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The Legalities of Patron Data on a Shared ILS

According to the RAQ: Using Emails from ILS Patron Database: “Although a member library contributes information to an ILS, unless system bylaws or policies say otherwise, that information belongs to the system, who is just as ethically and legally bound to protect the information as a member library.”

However, there was a question during a session at NYLA regarding system ownership of library records that seemed to contradict this.

If the system owns the ILS and therefore the library records, wouldn’t that mean that policies pertaining to accessing/creating/modifying/deleting records for the ILS should be governed by system policies that are also approved by each member library board?

I’m specifically thinking of such policies as Confidentiality of Library Records / Inquiries from Law Enforcement - where if the system owns the records then wouldn’t both these policies just be a system one? Also with having consistency for Library Card Applications. A patron can go to one of our libraries and have to show many forms of identification - but the same patron could see us at an outreach event and not even have to show their ID to get a card.