1 > ediscovery Compliance and THE New Requirements of it: The IT Manager s Guide To 100% compliance >Authored by Nancy Flynn Executive Director, The epolicy Institute Author, The e-policy Handbook, Rules, Instant Messaging Rules, Blog Rules, Writing Effective , and Management
2 > Introduction Symantec Hosted Services MessageLabs, and The epolicy Institute, have created this business guide to provide Best-Practices Guidelines for Corporate Compliance with Electronic Discovery Rules. Through the implementation of a strategic ediscovery compliance program, incorporating clearly written rules, formal employee education, and a proven-effective Hosted Service Archiving Solution, US and Canadian employers can quickly and cost-effectively preserve, protect, and produce legally compliant and other Electronically Stored Information (ESI) when compelled to do so by a court or regulatory body. ediscovery compliance and the new requirements of it: the it managers guide to 100% compliance is produced as a general best-practices guidebook with the understanding that neither the author, epolicy Institute Executive Director Nancy Flynn, nor the publisher, MessageLabs, is engaged in rendering advice on legal, regulatory, or other issues. Before acting on any practice, policy, or procedure addressed in this white paper, you should consult with legal counsel or other professionals competent to review the relevant issue. > I. and Electronically Stored Information (ESI) Play an Ever-Expanding Evidentiary Role: US and Canadian Courts Raise the Bar for ediscovery Compliance Considering that and other forms of ESI create the electronic equivalent of DNA evidence, there is no doubt that the evidentiary role of electronic business records will continue to expand. The US federal court system made this clear in 2006, when the much-anticipated amendments to the Federal Rules of Civil Procedure (FRCP) were announced. The amended rules affirm the fact that all ESI including messages and attachments is discoverable and may be subpoenaed and used as evidence for or against your organization in federal litigation. The FRCP may apply to Canadian organizations that operate in the US, as well as the Canadian branch offices of American firms. 1 On the state level, the Golden State became the latest jurisdiction to formalize its own ediscovery rules when Governor Arnold Schwarzenegger signed California s Electronic Discovery Act (EDA) into law on June 29, The California law closely (but not exactly) mirrors the 2006 ediscovery amendments to the FRCP. Passage of the EDA means that electronic discovery will play an increasingly important role in cases that are litigated in California state courts. 2 California joins about 30 other states that have enacted formal rules to govern the discovery of and other forms of ESI. 3 It s a safe bet that the remaining 20 states ultimately will follow their lead and enact rules to define the role ediscovery plays in every state court system. The discovery of and other ESI is not limited to litigation in the United States. Electronic discovery is quickly becoming a factor in all Canadian civil litigation, large and small, according to the The Sedona Conference. 4 Canada, however, has yet to establish national best practice guidelines comparable to the FRCP. 5 Currently, the production of electronic documents in Canadian litigation is governed by each province s rules of civil procedure or rules of court. 6 ediscovery Rule: > Until all remaining states and provinces amend their ediscovery rules and adopt the FRCP amendments in whole or part, monitor ediscovery-related developments and rulings in every American state and Canadian province in which your organization has a presence or tries its workplace lawsuits. In the US, 27% of organizations feel the FRCP amendments have made ediscovery more challenging, reveals the Fourth Annual Litigation Trends Survey from Fulbright & Jaworski L.L.P. 7 To help you navigate the challenges, here s a four-point summary of the FRCP amendments: Within the federal court system and some state courts, and other forms of ESI are discoverable. That means your retained and archived messages, attachments, and other ESI (business records or not) may be subpoenaed by opposing counsel and used as evidence in workplace lawsuits. Manage electronic data in a manner that allows for its production in a timely, complete, and legally compliant fashion in response to discovery requests during the evidence-gathering phase of litigation. 2
