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April 23, 2021

Volume XI, Number 113

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April 22, 2021

Subscribe to Latest Legal News and Analysis
  • Review of Recent Whistleblower Developments April 2021 by: Lisa M. Noller and Pamela L. Johnston
  • The Energizer – Volume 88 by: Buck B. Endemann and Daniel S. Cohen
  • NFTs Are Interesting but Fractionalized Non-Fungible Tokens (F-NFTs)... by: Karen J. Garnett and Jeffrey D. Neuburger
  • Does the Ontario Employment Standards Act, 2000 Apply? The... by: Hugh A. Christie and Michael F. Lee
  • In a Rebuke to Longstanding FTC Approach, Supreme Court Rules FTC... by: Phyllis H. Marcus
  • Take Care With No-Poach Practices and Non-Solicitation Agreements by: Timothy Long and Ellen M. Bandel
  • Department of Labor Issues Model COBRA Subsidy Notices and FAQs by: Alden J. Bianchi and Michael S. Arnold
  • Stay Tuned: EEOC to Issue Guidance Soon on COVID-19 Vaccine Incentives by: Lindsay L. Ryan
  • TN Visa Under the United States-Mexico-Canada Agreement (USMCA)... by: Raymond G. Lahoud
  • China’s Supreme People’s Court Releases 5-Year Intellectual Property... by: Aaron Wininger
  • Pass the Salt: DOJ Requires Stone Canyon to Divest Its Evaporated... by: Bruce D. Sokler
  • Supreme Court’s Decision in Facebook Litigation Narrows the Scope of... by: Kathryn M. Rattigan
  • A Comedy of Errors Sinks a Local Government’s Price Gouging Case by: Christopher E Ondeck and John R Ingrassia
  • Interlocutory Appeals and Judicial Efficiency by: Joshua D. Dunlap
  • Surge of Cyberattacks on Office365! by: Peter Vogel
  • Washington Amends Its Paid Family and Medical Leave Act in Response... by: Michael A. Griffin and Sherry L. Talton
  • NSA Issues New Warning About Four Critical Patches to Microsoft... by: Linn F. Freedman
  • New Paid Sick and EFMLA Leave Provisions in the American Rescue Plan... by: Amy L. Bess and Aaron A. Bauer
  • Regulation of Dark Patterns Protects Consumers on the Web by: Theodore F. Claypoole
  • There’s a New Sheriff in Town by: Thomas E. Walker, Jr.
  • Fourth Circuit Holds that Mine Not Liable Under Surface Mining Act... by: Brent A. Rosser
  • Eleventh Circuit Decision Creates Further Division Among Circuit... by: Ahmer Sheriff
  • Woah: Supreme Court Strips FTC of Key Ability to Obtain Monetary... by: Eric J. Troutman
  • Industry Banishment, Not Just Lawsuit, Cost For Taking Employer... by: Robert B. Worley Jr.
  • DeLauro to Introduce Federal Tax on Sugary Drinks by: Food and Drug Law at Keller and Heckman
  • Houston Rockets Hit with Ransomware Attack by: Linn F. Freedman
  • What’s in a Name? The SEC Warns Against Confusion in ESG Investments by: Peter D. Hutcheon
  • Insurer Denies Coverage for Deal Litigation Despite Bank Purchasing... by: Geoffrey B. Fehling and Lawrence J. Bracken II
  • COVID-19: US State Policy Report – April 16-20, 2021 by: Jeffrey L. Turner and Jacqueline Orfield
  • Anti-Money Laundering (AML): An Overview of Compliance and Due... by: Dr. Nick Oberheiden
  • Driving the Deal Podcast: The Evolving Role of Insurance in Private... by: Kristian A. Werling
  • Indiana Enacts Pregnancy Accommodations Law, Effective in July 2021 by: Dorothy Parson McDermott
  • School Nutrition Vendor Sued for Compromise of 867,209 K-12 Student... by: Linn F. Freedman
  • Patent Owner Tip #3 for Surviving An Instituted IPR: How Patent Owner... by: Michael C. Newman and Courtney Herndon
  • Virginia Law Bans Local Police Use of Facial Recognition Technology by: Deborah George
  • The Eleventh Circuit Court of Appeals Issues Its Highly-Anticipated... by: Jason P. Brown and Robert T. Quackenboss
  • Footnote Focused: Court Allows Further Briefing on Elusive Meaning of... by: Eric J. Troutman
  • Privacy Tip #281 – Preparing for Cyber Warfare: A Survival List by: Linn F. Freedman
  • Remote ID for Drones: Effective Now by: Kathryn M. Rattigan
  • Old Country Buffet’s Parent, Fresh Acquisitions, Files for Chapter 11... by: Thomas S. Onder
  • Inventions Not Made Under Employment Agreement by: Jenny Z.N. Chen
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  • Courts Will Remain Online for Longer – Procedural Changes Fast... by: Justyna Dereszyńska
  • Digital Transformation Lesson #5: It’s All About the Middleware by: Steven Lundberg
  • New York State Bill Mandating COVID-19 Safety Standards in the... by: Paul Salvatore and Joshua S. Fox
  • Fourth Circuit Breathes New Life into Monopolization Suit by: Lisa P. Rumin
  • European Commission Publishes Proposal for Artificial Intelligence Act by: Hunton Andrews Kurth’s Privacy and Cybersecurity
  • Law Firm Cybersecurity Starts With You by: Dan Bowman
  • Status Quo: Contract Bar Doctrine Remains Intact by: David J. Pryzbylski
  • Pinterest Diversity Suits Multiply by: Joseph S. Hartunian
  • Biden to Announce Emissions Reductions as Auto Industry, State... by: Lauren M. Loew
  • You’ve Sent the COBRA Special Extended Election Period Notices – What... by: Katrine Berger
  • Can An Article Or Bylaw Forum Selection Provision Bind Persons Who... by: Keith Paul Bishop
  • You Want Some “Metchup” with That? by: Intellectual Property Practice Group
  • More H-2B Visas to be Released, DHS Announces by: Jessica Feinstein
  • Texas Legislature Proposes Significant Virtual Currency Bill by: Patrick J. Boot
  • Could Proposed DNJ Local Rule 7.1.1. Have Saved Gawker Media? by: Theodora McCormick
  • Whistleblower Rewarded for Alleging False Claims Act Healthcare... by: Eva Gunasekera and Renée Brooker
  • Vaccine Incentives—You Have Questions, We Have Answers by: Timothy J. Stanton and Timothy G. Verrall
  • Supplemental Examination Update by: Brooke M. Wilner and Amanda K. Murphy, Ph.D.
  • Distinguishable Products and Tying Claims in Health Care Markets by: E. John Steren and Patricia M. Wagner
  • Incompetent #ad Disclosure – the ASA Issues Warning to Influencers by: Carlton Daniel
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  • Alaska PFAS Lawsuit Latest State Action On PFAS by: John Gardella
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  • British Amateur Gymmastics Association Rolls and Tumbles to Trademark... by: Niall J. Lavery and Simon Casinader
  • OSHA’s New Guidance on Recordability of COVID-19 Vaccine Reactions by: Melissa A. Bailey and Davis Jenkins
  • Lost in space – useful pointers for health and safety dismissals (UK) by: David Whincup

