Who Pays For Lost Data?

The prospect of a $54 million laptop is creating a stir across the technology industry.

To be clear, there really isn't an actual $54 million laptop, but a Washington, D.C., woman has filed a lawsuit for that amount against Best Buy for losing her notebook after she handed it off to the retailer's Geek Squad repair service. While the number is no doubt ridiculous, Raelyn Campbell says she filed the lawsuit for such an extreme amount to get Best Buy's attention.

LARRY HOOPER Can be reached via e-mail at lrhooper@cmp.com.

Clearly, if what Campbell says about Best Buy is true, the retailer does bear some responsibility for the loss of the notebook. And according to the lawsuit, it seems that Best Buy has offered Campbell enough money to buy a new notebook. But Campbell says the lawsuit is aimed higher. She wants Best Buy to take responsibility for the loss of the data on her hard drive. More important, she wants Best Buy to take responsibility for any damage caused by the release of that data. Campbell asserts that Best Buy did not take precautions to see that the data on her hard drive was protected from theft, and thus subjected her to the possibility of identity theft.

Campbell's assertion that Best Buy should be held responsible for the data on her hard drive takes the discussion to a whole new level. If she is successful with her claim, the implication for solution providers and all service operations is significant.

If through negligence, a service provider loses data by theft or another means, should that service provider be held responsible? Is it any different from a government agency or financial institution losing a laptop with private data on thousands of people? What about if a hard drive is lost or accidently erased, can a customer sue for the loss of data? What if the drive fails? Does this open up the possibility of holding drive manufacturers responsible?

Hiding behind clauses in contracts, the supposition sounds silly to those of us in the technology industry.

But the bulk of the discussion on the Web leans toward supporting Campbell in her charge that service providers should be held responsible for the data on the systems they repair.

The fate of your service operation could very well be in the hands of Best Buy.

Can you answer the $54 million question? Let me know what you think in the comment field below.

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