3 3. The FRCP amendments do not require your organization to retain all records and all other ESI forever. Within the ordinary course of business and based on the advice of your legal counsel, you may purge your organization s system of and other electronic data once it reaches the end of its lifecycle, is no longer needed for regulatory or business reasons, and is not relevant to current, pending, or anticipated legal claims. 4. When it comes to the preservation, purging, and production of and ESI, the courts appreciate consistency. Establish and adhere to formal retention policies, written deletion schedules, and reliable archiving practices. Doing so will help you deflect potential claims that your organization has illegally destroyed or tampered with electronic evidence. 8 ediscovery Rule: > If you are unclear about the amended FRCP and other laws and regulations governing your organization and industry, have your legal counsel or compliance officer research the matter. Then develop and implement written rules and a formal /esi compliance management program immediately. > II. 12 Legal, Regulatory, and Business Reasons to Retain and Archive For unregulated private sector companies, the law does not require the retention of business-related . Nonetheless, combining a retention policy with a Hosted Service Archiving Solution ensures that your organization s business records are securely stored and can be readily searched and supplied when needed. 1. that is properly managed and securely archived will save you time, money, and stress in the event of litigation. Thanks to archiving technology, you can produce subpoenaed promptly and responsively creates business records that can protect the organization in the event of a lawsuit. In addition, records can help shelter you from false claims and unfounded lawsuits. evidence that is preserved and produced by your organization may motivate an opponent to settle a weak claim out of court, saving you time and money in the process. may provide your organization with the all-important evidence it needs to successfully defend and win a workplace lawsuit. 5. contains 75% of a company s intellectual property (IP), according to Enterprise Strategy Group research. 9 On average, IP losses cost business over $3,500 per incident. IP retrieval costs may run as high as $500 per incident. 10 Archiving not only helps keep IP safe and secure, but it does so in a cost-effective and legally compliant manner. 6. records may enable your organization to take legal or disciplinary action against employees who violate policies, fail to perform, or otherwise act contrary to the best interests of the organization. 7. provides a written record that can speak for witnesses who may be unwilling or unable to testify. 8. records can fill in the blanks when human memory falters. 9. provides the written records all organizations need in order to operate properly. Formal documentation of transactions, decisions, personnel matters, and day-to-day operations is essential. No entity of any kind can function without reliable records helps keep courts happy. Failure to produce during discovery may lead to financial and other penalties if the court believes you intentionally destroyed evidence helps keep government and industry regulators happy. Archiving ensures the automatic preservation of messages and attachments and helps you manage the oftencomplex compliance requirements of multiple regulatory entities archiving guarantees your ability to produce evidence that courts recognize as trustworthy, tamperproof, and authentic. Legally compliant, in other words. 11 3
4 > III. Top Five ediscovery Compliance Tips As part of your organization s compliance management program, be sure to establish best practices-based rules, policies, and procedures governing the preservation, protection, and production of and other ESI. Best practices call for the adoption of five ediscovery compliance tips: 1. Establish a clear definition of electronic business record on a company-wide or department-by-department basis. Unfortunately there is no one-size-fits-all definition of business record. Be sure to involve your legal counsel, compliance officer, IT director, and records manager in the formulation of your definition(s). 2. Communicate the organization s electronic business record definition to all employees. Make sure employees can differentiate between business-critical that must be retained and insignificant non-records that may be deleted. Familiarize users with penalties the organization and individual employees will face should the company fail to meet its ediscovery and compliance obligations. 3. Know and adhere to the electronic record retention and discovery rules imposed by federal, state, provincial, and territorial courts, as well as government and industry regulators. 4. Establish and strictly enforce written rules, policies, and procedures governing the retention and disposition of messages, attachments, and other ESI. 5. Take advantage of the proven-reliable, cost-effective Hosted Service Archiving Solution from MessageLabs, now part of Symantec, to ensure that incoming, outgoing, and internal messages and attachments are automatically preserved and protected in a legally compliant, tamperproof manner that facilitates the speedy search and responsive retrieval of electronic evidence. 