Business Law Journal

In an eleventh-hour ruling made shortly before enforcement of the California Privacy Rights Act’s regulations was set to begin on July 1, a California judge has delayed enforcement until March 29, 2024.  The delay reduces the pressure on businesses who had been facing potential enforcement of unfinalized regulations.  However, the ruling is not a complete reprieve as the delay does not affect enforcement of the statute itself which can still be enforced as of July 1 by both the California Privacy Protection Agency (“CPPA”) and the California Department of Justice.  

A federal magistrate judge in the Northern District of California recently rejected a Chinese company’s attempt to invoke China’s recent Personal Information Protection Law (“PIPL”) to limit discovery obligations in the United States.  In Cadence Design Sys., Inc. v. Syntronic AB, No. 21-cv-03610-SI, United States Chief Magistrate Judge Joseph C. Spero refused to limit the PIPL’s legal obligations exception to Chinese laws and China-recognized orders.  On June 24, 2022, the Court denied defendants’ motion for reconsideration of the Court’s earlier order compelling Defendant Syntronic (Beijing) Technology R&D Center Co., Ltd. (“Syntronic Beijing”) to produce computers in the possession and custody of defendants in China, for inspection in the United States.  While on its face China’s PIPL would seemingly prohibit production of these China-stored computers into the United States without the consent of current and former individual employees (who have refused to consent), the Court ruled that its order in the case created a legal obligation sufficient to invoke the legal obligation exception under PIPL Article 13.