Business Litigation Made Easy with Virtual Data RoomsAuthor: Kathryn Gaw
Depending which side of the counsel you are sitting on, business litigation has the potential to be a highly costly or lucrative process. Whether it be dealing with breaches of contract, intellectual property or just general disputes, litigation can drag on and often the under preparedness of a business can heavily weaken their position in a court of law.
A good principle to run any business by is to always keep a record of any legal and transactional proceedings that your business has undertaken since inception. During litigation, hundreds if not thousands of these documents can be subpoenaed to a court of law or may just be useful to have access to during or before litigation commences.
In an increasingly digitized world, keeping track of and storing company information should be both simpler and easier than it was twenty years ago, however this is not always the case. Because most business dealings nowadays are online, recording dealings are not as simple as filing a document. Accurate records have to be kept in secure and protected environments where they can be easily accessed, but only by people who have permission to access them.
Most, if not all, businesses make use of data storage solutions to overcome this hurdle. These include using local hard drives, network servers, physically filed documents and cloud services. Each of these solutions has their own advantages as well as drawbacks. Local hard drives can prove to be very costly when your business needs to store high volumes of data and these hard drives also have to be stored, protected and maintained in some physical location for an indefinite amount of time. Network servers take hard drives up a notch by created secured servers through which the stored data can be accessed, but like hard drives, they still require significant set up and maintenance costs. Physical documents have so many drawbacks, it isn’t necessary to list them all here because it’s easy to get an idea of how complicated and messy things could get when filing hundreds of thousands of documents.
The last solution – cloud services – includes a form of online data repository known as a virtual data room. Virtual data rooms have little to no drawbacks while also possessing the ability to drastically simplify document storage for business litigation purposes.
Virtual data rooms are typically run by a virtual data room provider who will then ‘sell’ their software to your business (software as a service) on a monthly contract. Their services can be tailored to each business in terms of the amount of storage needed as well as the interface capabilities required by the business. Virtual data rooms have become increasingly popular in all sectors and across all business functions. For example, during modern business litigation both the businesses involved and the law firms involved will make use of their own virtual data rooms to store, manage and share data relevant to the case.
Virtual data rooms have become the preferred data solution method for a range of business activities included, but not limited to, business litigation because of their ability to provide secured and flexible data storage, an efficient and intuitive interface and to place control over the documents in the businesses hands. They differentiate themselves from other cloud computing services by making use of military-grade data security and protection services that can include using their own data centers.
The virtual data room platform allows businesses to upload and organize troves of information which can be controlled, monitored and accessed from any device with an internet connection, provided you have the secure logon and viewing permissions to do so. Once a virtual data room for business litigation has been set up, all subsequent dealings can be sequentially uploaded and stored so that in the event they are needed for litigation purposed, they can be accessed and made available to the relevant parties.
Virtual data rooms are optimal for storing data for business litigation purposes because you can be assured that no data will be lost, damaged, altered or stolen due to the security features employed by providers. Backing up data is imperative to any business litigation. Being able to easily access it just expedites the entire process and will save you money in the long run.