12 > IV. Conclusion: Every Organization Needs ediscovery Rules and Tools Fully 29% of US organizations were involved in at least one litigation matter in 2007, with 32% battling lawsuits involving $20 million or more, reveals the Litigation Trends Survey from Fulbright and Jaworski. 13 In spite of s growing evidentiary role, however, not all organizations have addressed the need for strategic management and ediscovery compliance programs. Only 34% of companies define electronic business record for employees, and 33% lack formal retention policies and deletion schedules, according to American Management Association/ePolicy Institute research. 14 Your ability to formally define, effectively retain, and successfully archive electronic business records is one of the most important jobs your organization can undertake. Your ability to search for, locate, and produce business-critical and attachments can have an enormous impact on your organization s assets, reputation, and future should you one day find yourself battling a workplace lawsuit, responding to a regulatory inquiry, or searching for proof of a contested business transaction. 15 ediscovery Rule: > Unmanaged and other ESI can trigger financial, productivity, and legal nightmares should your organization one day find itself embroiled in a workplace lawsuit. Best practices call for a proactive approach to management and ediscovery compliance. Combine written content, usage, and retention policies with a Hosted Service Archiving Solution to ensure your organization s ability to preserve, protect, and produce legally valid evidence and other ESI. > V. MessageLabs Hosted Service Archiving Solution MessageLabs provides a hosted service archiving solution specifically tailored to growing US and Canadian organizations. MessageLabs Hosted Service Archiving Solution is quick to set up, requires no dedicated IT personnel at the company site, offers secure, highly available retrieval of any incoming or outgoing , and provides a money-back remedy if service availability of 99.9% is not met. As a service, MessageLabs Hosted Service Archiving Solution is a fixed-cost expenditure with no hidden fees and complimentary 24/7/365 technical support. 4
5 MessageLabs Hosted Service Archiving Solution Features Safe, secure archiving of and attachments. Search and retrieve and hundreds of types of attachments based on a broad range of criteria or search terms from within Outlook or with a Web-based utility. Bounded global search capability can be delegated to legal staff or managers. Single-instance storage and stubbing for and attachments, which helps reduce Exchange data stores by as much as 80%. Flexible and customizable supervision and review features that allow compliance staff to monitor, review, and comment on communications. Hosted infrastructure that allows new users and mailboxes to be added easily. Avoids archiving viruses and spam when used with MessageLabs Anti-Spam and Anti-Virus services. Increased Productivity With efficient archiving, your legal team can work more productively to conduct search and retrieval of and hundreds of types of attachments based on a broad range of criteria or search items without the time-consuming intervention of IT specialists or staff. In addition, attachment stubbing allows IT to meet the needs of end users by essentially removing quotas from their mailboxes. Employees can greatly reduce the time needed to manage quotas to stay within their mailbox limits. Not only does stubbing make retrieval from MessageLabs servers seamless for end users, but it also frees up valuable storage space on company servers. Reduced Costs MessageLabs Hosted Service Archiving Solution saves companies IT staff and employee time, storage, hardware, and software investments, while facilitating regulatory compliance measures. All of this cuts costs while improving employee productivity and customer satisfaction Increased Protection The solution allows administrators to control retention policies by user, group, or message; provides optional supervision and review capabilities; and makes it easy to implement legal holds. With MessageLabs Hosted Service Archiving Solution, once these policies have been put in place, there is no guesswork involved in selecting messages and files for archiving. Employees and management are assured that their correspondence is safely stored and easily retrieved. Because MessageLabs archiving servers are redundant, corporate is highly available. About Symantec Hosted Services Symantec Hosted Services is the world s leading provider of hosted services for securing and managing , Web, and IM traffic (or communications). Over 21,000 organizations and over 9 million end users in 99 countries employ Symantec Hosted Services to protect against viruses, spam, phishing, inappropriate Internet use, spyware and other organization-damaging threats. About Symantec Symantec is a global leader in providing security, storage and systems management solutions to help consumers and organizations secure and manage their information-driven world. Our software and services protect against more risks at more points, more completely and efficiently, enabling confidence wherever information is used or stored. More information is available at 5
