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Quantum cybersecurity GGS Law Lawers

Post-quantum cybersecurity in law firms

NOTE: This article was first published in Law360 Canada on October 7, 2024

Law360 Canada (October 7, 2024, 3:04 PM EDT) -- Computer science has attracted excessive discussions over the past few years, especially within the legal sector. Technological evolution in artificial intelligence (AI) and other similar technologies continue to impact the legal industry in countless ways, including, but not restricted to, automation of administrative tasks, enabling AI-driven case evaluations and enhancing research and review capabilities. As the law continues to evolve, more sophisticated methodologies are expected to emerge, furthering the transformation of legal practice. Confidentiality is fundamental to the practice of law and is a core ethical obligation that all lawyers and law firms are bound to uphold. Confidential information, once securely stored in physical formats, has been transferred to digital environments. Although lawyers are not traditionally well-versed in digital storage technologies, the legal profession increasingly relies on digital infrastructure to manage and protect sensitive information, raising critical considerations with respect to data security and privacy in the era of pervasive digitalization. In the next few years, lawyers and law firms will experience significant impacts due to the advancements in cybersecurity technology. As cyber threats continue to grow in sophistication, the ability of the legal industry to effectively mitigate these risks remain a pressing concern. The rapid advancement in the methodology of cybercriminals often outpaces the development of cyber defense mechanisms, highlighting an urgent requirement of enhanced cybersecurity measures in law firms.

Law firms’ strategic response to cybersecurity threats

Law firms have seen an alarming rise in sophisticated cyberattacks targeting, in particular, large   law firms. According to a recent survey by Artic Wolf and Above the Law, 39 per cent of respondents reported their firm experienced a security breach in the past year and 56 per cent of those respondents confirmed losing confidential client data — a devastating outcome for any legal practice(Yamri Taddese, “Law Firms Targeted in Top 10 Worst Cyber Attacks.” Canadian Lawyer, April 19,2013). The heightened threat of cybercrime is attributable to cybercriminals leveraging sophisticated computational models, such as quantum computing. Quantum computing allows the possibility of “compromising encryption and public key infrastructure encryption, in particular.” (Haitham Al Jowhari, “Fighting cybercrime in the age of quantum computing.” AGBI, Jan. 25, 2024). Given the many recent cybersecurity breach scandals, law firm sought to significantly enhance their attention and investment in advanced technological solutions to safeguard confidential data. This strategic shift will require law firms to adopt methodologies that mimic the sophisticated models utilized by cybercriminals, given deploying less intelligent systems would be counterproductive.

New Defence against cybersecurity threats: Quantum computing

To effectively counteract the intelligent systems employed by cybercriminals, law firms must evolve beyond conventional defence mechanisms and explore new technologies such as quantum computing. Classical computers use bits, or binary digits, which are the smallest units of data that a computer can store and process. “A bit is always in one of two physical states, similar to an on/off light switch.”(Robert Sheldon, “What is a Bit? (Binary Digit) in Computing?”) Similar to on/off, a bit can be yes/no, true/false and any single binary value such as 0 or 1.Quantum computing though, uses quantum bits, also referred to as qubits. Unlike bits, qubits are confined by single binary values, meaning a qubit can be 0 and 1 or values between those two simultaneously. To illustrate, imagine a coin spinning in the air: when it lands, it is not just heads or tails, it is in a state of being both. This allows qubits to represent multiple possibilities at once, facilitating complex calculations that are impossible for classical computers to process. Additionally, qubits can become entangled, meaning the state of one qubit is able to directly manipulate and influence the state of another qubit, regardless of their proximity. “Entanglement even baffled Einstein, who famously described it as ‘spooky action at a distance.’” (Martin Giles,“ Explainer: What Is a Quantum Computer?” MIT Technology Review). Entanglement allows quantum computers to perform at unprecedented speeds, thereby revolutionizing areas such as cryptography, blockchain, cloud storage and cybersecurity defence mechanisms. “Traditional encryption methods, such as RSA and ECC, rely on the complexity of factoring large numbers” or solving discrete logarithms (Edward Kiledjian, “Introducing Quantum Secure Encryption; Safeguarding the Future of Cybersecurity.” Insights For Success, May 14, 2024) — tasks that quantum computers can perform exponentially faster, thus making these methods vulnerable to interception. In countering this, law firms must adopt quantum-resistant algorithms, also known as post-quantum cryptography. “National Institute of Standards and Technology (NIST) has chosen the first group of encryption tools that are designed to withstand the assault of a future quantum computer, which could potentially crack the security used to protect privacy in the digital systems we rely on everyday — such as online banking and email software. The four selected encryption algorithms will become part of NIST’s post-quantum cryptographic standard, expected to be finalized in about two years.” (“NIST Announces First Four Quantum-Resistant Cryptographic Algorithms,” National Institute of Standards and Technology.) These encryption tools will be able to withstand attacks from both classical and quantum computers, providing a layer of security for confidential data.

