InformationWeek: Actually the question of where data resides could become more critical, not less, as cloud computing becomes the norm. Just as the Internet revolution sparked a re-thinking of entire fields of law that is still ongoing today, the spread of the cloud will require new ways of thinking about jurisdiction, local laws, and the concept of residency. Think about it: what if a company stores sensitive information in a data center located in, say, the Philippines, which has much laxer laws and regulations about privacy protection than the United States. Whose laws apply?
Or, say a blogger is based in the U.K., which has notoriously stringent libel laws, but her data is stored in a data center in Hong Kong, where libel is exceedingly difficult to prove (and which has its own hybrid system of law due to its unique status within the People’s Republic of China). You get the idea.
Yeah, I do. And, as an attorney, I'm not sure now to analyze the situation. I'm sure that Glenn "Instapundit" Reynolds has given this issue some thought and has probably authored some articles on the subject. I'll shoot him an email and see if he can offer any insight.