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When a DNA Testing Firm Goes Bankrupt, Who Gets the Data?

wiedzmin writes "DeCODE Genetics, a genetics research firm from Iceland, has filed for bankruptcy in the US, and Saga Investments, a US venture capital firm, has already put in a bid to buy deCODE’s operations, raising privacy concerns about the fate of customer DNA samples and records. The company hasn’t disclosed how many clients signed up for its service, but provides a number of customer testimonials on its site, including Dorrit Mousaieff, Iceland’s first lady."

31 of 114 comments (clear)

  1. This is why I protected myself by Anonymous Coward · · Score: 5, Funny

    I spliced in a trojan to my DNA. If I'm cloned in anything but my specific method, I'll instead turn out as a 70ft tall dinosaur human hybrid with fire breath, laser beam eyes, and the ability to fly. I dare them to clone me.

    1. Re:This is why I protected myself by Anonymous Coward · · Score: 3, Funny

      On the other hand, your mother had a quite liberal distribution policy.

    2. Re:This is why I protected myself by Anonymous Coward · · Score: 2, Insightful

      > I dare them to clone me.

      Y'know, some people would then clone you just because they wanted the dinosaur, not you.

      Well, people other than Randal, maybe...

  2. $5 says they... by DomNF15 · · Score: 4, Insightful

    sell the customer data to some health insurance company.

    1. Re:$5 says they... by Anonymous Coward · · Score: 4, Insightful

      No, it wouldn't be that obvious.

      They will sell it to another DNA testing company, who happens to be owned by a V.C. fund, who are chaired by former Health Industry Executives, who are backed by a Health Insurance Company. Layers man, layers. Less scrutiny that way.

    2. Re:$5 says they... by NewWorldDan · · Score: 3, Insightful

      Nope, can't do it. The data is an asset and it's still subject to whatever terms it was collected under. Just like the bank that wrote my mortgage may have gone bankrupt, but my payment and interest rate remain the same.

      The data is also a medical record, and that comes with a whole slew of restrictions as well. In summary, the privacy implications are exactly the same as they were a year ago.

    3. Re:$5 says they... by commodore64_love · · Score: 4, Funny

      Well.

      At least if the DNA data was given to the government we know it would be safe and never used for nefarious purposes.

      .

      hahahahahahahaahahahahahaha!
      L8r

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    4. Re:$5 says they... by jc42 · · Score: 3, Interesting

      sell the customer data to some health insurance company.

      Sell it to researchers, since insurance company wouldnt benefit much from such a small set of DNA samples.

      You're probably both right.

      As many armchair econ theorists here have been pointing out repeatedly, the attempted purchaser is an American corporation. As such, their primary (and according to some, only) obligation is to the bank accounts of their officers and shareholders. If there's a commercial value to the information, they likely consider it immoral to not sell the information for whatever price the market will bear.

      The fact that mere "citizens" might be upset by this only means that they'll do this quietly, with no public notice and no records of the sales available to outsiders. If we learn of the sales, it'll be far too late for us to do anything about it.

      Expecting anything else is simply naive. We should be assuming that, if anyone has had the opportunity to collect a sample of our DNA, they have done so, and the information is in the databases of anyone willing to pay the asking price. This especially applies if you have ever had any dealings with a private, for-profit medical organization.

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
    5. Re:$5 says they... by jecblackpepper · · Score: 2, Interesting

      Of course the statistic on how many they allowed to die by refusing to pay out or by refusing to allow someone to get insurance in the first place is not available.

  3. Time for an Amendment? by BobMcD · · Score: 4, Insightful

    “This clearly introduces a layer of uncertainty beyond what people expected when they signed up,” she told the Times. “People do need to double check what they are signing up to. These companies often use broad consent, and I worry whether people know what their data might be used for in the long term.”

    Personally I feel like your genetic information is always YOUR data. Call it a biological copyright if you wish. There's only one you, and you inherited the code used to make you.

    This is as close to a modern inalienable right as I've yet seen.

    1. Re:Time for an Amendment? by gedrin · · Score: 2, Interesting

      I wonder what the complexities would be around copyrighting your own DNA data. It seems fairly straightforward, as long as you don't want your data used for anything. However, I'm not sure it would be all that easy to take advantage of medical services if everyone had their own EULA for their info. I can't imagine a doctor would agree to signing a random EULA from Joe Normal, or want to pay for a lawyer to review such a document.

      Also, do you have the rights at all? Could the partnership that originally created the data claim the rights to it that information or is there an implicit transference of ownership at the age of majority? ;)

      --
      Moderation : -1 Conservative Viewpoint
    2. Re:Time for an Amendment? by gnick · · Score: 5, Funny

      I was under the impression that all twins were maternal twins. If I have a paternal twin, then dad must have had a wild night.

      Perhaps you're thinking of identical twins as opposed to fraternal twins?

      Sorry for the nit-pick. My head's just swimming around trying to figure out how to create paternal twins...

