quathem says that although one of the legislation's aims is to harmonize a splintered set of national data privacy laws within Europe, it may end up causing companies aiming ...

Cybersecurity & Privacy Cases To Watch In 2018

Kurt Wimmer is quoted in a Law360 article providing a roundup of cybersecurity and privacy cases to watch in 2018. Commenting on LabMD Inc. v. Federal Trade Commission, Wimmer says, "Both the courts and the FTC are grappling with the meaning of 'harm,' and I believe 2018 will be the year when these efforts will converge, with a more sophisticated understanding ...

Cybersecurity & Privacy Predictions For 2018

Kurt Wimmer and John Buchanan are quoted in a Law360 article providing cybersecurity and privacy predictions for 2018. Wimmer says, once Europe's General Data Protection Regulation (GDPR) is in force, non-EU countries around the world will begin looking at privacy regimes based on the 1995 Directive [which the GDPR will replace] and think about whether they ...

Financial Times Names Covington to 2017 North America Innovators List

SILICON VALLEY—The Financial Times has recognized Covington among the most innovative firms in 2017 in the category of "Enabling Business Growth," for advising "Tencent in its acquisition of a $8.6bn majority stake in Supercell, the Finnish gaming company, while maintaining Supercell’s creative culture and retaining its employees by introducing incentive ...

In this virtual world of data national borders still matter

Eric Holder participated in Microsoft's #TechTalk series to discuss "Law Enforcement & Data." Topics included the role of national borders when it comes to accessing electronic evidence, the significance of e-evidence in investigations, the protection of fundamental rights online, the need for international police cooperation, and the unnecessary barriers to ...

ESPN Ruling Further Narrows Video Privacy Law's Reach

Kurt Wimmer is quoted in a Law360 article regarding the Ninth Circuit’s ruling in a case involving the disclosure of user app data to a third-party. "The court recognized that the concept of being publicly identified has limits, despite technological evolution," says Wimmer. "By reducing ambiguity around what qualifies as PII, this decision permits content and ...

Covington Advises Aristocrat in $990 Million Gaming Acquisition

WASHINGTON—Covington represented Aristocrat Leisure Limited in its $990 million acquisition of Big Fish Games, Inc. This acquisition expands Aristocrat’s Social Gaming business into new game genres. Aristocrat is a global provider of gaming solutions. It offers a diverse range of products and services including electronic gaming machines and casino management ...

Roku Number, ESPN Viewing History Not Protected Data: Ninth Cir.

Ani Gevorkian is quoted in a Bloomberg BNA article regarding the Ninth Circuit’s ruling in a case involving the disclosure of user app data to a third-party. According to Gevorkian, this is the Ninth Circuit’s adoption of the majority view that such data isn’t Personally identifiable information (PII), and “further isolates the First Circuit’s decision in ...

Aerospace Up Against Deadline on Cybersecurity

Susan Cassidy is quoted in a Los Angeles Business Journal article regarding the difficulties that some defense contractors in Southern California were facing trying to meet the Department of Defense deadline of December 31, 2017 for implementing the cybersecurity controls in NIST Special Publication 800-171. Cassidy notes that the definition of the information ...

SEC enforcement ebbs in 2017

David Kornblau is quoted in a Compliance Reporter article regarding the SEC's annual enforcement report for 2017. According to Kornblau, the report showed a decrease in enforcement actions compared to the prior year, as the industry expects a downshift in regulation by the agency under new SEC Chair Jay Clayton. “My sense is that the overall level of new ...

Court Orders Glassdoor to Reveal Reviewers' Identities

Jadzia Butler is quoted in an HR Magazine article regarding a recent court order requiring Glassdoor to reveal the identities of users in response to a grand jury subpoena in a wire fraud case. It is "particularly concerning" if Internet users who believe they can have anonymous online discussions have their anonymity compromised by a mere subpoena, Butler says. ...

Defense contractors busy preparing to meet cybersecurity deadline

Susan Cassidy is quoted in a Bloomberg Government article regarding contractors' efforts to comply with new cybersecurity standards. According to Cassidy, the mandate that contractors develop cybersecurity plans—the most recent requirement added to the NIST list—is crucial for contractors. Contractors must “develop, document, and periodically update system ...

Is there a robot doctor in the house?

Lindsey Tonsager is quoted by The Times in an article regarding the use of artificial intelligence in healthcare. Commenting on how regulators are beginning to address some of the issues, Tonsager says, "The law hasn’t caught up with the technology. Nobody knows exactly who will be responsible.” “Some diseases disproportionately affect certain types of ...

Covington Helps Microsoft Secure Landmark DOJ Reform of Digital Surveillance

WASHINGTON—As the result of a high-profile First Amendment challenge to the federal statute invoked by law enforcement to impose gag orders on technology companies, Microsoft, and its counsel Covington and Davis Wright Tremaine, have secured landmark reform of the U.S. Department of Justice's approach to digital surveillance. Covington and Davis Wright Tremaine ...

How Covington and Davis Wright Scored a Major DOJ Policy Change for Microsoft

Jim Garland and Alex Berengaut are quoted by The Litigation Daily in an article regarding the role Covington and co-counsel Davis Wright played together on behalf of Microsoft that led to a groundbreaking policy memo from Deputy Attorney General Rod Rosenstein curbing the government's use of gag orders on tech companies. “It’s not always the case that the tech ...

China Revises Rules on Commercial Encryption Products

In a draft regulation released earlier this year, China proposed regulating the import, export, manufacture, sale, and use of “commercial encryption products,” building on a patchwork of regulations.1 These regulations have focused on restricting the import and use of encryption products produced by certain manufacturers, and many entities have expressed concern ...

Former FTC Official Rejoins Covington

WASHINGTON—Laura Kim has joined Covington’s Advertising and Consumer Law and Data Privacy and Cybersecurity practices in Washington. For more than a decade, Ms. Kim held a variety of roles in the Bureau of Consumer Protection at the Federal Trade Commission (FTC), including Assistant Director in two divisions, Chief of Staff to former Bureau Director Jessica ...

US corporates braced for cyber-chaos

David Fagan is quoted in a Commercial Dispute Resolution article regarding how companies are bracing for cyber attacks. According to Fagan, cybersecurity is “a one-way ratchet: all constituents, whether customers, regulators, business partners, claimant counsel and finders of fact, are increasingly aware of and focused on the risk [which] arises from operating ...

Cybersecurity Awareness Month: Tips to Keep You #CyberAware

Covington's Data Privacy and Cybersecurity practice is excited to take part in National Cybersecurity Awareness Month. Throughout October, our lawyers will highlight top-of-mind concerns, provide helpful tips, and discuss the cybersecurity landscape more generally through a series of posts on our Inside Privacy blog. Below you can find our most recent content, ...

