Federal Rules of Civil Prodecure (FRCP) Dec 1st, 2006 - Companies are now required to produce email and other electronic documents as evidence in lawsuits.

Companies used to focus on how they store information. Now they're focusing on how they retrieve it.

Due to many recent corporate accounting scandals, insider trading scandals, employee harassment cases, and the fact that business transactions are now being conducted via e-mail, all electronic messages are considered to be business records. As with any traditional paper-based document, e-mail messages are now required to be available for review.

"An information technology employee who routinely copies over a backup tape could be committing "virtual shredding" once a lawsuit has been filed," said Alvin F. Lindsay of Hogan and Hartson LLP.