      --
      He's getting rather old, but he's a good mouse.
    3. Re:Time for an Amendment? by unitron · · Score: 4, Insightful

      ... and what would the restrictions be for "derivative works"?

      You have to support them until they turn 18.

      --

      I see even classic Slashdot is now pretty much unusable on dial up anymore.

    4. Re:Time for an Amendment? by roguetrick · · Score: 2

      Monozygotic and Dizygotic is a much better way to say it.

      --
      -The world would be a better place if everyone had a hoverboard
  4. Love it... by jhoegl · · Score: 2, Insightful

    Businesses are so concerned with making money they dont think ahead. In a previous job we got rid of a proprietary system because we moved to a new one. No one thought about all the old records during this transaction. Well, we had access the the DB, but it was coded in such a way that the fields were a jumble of crap and would have taken forever to pull apart to get the records. I asked the proprietary company if they had a way to dump the records to PDF for easy reading and storage. Nope... This company was in business for 7+ years and they had no way to mass export records? They developed a half assed way to get it done, and I had to come up with a solution for the slack they left. So, not only did my company not think of this before hand, neither did the proprietary company. It is no surprise this company did the same Why does no one even consider this as a possibility? Companies dont last forever, so why has no one even considered this? The people that have their DNA at the company are now subject to the whim of whatever happens because it is guaranteed their contracts do not state "if we go under, your data will be destroyed". Good game people, good game.

    1. Re:Love it... by greed · · Score: 2, Informative

      The phrase you're looking for is "vendor lock-in". You can only access your files and your data with The Chosen And Approved Tools.

      And, frankly, once your company was on the annual maintenance bus, there's no way the vendor would want to provide extra features, like generic export... they know you're screwed if you try to leave.

      Occasionally, that tactic fails, and they lose a maintenance stream. But it usually works. Especially if the next software release has Magic Special Feature everyone at the client site wants. (Which will need all new servers, and upgraded workstations, and more SAN, and better networking, and when you finally get it deployed, you'll find out they lied right at your C?O's face. Again. And yet he's not held accountable for continuing to pay for their crap.)

  5. $5 says they... by iammani · · Score: 2, Insightful

    Sell it to researchers, since insurance company wouldnt benefit much from such a small set of DNA samples. Or else just discard everything except DNA of famous people (in case they have any) and auction it!

  6. Information wants to be free! by MarkvW · · Score: 4, Funny

    DNA information and it wants to be free--just like Hollywood movies, Britney Spears songs, and videogames! Let it be free!!

    I can see the future now: The Pirate Bay of Cloning Data!!

    As Alfred E. Newman once said: "What, me worry?"

    1. Re:Information wants to be free! by Bakkster · · Score: 2, Funny

      DNA information and it wants to be free--just like Hollywood movies, Britney Spears songs, and videogames! Let it be free!!

      Right, it's not like anyone spent money to develop your genetic code, unlike with artistic works. Well, maybe a bottle of wine facilitated the process.

      --
      Write your representatives! Repeal the 2nd Law of Thermodynamics!
    2. Re:Information wants to be free! by AndersOSU · · Score: 4, Funny

      spent money to develop your genetic code

      that's a really clumsy way to call someone's mom a whore.

  7. privacy by wizardforce · · Score: 4, Insightful

    Customer data should be considered the property of the customer; the decision as to what happens to that data should be accountable to the owner of that data which would be the person who provided that data in the first place. The data should not be transferred to a third party without permission from the owner of that information.

    --
    Sigs are too short to say anything truly profound so read the above post instead.
    1. Re:privacy by ColdWetDog · · Score: 3, Informative
      From the DE code site:

      The user owns their genetic data and therefore we do not keep the data locked from the user in the deCODEme website. Users are free to download the genotypes from the Genetic Scan, however, we urge them to ensure the security of the data once it is on their computer, e.g. by encrypting the data file.

      So, it seems like the whole issue is moot unless the new owner wants to blast through a listed policy. A client's 'personal data' is somewhat more at risk:

      User attributes, public or private, will be used by deCODE only to gather statistical aggregate information about the users of the deCODEme website. Such analysis may include, but is not limited to; counting the number of users grouped by age, or associating genetic variants with any of the self reported user attributes. In the process of presenting any such statistical information, deCODE will ensure that users identities are not exposed. deCODE may disclose your personal information only if we believe such action is necessary to: comply with the law or legal process served upon deCODE or to protect and defend the rights or property of deCODE in relation to your agreement with deCODEme. Except for the above, deCODE will under no circumstances provide any 3'rd party, including insurance companies, health management organizations, hospitals, and government agencies, access to any of your personal data or data derived from your samples, unless you grant us an explicit authorization in your privacy settings.

      Not much see here, move along.

      --
      Faster! Faster! Faster would be better!
  8. Why retain the data? by failedlogic · · Score: 2, Insightful

    I'm wondering what their data retention policy is. I'm not sure about most companies or industries but AFAIK most businesses, financial companies and law firms are obligated to keep records for 7 to 10 years. Some might keep longer. Now I can understand if these guys want to keep the info for 2 year, in case there's an unsatisfied customer who wants their money back (for example, had test done elsewhere and theirs is different). If the retention policy of this industry permits indefinite, then there should be laws to protect customers including not only retention but sharing of information and proper deletion of records.