D-Link Ruling May Help Device Makers, but Isn't a Total Win

Lindsey Tonsager is quoted by The Recorder in an article regarding the recent decision in a case brought by the FTC alleging that selling connected devices with known security weaknesses is an unfair and deceptive business practice. According to Tonsager, "Judge Donato's order should discourage the FTC from adopting a legal standard that would consider potential ...

The EU Gets Serious About Cyber: The EU Cybersecurity Act and Other Elements of the "Cyber Package"

Last week, in his annual State of the European Union Address, the President of the European Commission Jean-Claude Juncker called out cybersecurity as a key priority for the European Union in the year ahead. In terms of ranking those priorities, President Juncker placed tackling cyber threats just one place below the EU leading the fight against climate change, ...

Spying on Worker Emails Gets New Hurdle in EU Court Ruling

Helena Milner-Smith is quoted in a Bloomberg article regarding the European Court of Human Rights ruling on employee privacy in a case brought by Bogdan Mihai Barbulescu. According to Milner-Smith, the ruling should remind employers not to "go beyond what is necessary for a legitimate purpose." She adds, "However, the Grand Chamber’s ruling will have very little ...

ECtHR backs employee over workplace communications monitoring

Helena Milner-Smith is quoted by The Law Society Gazette in an article regarding the European Court of Human Rights ruling on employee privacy in a case brought by Bogdan Mihai Barbulescu. According to Milner-Smith, "The decision serves as a reminder for employers who monitor workplace communications to ensure their monitoring practices do not go beyond what is ...

EU Court Reverses Ruling On Employee Chat Surveillance

Helena Milner-Smith is quoted in a Law360 article regarding the European Court of Human Rights ruling on employee privacy in a case brought by Bogdan Mihai Barbulescu. "The decision serves as a reminder for employers who monitor workplace communications to ensure their monitoring practices do not go beyond what is necessary for a legitimate purpose, that ...

China Seeks Comments on Updated Draft of Cross-Border Data Transfer Security Assessment Standard

On August 31, 2017, China’s National Information Security Standardization Technical Committee (“NISSTC”), a standard-setting committee jointly supervised by the Standardization Administration of China (“SAC”) and the Cyberspace Administration of China (“CAC”), released an updated draft of the Information Security Technology - Guidelines for Data Cross-Border ...

FTC Blogs Help Define Reasonable Data Security Attorneys Say

Kurt Wimmer is quoted by Bloomberg BNA in an article regarding the FTC's weekly data security investigation blog. According to Wimmer, the FTC’s "Stick With Security” blog is “serving a highly useful role.” He adds that the initiative is “taking many of the key principles from the ‘Start with Security’ program and the FTC’s consent orders and rolling them out in ...

Marcus Hutchins' Arrest: Did FBI Bite the Hand That Feeds?

Alex Berengaut's Law360article weighing the constitutionality of the Marcus Hutchins indictment is cited in a Bank Info Security story examining questions raised by the case. According to Berengaut, it's not clear that federal prosecutors have a right to bring charges against Hutchins.

Code Linked to MalwareTech and Kronos Published in 2009

Alex Berengaut's Law360 article on the constitutionality of the Marcus Hutchins indictment is cited in a Security Week story examining recent case developments. “Since Hutchins’ indictment, commentators have questioned whether the creation and selling of malware—without actually using the malware—violates the two statutes under which Hutchins was charged: the ...

Two Covington Partners Named Among Law360's "Rising Stars”

WASHINGTON—Law360 named Covington partners Elizabeth Canter and Shankar Duraiswamy to its list of “Rising Stars for 2017.” This annual recognition honors top attorneys under 40 “whose legal accomplishments transcend their age.” Ms. Canter advises multinational companies on privacy, cyber security, and technology transaction issues. She has special expertise in ...

The Morning Risk Report: More Data Security Compliance on EU Horizon

Mark Young is quoted in The Wall Street Journal's "Morning Risk Report" in an article regarding the Network and Information Systems directive. According to Young, “This is another data-related compliance requirement and it carries heavy penalties for failure to have in place appropriate network security measures."

UK data laws enter Facebook era

Lisa Peets is quoted in a Financial Times article regarding the EU's new General Data Protection Regulation which will be introduced into UK law later this year. "Under the regulations, the definition of 'personal data' will be extraordinarily broad—any information that is related to a person," says Peets. "Companies are finding out that they are processing a ...

Rising Star: Covington & Burling's Elizabeth Canter

Libbie Canter was named a "Rising Star" by Law360, recognizing her as a top lawyer under 40 in Privacy & Cybersecurity law. In its profile of Canter, Law360 highlights her advisory role on significant transactions, including Microsoft’s $8.5 billion acquisition of video call service Skype.

Cyber Insurance Offerings Growing In Response To New Threats

Marialuisa Gallozzi, John Buchanan, and Jeff Kiburtz are quoted in a Medtech Insight article regarding the growing interest in the healthcare sector in buying cyber insurance. According to Gallozzi, "We are in the midst of an evolution of the insurance market right now in this area." She says cyber insurance policies have been a growing trend but unlike other ...

Wash. Expands Biometric Privacy Quilt With More Limited Law

Kurt Wimmer is quoted in a Law360 article regarding the State of Washington's new law governing the collection and use of consumers’ biometric information. According to Wimmer, the law “is more sensible and targeted than some other biometric laws because it applies only to biometric identifiers stored in a database that matches those identifiers to specific ...

China Seeks Public Comments on Draft Regulation on the Protection of Critical Information Infrastructure

On July 11, 2017, the Cyberspace Administration of China (CAC) released the draft Regulation for the Protection of the Critical Information Infrastructure (“Draft Regulation”) for public comment (official Chinese version available here). The comment period ends on August 10, 2017.

Pentagon demands contractors up cybersecurity

Susan Cassidy is quoted in a San Antonio Express-News article regarding new cybersecurity requirements for contractors. According to Cassidy, "Essentially, the DOD wants its contractors to protect its information, because the DOD is a huge target, and its contractors are also a target." Commenting on the fact that over the years, contractors have been working ...

FTC Adds Online Parental Consent Method to Privacy Guidance

Lindsey Tonsager is quoted in a Bloomberg Law article regarding the FTC's updated guidance that includes adding online-based questions as a method of obtaining parental consent under the Children's Online Privacy Protection Act. According to Tonsager, the new methods are a quick way for parents to give consent without having to mail in forms, and will largely ...

What To Watch As LabMD, FTC Square Off Over Data Security

Kurt Wimmer is quoted in a Law360 article regarding LabMD Inc. v. FTC , where the FTC will attempt to justify its data security enforcement authority. “The LabMD argument will provide an important window into how the new FTC will deal with the all-important question of 'harm' in the context of data security enforcement actions,” says Wimmer. “The argument ...

