Cloud Computing and RFID - Data privacy at stake?

In the midst of refining my research, I have stumbled upon this interesting write up that generally narrates about cloud computing. Most of the issues discussed were on data privacy, security and less on liability. The regime was largely focusing on the United States. There are also several interesting discussions that have taken place. One of them, lately, is Microsoft's proposal towards potential legislative reform on cloud computing. The proposal seems to be intuitive, yet, needs added substance. Especially, how, the third (3rd) countries and other continents / regimes response towards the reform. It would be very much interesting to witness what shall be the legal impact of a service provider based in the US, which is outsourced by a company in a country (within South East Asia contour) where both countries have had not reached the adequate data protection under the EU data protection standards (EC 95/46 Directive). In corresponding to that, the company manages RFID deployment for its client / customer (which is a governmental agency). Question: How cloud computing liabilities respond? And how the data protection laws apply? And when to draw the technical compliance, information security and risks between these? It needs some brainstorming and rethink.

Maybe, as a start. Johnathan Zittrain of Harvard Law School's article on: "Lost In The Cloud" is a recommended casual reading.

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