  9. Noticeable lack of legalese in the paperwork by mosel-saar-ruwer · · Score: 4, Interesting

    We sent off some DNA in our family last winter, and I was surprised at the lack of legalese in the paperwork.

    In particular, nowhere in any of it did it state that we were surrendering any property rights [i.e. the documents addressed neither the physical property of the biological material, nor the intellectual property of the DNA code].

    On the other hand, because of the lack of legalese in the paperwork, it also didn't say that the DNA facilities were surrendering any property rights [or the ability to assert property rights in the future], either.

    But I'd be shocked if the courts ruled for the creditors rather than for the "patients", unless there was some very explicit contracts in which the "patients" surrendered their property rights [although, even there, I wouldn't be surprised if a court ruled that such a contract were invalid, on e.g. 13th Amendment grounds].

    1. Re:Noticeable lack of legalese in the paperwork by afed125 · · Score: 3, Insightful

      They probably didn't want to touch it in the paperwork, because if they came up with some sellable innovation based on your genes, they'd probably have to show they compensated you somehow for your genes to have a valid contract (mutual benefit being a part of contract law usually), and so if you saw that kind of language in the paperwork, you'd wonder why THEY weren't paying YOU to send them your DNA.

  10. Not just deCODE by cyber-dragon.net · · Score: 3, Interesting

    23andMe, a US company who has been collecting samples for two-three years now has had two rounds of layoffs in the last six months, the second of which was a third of the company. I think this should be a real concern for the customers of any of these companies, Navigenics, Pathways, deCODE, 23andMe etc.

  11. Decode went banktrupt by Exception+Duck · · Score: 2, Insightful

    But the company called Íslensk Erfðargreining is still running as before - and nothing has changed with their contracts between them and their donators or the government.

    I have no reason why we should distrust the new owners of the company any less then the previous ones.

  12. Re:A simple question by flyingfsck · · Score: 2, Funny

    How? Mitosis of course...

    --
    Excuse me, but please get off my Pennisetum Clandestinum, eh!
  13. Raising BS Concerns by DynaSoar · · Score: 4, Insightful

    " raising privacy concerns " is a ubiquitous trigger cliche tossed out by people who want to inflame and enrage. It is as hollow as 'raising awareness' because neither are things that are raised, they are things you become, or become more so.

    In this case, the persons or agents raising 'concern' are Wired and Times, who just might want readers so they can get ad money, and a lawyer that specializes in genomics, who just might want to attract clients for a law suit from which he'll collect big time (despite the fact that the as yet imaginary court battle would be over IP and privacy, neither of which are related to genomics). Oh, and a spokescritter from a group dedicated to watching tech and waving their arms, calling out 'Danger, Will Robinson' any time they can pretend something technological might be involved in anything that they can yell about and hope those who notice will join up and pay dues -- oh yes, so they can collect some cash too.

    TFA states specifically who has the data and what they can and cannot do with it. In purchasing the assets of DeCODE, Saga is bound by law to protect the data. Despite this clear statement, the writers see fit to have "privacy advocates", that is, people who appoint themselves to speak on others' behalf without asking them, be 'concerned' that Saga will do this anyway.

    In other words, the only people for whom this is an issue have a vested (ie. financial) interest in there being an issue, many of which have no relationship or arrangement with the persons whose data in involved in this imaginary 'concern' beyond their imaginary right to speak for those individuals.

    I call BS on the bunch of them. There's not a single DeCODE client among them*. The only person interviewed who is actually involved is the CEO of DeCODE, who knows what needs to be done and is doing it. Not even Iceland's first lady is concerned, and wouldn't even be involved in this imaginary issue if it weren't for the fact that the Wired writer knew her premise was weak without an actual imaginary victim, so she dug until she found someone who was a client and tossed her name out in close proximity to concocted claims about privacy and such in order to lend the color of legitimacy to an otherwise transparent FUD spew.

    --
    "I may be synthetic, but I'm not stupid." -- Bishop 341-B
  14. Nothing happens by dabbigj · · Score: 3, Insightful

    Íslensk Erfðagreining wich is the company that handles everything concerning the data and the research can not by law hand over the data to a second company. Decode is the parent company of Íslensk Erfðagreining. A little bit of research would have gotten you the knowledge that they can only use the private and medical information that they have gotten in research purposes and can never hand it over. This article just smells like fud to me.

  15. Re:Destroy and burn them. by jandersen · · Score: 2, Insightful

    Clearly, the answer is that any samples and documentation should be destroyed

    Clearly, you have overlooked the fact that we are talking about private companies here. What happens when a company goes bust? Another company buys it and its stock - in this case the DNA profiles etc. What did you expect? When you deal with private companies that is the way it is; which is why it would probably be better if it was handled by a public authority - they are after all somewhat accuntable to the public, and they don't go bankrupt so often.