Oral Argument in LabMD Case to Test FTC’s Enforcement Authority

Kurt Wimmer is quoted in a Bloomberg BNA article regarding LabMD Inc. v. FTC , where the FTC will attempt to justify its data security enforcement authority. According to Wimmer, "[o]ral argument “presents an opportunity for the FTC to explain its current view of ‘harm,’ and how it should be applied in the LabMD case."

New cyber law in China stirs alarm

Yan Luo is quoted by The Hill in an article regarding some of the uncertainties surrounding China's new Cybersecurity Law. Under the new law, cross-border data transfers for operators of "critical information infrastructure" are subject to security reviews and restrictions. According to Luo, "We don’t really have a definition of critical information ...

Are You Ready for the GDPR? A Practical Checklist for Employers

On May 25, 2018, employers located or with staff in the European Union (“EU”) will have to comply with a new data protection law—Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data—commonly referred to as the General Data Protection Regulation (“GDPR”). This will ...

China Releases Near-final Draft of Regulation on Cross-border Data Transfers

On May 19, 2017, the Cyberspace Administration of China (“CAC”) invited international stakeholders to attend a seminar to discuss an updated version of the Measures on Security Assessment of Cross-border Data Transfer of Personal Information and Important Data (“the Measures”). Given that the Measures have an intended effective date of June 1, 2017, it is likely ...

Manage Ransomware Risks Now

Last Friday may mark the start of a new era in cyber crime. The first worldwide ransomware attack, commonly dubbed “WannaCry,” emerged on May 12. The malware is believed to have infected more than 300,000 computers in 150 countries to date. A cyber criminal or ring of criminals, taking advantage of an exploit made available by the ShadowBrokers hacker group that ...

China Releases Draft Encryption Law for Public Comment

On April 13, 2017, China’s State Cryptography Administration (“SCA”) published a draft Encryption Law (“the draft Law”) for public comment. After several years of drafting, the draft Law, if enacted as drafted, would be the first Chinese statute to systematically address encryption, covering “the research, production, management, import and export, testing, ...

China Releases Final Regulation on Cybersecurity Review of Network Products and Services

On May 2, 2017, the Cyberspace Administration of China (“CAC”) released the final version of the Measures on the Security Review of Network Products and Services (Trial) (“the Measures”), with an effective date of June 1, 2017 (official Chinese version available here). The issuance of the Measures marks a critical first step toward implementing China’s ...

FCC Chairman Releases Draft of New Net Neutrality Plan; Vote Scheduled for May 18

In a widely anticipated step, FCC Chairman Ajit Pai has released the text of a draft Notice of Proposed Rulemaking (“NPRM”) proposing to change the legal framework that governs broadband providers, eliminate the “Internet conduct standard” for evaluating broadband provider practices on a case-by-case basis, and seek comment on whether to keep, modify, or ...

CNN Video Data Win Leaves Spokeo Door Open For App Users

Kurt Wimmer is quoted in a Law360 article regarding the Eleventh Circuit's decision to reject a proposed class action brought by a CNN app user claiming that CNN violated the Video Privacy Protection Act. According to Wimmer, "Unlike the Yershov court, the CNN panel seems to understand how apps actually work, which will be helpful going forward."

Emily Henn Named One of Silicon Valley’s Most Influential Women

SILICON VALLEY—Silicon Valley Business Journal has named Covington partner Emily Henn to its annual “Women of Influence” list, honoring “100 of the most influential business women in Silicon Valley.” Ms. Henn serves as co-chair of the firm’s Class Action Litigation Practice, specializing in defending antitrust, consumer, and other types of class actions. Ms. ...

9th Circ. Ruling Generates Copyright Preemption Confusion

Earlier this month, in Maloney v. T3Media Inc.,[1] the Ninth Circuit held that former college athletes could not assert a right of publicity to prevent the NCAA and its licensee, T3Media, from distributing images of the players. The court ruled that the players’ right of publicity was preempted by Section 301 of the Copyright Act because photographs of the ...

China Seeks Public Comments on Draft Regulation of Cross-Border Data Transfer

On April 11, 2017, the Cyberspace Administration of China (“CAC”) released a draft of the Measures on Security Assessment of Cross-border Data Transfer of Personal Information and Important Data (“the Draft Measures”) for public comment (official Chinese version available here; Covington’s translation of the Draft Measures is appended at the end of this alert).

A look at China’s sweeping new cyber-security law

Compliance Week references a Covington client alert on China’s draft regulation on cybersecurity review of network products and services. According to the alert, “As the draft measures come into force in the coming months, such companies will need to carefully assess the implications of the draft measures, including whether to voluntarily seek security reviews ...

Too much information on chat can leave employers in legal lurch

Lindsay Burke is quoted in a Business Insurance article regarding the risks associated with internal office chat applications. “People think of it as a casual form of communication,” Burke says, “and they forget that it’s business and usually the company is keeping a record of the communication. And if the company finds itself in litigation, then the discovery ...

Forensic Firms: Understanding and Leveraging Their Expertise From the Start (Part One of Three)

Steve Surdu was interviewed by The Cybersecurity Law Report for a three-part series on the role of forensic firms during a cyber breach. Part one discusses how to understand and leverage the expertise of forensic firms from the start. According to Surdu, forensic consultants have specialized skills and knowledge “that are very difficult for most organizations to ...

China Seeks Public Comments on Draft Regulation on Cybersecurity Review of Network Products and Services

On February 4, 2017, the Cyberspace Administration of China (“CAC”) released the draft Measures on the Security Review of Network Products and Services (“the draft Measures”) for public comment (official Chinese version available here; Covington’s translation of the draft Measures is here). The comment period ends on March 4, 2017.

KWM London's former head of fraud and investigations joins Covington

Ian Hargreaves and David Lorello are quoted in a Global Investigations Review article regarding Hargreaves’ recent arrival to Covington. According to Hargreaves, the firm’s “pre-eminence in dispute resolution, and its immense strength and global recognition as a market-leader in white-collar crime matters and investigations” fueled his decision. Lorello says, ...

Senior FCC Official Rejoins Covington

WASHINGTON—Matthew S. DelNero has rejoined Covington as a partner in its Communications and Media Practice Group in Washington. Mr. DelNero most recently served as Chief of the Federal Communications Commission’s Wireline Competition Bureau. Mr. DelNero was a Covington partner from 2011 until January 2014, when he became Deputy Chief of the Wireline Competition ...

Former Senior Official At FCC Rejoins Covington

Matt DelNero and Yaron Dori are quoted in a Law360 article regarding DelNero’s return to Covington as a partner in its Communications and Media Practice Group where he will oversee a diverse portfolio of telecom issues, including broadband expansion, privacy, data security and merger activity, bringing to the practice a new appreciation for the policy process ...

DelNero Returns to Covington

Matt DelNero is quoted in a Broadcasting & Cable article regarding his return to Covington’s Communications and Media practice. According to DelNero, “I look forward to handling a diverse array of issues for clients in the content, telecommunications, and technology sectors and to helping develop the firm’s Media & Communications practice into the future.”