April 21, 2021

Subscribe to Latest Legal News and Analysis
  • OSHA Releases Guidance for Employers Considering Vaccine Requirements by: Abigail M. Kagan and Michelle S. Strowhiro
  • LIBOR's Long Good-Bye by: Pauline M. Stevens
  • Guarding the Grid: DOE Releases 100-Day Cybersecurity Pilot Program by: Philip J. Bezanson and Claire E. Cahoon
  • Compliance Reminder: Florida Adds to Employer I-9 Obligations by: Rebecca B. Schechter
  • New York State Passes Bill to Mandate COVID-19 Safety Standards in... by: Evandro C Gigante and Harris M Mufson
  • Massachusetts SJC Rules That Employers May Hold Employees Liable for... by: Patrick M. Curran, Jr.
  • IRS Establishes Office of Promoter Investigations with Emphasis on... by: Barbara T. Kaplan and Shira Peleg
  • Bioplastics: Snickers® Candy Bars Have It Wrapped Up by: Michelle M. Ovanesian
  • Do the OSHA Proposed Amendments to the Hazard Communication Standard... by: Government Regulation
  • Legal Digital Transformation – Lesson #3: Successful Digital... by: Steven Lundberg
  • 21 Law Firm Marketing Strategies Lawyers Should Be Using in 2021 by: Jason Hennessey
  • Form and Substance: Why the Form of a Transaction is so Critical to... by: Casey D. Knapp and Kathleen Dreyfus Bardunias
  • Duties Imposed on Imports of Wind Towers by: Laura Siegel Rabinowitz and Donald S. Stein
  • The American Jobs Plan and the American Rescue Plan: The Biden... by: Kenneth Yood and Eva Schifini
  • Workplace Wednesday: Changes to the Fair Work Act as They Relate to... by: Nicola Martin
  • Listen to: A Conversation with Janice Mueller, Author of Mueller on... by: Warren Woessner
  • #WorkforceWednesday: Retirement Plan Cybersecurity Risk, Vaccine... by: Employment, Labor, Workforce Management Epstein Becker Green
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  • IRS Continues Increased Cryptocurrency Reporting and Compliance... by: Eric M. Nemeth and Angelique M. Neal
  • Apple’s ATT Framework to Go Into Effect April 26, 2021 by: Hunton Andrews Kurth’s Privacy and Cybersecurity
  • Legal Digital Transformation – Lesson #2: Externalizing Manual Work... by: Steven Lundberg
  • Public Benefit Corporations and the SPAC Surge by: Thomas R. Burton, III and Benjamin D. Stone
  • Biden Spending Proposal Calls for 10% IRS Budget Increase by: Andrew R. Roberson and Kevin Spencer
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  • The Federal Circuit Provides New Guidance for Patent Licensees... by: Brad M. Scheller and Peter J. Cuomo
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  • Brussels Rail Transport Brief: March 2021 by: Miguel A. Caramello Alvarez and Philip Torbøl
  • Playing “Hard Ball” Might Waive Qualified Immunity by: Philip J. Mohr
  • Wisconsin Bills Prohibit Traditional Terms for Plant-Based & Cell... by: Food and Drug Law at Keller and Heckman
  • Getting to the Point — Issues Related to Mandatory Vaccine Policies by: Laurie M. Riley
  • New Federal Transparency Requirements Impacting Health Providers and... by: Edward S. Kornreich and Elizabeth (Betsy) R. Siegel
  • New Jersey Appellate Division Finds that Evidence of 510(k) Clearance... by: Beth S. Rose and Vincent R. Lodato
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  • Finding John Doe: IRS Steps up Enforcement Efforts to Take the... by: Carlos F. Ortiz
  • Japan Puts Forth Bold Legislation to Attract More Foreign Asset... by: Tsuguhito Omagari and Yuki Sako
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  • Joint Check Agreements in Construction: Use with Caution by: Luke C. Tompkins
  • Starting Compensation and Pay Equity in California by: Leonora M. Schloss
  • The Hospital Price Transparency Rule: Is it Worth the Cost of... by: Edward S. Kornreich
  • What Is The "Applicable Filing Period" For A Foreign... by: Keith Paul Bishop
  • TCPAWorld After Dark: Colonial Penn Life Insurance Hit With TCPA DNC... by: Eric J. Troutman
  • Bipartisan Leadership of House Committee of Energy and Commerce and... by: C. Frederick Geilfuss II and Jana L. Kolarik
  • Illumina: The Holy Grail of Issues for Certain Companies Considering... by: Matthew S. Miller

