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The guys kick off the week by discussingthe new requirement for California businesses to provide identity theft solution services after data breaches. They then answer the question, "We developed some IP for clients and could not decide on who owns the IP. As a result, we decided to jointly own it. Should I be worried about the client if they go under or get sued?" Full Podcast Transcript NASIR: All right. Welcome to our podcast where we cover business in the news and answer some of your business legal questions that you, the listener, can send in to ask@legallysoundsmartbusiness.com. My name is Nasir Pasha. MATT: And I'm Matt Staub. NASIR: Matthew Staub is joining us once again today to our Legally Sound Smart Business podcast. Very fun. MATT: Happy to be back. 104th straight of episode for me being the guest. So, until you have somebody better, I guess it'll just be me. NASIR: I'm just waiting to see if we can get some positive response from our listeners. Still waiting for that to make sure you become a permanent part of the show. MATT: Over a hundred episodes. It had to have been over a year now at this point too, right? I'm trying to remember. NASIR: No, it hasn’t been quite a year yet, but I just wish someone would give – I mean, instead of all the negative feedback I get for you, I just wish somebody would just give one positive comment – just one would be good enough, you know? MATT: All bad? NASIR: Yeah, it’s been all bad, but I love the feedback. We get a ton of feedback – a ton – but just all negative about you. So, that's okay. MATT: Ugh. I'll work on it, I guess. This will be the episode, I think this is the one I’m going to turn people on, and what's a better way to do it than talking about data breaches? That’s an exciting topic that everyone wants to hear about. NASIR: Yeah, agreed. MATT: This is California, once again, kind of being the, I guess, early adopter- the first ones to really step forward and do this. So, a little bit of background, in 2002, they were the first state I believe to require businesses to notify people affected of data breaches which seems ridiculous now that, prior to 2002, you could just have data breaches as a business and not tell anyone. It seems pretty important but I guess, over ten years ago, things were a lot different but still that's far enough in time where they should have been telling people beforehand. But, anyways, now California is going to be the first one again to require businesses to provide free identity theft prevention services to people affected by a data breach. It’s credit monitoring in fraud resolution services. I think it span in one year in length. I don’t know if this just the way this is worded or if it only does apply to California residents, but it's at no cost to California residents. I would think it might expand further than just people from California but I don’t know. It’s a little bit vague on how that works out. NASIR: Well, what it does mean is, if you are operating even outside California and some of these data breaches affect California residents,, then you may be subject to this law, but I'd like to look into more on how that actually can be implemented because you know there are aspects of states rights vs federal rights whether states can actually regulate interstate activity and especially if you're not actually necessarily operating in that state but may have customers in that state, it might be a different issue. But, you know, you mentioned California taking the lead on this and that's one really cool thing about being a licensed lawyer in California because we operate in different states around the country and one thing about California is that they are always on the forefront with many different laws and they do set trends and they do set items that sometimes don’t work and other states don’t follow because basically they look to California to see how it can work out. MATT: You're right.