Cybersecurity arms race: The catch-22 between law firms and hackers

The integration of quantum algorithms into the practice of law is a change that, while promising, introduces substantial challenges in addition to its potential benefits. While the progress of quantum computing holds the promise of transforming legal analytics, it also escalates the sophistication of cybersecurity threats. Continuously adapting and enhancing security measures to offset the evolving strategies of cybercriminals becomes a requirement. These dynamics present an unavoidable reality: the legal profession shall proactively engage with these emerging technologies. This engagement is not merely an option but a requisite, driven by the fundamental ethical obligation to maintain client confidentiality and safeguard sensitive data.

Conclusion

The integration of quantum computing into law firms’ cybersecurity strategies is crucial in the face of increasingly sophisticated cyber threats. The inevitability of adopting quantum-resistant algorithms within the legal industry is a matter that demands immediate and serious consideration. As quantum computing rapidly advances, its potential to break conventional cryptographic systems, which are foundational to data security, becomes increasingly likely. This looming threat is not a distant hypothetical but a near-future reality, likely to materialize within the next few years. Consequently, law firms — guards of highly sensitive client information — will have to proactively transition to quantum-resistant cryptographic methods to safeguard their data.

Fatima Manzoor

Fatima Manzoor graduated from of the University of Ottawa, Faculty of Law, and is currently completing her articles with us at Green Germann Sakran, where she focuses primarily on corporate law. During her time in law school, Fatima developed a keen interest in the intersection of law and technology, particularly in the areas of artificial intelligence and cybersecurity. She continues to delve into pressing issues surrounding cybersecurity, post-quantum algorithms, and the integration of advanced computing technologies within the legal landscape.

Scotch Fridays – Tune in to the Podcast

Scotch Friday's Podcast Banner


 

Scotch Fridays formed its roots many years ago when our law firm shared office space with Nancy, a brilliant friend of mine. The Scotch Friday tradition evolved in those long ago days when Nancy would saunter over to my office on Fridays, just before the end of the day, and stand at my door and we would share stories about our week. They were more like rants but we enjoyed those afternoons tremendously, and sharing a little scotch was a bonus.

However, my love for story telling goes back to my childhood with my very large extended family and my elders sharing stories about the past. I always liked to listen and ask questions and know more of the details as if I was there with them experiencing it for the first time.

My love of storytelling continued to grow while working with my father in the grocery store in Burlington. "Ontario Variety", as it was known then and now, was a gathering point, a nucleus for the community, before Sunday shopping and the proliferation of grocery stores and 24 hour shopping. It was during simpler times when everyone knew each other and trusted to send their children with notes to go to the local grocer. My dad had the pulse on the community and if you wanted to know anything about what was going on, all you had to do was ask "Norm", my dad. I grew into the same role as my father, the ability to speak with people with ease, to know them and to know their story. Did I mention my dad loved Scotch?

I simply took my love of Scotch and love of Friday rants with Nancy and "voila" - Scotch Friday podcast it is.

I do this because I enjoy speaking with people. I have been criticized for asking too many questions. It's true. I do like to ask a lot of questions, and sometimes, I think "why not?" Let's get to know the person behind their enterprise, behind their title, behind their status, and behind their public persona and let's know their story of how they got to where they're at now and their views on the things that matter to us.

My love for conversation tells me that we are all part of the same fabric. And, I like to think of myself as finding the pattern and the stitch that connects us all. That's Scotch Fridays!

Tune in every Friday afternoon to scotchfridays.ca and listen to stories that matter and entertain you. It’s a great way to start your weekend.