April 20, 2021

Subscribe to Latest Legal News and Analysis
  • Developments Regarding Commission-Based Compensation Arrangements... by: Edward S. Kornreich
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  • Federal Vaccination Tracking Raises Privacy Concerns by: Ryan Blaney and Krusheeta R. Patel
  • Video: CFO Dianna MacDonald of Powerhouse | Leaders Moving Business... by: McDermott Will & Emery
  • Mitigating Environmental, Social, and Corporate Governance (ESG)... by: Geoffrey B. Fehling and Yaniel Abreu
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  • IMMEX Highlights –REMINDER of Deadline for Filing the Annual... by: Marcos Carrasco Menchaca
  • MADNESS: Court Holds Collector Can Be Liable Under TCPA for Calls... by: Eric J. Troutman
  • Cannabis Banking: The Safe Banking Act 2.0 Passes the House of... by: Brenden R. Chainey and Daniel S. Cohen
  • Pennsylvania Proposed Bill: High School Students Must Pass Civics... by: Raymond G. Lahoud
  • US Federal Labor Viewpoints – Week of April 12, 2021 by: Stacy A. Swanson
  • How to Choose the Perfect Name for Your Law Firm by: Kamron Sanders
  • Can Companies Find Refuge Against Congressional Investigations In The... by: Andrew M. Wright and David C. Rybicki
  • U.S. Supreme Court Hears Argument on Status Adjustment for Temporary... by: Michael H. Neifach and Amy L. Peck
  • New Mexico Enacts Paid Sick Leave Law by: Nancy S. Lester
  • Foley Weekly Automotive Report: April 20, 2021 by: John R. Trentacosta and Ann Marie Uetz
  • All Good Subsidies Must Come to an End: ARP’s Expiration Notice... by: Paul M Hamburger and Katrina E. McCann
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  • Health Care Consolidation Legislation (AB 1132) No Longer Under... by: Jonathan F. Buck and Paul A. Gomez
  • Is A Foreign Trust Required to File a Statement of Information? by: Keith Paul Bishop
  • Important Developments in LIBOR Transition by: Juan M. Arciniegas
  • SEC Makes Moves to Step Up ESG Enforcement by: Melissa S. Ho and Alexandra G. Brooks
  • Red Flags and SARs: The SEC Warns Broker/Dealers on AML by: Peter D. Hutcheon
  • Recent Announcements by the SEC and DOL Highlight Emphasis on ESG... by: John S. Marten and Nathaniel Segal
  • Be Careful Claiming Trees in the Middle of the Forest—and Be Sure You... by: Melissa C. Santos, Ph.D. and Brooke M. Wilner
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  • DOL Issues Cybersecurity Guidance Focused on ERISA by: Stephanie Olivera Mittica
  • SEC Requests Comments on Potential Money Market Fund Reform Options by: John S. Marten and Nathaniel Segal
  • India: Independent Directors: SEBI Tightens Framework by: Aarathi Das and Devanshi Jaiswal
  • EEOC Will Issue Guidance on COVID-19 Vaccine Incentive Programs... by: Amanda M. Connelly
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  • OSHA's Rollout of COVID-19 Emergency Temporary Standard on Hold by: Karen D. Adinolfi
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  • SEC Issues Statement and Request for Comment on Custody of Digital... by: Wayne M. Aaron and John S. Marten
  • Florida Requires Sales Tax Collection on All In-Person and Online... by: David C. Ashburn and Hayden R. Dempsey
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  • FDA Appeals Order Rejecting GE Salmon Approval by: Food and Drug Law at Keller and Heckman
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Article By
Linn F. Freedman
Robinson & Cole LLP
Data Privacy + Security Insider
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Managed Service Providers Hit with Ransomware Attacks

