Companies Must Protect Computer Systems to Avoid Liability Advises Wildman Harrold.

Business Editors/Hi-Tech & Government Writers

CHICAGO--(BUSINESS WIRE)--Sept. 16, 2003

Law Firm Forms New Business Continuity and Security Practice Group to Protect Companies from New Liabilities Faced in the Post-9/11 Era

Amidst warnings of new vulnerabilities in the Windows operating system and the threat of a possible new "blaster" virus, yesterday Microsoft Chief Executive Steve Ballmer called for the software industry to intensify innovation efforts to stop the spread of malicious computer code. Individual companies using susceptible software also need to be vigilant in protecting themselves and others. Companies affected by viruses may be surprised to learn that they can be held liable for any damage viruses cause their suppliers' and clients' computers.

"When you participate on the internet, you're network communicates with other networks," explains Bill Cook, a partner at the law firm Wildman Harrold and a nationally recognized expert in information security law and computer and network security liability issues. "The vulnerabilities in your systems quite often cause damage downstream. Companies need to make sure from a corporate due diligence standpoint that they've taken the necessary preventative steps to make sure they're not the tool used by a terrorist or hacker to create downstream damage."

"Downstream liability" -- what the above scenario is called in legalese -- is just one of a growing number of complex and technical legal/security issues corporations should be concerned with in the post-9/11 marketplace. Other issues include knowing whether-or-not U.S. regulators will view the company's compliance programs as adequate; what a company's liability risks are; properly addressing work place issues such as internet and email usage, protection of intellectual property, work place privacy and sexual harassment; and knowing if the company's information sharing program with federal and state agencies, as well as other businesses, create Freedom of Information Act and anti-trust implications.

The government's new, complex regulations have been designed to protect our country's business infrastructure from hostile attacks and intrusions, but they also place additional burdens on corporations in virtually every industry and especially academia, banking & finance, chemical, defense, healthcare, insurance, pharmaceutical, public utilities, retail, securities, telecommunications, and transportation.

Conducting an internal security audit to uncover vulnerabilities and assess compliance needs in light of the newest federal regulations and litigation eventualities is the first thing a company should do to protect themselves, advises Cook.

Cook, a former Justice Department Counter-Espionage and Counter-Terrorist Regional Coordinator, leads the new Business Continuity and Security Practice at Wildman Harrold. For more than fifteen years, Cook has been involved in every aspect of this developing area. He has testified before congress and drafted model business compliance standards on various business continuity and security issues. He has also previously met with the National Security Council at the White House to discuss the issues. Cook is scheduled to speak at the General Accounting Office on October 1 and 2, 2003 in Washington D.C. His speech will focus on information security laws and how to protect critical infrastructure information as well as new security technology ideas that are not widely used by the government at the present time.

Wildman's new Business Continuity and Security Practice group is available to:

-- Analyze the impact of key federal laws and policies including

the National Security plan, Sarbanes-Oxley, HIPAA and

Gramm-Leach-Bliley.

-- Conduct an internal security audit to uncover vulnerabilities

and assess a company's compliance needs.

-- Anticipate and prepare for new regulatory initiatives.

-- Design a workable compliance program that meets government

standards.

-- Influence government rulemaking at the state and federal

levels.

-- Resolve civil and regulatory disputes arising from business

security issues.

-- Design workable internal employee guidelines that protect

intellectual property and work place environment.

-- Provide immediate legal response to computer intrusions and

theft of electronic information, including conducting internal

and network investigations and pursuing criminal referrals.

-- Draft and review policies and procedures and conduct risk

assessments to ensure adequate protection of electronic

information.

-- Litigate cases involving compromises of information or network

security, including civil theft of trade secret cases and

criminal cases or referrals under the Economic

"We realized that the regulatory landscape was getting so complex that our clients needed a team of advisors dedicated to helping them understand and comply with these new laws," explained Bob Shuftan, managing partner of Wildman Harrold. "We want to educate our clients about these new business challenges and let them know that we should be their first call when they face computer intrusions or theft of electronic information."

Wildman Harrold is a full service firm with a broad national and international practice and more than 200 attorneys practicing in Chicago, Lisle, IL and London. To download or request a brochure about the new Business Continuity and Security Practice, please visit the firm's website at www.wildmanharrold.com.

Editor's Note: Bill Cook and other members of the Business Continuity and Security practice are available to discuss how companies can protect themselves in this complex new regulatory environment. Please contact John Hellerman (202.966.5253; [e-mail]) to arrange interviews.