White Collar and Fraud Specialist Joins Covington’s European Practice

LONDON—Ian Hargreaves has joined Covington as a partner in the firm’s European Dispute Resolution practice resident in London. Mr. Hargreaves’ arrival follows that of litigation partners Craig Pollack, Greg Lascelles, Elaine Whiteford, and Louise Freeman over the past six months. Mr. Hargreaves advises on major European white collar and related civil and ...

Banks Face Cybercrime Wave As Tougher Regulations Loom

Mark Young and Ian Hargreaves are quoted in a Law360 article regarding the high level of cyberattacks on the financial services industry and the resulting regulatory pressures. According to Young, “The GDPR [General Data Protection Regulation] is a massive text with groundbreaking change in the data privacy area, in terms of compliance requirements and the new ...

Fate of DOD Cybersecurity Improvements Unclear, Lawyers Say

Susan Cassidy is quoted in a Federal Contracts Report article regarding the fate of cybersecurity improvements made by the DoD under President Trump. According to Cassidy, “I would expect those to continue forward because I don't see a political will to say, ‘No you shouldn't protect this.’” The nomination of former Sen. Dan Coats (R-Ind.) to serve as director ...

U.S. Expands Sanctions, Takes Other Steps in Response to Russia’s Election-Related Cyber Operations

President Obama announced several actions on December 29 to respond to Russian cyber operations that the U.S. intelligence community previously had concluded were intended to influence the U.S. presidential election. Specifically, the President revised and expanded an earlier executive order that blocks the property and interests in property of persons that ...

Workplace Health Schemes Endorses The Use Of Wearable Technology

Daniel Cooper is quoted by CCT News in an article regarding the use of wearable technology in the workplace. According to Cooper, the use of wearable devices is a good way, especially for insurers. However, the wearers’ privacy must be taken care of as well as their legitimate treatment concerns.

Cyber-Physical Risks: Are You Covered?

Recent reports from both government and private groups have highlighted the risk that cyber hacking may now cause serious physical injury or damage. This new risk stems from connected industrial controls or electronic devices comprising the Internet of Things (IoT)—the network of over 50 billion objects ranging from children’s toys to home appliances to medical ...

Wearable technology: gathering data from tooth to toe

Daniel Cooper is quoted in a Financial Times article regarding wearable technology in the workplace. According to Cooper, not everyone will welcome sharing intimate personal information with the boss, however. “Wearable devices could be a good way for insurers to get the data . . . but it’s essential to address wearers’ privacy and fair treatment concerns and ...

China Passes New Cybersecurity Law

On November 7, the Standing Committee of China’s National People’s Congress (“NPC”) passed China’s first Cybersecurity Law (the “Law”), which will take effect starting June 1, 2017. Described as China’s “fundamental law” in the area of cybersecurity, the new Law articulates the government’s priorities with respect to “cyberspace sovereignty,” consolidates ...

Federal Banking Agencies Request Comment on Enhanced Cybersecurity Standards

On October 19, 2016, the Board of Governors of the Federal Reserve System (Federal Reserve), Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) (collectively the “Agencies”) released a joint Advance Notice of Proposed Rulemaking (ANPR) requesting public comment on enhanced cybersecurity standards that would apply to ...

DOD Updates Cyber Reporting Rule for Contractors

Susan Cassidy is quoted in a Federal Contracts Report article regarding the Defense Department’s updated cyber incident reporting rule. According to Cassidy, the rule succeeded in clarifying some industry concerns, but did not address them all. “They didn't take an opportunity to clarify everything you might have hoped they would.” For example, when asked ...

Managing Data Privacy Challenges in Performing Due Diligence and Internal Investigations in China (Part Two of Two)

Eric Carlson is quoted in an FCPA Report article regarding China’s data privacy and cybersecurity laws and how they apply to companies doing business in China. Commenting on performing due diligence while avoiding data privacy issues, Carlson says, “For due diligence purposes, it is still safe and appropriate to gather corporate information such as whether a ...

Covington Second Circuit Victory Named Most Important Case of the Year by GIR

WASHINGTON—Global Investigations Review has named the Microsoft warrant access case as the winner of the “Most Important Court Case of the Year.” Covington served as co-counsel to Microsoft and helped secure a landmark win in the U.S. Court of Appeals for the Second Circuit. GIR also ranked Covington among the top 15 investigations practices in the world in its ...

Aaron Lewis Among LA’s “Most Influential Minority Lawyers”

LOS ANGELES—The Los Angeles Business Journal has recognized Aaron Lewis as one of the “Most Influential Minority Lawyers” in Los Angeles. The inaugural list names 40 “stellar minority lawyers in the LA region,” highlighting recent success in their respective areas of practice. The Los Angeles Business Journal highlighted Mr. Lewis’s recent significant ...

Microsoft and the DOJ: A Conversation with Covington’s James Garland

James Garland participated in a Q&A with The American Lawyer regarding the firm’s relationship with Microsoft and its recent work on an important internet search case in the Second Circuit. According to Garland, “Microsoft has a very strategic approach toward its legal functions and litigation in particular. In cases like this that are of strategic policy ...

Covington hires cyber expert

Stephen Surdu and James Garland are quoted in a GIR article regarding Surdu’s arrival to Covington as a Senior Cybersecurity Advisor. “In the fog of war, companies do not think clearly,” Surdu says. “They want to do the right thing, but they do not quite know what that is. As someone who has handled many cybersecurity investigations, I can help calm the ship.” ...

Second Circuit Limits Use of U.S. Warrants Seeking Data Stored Overseas

Search warrants served on U.S. Internet companies and cloud service providers cannot obtain customer data stored overseas, the U.S. Court of Appeals for the Second Circuit ruled on July 14. The federal appellate decision focuses on warrants issued under the federal Electronic Communications Privacy Act (“ECPA”) and formally applies only in the Second Circuit, ...

Covington Launches Cyber Response Team With Mandiant Pro

David Fagan and Stephen Surdu are quoted in a Law360 article regarding the launch of Covington’s new Cybersecurity Incident Response Team in conjunction with the arrival of Surdu and Jenny Martin. According to Fagan, “We’re a big firm with clients that span the globe. They can’t control when they have incidents, and you can get calls on a Friday afternoon from ...

Covington Forms Cybersecurity Incident Response Team

WASHINGTON—Covington has formed an enhanced team of lawyers and advisors to provide cybersecurity incident response services to clients, highlighted by Stephen Surdu, who formerly led the professional services group of Mandiant, joining the team as a Senior Cybersecurity Advisor. Through the formation of the Cybersecurity Incident Response Team with members on ...

