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- videocam On-Demand Webinar
- signal_cellular_alt Intermediate
- card_travel Commercial Law
- schedule 90 minutes
Lessons From the CrowdStrike Outage: Reviewing and Strengthening IT Service Level Agreements and Contract Remedies
Preserving Right to Seek Indirect, Consequential, and Special Damages in IT Service Agreements
Welcome to BARBRI, the trusted global leader in legal education. Continue to access the same expert-led Strafford CLE and CPE webinars you know and value. Plus, explore professional skills courses and more.
About the Course
Introduction
This CLE webinar will offer strategies and best practices counsel can apply in negotiating and structuring agreements with IT service providers in the wake of the CrowdStrike incident. The panel will discuss the key contractual provisions and mechanisms to include in these agreements.
Description
On July 19, 2024, organizations throughout the world experienced serious disruptions to their operations when businesses and individuals were unable to log onto devices and accounts for prolonged periods. The technology outage was traced back to a security update pushed out by CrowdStrike, a cybersecurity company, that caused the Microsoft Windows operating system to crash.
Business losses tied to the outage are anticipated to include disrupted operations, loss of revenue, loss of business opportunities, recovery costs, legal fees, and loss of customer and investor confidence, among others. All of these can lead to contractual and indemnity issues, and many organizations are examining the possibility of contractual recourse for the CrowdStrike incident.
The IT industry commonly limits or excludes liability for indirect, consequential, and special damages in agreements. And many IT contracts also do not allow third parties to benefit from any protections between the service provider and customer. CrowdStrike's terms and conditions contained these traditional exclusions, as well as other caps on liability. As a result, many anticipate that CrowdStrike's terms and conditions will largely protect it against damages claims brought in litigation.
In response, and to mitigate or avoid the serious impacts of service disruptions like the CrowdStrike outage in the future, counsel should review and strengthen service level agreements and contractual remedies to protect clients against devastating losses tied to future IT outages.
Listen as our panel of experts discusses the implications of the CrowdStrike outage for tech-reliant businesses and provides critical insight into the contractual mechanisms that can be used to protect clients against the impacts of future IT outages and failures.
Presented By
Ms. Kennedy is a Technology, Transactions, Cybersecurity & Privacy Practice Group member within the firm’s Intellectual Property Department. She provides counsel on structuring and negotiating technology agreements to create strategic and advantageous business relationships between companies. Ms. Kennedy has experience drafting and negotiating commercial agreements, including intellectual property licenses, software-as-a-service agreements, distribution agreements, master services agreements, non-disclosure agreements, and technology transfer agreements. She also has experience structuring and addressing the intellectual property components of mergers and acquisitions and other corporate transactions.
Michael R. Overly is a partner and intellectual property lawyer with Foley & Lardner LLP where he focuses on drafting and negotiating technology related agreements, software licenses, hardware acquisition, development, disaster recovery, outsourcing agreements, information security agreements, e-commerce agreements, and technology use policies. He counsels clients in the areas of technology acquisition, information security, electronic commerce, and on-line law. Michael is a member of the Technology Transactions, Cybersecurity, and Privacy and Privacy, Security Information Management Practices. Michael is one of the few practicing lawyers who has satisfied the rigorous requirements necessary to obtain the Certified Information System Auditor (CISA), Certified Information Privacy Professional (CIPP), Certified Information Systems Security Professional (CISSP), Information Systems Security Management Professional (ISSMP), Certified Risk and Information System Controls (CRISC), and Certified Outsourcing Professional (COP) certifications. Mr. Overly’s numerous articles and books have been published in the United States, Europe, Korea, and Japan. He has been interviewed by a wide variety of print and broadcast media (e.g., the New York Times, Los Angeles Times, Business 2.0, Newsweek, ABCNEWS.com, CNN, and MSNBC) as a nationally recognized expert on technology and security related matters. In addition to conducting seminars in the United States, Norway, Japan, and Malaysia, Mr. Overly has testified before the U.S. Congress regarding online issues.
Mr. Tantleff is a partner at Foley & Lardner LLP and a recognized authority in technology transactions, cybersecurity, and data privacy. Drawing on his prior experience as global director of intellectual property for a NASDAQ-listed information technology company and acting associate general counsel for an NYSE-listed consulting firm, he brings rare fluency in the commercial, operational, and legal dimensions of enterprise technology to boardroom and C-suite engagements. Mr. Tantleff's practice spans privacy and cybersecurity compliance and incident response, outsourcing, IP licensing, open-source strategy, big-data monetization, and strategic transactions. He is also at the forefront of the Firm’s artificial intelligence advisory capabilities, counseling companies, boards, and executive teams on strategic AI governance and adoption, including the design and analysis of agentic AI systems, AI agent testing and evaluation, AI-related contracting, and the development of frameworks that align AI initiatives with evolving regulatory, ethical, and commercial standards. A sought-after speaker and thought leader on emerging technology risk and resilience, Mr. Tantleff's practice blends hands-on transactional rigor with forward-looking counsel on AI’s transformative role in enterprise strategy.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Live Online
On Demand
Date + Time
- event
Tuesday, October 8, 2024
- schedule
1:00 p.m. ET./10:00 a.m. PT
- CrowdStrike incident overview
- Standard contract provisions in the IT industry
- Limitations of liability
- Exclusion of benefits to third parties
- Software litigation stemming from the CrowdStrike incident
- Case theories
- Anticipated outcomes
- Key SLA/contractual provisions
- Liability caps
- Remedies and compensation for service failures
- Force majeure and exclusions
- Ability to work around technology failures to ensure continuity of critical processes
- Acceptance testing and avoiding "deemed acceptance" clauses
- Indemnity
- Incident response and resolution tailored to customer's business and processes
- Disaster recovery plan requirement for IT service providers
- Business continuity plan requirement for IT service providers
- Termination rights and exit assistance
The panel will discuss these and other key issues:
- What complex legal and business issues should counsel consider when negotiating software agreements in the aftermath of the CrowdStrike outage?
- How can counsel structure agreements with IT service providers to maximize protections to clients in the event of technology outages?
- What are the critical provisions and requirements that should be included in agreements with IT service providers?
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