Volume III

Issue : 7: April 7, 2005

• U.S. Gift Shop Sues Google Over Click Fraud Advertising
• Tobacco Websites Shut Down After Credit Card Companies Refuse Online Payments
• New York Court Rules Common Law Protects Recordings Made Before U.S. Copyright Legislation
• Canadian Government Releases Copyright Reform Report
• Canadian Telecom Challenges Regulator over VoIP - CRTC Imposes 9-1-1 Rules
• Jury Verdict Orders Toshiba to Pay $465M in California Trade Secret Case
• N.Y Appeals Court Rules Out-of-State Telecommuter Must Pay N.Y. Income Tax
• Freelance Writers Settle Electronic Database Class Action Lawsuit in U.S.
• B.C. Court Releases Decision in Data Outsourcing Case
• WTO Releases Decision in Online Gambling Case

Home > Volume III > Issue 7: April 7, 2005 > B.C. Court Releases Decision in Data Outsourcing Case

B.C. Court Releases Decision in Data Outsourcing Case

The British Columbia Supreme Court dismissed a claim by the B.C. Government and Services Employees' Union that the B.C. government's outsourcing of health information management to a B.C. subsidiary of a U.S. company violates B.C.'s public sector privacy legislation. Among other things, the union was concerned that health information disclosed to the company could be accessed by US law enforcement agencies under the USA PATRIOT Act. The Court did not express an opinion about this possibility; however, the Court concluded that the security safeguards in place were sufficient to comply with B.C. privacy legislation. Those safeguards included the following: (a) the private company was a B.C. company and all of its shares were held in trust (allowing the government to take ownership of the company if the company breached its obligations under the contract); (b) the contract imposed a $35M penalty for breach of confidentiality; and (c) recent changes to the security provisions of the B.C. legislation required the records to be kept in private and in B.C.

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