The decision to terminate an agreement cannot be taken lightly. In exercising the option, understanding the key terms of the agreement and necessary steps to effectuate the termination are critical. As we have previously highlighted in past Contract Corners, termination provisions may include a variety of mechanisms built into them and one cannot assume that all termination provisions require the same steps to be taken. When considering a termination, a party must take the time to assess the actual termination rights under the agreement, what, if any, notice period will apply, and whether the termination will result in any payment or other obligations.
Tech & Sourcing @ Morgan Lewis
TECHNOLOGY TRANSACTIONS, OUTSOURCING, AND COMMERCIAL CONTRACTS NEWS FOR LAWYERS AND SOURCING PROFESSIONALS
Please join us on Wednesday, February 8, 2023, at 12:00 pm–1:00 pm ET, as Morgan Lewis partner Peter Watt-Morse and associates Katherine O’Keefe and James Mulligan discuss issues unique to Anything as a Service (XaaS) agreements and important factors for service providers and their customers to consider.
As we reach the end of the year 2022, we have once again compiled all the links to our Contract Corner blog posts, a regular feature of Tech & Sourcing @ Morgan Lewis. In these posts, members of our global technology, outsourcing, and commercial transactions practice highlight particular contract provisions, review the issues, and propose negotiating and drafting tips.
The European Union (EU) Commission released its Draft Adequacy Decision for the EU-US Data Privacy Framework on December 13, which, in conjunction with President Biden’s executive order issued on October 7, will further facilitate trans-Atlantic data flows. The Draft Adequacy Decision mirrors the executive order, which established safeguards relating to the handling of personal information in the course of signals intelligence activities. If and when adopted, the adequacy decision will impact contractual requirements and processes by restoring data flows through a new Trans-Atlantic Data Privacy Framework.
Please join us on Wednesday, December 14, 2022, at 12:00 pm to 1:00 pm ET, as Morgan Lewis partner Doneld G. Shelkey and associates Charlotte Roxon and Jesse R. Taylor explain the metaverse and current projects and initiatives, including blockchain-related transactions, that are laying the foundation for this new virtual space.
Although data security concerns may have held back early adoption, the COVID-19 pandemic accelerated cloud usage and digital transformation within public service organizations in many countries around the world. In a recent study, Accenture surveyed 364 public service executives at both the local and federal levels in six countries—Australia, Canada, Germany, Singapore, the United Kingdom, and the United States—to learn about the public sector’s cloud adoptions strategies.
On September 22, the Office of Communications (Ofcom)—the United Kingdom’s communications regulator—announced and released a program of work stating its intention to examine the position of the largest providers of cloud services (known as “hyperscalers”) in the United Kingdom’s £15 billion ($16.7 billion) cloud services market.
The German Higher Regional Court of Karlsruhe (OLG Karlsruhe) recently repealed the July 13, 2022, decision of the Procurement Chamber of the German state of Baden-Württemberg that had argued that the mere risk of access to personal data stored in the European Union by US authorities would constitute a data transfer that would not comply with the EU General Data Protection Regulation (GDPR).
The financial services regulations relating to outsourcing by Luxembourg-headquartered financial institutions have been significantly simplified by the introduction of the Commission de Surveillance du Secteur Financier (CSSF) outsourcing circular CSSF 22/806 (Outsourcing Circular).
On July 18, 2022, the UK government published high-level proposals for its approach to regulating uses of artificial intelligence (AI), as part of its National AI Strategy and, more broadly, its UK Digital Strategy. The government is seeking public views on the approach, which is contained in a policy paper; a more detailed White Paper will be published in late 2022.