CLOUD Act Supports Digital Age and Modernizes Dated Privacy Laws

This week, bipartisan legislation to update laws governing access to cross-border data was introduced by Sens. Orrin Hatch (R-UT), Chris Coons (D-DE), Lindsey Graham (R-SC) and Sheldon Whitehouse (D-RI) in the Senate along with Reps. Chris Collins (R-NY), Hakeem Jeffries (D-NY), Darrell Issa (R-CA) and Suzan DelBene (D-WA) in the House. The Clarifying Lawful Overseas Use of Data (CLOUD) Act creates strong standards and emphasizes government-to-government cooperation to address new challenges presented by the digital age.

Creating a legally responsible framework to address concerns of international customers and foreign governments is a critical step for Congress to take to ensure the privacy and security of customer data, while providing law enforcement the tools they need to keep us safe.

Cloud computing is a major growth opportunity for U.S.-based companies selling software and services overseas and a growing technology backbone for small businesses and manufacturers across the United States who are seeking opportunities to sell into overseas markets. Ninety-five percent of the world’s customers reside outside the United States, and the appetite for American-made products and technology continues to be robust, increasingly helping to support well-paying jobs across the country. Industries this week praised the CLOUD Act in a letter to lawmakers.

Digital information moves globally in ways that were never imagined decades ago. Current laws were written in 1986 and have not kept up to speed with technological advances and the connected world in which we live. Connected products, services and the technology of today demand a high level of certainty and stability so that the competitive needs of commerce are appropriately balanced with efforts to thwart international criminals and those who seek to harm our society. The CLOUD Act achieves the right balance, and manufacturers are pleased to see this proposal advance.

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