Thursday, November 7, 2019

Cyberliability insurance provider Beazley Insurance Company has analyzed its internal breach response data and determined that in its experience, there has been a thirty-seven percent (37%) increase in ransomware attacks this most recent quarter from the last quarter of 2019. Twenty-five percent (25%) of those incidents were against managed service providers (MSPs).

An MSP assists small- to medium-sized businesses with IT infrastructure and services, either on site periodically, or virtually. MSPs provide services to numerous clients, and support clients remotely to provide the services in a cost-effective way. Often, MSPs are small businesses as well, and don’t have the resources to combat persistent cyber-attacks. Hackers know that these MSPs are supporting numerous clients, and target MSPs to gain access to multiple organizations. If the MSP gets hit with a ransomware attack, the result may be that not only is the MSP’s own system down, but it cannot provide ongoing cybersecurity services for its clients, including patching and other critical security measures. Furthermore, when an MSP is the victim of ransomware, its customers may not have access to their own data, and MSPs may request that their customers assist with paying the ransom in order to regain access to their data.

Unfortunately, when an MSP suffers a cyber attack or security intrusion, the incident may also be a reportable data breach, which then could be the responsibility of the customer. Security incidents are difficult to respond to in your own system, let alone trying to coordinate with an MSP in the middle of a crisis.

All in all, when your MSP is the victim of a security incident or a data breach, it often becomes your problem, too. Here are some tips to consider when outsourcing your IT function to an MSP:

  • Complete data security due diligence on the MSP

  • Confirm that the MSP has cyber liability insurance

  • Negotiate and require the MSP to sign a contract that includes, for instance, (this list is not exhaustive, but may be helpful)

    • Prompt notification of any security incident that affects the confidentiality, security or integrity of your data and cooperation and coordination;

    • Indemnification and reimbursement for all costs associated with a security incident or data breach, including first- and third-party claims;

    • No limitation of liability for a security incident, ransomware attack or data breach;

    • Encryption of sensitive data both at rest and in transit;

    • Compliance with all applicable state and federal laws relating to data privacy and security; and

    • Termination in the event of a security incident or data breach, with provisions for an orderly transition to a new provider.

  • Confirm that the MSP has contingency operations and disaster recovery processes in place in the event of a security incident, ransomware attack or data breach. and that it has tested them

These are just some examples of things to consider when choosing an MSP. The key takeaway is not to choose your MSP based on cost alone. You get what you pay for, and picking the cheapest MSP may not serve you well in the long run. Understand that MSPs are being targeted, which means your data are at risk. Talk to your MSP about how it is protecting its own system and your data, feel comfortable that the MSP is the right choice for you, and document obligations and responsibilities in a written contract to protect yourself in the event of an incident. Many companies simply sign the contract given to them by the MSP, but these form contracts do not have provisions that can be needed to protect you in the event of an incident. The contract with your MSP is a high-risk contract, and therefore, needs special attention.

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Copyright © 2021 Robinson & Cole LLP. All rights reserved.National Law Review, Volume IX, Number 311
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About this Author

Linn F. Freedman, Robinson Cole Law Firm, Cybersecurity and Litigation Law Attorney, Providence
Linn F. Freedman
Partner

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She provides guidance on data privacy and cybersecurity compliance to a full range of public and private clients across all industries, such as construction, education, health care, insurance, manufacturing, real estate, utilities and critical infrastructure, marine, and charitable organizations. Linn is a member of the firm's Business Litigation Group and chairs its Data Privacy + Cybersecurity Team. She is also a member of the Financial Services Cyber-Compliance Team (CyFi ...

lfreedman@rc.com
401-709-3353
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