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eDiscovery News

Moving from data hoarding to data management

February 21, 2012

Data hoarding has become a serious issue among media management professionals as anxiety and uncertainty have inspired increasingly conservative approaches to record retention. Although many assume that all-inclusive storage plans limit liability, such strategies may actually introduce new vulnerabilities.

"Even ignoring [eDiscovery] costs, the cumulative infrastructure and operational costs of hoarding data and data media are enormous," Law Technology News columnist Anne Kershaw explained in her latest report. "Many organizations have hundreds of thousands of unneeded tapes and terabytes of electronic files that have not been looked at in years, incurring significant backup, maintenance and storage costs."

The fear of data spoliation sanctions is understandable - particularly amid a climate of economic uncertainties. According to the New York Law Journal, broadcasting company EchoStar Satellite was penalized late last month after an appeals panel ruled that the organization had not amended its email retention protocol in anticipation of impending litigation. While EchoStar argued that the statute invoked did not clearly define how it could have "reasonably anticipated" the lawsuit, its protests were overruled.

However, simply saving everything will only provide a false sense of security, according to Kershaw. To take the first steps toward more efficient and responsible media management, companies must first take stock of the legacy data sources they are storing. Next, managers must determine which information is either subject to litigation hold or under retention schedule. Once these frameworks are established, all other information that has no separate business reason for storage should be queued up for responsible destruction.

In doing so, companies can consolidate their data stores to not only cut down on operating expenses, but also reduce the scope of what must be disclosed in future litigation proceedings. However, before finalizing these augmentations to media management protocol, Kershaw encourages companies to seek out independent experts that can ensure compliance has been achieved before data destruction processes are authorized.