Top Four Legal Issues that Occur in Cloud Computing

Asin Malik
3 min readNov 30, 2021


Find out the legal issues that may occur in cloud computing.

No doubt, the cloud proffers immense benefits to the businesses in many ways otherwise 94% of enterprises won’t be using the cloud like that. But do you know, like any other industry, there are some legal issues related to cloud computing as well. Before you move to the cloud, you must consider these issues to stay away from them. For your help, here in this article, we are going to discuss the top legal issues associated with the cloud. So, let’s walk through them one by one.

#1: Theft of the Confidential Data

The cloud service providers (CSPs) adopt several ways to provide data security that include encryption, data access monitoring, strict surveillance, etc. However, you never know when encryptions fail to protect data from theft attacks. But then, by implementing data access monitoring the CSPs detect unusual data access patterns. So, a cloud user must understand the disclosure policy of the CSP so that they should know how long the CSP would take in disclosing the breach to them. Several countries have enforced security breach disclosure laws according to which the CSPs must inform their customers about the compromise of data as soon as possible.

#2: Data Privacy and Security

Several companies that have moved to the cloud do yet not have the right security procedures in place. Some of them even can evaluate or approve cloud applications due to the lack of the right resources. Let’s say, for instance, so many companies are adopting the BYOD trend that urges for these security measures more than ever. They demand the relevant data security training, the right procedures to use the personal device, multiple levels of security, transferring & copying of data to protect your organization’s data. The crux of the story is that based on your company’s goals and workflow, you must establish the right security procedures.

#3: Intellectual Property Rights

Since they differ from country to country, the Intellectual Property Rights that will apply to your cloud computing environment may be different. So, it is your task to make yourself aware of the rights & regulations of the country in which you have stored your intellectual work. Even your CSP must be well aware of the ways for protecting your intellectual property and preventing the potential breach pitfalls.

#4: Third-Party Access Disputes

There could be several risks involved in involving a third party. Since all those third parties that use a multi-tenant shared cloud make use of the same administration interface, it is your task to ensure that enhanced security and multi-factor authentication are implemented. Before you take services from a CSP, confirm whether they are compliant with the standards of your industry. Let’s say you are a healthcare business, make sure your CSP is HIPAA compliant.


Read your CSP’s Service Level Agreement carefully. They should include these legal issues and solutions to them. You must understand the terms & conditions of the CSP and consider your needs & goals before signing the agreement. So, this was all about the legal issues that might occur in cloud computing. Let us know if you have dealt with any of the legal issues discussed in this article. Contact LogicEra for any queries that you have regarding cloud computing legal aspects and we’ll love to hear you out.



Asin Malik

Asin is a hard core techie, loves to write about tech and cloud and loves her life in Dubai