Protecting Sensitive Information in Data Room
Many companies use data rooms to share sensitive documents with partners and clients. They are generally used to help support due diligence during deals, but can also be utilized for other purposes like internal audits. The sensitive information stored in a data room can include things like patents, customer records, financial details and other highly confidential business documents.
It’s important to protect sensitive information that is transferred through unsecured channels. It is important to protect files from being copied, or pasted without author’s permission. This could be a major problem for companies that depend on their intellectual property to drive revenue. This risk can be mitigated by using virtual datarooms with control of the file level for DRM.
For instance, if fictitious company Y2B Computers had used a data room to communicate their design specifications to production companies to produce their laptops in the first place, they would have been able to keep control of the technology and price at which they were selling. However, because Y2B did not utilize a data room to share their data with production companies, a third company decided to cut out the middleman and develop their own version of the laptop. Within a few months the knockoff appeared on the shelves at a fraction of the cost and consumers a fraction of the price Y2B was charging for their original design.
Virtual data rooms are becoming popular as a means companies can protect their information. These are platforms online that permit users to upload and access private documents. Some even have features like more granular permission settings as well as audit logs that track who has accessed what and at what time and date.