U.S Legislation Will Offer Great Opportunities for Cyber Security Companies

By Amit Ben-Yehoshua.

Today I came across an interesting article (http://www.nytimes.com/2015/04/23/us/politics/computer-attacks-spur-congress-to-act-on-cybersecurity-bill-years-in-making.html) by Jennifer Steinhauer about the U.S Federal government response to recent major cyber security breaches.

The article talks about Washington passing a bill seeking to combat data security breaches which provides a great opportunity for my clients that deal with high-tech, cyber security related industries. The bill seeks to allow government investigators to gain access to company networks in the event of a breach.

Recent Major Data Breaches

As you probably know in the recent months and years the United States have suffered a number of significant security breaches related to online information. These include major breaches impacting companies such as Target, a major consumer data leak of tens of thousands of credit card numbers estimated to have cost the company $162 million. JP Morgan Chase also suffered a breach which resulted in the gaining of access by those committing the breach to information about the accounts of 76 million households. Understandably there is a great deal of concern over the wide-reaching and damaging nature of these breaches and the Americans are keen to address the matter.

State Legislation

Another interesting development to note is the progression of relevant legislation at a state level. The State of California, is considering two new bills that will attempt to make changes in the California law. The current law contained in the Customer Records Act requires companies to implement reasonable security procedures and practices and to give notice to consumers in the case of breaches concerning their unencrypted information. The proposed AB-964 would require companies to report the date of the breach and also give notice to the Attorney General. The bill SB-570 would require companies to give a more detailed disclosure of a breach to their customers in a structured manner that would clearly set out what the breach was, what information was compromised and how the company and consumer can respond to the situation.

Business Outlook

The fact that legislation is proceeding at both the federal level and at a state level in the most important and populous state in the U.S combined with the current security climate will encourage companies to become more cyber threat aware bringing a host of opportunities for the cyber security industry. Israel in particular is well prepared to provide expertise as its robust cyber-security industry is one that makes Israel one of the world leaders in the cyber-security field.

*Amit Ben-Yehoshua is licensed to practice law in California and Israel. Amit holds a Master of Law Degree from Tsinghua University of Beijing. Amit is the founder and director of the Israeli Chamber of Commerce in Shanghai. Amit resides in Shanghai and practices law at Da Cheng Dentons which is recognized as the world’s largest law firm. Amit specializes in cross border investment with emphasis on China, US and Israel and also provides U.S Immigration services. Amit can be reached at amit.ben-yehoshua@dachenglaw.com. Mr. Chris Sparks is graduate degree law student and an intern at Da Cheng Law Offices.

The information provided in this article is provided for general reference only and should not be regarded as a legal opinion or full analysis of the law.

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