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Security of sensitive information in Data Room
A majority of companies utilize data rooms to share sensitive documents with clients and partners. Data rooms are commonly utilized to facilitate due diligence in deals but they can also be used for other purposes such as internal audits. The sensitive information shared in a data space could include things such as customer records, patents financial information, as well as other documents of a business that are highly confidential.
With such a large amount of sensitive information being transmitted via unsecure channels, it’s crucial to find ways to safeguard it. It is vital to guard documents from being copied and pasted without the author’s permission. This can be a problem for companies that rely on their intellectual properties to generate revenue. This risk can easily be mitigated using virtual data rooms that have DRM controls at the file level.
If, for example, the fictional company Y2B Computers used a dataroom to share its design specifications with production firms to manufacture their laptops, they would have maintained control over the technology and prices they were offering. Since Y2B did not have data rooms to share information with production firms, a different company decided they would build their own laptop. Within a couple of months their knockoff was appearing on the shelves at a fraction of the cost and consumers a fraction of what Y2B had charged for their original design.
Virtual data rooms are becoming popular as a means companies can protect their information. These are websites that allow users to upload and access private documents. Some platforms provide features such as audit logs and granular permissions that record who has accessed and when. documents.