Secure and efficient data rooms for lawyers

By Katalin Jakucs, 
Secure and efficient data rooms for lawyers

The legal profession is undergoing a digital transformation, with virtual data rooms (VDRs) playing a pivotal role in this evolution. Law firms, corporate legal departments, and solo practitioners are increasingly adopting VDRs to manage, secure, and share confidential data efficiently. This shift is driven by the need for seamless collaboration with clients, colleagues, and external partners, extending the use of VDRs beyond traditional M&A transactions.​

The rise of remote work in the legal industry

Remote and hybrid work models have become prevalent in the legal sector. A survey by the American Bar Association revealed that 87% of lawyers have the option to work remotely, with nearly 30% working from home almost all the time. This trend underscores the necessity for secure and efficient digital collaboration tools that can adapt to various working environments.​

Why do lawyers need virtual data rooms?

From due diligence and client data management to collaboration with courts and regulatory bodies, legal professionals handle highly sensitive information daily. They must comply with strict confidentiality obligations and evolving regulations. This makes secure and efficient digital collaboration essential. Key requirements include:

  • Confidentiality: Only authorized individuals should have access to sensitive documents.
  • Integrity: Documents must remain tamper-proof and protected against unauthorized alterations.
  • Traceability: Every action must be logged for audit-proof documentation.
  • User-friendliness: A straightforward, intuitive interface minimizes training and onboarding time.

To meet these demands, legal professionals should consider virtual data rooms — not just for M&A transactions. A key factor in selecting the right provider is encryption, aligning with the American Bar Association’s guidance on protecting client information through robust security measures. The gold standard is end-to-end encryption based on a zero-knowledge principle — where data is encrypted on the user’s device before it reaches the cloud, ensuring that neither the service provider nor third parties can access decryption keys. This guarantees confidentiality even in the event of security breaches or provider-side leaks.

The best solutions also offer granular access controls, audit logs to ensure compliance and transparency, and built-in e-signature options.

Beyond M&A: How law firms and legal departments use virtual data rooms

While M&A transactions have traditionally been the primary use case for VDRs, law firms and corporate legal teams are increasingly recognizing their value in other areas, such as:

  • Litigation and dispute resolution: Securely exchanging large volumes of evidence, witness statements, and legal filings.
  • Compliance and internal investigations: Protecting sensitive documents during audits and regulatory reviews.
  • Client communication and data protection: Ensuring contracts, legal opinions, and other confidential materials are securely shared with clients.

Want to learn more? Meet us at the ABA Techshow!

Interested in exploring how virtual data rooms can transform legal workflows? Join us at the ABA Techshow, where Aaron Stillman, our Head of Product Marketing, will present: "Secure, Compliant, Efficient – Why Lawyers Need Virtual Data Rooms Beyond M&A".

Also make sure to visit our booth #4033 to connect, exchange insights, and discover how Tresorit can help you work securely and efficiently.

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