Happy Listening.

Karmel Sakran, managing partner of the law firm of GREEN GERMANN SAKRAN »

COVID-19 Impact on Residential & Commercial Tenancies

Commercial

The Ontario government hasn’t provided any assistance yet to commercial tenants. There is mounting public and media pressure to get something done before April 1st. Media reports have been urging commercial landlords to be lenient with their tenants and show some compassion such as:

  • Rent deferrals;
  • Rent abatements;
  • Alternative pay structure;
  • Short term arrangements.

Read more about COVID-19 impacts on commercial tenancies

Residential

This is a collection of information on what the Province of Ontario is doing or intending to do for residential tenancies in dealing with the fallout of the COVID-19 crisis:

NOTE: Despite Premier Doug Ford’s announcements to protect residential tenants, No formal policy details have yet been unveiled by the government.

Summary:

  • March 19, 2020: Ford announces suspensions of all evictions;
  • March 19, 2020: LTB suspends all hearings relating to eviction applications, the issuance of eviction orders etc…
  • March 26, 2020: The Government of Ontario issued an Emergency Order suspending limitation periods and procedural time periods relevant to tribunal proceedings;
  • March 26, 2020: Doug Ford announced that Ontario tenants who don’t pay rent on April 1st won’t be evicted, but this is only for emergencies. Premier Doug Ford’s point is that people should not have to decide between paying rent and putting food on the table.

Read more about COVID-19 impacts on commercial tenancies

What to To Do With Your Pending Real Estate Deal

(THIS IS NOT LEGAL ADVICE – the discussion is just one lawyer’s observations and views intended for a general audience)

The concern for buyers is that they may be laid off and not have the financial resources to carry a mortgage for an indefinite time after closing until their financial circumstances go back to normal.

It is a real dilemma.

A quick review of the standard OREA purchase and sale agreement shows that it does not contain a “Force Majeure” clause.

Force Majeure is a very unique legal concept that can relieve parties from their contractual obligations – like closing on a real estate transaction - on the narrow and high threshold exception where something not reasonably expected interferes and makes closing impossible or impracticable.

The legal principle is important because it can be used by a buyer who fails or refuses to close on a deal to be released from the contractual obligation to close and secure return of their deposit.

Presently, the virus is a worldwide pandemic that no one could have reasonably expected resulting in such great economic decline, particularly of non-essential products and services – with massive layoffs, financial uncertainty and massive number of EI applications. (See Wikipedia definition of force majeure https://en.wikipedia.org/wiki/Force_majeure)

Even if a buyer is not laid off work, the response to the pandemic has necessitated an economic slowdown so great that most industries are affected resulting in widespread economic uncertainty.

Clearly the State of Emergency called by Cities and Provinces and the looming imposition of the Federal War Measures Act – all speak loudly to the application of a “force majeure”.

Beware, the legal principle of force majeure is not an automatic right. The burden remains on a buyer to argue the application of a force majeure in a court of law if a seller refuses let the buyer out of the binding agreement and/or return of the buyer’s deposit.

Although our office has not yet had a buyer failing or refusing to close, this is a risk as time passes. As we see deals not closing, litigation may follow the end of the pandemic and economic recovery.

So, what should realtors do in the meantime to protect themselves and their clients?

There are two clauses you should advise your clients to include in purchase offers or counter-offers, namely:

  1. A force majeure clause and;
  2. An employment clause that allows your client to be released from the deal and return of deposit if they are laid off or terminated from employment prior to closing.

I understand that such clauses could jeopardize acceptance by a seller. Nevertheless, realtors should advise their clients to include such clauses and document your advice by sending the client an email.

We, at GGS, would be happy to assist in drafting these clauses to include in offers and counter-offers on behalf of your clients.

Regards,
Karmel Sakran
Managing Lawyer

GREEN GERMANN SAKRAN
411 Guelph Line, P.O. Box 400
Burlington, ON L7R 3Y3

T: 905-639-1222
F: 905-632-6977

Downtown Burlington Real Estate Lawyers, GGS LAW

Here’s a Crazy Idea… Burlington Real Estate Development

Burlington Real Estate Development

Why don’t we include developers vested in the downtown in the City’s ongoing “engagement” process on Grow Bold?  Why not bring developers to the table?

