Computers in Désastres

The following text is extracted from a circular letter to finance companies issued on 18th July 2002 in relation to computer equipment held in Désastres. It gives guidance on how the Viscount will treat that equipment.

We have recently been reviewing our procedures in relation to the sale of computer equipment following the declaration of a désastre.

You will be aware that all property of a person or company declared “en désastre” (“the désastre entity”) vests in the Viscount. That property includes both physical and intellectual property. In relation to a computer, this will include the hardware and any data or software belonging to the désastre entity.

We have in the past relied upon proprietary software to erase data from hard drives. With increasing awareness of issues relating to confidentiality, data protection, and the use of non-transferable non-exclusive licensed software, and also the ability of persons and/or software able to retrieve "erased" data, the Viscount is of the view that it is no longer satisfactory to erase data from storage media, but rather the storage media needs to be removed and retained at the Viscount’s discretion.

In the circumstances, this Department’s general policy from the date of this letter onwards will be to remove from computer equipment that storage media upon which property deemed to vest in the Viscount resides. Given the low cost of replacement storage media, this should not significantly impact upon the commercial value of the equipment sold. The purpose of writing to you is firstly to ensure that you are aware of the new policy of this Department, and secondly, to enable you to relate this policy to those situations in which computer equipment is covered by a finance agreement entered into by the désastre entity and a finance company.

Where title to the computer equipment has not passed to the désastre entity, it appears to us that there are two options available to a finance company. The first is to allow the Viscount to sell the property, account to the finance company for the net proceeds, and for the finance company to put a claim in the désastre for any outstanding amounts on the relevant finance agreement. The second is to seek return of the computer equipment in order that the finance company can make use of that equipment, by sale or otherwise. In either case, the Viscount will have no alternative but to remove the hard drives (“the storage media”) from the computer equipment, if they are perceived to contain property deemed to be that of the Viscount.

It strikes us that finance companies will be as aware of the issues surrounding security and the non-transferability of software licences as is the Viscount. In most circumstances the Viscount feels that a finance company would not itself sell computer equipment with the original hard drives, but would similarly remove and (in this case) destroy them.

In the circumstances, we anticipate that you will understand the need for us to remove the storage media, and that this will be considered by a finance company as a small part of the commercial risk attached to equipment provided under a finance agreement.

Finally, and in addition, you would be required to sign Form C (below) by way of receipt for goods received back from the Viscount.

Form C

COMPUTER EQUIPMENT OF xxxxxxxxxxxxx LIMITED

“en désastre”

Serial Number
Make/Model:
Additional Information

The hardware, and any software or data therein contained, in the equipment above listed (the “Equipment”), which belongs to the Owner named below is released by the Viscount pursuant to the order of the Royal Court made on [Date of declaration].

It is understood and accepted by the Owner that the Equipment is transferred as seen with no warranties or representations express or implied as to its functionality or usability and that the Viscount retains any storage media which contains data belonging to the Viscount and/or a third party.

The Owner further accepts and agrees that the Viscount does not accept any liability whatsoever for any direct, indirect or consequential loss or damage, foreseeable or unforeseeable, arising in any way from any use of the Equipment or use or reliance placed on any of the information which is or may be accessible and/or retrievable on the Equipment for any purpose.

I have read and accept these conditions.

____________________	___________________
Name of Owner	Signature
____________________	___________________
Viscount Substitute	Signature
Dated this ____________________ 200(x)