May 3, 2011
In the Politico
article, "Feds struggle with export controls on cloud computing," partner Eric R. McClafferty discussed the application of export controls with respect to data that is transmitted through the cloud.
"The Department of Commerce's export rules consider technical data as any information required to develop, produce or use an item controlled under export law," said Mr. McClafferty. "So you are talking about drawings, recipes for chemicals, instructions for manufacturing," he said.
The article discussed a range of complications related to export controls and data transfer over the cloud. According to a BIS official, "the agency does not believe that amendments to the Export Administration Regulations are necessary to address the provision of cloud computing services." "As exporters raise issues and questions BIS will continue to provide guidance," the official said.
The BIS official added that the agency is developing a series of questions and answers on the topic of cloud computing for publication to its website.