Why are we afraid to ask the private sector, experts in development, to participate openly in the process?

Why not bring developers together in a room (initially away from the public – away from the anger, hostility and venom) and ask for their “help” in dealing with the public fears on:

  1. The loss of sunlight;
  2. Increase in vehicular congestion;
  3. Loss of green and liveable space;
  4. Ensuring safe pedestrian flow and places of gathering;
  5. Promotion of downtown businesses;
  6. Ensuring sufficient parking for residents and visitors; and,
  7. Any other big issue item….

Developers are not afraid of criticism.  They deal with it all the time.  And, they can be a powerful team to help with resident issues if we ask them.

Why not ask them to sign onto a Memorandum of Understanding to come up with a coordinated design away from the fear of public scrutiny and criticism, at least in the initial stages of brainstorming and design.

Challenge them to put together a coordinated plan or design, and more than one plan or design, which addresses the public concerns and ensures an integrated approach to responsible development rather than the “one-offs” we are currently getting with individual development applications.

Put their coordinated plan or design(s) before the citizen engagement forums.  At least the residents would have something tangible to review and comment on.

Developers will listen, and even though they may not like the resident feedback, the hope is that their engagement gives them an incentive to incorporate good design ideas into their individual development applications.

What do we have to lose?

I told you it was a crazy idea…..

Karmel Sakran, Ask a Real Estate Lawyer »

 

Why I Run

Many have asked me why I run.
Or, they say “you’re a big guy, how can you run?”

Karmel Sakran

I don’t enjoy the pain. I certainly don’t enjoy cold dark mornings. I would much rather remain cozy under the covers.

Running is not easy. Running is hard. I started running by walking, and adding in some running steps. Over time, the walking steps decreased and the running steps increased.

Over a one-week period, I will run 3 times – usually 10 kms on Tuesdays and Thursdays and then a longer run on Saturday or Sunday, whichever day has nicer weather. Yes, I am a fair-weather runner. I hate the freezing cold even though I do it when I have to. The other days, I will do some other form of exercise with one day off.

My other forms of exercise are weight training to strengthen my upper body and lower back, push-ups, burpees (which I hate the most) and isometric exercises like planks and even yoga – all intended to help me strengthen my ability to hold my upper body upright for longer and longer distances. But, running has always been my preferred choice of exercise and all other forms of exercise are intended to complement and further my running ability.

So, why do I run?

Like most people, I want to carve out time in my day that is just for me. No distractions. No cell phone or email message beeps. No abrupt interruptions from co-workers asking “you got a minute?”  Of course I have a minute. We all have minutes that are eaten up by daily rituals of doing something for others – all day long – and now – right now – as I run – there is no cell phone – no interruptions whatsoever.

As I run, I tune into my energy level, my posture, my breathing, my joints, my muscles, and my hydration and nutrition. As I run, I focus on all these aspects and I strive to create harmony between them – a balance between wanting to finish and finish well.

Health is a consequence of my running and running is a consequence of my health. Without one, you can’t have the other. Running helps control my weight and drives me to remain focused on good nutrition.

I feel rather naughty telling you that I get a “high” from running. All runners know exactly what I mean. You run the first little part and struggle as you get your pace and breathing under control and work out the kinks in your muscles until you get to the point when you feel unstoppable and free. Like you can go on forever. When you wish it did not have to end. It’s called the “runners high” and results from your body releasing a magical mysterious drug that can never be regulated or outlawed from the Olympics – Endorphins!

A google search tells us that:

Endorphins are among the brain chemicals known as neurotransmitters, which function to transmit electrical signals within the nervous system. … Endorphins interact with the opiate receptors in the brain to reduce our perception of pain and act similarly to drugs such as morphine and codeine.

Wow! Our body is so amazing that it can alleviate pain naturally and it’s free!

Running is the satisfaction of knowing that “I did it”. That I ran the distance and ran it well. That I challenged myself and my limits. That I took my body on a journey and came out the other end feeling exhausted and elated at the same time.

