Earl raises a really good point.  

At my prior company, which did a lot of contracting with the US
Government, exposing proprietary, confidential or otherwise restricted
technical information to non-US persons was an enormous "no-no", subject
to substantial fines and possible prison terms.  There were standard
terms & conditions that my company inserted into all subcontracts
(whether for services or manufactured goods) that required that no such
exposure take place.  This included thinking about how any paper records
might be recycled (possibly exposing the contents of such documents to
viewing by others).

The exposure of personally identifiable information (PII), including
outside of the US, is something that I think hasn't been adequately
addressed or considered, particularly in the frenzy to take advantage of
lower labor costs in other countries.  There's often more rapid turnover
of personnel at these companies, and the ability to control or prosecute
misuse of PII in other countries is something I don't know much about.
I do know that at my prior company they were actively putting pressure
on suppliers to assume at least partial liability for any data breaches
that happened while information was in their custody (or in the custody
of their subcontractors/suppliers).

I'd be interested in seeing any contract language that folks would be
willing to share that addresses these issues.  Wouldn't it be wonderful
if there were some standards available for this kind of thing?  If
anyone knows of such standards, please share with the rest of us!

Pilar C. McAdam, CRM
Director of Legal Information Systems
Sheppard Mullin Richter & Hampton LLP
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