Data-centric Security: Risks and Emerging Threats in Government

Michael Chertoff appeared on Federal News Radio for a panel discussion on the current cybersecurity environment and the evolution of data-centric security. “What’s different now is because of modern data analytics, the ability to take huge volumes of data at enormous scale and then to be able to analyze and make use of that data is something that’s brand new.”

Covington Bulks Up Cybersecurity Practice With Ex-Mandiant Consultant

James Garland and Steve Surdu are quoted in an American Lawyer article regarding the launch of Covington’s Cybersecurity Incident Response Team, highlighted by Surdu’s recent arrival as a Senior Cybersecurity Advisor. According to Garland, "The lawyers that do the interviews and oversee the forensic investigation, we're experienced but we're not engineers." He ...

Second Circuit Rules for Covington Client Microsoft in Important Internet Search Case

WASHINGTON—The U.S. Court of Appeals for the Second Circuit has ruled in favor of Covington’s client Microsoft Corporation in its challenge to a U.S. warrant seeking customer emails stored in Ireland. Microsoft argued that the warrant—issued under the Electronic Communications Privacy Act (ECPA)—could not be used to obtain emails stored abroad because it would ...

The EU-U.S. Privacy Shield: What’s New and What’s Next?

At a joint press conference on July 12, 2016 in Brussels, EU Commissioner for Justice, Consumers and Gender Equality, Věra Jourová and the U.S. Secretary of Commerce, Penny Pritzker, presented the Privacy Shield (see Press Release here, Adequacy Decision text here, Annexes here, Communication here, and Q&A factsheet here). The press conference followed the ...

China Release Second Draft Of Cybersecurity Law

On July 5, 2016, China’s National People’s Congress (“NPC”) released a new draft of the Cybersecurity Law for public comment (official Chinese version available here; unofficial translation from AmCham China available here). The revised draft contains a number of significant changes from the first draft, which was released in July 2015, but retains many of the ...

Cyber Crime in Brazil: Preparing for the Rio Olympics

The Brazilian financial industry has long been a target of cyber criminals, and with the continued growth of sophisticated online banking services in Brazil, such systems are a prime target for organized crime. In addition, among the emerging BRICS countries (Brazil, Russia, India, China, and South Africa), Brazil is on a par with China and Russia in terms of ...

Federal Aviation Administration Finalizes Small Unmanned Aircraft Rule

On Tuesday, June 21, 2016, the Federal Aviation Administration (“FAA”) finalized its long-awaited rule on the commercial use of small unmanned aircraft systems (“UAS” or “drones”). The rule is significant because it provides a comprehensive and generally applicable set of rules for anyone wishing to operate a small drone for commercial purposes.

Covington Represents Tencent in $8.6 Billion Acquisition

SILICON VALLEY—Covington advised Tencent Holdings Limited, a leading provider of internet service in China, in connection with its acquisition of a majority stake in Supercell from SoftBank. A consortium established by Tencent will acquire up to 84% of Supercell for $8.6 billion in a transaction valuing Supercell at approximately $10.2 billion. Supercell is a ...

Alexander Berengaut Named One of Washington's Top Lawyers Under 40

WASHINGTON—Legal Bisnow has named Covington partner Alexander Berengaut to its 2016 “Top 40 Lawyers Under 40” list. Mr. Berengaut focuses on international arbitration, civil litigation, and government enforcement proceedings. He has experience handling a range of arbitral proceedings and U.S. court litigation matters, including at trial, and has significant ...

Lawyers highlight limited scope of liability protections under cyber info-sharing law

Susan Cassidy participated in a panel discussion at the annual cybersecurity conference at Georgetown University Law Center and is quoted in this Inside Cybersecurity article regarding the limited scope of liability protections under the new cyber info-sharing law. According to Cassidy, "Anything you create could be used in litigation against you," in referring ...

International: PCI DSS 3.2 'indicative of data security priorities'

Michael Nonaka is quoted in this Data Guidance article regarding the Payment Card Industry Security Standards Council’s latest version of its data security standard. According to Nonaka, "PCI DSS version 3.2 does not reflect sweeping changes to the requirements in prior versions, but it is indicative of the data security priorities being expressed by card ...

Once again, the government finds a way to crack an iPhone without Apple’s help

James Garland is quoted in this Washington Post article discussing whether the discovery of alternative ways to unlock iPhones without the help of Apple during investigations undermines the Justice Department’s case in seeking similar, future court orders. According to Garland, “[T]he fact that they subsequently figured out how to do it — without Apple’s help — ...

Commerce Department Seeks Comments on Internet of Things Policy Issues

On April 6, the National Telecommunications and Information Administration (NTIA), part of the U.S. Department of Commerce, issued a Request for Comment (RFC) seeking public feedback on the benefits, challenges, and potential roles for the government in fostering the advancement of the Internet of Things (IoT). NTIA issued the RFC as part of the Commerce ...

Data Transfer Hurdles Have Companies Hedging Bets

Daniel Cooper is quoted in The Wall Street Journal’s “Morning Risk Report” discussing how companies should best comply with global data protection regulations. Commenting on the binding corporate rule process, Cooper said,“The one thing we know about binding corporate rules is [they tend] to have more appeal to European regulators.” He continues, “For a lot of ...

5 Ways To Keep Cybersecurity Risk From Derailing A Deal

Mark Young and Libbie Canter are quoted in this Law360 article offering tips on how deal makers can mitigate cybersecurity risks. According to Young, any discovered incidents can give buyers pause on how — and if — they want to move forward. “We’ve dealt with at least a couple examples where deals were at least delayed if not reconsidered because of ...

EU and US in race to rewrite data sharing agreement as deadline passes

Henriette Tielemans is quoted by The Guardian in an article discussing the missed Safe Harbor deadline. According to Tielemans, companies faced “enormous uncertainty” about what European regulators would deem adequate privacy protection.

Cyber security: uncertain companies lack defence plans

David Fagan is quoted by The Lawyer in an article discussing the continued vulnerability of companies to data breaches and targeted cyber attacks. Fagan, commenting on cyber-related litigation, states, “Up until now, in the US, there has been little cyber-related litigation because it is very difficult to quantify the level of damage done – I can imagine the ...

This is the first business to (legally) fly drones around Americans’ heads

Kurt Wimmer is quoted in this MarketWatch article regarding the FAA’s decision to allow Cape Productions, a drone video startup, to fly drones hundreds of feet closer to people than previously permitted. According to Wimmer, the FAA’s approval for Cape Productions sets a “much more realistic precedent” for future commercial drone usage.

EU Court Draws Fine Line for Employee Monitoring Programs

Henriette Tielemans is quoted in a Law360 article discussing the recent European Court of Human Rights’ decision allowing employers in the EU to monitor their employees’ online activities for business purposes. “This decision is important,” according to Tielemans. “It will bring much needed legal certainty in an area that many companies are struggling with.”