Running is my peace. In the truest sense, running is “my time”. It is pure and simple. For that 1 or 2 or 3 hours, you will not get my attention. My mind does not care for the latest news blast, weather report or the latest political gaff – I just don’t care. I let myself go into a solitude existence – deep in my thoughts. The only thing I am concentrating on is my breath and every fibre in my body as my feet rush beneath me. I feel the wind on my face. I see people and cars and hear noise all around me but in some strange way, there is no noise and all that I see is a blur. So, don’t honk or waive at me. I will not hear you. I will not see you.

Some say this is selfish of me. And I ask “what is wrong with being selfish for the right reason”? To clear my head. To focus and put things into perspective. To re-connect with my breath and body. To re-energize my soul. What is wrong with all of this?

If I am not clear-headed, focused or fresh in my mind, then how can I be as positively engaged with my clients, my co-workers, and, most importantly, with those I love?

So don’t ask me why I run, just come run with me!

Karmel Sakran, Burlington Lawyer »

It’s not a bubble – It’s a devastating storm

Real Estate Bubble?

Real estate lawyer, closing costs

I believe it is everyone’s right to have a safe and affordable home to raise a family.  The reality in today’s economy is quite the opposite.  I see people making desperate decisions to buy a home out of their price range for fear that they won’t be able to afford anything similar if they wait.  They are maximizing their credit cards, borrowing more from parents and cutting back on certain activities for their children just to make ends meet.

I had recently quoted Benjamin Tal, Chief Economist with CIBC World Markets, who spoke of a generation that is going to “inherit inequality”.  I won’t even attempt to explore the depth of the subject, but suffice it to say that there is a growing demand for rental units.  Just yesterday, I had a client that is selling her home because she can’t afford to live in it.  Yes, she intends to bank the little amount of equity she will get out of selling her home and rent.  I see this trend more and more.

The implication of what Tal was saying is that if you are not a homeowner now that you may not likely be a homeowner in the near future given the trend of skyrocketing home prices.  And, today’s Globe and Mail article about Ontario pushing Ottawa for some form of tax on speculative buyers or increasing the capital gains tax is a sign that governments recognize the seriousness of the problem.

Just think, you have people buying properties based on speculation of profiting, low inventory of homes on the market and first-time home buyers trying to get into the market.  How does a first-time home buyer compete with an investor with very few homes for sale?

Don’t get me wrong.  I don’t criticize investors.  After all, they have children for whom they want to provide a home and ensure a financial nest egg for themselves.  I get it.  But, if average people can’t afford to buy their own home and must turn to renting, that will put a corresponding strain on all levels of government, primarily provincial and municipal, to provide affordable housing.  It is a storm brewing like no other.

Ironically, I know that builders are in tune with this growing demand for rental housing units and have already started building a mix of condominiums and rental apartments.  The only issue is that market pricing remains an issue because demand is growing for good rental units.

My question is whether all levels of government can create a unified strategy in concert with builders whereby builders have the right incentives to build affordable rental units for growing families?  A grand idea perhaps, but if it works, would this not be a more cost-effective alternative to managing government deficits and pressure to keep increasing tax revenues?  Just saying……

Buying a home? Talk to a Real Estate Lawyer »

Burlington, Hamilton, Milton, Mississauga, Guelph

What does Trump have to do with Real Estate and homeownership in the GTA?

Real Estate and Homeownership in the GTA

Benjamin Tal, Deputy Chief Economist with CIBC World Markets, made a spectacular presentation to kick off the Landpro conference today at the Paramount Centre in Vaughn.

Tal spoke about the economy and real estate outlook for the GTA.

Tal started with Trump’s election and ended with the rise of housing prices, the trend towards a reduction in the number of CMHC insured properties and the need for “purpose built” developments (aka the need for more rental units).

Taking liberty with Tal’s insightful analysis, he believes Trump will only last 1 term as President because his expressed and demonstrated approach to creating more “jobs” (his mantra) is inconsistent with the economic realities occurring in the USA and the world.  He called Trump “inflationary” and predicted that Trump will fail in creating more jobs and trade.

Tal pointed out that the manufacturing sector in the US is outperforming Canada which should be the exact opposite given our much lower dollar.  But overall, manufacturing jobs have been falling long before China entered the WTO.

The number of American workers receiving disability benefits in 2016 outnumbered the number of production workers.  Government tax cuts reduce revenue which increases government borrowing.

