Client Alert: Proposed Change to Export Controls Would Allow Use of the Cloud for Encrypted Data

On June 3, 2015 the State Department’s Directorate of Defense Trade Controls (DDTC) and the Commerce Department’s Bureau of Industry and Security (BIS) published proposed regulations which would change the definition of the term “export” in each agency’s regulations to allow cloud storage of information in servers located in foreign countries if the information is appropriately encrypted. These changes, if ultimately adopted, would substantially alleviate concerns that companies seeking to take advantage of the efficiencies of cloud computing could run afoul of export controls. However, it would still be important for cloud users and cloud storage providers to ensure that appropriate encryption is being used.

For more information, please see our Client Alert, Proposed Change to Export Controls Would Allow Use of the Cloud for Encrypted Data.