Dispute resolutions

Disputes arising out of technology projects and the control and management of data have become increasingly common. In our experience, disputes often arise when there is a failure in communication, or a misunderstanding, between parties as to what a new technology can do and how it will be implemented within one’s business.

When it comes to data management, compliance is essential and a failure to comply (which is usually inadvertent) can be immediately damaging to a business. Understanding what can be done in the event of a breach is vital.

A few factors to consider when assessing your business’s exposure to technological or data breach risk include:

  • Use properly drafted written contracts addressing matters such as service level specifications, payment terms, data security and data breach liability, ownership of intellectual property, confidentiality, exclusions or limitation of liability, governing law and dispute resolution.
  • Do your due diligence on counterparties, at the beginning of a transaction and at regular intervals throughout your relationship. Consider:
  • Are they well established? If not, are there any mechanisms you can put in place to reduce your risk, such as upfront payments or security?
  • Do they have sufficient financial resources to cover their financial commitments Where are their assets? What assets do they have? Are they traditional assets or are they “new” assets, such as cryptocurrency?
  • Where does your counterparty conduct its business? This is not always obvious or clear cut when dealing with tech companies, who may be registered in one country but store and/or process data in a different or several countries. Choosing appropriate choice of law and jurisdiction clauses can reduce uncertainty and ensure that you retain control of any unavoidable litigation.

💡Top tip: search at http://companieshouse.gov.uk is free and will indicate whether a company's accounts are overdue. This can be a warning sign that a company may be in financial difficulty.

  • Implement well thought out plans and policies to address and govern key risks, such as regulatory compliance, data management and security, confidentiality and intellectual property.
  • Ensure you have adequate insurance.
  • Be aware of the use of artificial intelligence (AI) and address specific risks associated with AI, such as controlling and identifying the use of AI by employees and/or counterparties and how to keep data safe when using AI.

💡Top tip: try to involve personnel from each area of your business in this process, such as finance, sales and development. This will ensure that each possible risk angle is considered.