Canada’s share of low paying jobs is rising.  And although there is an availability of good jobs, Tal said employers can’t find workers with the right skill sets to perform those jobs.

Canadian manufacturing is near full capacity and needs investment to lift exports.

From 2015 to 2025, there will be approximately $800 billion in the transference of wealth in the form of inheritances which Tal labelled as “inheriting inequality”.   This is tied to an individual’s ability to buy homes at their current prices and future prices.

The Bank of Canada’s real motive in keeping interest rates low is to support our weak dollar and not necessarily to promote private homeownership.

Rising home prices in Toronto are forcing people to look further and further away from City centre to find homes within their price range.  Although low-interest rates continue to promote new homeownership, the high cost of homes coupled with the new federal mortgage rules constricting the number of CMHC insured homes, Tal predicts will create an increased demand for rental units.

Sorry, Tal if I butchered your fantastic presentation – it was refreshing and insightful.

Real Estate Lawyers for your homeownership purchase or sale »

Article by Real Estate Lawyer Karmel Sakran »

The Principle Residence Exemption is under attack – flipping homes

The Principle Residence Exemption and flipping homes

Principle Until recently, when you sold your principle residence you did not have to declare it on your tax return and you were not at risk of paying income tax on its increase in value from the original purchase price.

As of October 3, 2016, the federal government requires you to report the sale of your principle residence to determine a pattern of whether the principle residence exemption should be disallowed.

According to the Minister of Finance, Bill Morneau, the federal government wants to target “perceived abuses of the PRE” or, in other words, to target individuals that flip homes for profit as a source of taxable income.

And, despite the fact that the federal government established a number of legislative measures and CRA administrative changes (all of which I leave to your accountant to explain), the fact is there remains much uncertainty on who will not qualify for the PRE.

The biggest difficulty for CRA is that making a “profit” (being the growth or increase in equity) has always been a natural aspect of homeownership.  We use the increased equity to “upsize” and even to “downsize” and bank the excess.  The point is that we have always used our home as a source of advancement and retirement.

The financial environment for homeowners is now uncertain.  Homeowners are now faced with the prospect of having to justify why they are entitled to the increased equity from the sale of their home and why they qualify for the principle residence exemption.

How will CRA determine when the growth or equity from the sale of a home constitutes taxable income?

Will someone’s intentions and personal reasons factor into the equation?  If so, what personal reasons will qualify?  I didn’t like the neighbourhood?  The school?  The neighbours?  Change in employment?  Or, I simply changed my mind about the home?

How much profit is too much before it becomes taxable income?  $10,000?  $100,000.00?

How long must a person or family live in the home before it’s sold?  Six months?  Six years?  And how much renovation is too much?  Interior non-structural improvements?  A one-room addition?  Demolition and complete re-construction?

I find it difficult to imagine regulations that will define all these questions into an objective application for all situations.

As an aside, those that claim the PRE means that they are not entitled to claim or deduct the substantial costs associated with buying or selling a principle residence, like:

  • realtor and legal fees;
  • land transfer tax;
  • title insurance;
  • mortgage interest and pre-payment penalties;
  • relocation costs;
  • repairs and improvements/renovation;
  • municipal taxes;
  • development costs;
  • and more.

And, you are not eligible to claim the H.S.T. rebate when it’s your principle residence.

The fact is that there is an imbalance of power between CRA and taxpayers. I suspect that many taxpayers will be forced to settle and pay tax against some or all of the growth/increased equity generated from the sale of their home just to get CRA off their backs.

It is a murky area that may inhibit one’s right to mobility and investment in one’s own home. Trying to capture a few “perceived abusers” will risk eroding pride of homeownership and cause harm and harassment to a greater number of well-intentioned individuals.

So what if a person makes a living flipping homes?  If it is their principle residence, why should they not qualify for the principle residence exemption?  I say leave the principle residence exemption alone, subject only to the authenticity of one’s residence.

Real Estate Lawyers for Burlington, Hamilton, Milton, Mississauga, Guelph »

What I look for when reviewing Status Certificates

Reviewing Status Certificates is crucial when buying a condominium – Here is what I look for when reviewing the Status Certificate.

Buying a condominium? Talk to a Real Estate Lawyer »

Burlington, Hamilton, Milton, Mississauga, Guelph