DRM for Virtual Data Rooms: Solving the Security Dilemma

Digital rights management (DRM) helps virtual data room administrators control how sensitive documents are used, including after they are downloaded. In M&A and due diligence, DRM has long held the promise of providing the best of both worlds. Deal administrators would have complete control to protect sensitive content and reviewers would have an easy way to download, review and work with the content in their own environment for due diligence.

But that has not always materialized for deal administrators. Today, DRM security across most virtual data room (VDR) providers is inconsistent, at best. And with most deals having thousands of documents inside them of different types and formats, inconsistent security is a recipe for problems.

The Problem with DRM in Today’s VDRs

Let’s take a common scenario to illustrate the problems: Most deal rooms will include a large number of Adobe PDFs and Microsoft Office files. Reviewers will log in, download the content they need and organize the files on their desktop. Those files are assigned to various team members for review, and when it comes time to access them, two problems quickly arise:

First, with DRM capability in some VDR products, reviewers can still copy sensitive content out of protected files. It often happens like this: reviewers know they have a limited amount of time to work with a file before the administrator revokes access to it. And while basic security controls may prevent printing, a user can bypass those controls by copying the content into a new file with no DRM controls. While this may be convenient for the reviewer, it creates a problem for the administrator, who has now effectively lost control of the content.

Second, if your VDR provider uses a native DRM solution to protect content, it needs to keep up to date with security patches and other enhancements for every file type it protects so that DRM protections persist after content is downloaded. If the DRM solution becomes deprecated, users may be able to bypass the intended security controls or may lose access to the content altogether. Why? Some VDR vendors use native tools designed for specific file types to support DRM, which can lead to different levels of protection depending on the file type and version.

So what is the solution? How do you give reviewers the flexibility to download and work on files such as Excel financial models while still maintaining effective access controls?

The Solution: DRM for Datasite Diligence

The answer is DRM for Datasite Diligence. We have embedded powerful DRM technology into the platform. Seclore provides Datasite with a secure DRM platform, giving Datasite Diligence customers the best of both worlds. Deal administrators get strong, consistent DRM across many file types, regardless of how they are accessed, while reviewers have an easy-to-use, flexible way to access and work with files for due diligence.

DRM for Datasite Diligence provides deal administrators with an easy way to control access to files and the content within them. This allows consistent DRM protections to be applied across supported file types, including files created in different versions of Microsoft Office. In addition, protected content cannot be copied into an unprotected file. This helps administrators maintain control over sensitive deal information.

Reviewers on the deal get flexible, easy access to the files they need. They can open and work with files via the web without a plugin, or download the files and use the native application to work with the content. The DRM technology does not get in the way, helping clients have the best experience possible.

As the deal progresses, the administrator can use DRM for Datasite Diligence to easily revoke access to reviewers who are no longer in the running, with the knowledge that protected content has not been copied out of the files. Clean, simple, secure.

To learn more about DRM for Datasite Diligence or request a demo, contact Datasite.