Author: Krzysztof Wojdyło

A keen and critical observer of new technologies, particularly intrigued by artificial intelligence and blockchain. Creator and head of the New Technologies practice at Wardyński & Partners. Write to the author: krzysztof.wojdylo@wardynski.com.pl

Why did I sign an appeal to halt AI development?

Regardless of whether we see benefits or an existential threat in the latest AI technologies, the gravity of the challenges these technologies bring is undeniable. Over the past few decades, technological advances have far outpaced reflections on their possible consequences. This need not and should not be the case. That technologies are not solely a source of good is becoming apparent today as we begin to perceive the destructive impact that certain digital technologies have on our democracies, security, and mental health. In the face of recent technological advances, such as artificial intelligence, we have an opportunity to avoid mistakes and at least try to redirect the development of these technologies toward authentic benefits, while at the same time mitigating risks. In this context, I decided to sign an appeal to temporarily halt work on AI systems. I also encourage others to do so. Below I present the main rationale that guided me.

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How the “travel rule” could change the world of decentralised finance

It has long been obvious that within the next few years we would witness attempts to regulate the world of decentralised finance. As it turns out, one of the most revolutionary laws may be introduced through an amendment to an obscure regulation on information accompanying money transfers.

I’m referring to the proposed changes to Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds—also known as WTR2. It is part of a broader package of regulations aimed at combatting money laundering and financing of terrorism. The main aim of WTR2 is to ensure that money transfers are accompanied by relevant information enabling identification of the parties to the transaction.

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Legal aspects of the video game industry 2.0

Interest in the game development industry is not diminishing. The upward trend has been consistent for several years, and 2021 is sure to bring a further increase. Forecasts indicate that in 2023 the value of the game market will exceed USD 200 billion.

The Warsaw Stock Exchange has strengthened its position as the world leader in the number of listed companies from the game development industry, even ahead of the stock exchanges in Japan and South Korea. The game market is becoming an increasingly promising area for investors, which can be seen in both the number and value of transactions. The segments of mobile games, distribution under a subscription model, and cloud gaming are gaining. At the same time, with so many titles available on the market, game marketing becomes more difficult and skilful community-building around a specific title becomes vital.

Recognising the importance of the game industry, last year we published the report “Law for game development,” which deals with specific legal issues in the production and publication of games. However, new legal challenges are emerging that must be faced by all stakeholders in the broader game industry. Therefore, we are starting another series of publications in which we will touch upon, among other topics, intellectual property law, labour law, personal data, and less-obvious aspects of criminal or regulatory law. We will also devote a lot of space to commercial issues that can be useful for game developers and investors alike.

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The data economy and trade secrets

In previous articles in our series we discussed whether data can be subject to property rights or can be protected within known categories of intangibles. Today we will consider if and when data can be protected as a trade secret.

First we should clarify what a trade secret is and what protection this classification provides.

Trade secrets: When is protection provided?

Under Polish law, issues relating to the protection of trade secrets are mainly regulated by the Unfair Competition Act of 16 April 1993. At the European level, the Trade Secrets Directive (2016/943) has harmonised the protection of trade secrets to some extent.

The subject of the discussion below will be “trade secrets” (tajemnica przedsiębiorstwa), and not “business confidentiality” (tajemnica przedsiębiorcy) as referred to in Art. 5(2) of the Act on Access to Public Information of 6 September 2001. Judgments issued under that act indicate that in certain situations “business confidentiality” may be understood more broadly than “trade secrets” within the meaning of the Unfair Competition Act, and also includes information which has no economic value as such but the disclosure of which could have a significant impact on the undertaking’s economic situation and competitiveness (Supreme Administrative Court judgments of 17 January 2020, case no. I OSK 3514/18, and 5 July 2013, case no. I OSK 511/13).

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Data as collateral?

To complement our previous considerations about the civil-law status of data, we should analyse the possibility of using data to create security interests in business transactions. The increasing economic value of data inspires a search for effective ways to collateralise these assets.

To better illustrate this point, let us use a visual example. Imagine a server owned by company X. Various data are stored on the server, including data collected by X for the purpose of training an advanced algorithm used for medical diagnostics. The market value of the data stored on the server exceeds many times over the value of the server itself.

X provided its creditor, company Y, with security in the form of a registered pledge on the movables of X. X did not fulfil its obligations towards Y, and therefore Y enforced its security and took ownership of the server storing the data. The value of the server alone is insufficient to satisfy all of Y’s claims against X, while the value of the data stored on the server exceeds X’s debt to Y. What is the effect of Y’s taking ownership of the server?

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Inheritance of data

A natural extension of the consideration of the legal status of data is the question of whether data can be inherited. This is no longer just a theoretical issue. Data are increasingly valuable, making it vital to answer the question of whether data constitute an asset of the decedent’s estate that can be taken over by the heirs.

According to the Polish Civil Code, the decedent’s property rights and obligations are the subject of succession. But the estate does not include the decedent’s rights and obligations closely linked to his person and rights which, upon death, are transferred to designated persons irrespective of whether they are heirs.

Is it possible to inherit data based on such a definition of inheritance?

First of all, to answer this question, it is necessary to recall the division into different categories of data which, like the issue of classifying certain types of data as property rights, has already been analysed in our data economy series. Indeed, depending on which category of data we are dealing with, the assessment of whether a right or obligation should be included in the estate changes.

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