Leading Financial Services Lawyer Joins Covington

WASHINGTON, DC, January 5, 2016 - Covington announced that Eric Mogilnicki has joined the firm as a partner in its Washington office and will co-chair the firm’s new Consumer Financial Services practice. Andrew Smith, who served as a senior financial services lawyer at the Federal Trade Commission prior to joining the firm, will also lead the newly formed ...

Leading Practitioner Joins Covington’s Insurance Recovery Practice

WASHINGTON, DC, January 5, 2016 - Covington announced that Matthew Schlesinger has joined the firm as a partner in its insurance recovery practice. “Matt has a strong track record of success in the insurance recovery field, in particular on behalf of policyholders in the financial services sector,” said Mitchell Dolin, co-chair of the firm’s global coverage ...

GDPR: Key Elements for Businesses in All Sectors

On December 15, the EU institutions finally agreed the text of the new EU data protection law, the General Data Protection Regulation (“GDPR”), completing a process that began in January 2012. The LIBE committee has published the consolidated version of the GDPR text. The GDPR heralds a new era of data protection. It replaces the existing data protection ...

David Fagan Named a “Cybersecurity & Data Privacy Trailblazer”

WASHINGTON, DC, December 14, 2015 - The National Law Journal has named Covington partner David Fagan as one of its “Cybersecurity & Data Privacy Trailblazers.” The list profiles 50 lawyers “who have helped make a difference in the fight against criminal cyber activity and towards adding much needed layers of data security in an increasingly digital world of ...

EU Cybersecurity Rules Increase Liability For Multinationals

Mark Young is quoted in a Law360 article discussing the EU Network and Information Security Directive, which sets a cybersecurity and breach reporting baseline for both critical infrastructure operators, as well as digital service providers. This directive, which is the first of its kind, comes after two years of negotiations. According to Young, “There’s going ...

'Hypocritical' Europe is just as bad as the USA for data protection

Dan Cooper is quoted by The Register in an article discussing the uncertainty and complications continuing to surround the Schrems decision that derailed Safe Harbour. Cooper stated that his business clients were both “surprise[d] and shock[ed]” by the European Court’s decision. “Businesses felt like the rug had been pulled out from under them,” said Cooper. ...

Covington Tackles Vendor Cybersecurity Risks in New Book for Corporate Directors and Officers

WASHINGTON, DC, October 13, 2015 - Covington addresses the critical issue of how to manage risks associated with third-party outsourcing in Navigating the Digital Age: The Definitive Cybersecurity Guide for Directors and Officers. Published in collaboration with Palo Alto Networks and the New York Stock Exchange, the book provides boards, executives and ...

E.U. Court Declares Data-Transfer Pact With U.S. Invalid

Henriette Tielemans is quoted in this BNA article that explores the idea of finding alternative means for the transfer of data with the elimination of Safe Harbor. Countries that require national data protection authority approval may find even more issues arise when trying to formulate new ways to navigate data transfer laws. Tielemans notes that the process ...

Europe’s Top Court Just Gave U.S. Tech Firms a Huge Headache

Brussels-based partner Henriette Tielemans is quoted in this Fortune article that discusses the effects of the highest E.U. court eliminating the U.S.-E.U. data transfer agreement known as the Safe Harbor Act. “Hindsight is a beautiful thing,” said Tielemans. “We must all remember that in 2015 things are different than they were in 2000.”

Covington Advises Tencent on Investment in Kik

SAN FRANCISCO, August 20, 2015 — Covington advised Tencent Holdings Ltd. on its US$50 million investment in Ontario-based Kik Interactive, Inc., a messenger application with more than 200 million registered users. Tencent is a Chinese company that provides value-added Internet, mobile and telecom services and online advertising. Its messaging app WeChat has ...

Daniel Shallman Named to LA Business Journal’s Most Influential List

WASHINGTON, DC, August 11, 2015 —The Los Angeles Business Journal has named Covington partner and former federal prosecutor Daniel Shallman to its list of the city’s “Most Influential Lawyers” in the white collar and cyber practice areas. In selecting Mr. Shallman, the publication noted that he has handled “a string of impressive matters” since joining the firm ...

Mark Plotkin Named a Regulatory & Compliance Trailblazer

WASHINGTON, DC, June 24, 2015 — Covington partner Mark E. Plotkin has been named to The National Law Journal’s list of 45 Regulatory and Compliance Trailblazers. The list recognizes lawyers who have “made a difference navigating the ever-changing mandates of regulatory and compliance.” Mr. Plotkin, co-chair of Covington’s national security and defense industry ...

Wearables at work: the new frontier of employee surveillance

Covington's Daniel Cooper is quoted regarding the legal implications of wearables in the workplace: “Historically European regulators in the data protection area have been very sceptical you can ever get a valid employee consent — they feel that for existing employees, [the relationship] is almost inherently coercive.”

Designing and Implementing a Three-Step Cybersecurity Framework for Assessing and Vetting Third Parties

Covington's David Fagan is quoted regarding cybersecurity: "Companies 'should have a process in place to categorize vendors in terms of levels of risk and then they should apply assessment from that basis,' Fagan said. The first step should be to 'assign a risk classification to them. And that should track to what kind of assessment you provide.'"

Insider threats to cybersecurity — An HR legal perspective

Richard Shea, Lindsay Burke and Ashden Fein have authored this article on cybersecurity threats: "Cybersecurity threats can emanate not just from outside sources but from company insiders as well — including employees, executives, directors and contractors. According to NetDiligence’s 2014 Cyber Insurance Claims Study, roughly one-third of the reported events ...

Covington’s Jeff Kosseff Co-Authors “Law for Media Startups”

WASHINGTON, DC, March 11, 2015 — Covington’s Jeff Kosseff has co-authored “Law for Media Startups,” a 12-chapter web guide for entrepreneurs launching media ventures and educators teaching students how to do it. The guide, co-authored by J-Lab Executive Director Jan Schaffer, was published by City University of New York’s Tow-Knight Center for Entrepreneurial ...

K Street jockeys for cyber supremacy

David Fagan is quoted in this article regarding cybersecurity: David Fagan, a partner with Covington & Burling, said clients’ needs have evolved over the past five years when it comes to cybersecurity. “[The] Target and Sony [hacks] captured the minds and also the fears of a lot of boards of directors and executives,” Fagan said. “As a result, in-house ...

5 cybersecurity questions in-house counsel should consider in light of the Sony breach

Covington's David Fagan, James Garland and Kurt Wimmer have authored this article on questions that in-house counsel should be able to answer about his or her organization’s legal and business cybersecurity risk profile: "In the wake of the much publicized North Korean cyber-attacks against Sony — as well as recent favorable rulings for the plaintiffs in class ...

Government contractors increasingly eye insurance to transfer cyber risks

Covington's David Fagan and Marialuisa Gallozzi are quoted in this article regarding a symposium co-hosted by Covington & Burling and George Washington University's Cybersecurity Initiative titled "Cybersecurity for Government Contractors." "That is the bubble that we're sitting on at this moment," said Covington and Burling insurance attorney Marialuisa ...