6 About The epolicy Institute The epolicy Institute is dedicated to helping employers limit -related risks, including litigation, through effective policies and training programs. The author of 10 books including The e-policy Handbook, 2nd Edition, Executive Director Nancy Flynn is an in-demand speaker, corporate trainer, consultant, and expert witness. Since 2001, epolicy Institute has collaborated with American Management Association on an annual survey of workplace /internet policies, procedures, and best practices. A respected media source, Nancy Flynn has been interviewed by thousands of media outlets including Fortune, Time, Newsweek, Wall Street Journal, US News & World Report, USA Today, New York Times, NPR, CBS, CNBC, CNN, NBC, and ABC. For information about epolicy Institute products and services, contact or References 1. Shane Schick, E-Discovery Rules May Raise Issues, itbusiness.ca (March 2, 2007), 2. Gareth T. Evans, A Closer Look at Calif. E-Discovery Law, The Recorder (July 17, 2009), See also Cheryl Miller, California Finally Updates E-Discovery Rules, The Recorder (July 1, 2009), Glenn Mau and Jeannette Kuo, California s Electronic Discovery Act 2009, Archer Norris, PLC, 3. David Lender, California s Electronic Discovery Act, Weil, Gotshal & Manges LLP (July 7, 2009), 4. Richard G. Braman, The Sedona Canada Principles: Addressing Electronic Discovery. See Preface, (page i). The Sedona Conference (January 2008), 5. The Sedona Canada Principles: Addressing Electronic Discovery. See Introduction, (page 5). The Sedona Conference (January 2008), 6. The Sedona Canada Principles: Addressing Electronic Discovery. See Introduction, (page 1). The Sedona Conference (January 2008), 7. Fourth Annual Litigation Trends Survey Findings, Fulbright & Jaworski L.L.P. (2007), 8. Excerpted from Nancy Flynn, The e-policy Handbook, Second Edition, New York, AMACOM, Archiving in the SMB, Enterprise Strategy Group (2008). See also Archiving: A Business-Critical Application, MessageLabs White Paper (2009), The Cost of Data Loss, Pepperdine University (2003). See also Archiving: A Business-Critical Application, MessageLabs White Paper (2009), Tamzin Matthew, Archiving and the Law, Blake Lapthorn Tarlo Lyons, PowerPoint presentation (March 27, 2007), See also Nancy Flynn, The e-policy Handbook, 2nd Edition, New York, AMACOM, Excerpted from Nancy Flynn, The e-policy Handbook, Second Edition, New York, AMACOM, Fourth Annual Litigation Trends Survey Findings, Fulbright and Jaworski L.L.P. (2007), Electronic Business Communication Policies & Procedures Survey from American Management Association and The epolicy Institute. Contact epolicy Institute Executive Director Nancy Flynn for survey details, epolicyinstitute.com. 15. Excerpted from Nancy Flynn, The e-policy Handbook, Second Edition, New York, AMACOM, Copyright 2009 Symantec Corporation. All Rights Reserved. MessageLabs and the MessageLabs logo are registered trademarks and Be certain is a trademark of MessageLabs Ltd. and its affiliates in the United States and/or other countries. Other products, brands, registered trademarks and trademarks are property of their respective owners/companies 6
7 >www.messagelabs.com >US and Canada: >AMERICAS >UNITED STATES 512 Seventh Avenue 6th Floor New York, NY USA T: >CANADA 170 University Avenue Toronto, ON M5H 3B3 Canada T: >Asia Pacific >HONG KONG Room 3006, Central Plaza 18 Harbour Road Tower II Wanchai, Hong Kong T: >SINGAPORE 6 Temasek Boulevard #11-01 Suntec Tower 4 Singapore T: >JAPAN Akasaka Intercity Akasaka Minato-ku, Tokyo Japan T: >Europe >UNITED KINGDOM 1270 Lansdowne Court Gloucester Business Park Gloucester, GL3 4AB United Kingdom T: +44 (0) >LONDON 40 Whitfield St London WIT 2RH United Kingdom T: +44 (0) >NETHERLANDS Teleport Towers Kingsfordweg GR Amsterdam Netherlands T: +31 (0) >BELGIUM / LUXEMBOURG Culliganlaan 1B B-1831 Diegem Belgium T: +32 (0) >GERMANY, AUSTRIA, SWITZERLAND Feringastraße Unterföhring Munich Germany T: +49 (0) >AUSTRALIA Level Kent Street, Sydney NSW 2000 Australia T:
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