TECHNOLOGY, OUTSOURCING, AND COMMERCIAL TRANSACTIONS
NEWS FOR LAWYERS AND SOURCING PROFESSIONALS

California Governor Jerry Brown recently signed into law AB 129, a bill intended to ensure that the use of various forms of alternative currency does not violate California law. Section 107 of the California Corporations Code, which previously prohibited an individual or corporation from issuing or putting into circulation “anything but the lawful money of the United States,” was repealed under AB 129 to clarify that the code does not prohibit the issuance and use of alternative currency.

With the cloud and other solutions changing the ways that companies provide and consume IT and do business, it is fascinating (and important) to think about what data centers and IT organization will look like in 10 years. How does emerging technology and innovation change the way you plan for and contract for data center–related services? Think about it: will there be less internal infrastructure because of cloud offerings but a greater focus on security and data? Will shorter terms increase the ability to stay flexible and dynamic? What happens to disaster recovery and business continuity?

It is important to think about the effect of long-term visions on real-time or short-term contracting requirements. Emerson offers an interesting view of the state of data center operations in 2025 in its Data Center 2025 report.

More companies are outsourcing recruitment process functions or are, at least, starting to consider the value of outsourcing these functions. When working with internal or external clients to evaluate recruitment process outsourcing (RPO) or negotiating RPO contracts, it is important to understand the RPO market. An interesting trend highlighted by the Everest Group in its RPO Annual Report 2014 is an increase in multicountry RPO engagements. Check out the report.

The Food and Drug Administration (FDA) recently issued a new draft guidance announcing the FDA’s intent to not actively regulate medical device data systems (MDDS), medical image storage devices, and medical image communications devices. This latest development appears to be the next step in the FDA’s overall deregulatory approach for health IT devices and associated software. Once finalized, the guidance, which was issued on June 20, will also have important device tax implications for manufacturers of MDDS and other health IT devices no longer subject to device registration and listing requirements.

More details regarding the draft guidance can be found in an update published by Morgan Lewis’s FDA Practice.

Your experiences may be different, but the excusable events that we see in force majeure clauses vary widely—from specific events that could not have been prevented to any event beyond a party's reasonable control. We spend a lot of time thinking about which events—from a customer's perspective in an IT services contract—should be excused and under what circumstances. Set forth below are three questions that should help in drafting force majeure clauses:

Snapchat, a popular smartphone application, recently settled with the Federal Trade Commission (FTC) over allegations that the app misrepresented material elements of its program to the public.

Just when we were getting used to the "cloud" way of things, new buzzwords are emerging to brand solutions that may replace (or more likely enhance) cloud computing. Two of these solutions—"fog" computing (Cisco) and computing pushed toward "the edge" (IBM)—were the topics of an interesting article recently published in The Wall Street Journal called “Forget ‘the Cloud’; ‘the Fog’ Is Tech’s Future” (subscription required). The article emphasizes that although “cloud advocates are fond of declaring that 100% of computing will someday reside in the cloud . . . [h]ere's the reality: Getting data into and out of the cloud is harder than most engineers, or at least their managers, often are willing to admit.”

As the outsourcing industry matures and contracts run their full cycles, we have seen an influx of deals that are expiring or up for renegotiation or resourcing. How can legal and sourcing leads prepare for an upcoming renegotiation or resourcing project? Read on for three tips to help get a leap on these projects.

As part of Morgan Lewis's Technology May-rathon webinar series, Antitrust partners Will Tom, Clay Everett, and Jonathan Rich will discuss lessons from Bazaaarvoice/PowerReviews, Integrated Device Technologies/PLX Technology, and other challenges to high-tech mergers brought by the Department of Justice and Federal Trade Commission in recent years.

This webinar will be held today, Thursday, May 15, from 1 to 2 p.m. Sign up here >

We recently hosted our 8th annual Women in Shared Services and Outsourcing Executive Roundtable in New York. More than 50 women from across the United States attended the May 8 event, representing a wide range of industries, including financial services, consumer products, energy, and life sciences.