Morning Cybersecurity

Michael Chertoff is quoted regarding a symposium co-hosted by Covington & Burling and George Washington University's Cybersecurity Initiative titled "Cybersecurity for Government Contractors." "Information sharing between the government and private sector shouldn’t just be about swapping threat signatures or intelligence, former DHS Secretary Michael Chertoff ...

Covington Wins TMT: Data Protection at Legal 500 UK Awards

London, October 9, 2014 - Covington & Burling has been selected as the winner in the Technology, Media and Telecoms category of Legal 500 UK Awards 2014, with a focus on Data Protection. Covington’s European technology, media and telecoms lawyers draw on the firm’s deep roots in the software, Internet, telecommunications and media industries and act as strategic ...

Defining privacy in the age of wearable cameras

Covington partner Kurt Wimmer is quoted in this article regarding the legal implications of wearable cameras: "The current laws on privacy take hidden cameras and other Glass-type devices into account,” says Wimmer, whose clients include Facebook, Microsoft, Samsung, CBS, Viacom, and the National Football League. “There have been tiny cameras for a long time, ...

FTC Ratches Privacy Enforcement, With No Slowdown In Sight

Covington partner Kurt Wimmer is quoted in this article regarding the Federal Trade Commission pursuing companies such as Snapchat Inc. and Fandango LLC over allegedly misleading privacy promises and lax data security. "To me, the FTC's work in the first half of 2014 has been more about security than privacy — both in advocating for its ability under Section 5 ...

Lead Report: Cybersecurity Plan Confusing, Should be Revamped, Attorneys Say

Covington partner Susan Cassidy was interviewed for Bloomberg BNA regarding the General Services Administration's draft plan to manage cybersecurity risks in the federal acquisition process. The article states: “When you read the actual proposal from GSA, it's hard to figure out what they are going to do,” Covington & Burling LLP Partner Susan Cassidy said. ...

Covington Advises BBVA in Acquisition of Simple

NEW YORK, February 20, 2014 — Covington & Burling represented Banco Bilbao Vizcaya Argentaria, an international financial group based in Spain, in its acquisition of financial technology company Simple. The acquisition is part of BBVA's strategy to lead the technology-driven change that is transforming the financial services industry. According to Francisco ...

Covington Helps Secure Approval for GlaxoSmithKline's BCRs

LONDON, 26 June, 2013 — The UK Information Commissioner's Office has authorised GlaxoSmithKline’s 'Binding Corporate Rules' (BCRs) – a set of internal policies and procedures used to protect personal data across GSK’s operations globally. The privacy and data security team at Covington & Burling was instrumental in the development, implementation and ...

House Intel Chair Joins Former Sec. Chertoff at Cybersecurity Law Program

WASHINGTON, DC, March 28, 2013 — Rep. Mike Rogers, chairman of the House Permanent Select Committee on Intelligence, and former Homeland Security Secretary Michael Chertoff addressed the complexity of cybersecurity threats at a program sponsored by Covington & Burling and The Chertoff Group. Mr. Chertoff is senior of counsel at Covington and chairman and founder ...

BTI Names Martin and Tielemans ‘Client Service All-Stars’

WASHINGTON, DC, February 26, 2013 — The BTI Consulting Group has named Covington & Burling partners David Martin and Henriette Tielemans to its 2013 “Client Service All-Stars” list. The BTI “Client Service All-Stars” were singled out by general counsel and direct reports at large and Fortune 1000 organizations in one-on-one interviews. Mr. Martin, based in ...

Covington Named ‘Privacy & Consumer Protection Practice Group of the Year’

WASHINGTON, DC, January 22, 2013 — For the second straight year, Law360 named Covington & Burling’s global privacy and data security practice as one of the top five “Privacy & Consumer Protection Practice Groups of the Year.” In a profile highlighting the firm’s privacy-related work, Law360 noted the group’s recent litigation win for LinkedIn Corp. In that case, ...

Covington Receives Top Tier Nods in Legal 500 US

WASHINGTON, DC, August 14, 2012 — Covington & Burling LLP has received a top tier ranking in six practice areas and 18 individual attorneys are named “Leading Lawyers” in the recently released Legal 500 US 2012 edition. Additionally, Legal 500 US also “recommended” 36 Covington practice areas and 123 Covington lawyers. The six Covington practices given the top ...

Chambers USA Recognizes 106 Lawyers and 46 Practices at Covington

WASHINGTON, DC, June 11, 2012 — Chambers USA recognized 106 individual Covington & Burling lawyers and 46 Covington practice areas in the 2012 Chambers USA: America’s Leading Lawyers for Business guidebook released on June 7, 2012. Many of the 106 Covington lawyers ranked by Chambers USA were recognized in multiple categories, resulting in a total of 131 ...

Covington Names Nash and Walter to Lead London Office

LONDON, 29 May, 2012 — Covington & Burling LLP is pleased to announce Louise Nash as the new London office managing partner. She succeeds Roger Enock, who steps down after five years in the role. The firm also announced that Christopher Walter will succeed Ms. Nash as the office deputy managing partner. Mr. Enock will continue as head of the firm’s London ...

Covington Receives 46 Lawyer, 20 Practice Accolades in Chambers Global

LONDON, 19 March, 2012 — Covington & Burling LLP received 46 individual mentions and 20 practice mentions in the Chambers Global 2012 edition. The guidebook, which ranks lawyers globally by pan-regional and country practice area, is designed to identify the most skilled legal practitioners based on the qualities most valued by clients. The Covington lawyers ...

Law360 Names Covington ‘Privacy & Consumer Protection Practice Group of the Year’

WASHINGTON, DC, January 9, 2012 — Law360 named Covington & Burling’s global privacy & data security practice as one of the top five “Privacy & Consumer Protection Practice Groups of the Year.” In a profile about the firm published on Jan. 5th, Law360 pointed to Covington’s broad practice in assisting clients in transactions, on advisory matters, in social ...

Chambers USA Recognizes Covington with 123 Individual, 45 Practice Nods

WASHINGTON, DC, June 10, 2011 — Covington & Burling LLP received 123 individual mentions and 45 practice mentions in Chambers USA 2011. The guidebook, which ranks lawyers by state and national practice area, is designed to identify the most skilled legal practitioners based on the qualities most valued by clients. Here are the Covington lawyers and practices ...

Covington Receives 92 Individual, 32 Practice Mentions in Legal 500

WASHINGTON, DC, June 10, 2011 — Covington & Burling LLP received 92 individual mentions and 32 practice mentions in the Legal 500 US 2011 edition. Legal 500 reviews the strengths and strategies of law firms in more than 90 countries in Europe, the Middle East, Asia, North and South America, and the Caribbean. Here are the Covington lawyers and practices ...

