Data processing agreements and data sharing agreements are two legal documents that are becoming increasingly important due to the growing focus on data protection and privacy regulations. These agreements serve different purposes and it is essential to understand the differences between the two before entering into either agreement.
What is a Data Processing Agreement?
A data processing agreement (DPA) is a legal document that establishes the relationship between a data controller and a data processor. In simple terms, a data controller is an entity that determines the purposes for which personal data is collected and processed, while a data processor is an entity that processes personal data on behalf of the data controller.
A DPA sets out the terms under which a data processor will process personal data on behalf of the data controller. These terms will typically include provisions covering:
– The type of data that will be processed
– The purposes for which the data will be processed
– The duration of the processing
– The security measures that will be implemented to protect the data
– The data processor`s obligations in relation to data breaches
– The data controller`s right to audit the data processor`s compliance with the agreement
– The data processor`s obligations in relation to data subject requests.
What is a Data Sharing Agreement?
A data sharing agreement (DSA) is a legal document that is used when two or more entities wish to share personal data with each other. The purpose of a DSA is to establish the terms under which the data will be shared, and to ensure that the data is processed in compliance with relevant data protection and privacy regulations.
A DSA sets out the terms under which personal data will be shared between the parties. These terms will typically include provisions covering:
– The type of data that will be shared
– The purposes for which the data will be shared
– The legal basis for the data sharing
– The security measures that will be implemented to protect the data
– The duration of the data sharing
– The parties` obligations in relation to data breaches
– The parties` obligations in relation to data subject requests.
Differences between a Data Processing Agreement and a Data Sharing Agreement
The key difference between a DPA and a DSA is that a DPA is used when a data controller engages a data processor to process personal data on its behalf. On the other hand, a DSA is used when two or more entities wish to share personal data with each other.
Another difference between the two agreements is that in a DPA, the data processor is acting on behalf of the data controller and is processing the data for the data controller’s purposes. In a DSA, the parties are sharing the data for their own separate purposes.
Conclusion
In summary, while both data processing agreements and data sharing agreements have their unique uses, it is crucial to understand the differences between them before entering into either agreement. A data processing agreement is used when a data controller engages a data processor to process personal data on its behalf, while a data sharing agreement is used when two or more entities wish to share personal data with each other. Whatever agreement is necessary for your organization, it is important to ensure that the terms of the agreement are precise and legally binding to ensure that compliance with data protection and privacy regulations are met.