Summary Agreements can be made concerning the jurisdiction over disputes concerning the data. However, disputes involving other entities not parties to that agreement may not be subject to the agreement. Accordingly, cloud computing presents uncertainty and has the potential for future disputes concerning jurisdiction. Analysis Cloud computing is a general term for the delivery of hosting and other services over the Internet. Instead of storing data in-house, the data and data applications are stored remotely, with access provided via the Internet (or the “cloud ). Some of the larger companies operating in the “cloud” marketplace include: Google, Microsoft, Yahoo!, Google, Amazon, Cisco, and Hewlett-Packard to name a few. See http://cloudcomputing.sys-con.com/node/770174 (last visited, 8/18/2010). A key issue often overlooked by companies evaluating the value of the “cloud” is Jurisdiction, which is a key legal construct. A court can only hear a matter if it has jurisdiction over the parties and the subject matter of the action, while law enforcement agencies can only exercise their powers within their authorized jurisdictions. Jurisdiction over the parties is called “personal jurisdiction” and can generally be obtained over a party who resides within the court’s geographic authority or has entered into “minimum contacts” with a person or company located in the jurisdiction. Generally, a company that does business in a particular geographic area will be subject to jurisdiction in that area. Personal jurisdiction can also be obtained by consent, which is commonly done through a contract provision stating that the parties agree to submit themselves to the jurisdiction of a specific court. In order to take jurisdiction, the federal courts require that all parties to the action be citizens of different states, expect for certain types of cases that are exclusive to the federal courts. Jurisdiction over the subject matter of an action is referred to as “subject matter jurisdiction.” This can be based upon a minimum or maximum dollar amount in dispute, or upon the type of dispute. Subject matter jurisdiction can also impact the types of remedies a court can fashion, such as equitable remedies. To Continue Reading: Click Here ------------------------------------------ Source: glgroup.com By: GLG Expert Contributor

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