HIPPA mandates who can and should have access to the files. The method of storage (disk, tape, SSD, paper, whatever) is largely irrelevant. As long as all those who have access to the files are HIPPA-trained and following the appropriate procedures, everything is fine. Similarly, transport is relevant only in that there must be no data disclosure to unauthorized persons. As such, if a person with appropriate clearance does the transport, all is cool.

HIPPA data is often encrypted when placed on tape or transported across systems, but that's because such activities may involve the data being visible to unauthorized people. As examples of each:

• If two physically separate sites exchange HIPPA data across the open Internet, the data must be encrypted during transport. This might be done by VPN, sftp, whatever. As long as the bits on the wire can't be read by the ISPs managing the connection, it's OK.
• For tapes that you archive off-site, you don't want your external storage facility to be able to read the tapes, nor have the data readable if the tape is misplaced in transport.

IMHO wise use of sensitive data on laptops requires encryption at the filesystem level. It's neither difficult or time-consuming, but given how much sensitive data has been exposed via folks losing or misusing laptops, it ought to be a no-brainer. Sadly, too few places bother.

I agree these guys got blindsided by whoever they spoke to. But time and again I've seen cases where the guest says "your guy said it was OK" (and actually had it in writing) and the hotel manager said (politely) "I'm sorry, but he was wrong" and held up the regulation (local, state, hotel-specific, whatever). If the guy was lucky enough to get it in writing, the hotel typically offers something back on the room or does their best to accommodate. Good places do that. Bad places don't. But as long as the hotel has written policy on its side (and I'll betcha the Vegas hotels do, in this case), the guest will ultimately lose.

You sir, are an idiot. Speaking as a 30-year veteran of the convention and exhibition circuit, you, sir, are ignorant. Most hotel agreements prohibit use of the room for commercial activity. That doesn't simply mean buying and selling, it also means meeting with potential customers and exhibiting. Now, that said . . . most ordinary hotels turn a blind eye to this sort of thing. But hotels which are affiliated with major exhibitions tend to enforce the rule rather strictly. The exhibition area makes its money by renting the exhibition space, and they correctly expect the hotel to not undercut them by allowing 'free' exhibitions in what are supposed to be sleeping rooms. As for the folks who are suggesting lawsuits - try looking up some precedents. Lose, lose, lose.

You mean, "will flourish again."

Perhaps folks should read this article: http://www.pbs.org/mediashift/2009/04/coalinga-newspaper-not-liable-for-running-myspace-rant112.html Among other things, it says

College student Cynthia Moreno posted the "Ode to Coalinga," her hometown, in her MySpace journal. The "Ode" was extremely critical of Coalinga and its inhabitants. Apparently Moreno thought better of having posted it, and she deleted it six days later. But not before the principal of the local high school, Roger Campbell, gave the Ode to his friend Pamela Pond, the editor of the local newspaper, the Coalinga Record. Pond published the Ode as a letter to the editor . . . What's more -- this part of the story is related only in Moreno's brief to the court and not in the opinion -- Moreno learned that Campbell had given the Ode to Pond before it was actually published, and she contacted Pond to ask her not to print it. According to Moreno, Pond said she would not publish it, but then changed her mind and did so.

And it's not like there hasn't been fallout:

According to one online source, Moreno and her family are not the only ones who suffered consequences from the publication of the Ode. Pond was dismissed from the newspaper.

Other good information in the article. Not that anyone will read it....