Covington Receives 85 Individual, 23 Practice Mentions in Legal 500 US

WASHINGTON, DC, June 23, 2010 — Covington & Burling LLP received 85 individual mentions and 23 practice mentions in the Legal 500 US 2010 edition. Legal 500 reviews the strengths and strategies of law firms in more than 90 countries in Europe, the Middle East, Asia, North and South America, and the Caribbean. Here are the Covington lawyers and practices ...

Chambers USA Recognizes Covington with 112 Individual, 44 Practice Nods

WASHINGTON, DC, June 16, 2010 — Covington & Burling LLP received 112 individual mentions and 44 practice mentions in Chambers USA 2010. The guidebook, which ranks lawyers by state and national practice area, is designed to identify the most skilled legal practitioners based on the qualities most valued by clients. Here are the Covington lawyers and practices ...

Covington Promotes 10 Lawyers to Partnership

WASHINGTON, DC, October 1, 2009 — Covington & Burling LLP today announced that ten of its lawyers have been elected to the firm’s partnership effective today. The new partners practice in the corporate, litigation, and regulatory fields. The ten new partners and their practices are as follows: Marney Cheek (International) represents companies and trade ...

Four Covington Partners On Ethisphere’s List of ‘Attorneys Who Matter’

WASHINGTON, DC, August 3, 2009 — Four Covington & Burling LLP partners have been named to The Ethisphere Institute’s 2009 “Attorneys Who Matter” list, which recognizes leading legal professionals in private practice and at government agencies and major companies who have excelled in and made a significant contribution in the corporate compliance field. In ...

Covington Partners Egan and Schmidt Among National Law Journal’s ‘40 Under 40’

WASHINGTON, DC, July 13 2009 — The National Law Journal has named Covington & Burling LLP partners Erin Egan and Paul Schmidt to its survey of “40 Under 40.” The list, which is featured in the July 13 issue, recognizes 40 Washington-area lawyers under the age of 40 who have already made their marks in private practice, government service, or the public interest ...

Covington Leads on the First Global Data Protection Standard

LONDON, June 9, 2009 — An enhanced version of the world’s first data protection standard for athletes took effect on June 1, 2009. The International Standard for the Protection of Privacy and Personal Information took effect on January 1, 2009, and an enhanced version was unanimously approved in early May 2009 by the Executive Committee of the World Anti-Doping ...

Covington Shortlisted For Three Chambers USA Awards

WASHINGTON, DC, May 15, 2009 — Three practices at Covington & Burling LLP have been nominated for 2009 Chambers USA Awards for Excellence. The firm received team nominations in the Insurance, International Trade and Privacy & Data Security categories. The awards recognize significant achievements over the past 12 months, including notable work, strategic growth, ...

Covington’s Tielemans Appointed to European Commission’s Data Protection Expert Group

BRUSSELS, November 12, 2008 — Covington & Burling LLP partner Henriette Tielemans has been appointed to the Data Protection expert group (GEX PD) by the European Commission. The Data Protection expert group will assist the Commission in identifying challenges for the protection of personal data in the EU, and putting forward proposals for addressing those ...

Covington Promotes 12 Lawyers to the Partnership

WASHINGTON, DC, October 1, 2008 — Covington & Burling LLP today announced that 12 of its lawyers have been elected to the firm’s partnership. These new partners are resident in four of the firm’s offices and practice in the litigation, corporate/tax, and regulatory fields. Timothy Hester, chair of the firm’s management committee, commented: “These young and ...

Chambers USA Gives Covington 81 Individual, 45 Practice Nods

WASHINGTON, DC, June 16, 2008 — Covington & Burling LLP received 81 individual mentions and 45 practice mentions in the newly released 2008 Chambers USA. The guidebook, which ranks lawyers by state and national practice area, is designed to identify the most skilled legal practitioners based on the qualities most valued by clients. Here are the Covington ...

Covington Expands Technology Transactions Practice With Addition of Nigel Howard

NEW YORK, NY, May 12, 2008 — Covington & Burling LLP is pleased to announce that Nigel Howard has joined the firm’s technology transactions practice as a partner. Mr. Howard will be resident in Covington’s New York office. Mr. Howard’s practice focuses on information technology, outsourcing, and intellectual property issues. He represents clients in complex ...

Chambers Global Recommends Covington in a Dozen Categories

LONDON, December 28, 2007 - The latest edition of Chambers Global has ranked Covington & Burling LLP’s expertise in 12 categories globally. “Sound knowledge of the industry” and “sheer breadth of experience“ are just some of the comments gathered by the research team from the firm’s clients. The firm has also achieved 10 individual rankings and a further 16 ...

Covington Receives 44 Practice, 74 Individual Mentions in 2007 Chambers USA Guide

WASHINGTON, DC, June 18, 2007 — Covington & Burling LLP received 44 practice mentions and 74 individual mentions in the newly released 2007 Chambers USA guidebook. The 2007 edition of Chambers USA attempts to identify the most skilled legal practitioners throughout the country based on the qualities most valued by clients. Covington attorneys have been ...

Covington Announces Ten New Counsel

WASHINGTON, DC, April 3, 2007 — Covington & Burling LLP has announced the promotion of four new Of Counsel and six new Special Counsel.The four new Of Counsel are Daniel P. Cooper, Christian Neira, Matthew J. O’Connor, and Kevin J. Shortill.Daniel P. Cooper advises on European privacy and data protection matters, as well as on contentious and non-contentious ...

Dems bid to pause negative credit reporting gets pushback from industry

David Stein is quoted in the American Banker regarding the push from U.S. lawmakers for a moratorium on all negative credit reporting during the COVID-19 crisis. According to Mr. Stein, lenders have one additional option to prevent damage to consumers’ credit scores. He says that lenders can stop reporting data to the credit bureaus altogether, though he ...

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Ranked by Chambers Global as a leading Data Protection practice (2013-2020)
Ranked by Chambers Europe as a leading Data Protection practice (2014-2020)
Ranked by Chambers UK as a leading Data Protection practice (2013-2020)
Ranked by Legal 500 EMEA as a leading EU Regulatory, Privacy and Data Protection practice (2013-2017)
Ranked by Chambers USA as a leading Privacy & Data Security practice (2013-2019)
Ranked by Legal 500 US as a leading Cyber Law (including Data Protection and Privacy) (2013-2018)
Ranked by Legal 500 US as a leading Cyber Law (including Data Protection and Privacy) - Data Protection and Data Breach Response (2015-2017)
Ranked by Legal 500 UK as a leading Data Protection practice (2013-2016)
Legal 500 UK Awards, winner of the TMT: Data Protection category (2014)
The Lawyer shortlisted our London technology and media group for its TMT Team of the Year Award (2013)
Law360's Practice Groups of the Year, Privacy & Consumer Protection (2011-2012)

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