A core issue for the data economy is how to define the legal status of data. Can data be the subject of ownership? If not, what rights can be exercised with respect to data? Future models for management of data will depend on the answers to these questions.
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
Who owns data?
New series: Data economy
We are launching a series of articles on the data economy. We use this term to refer collectively to new models of the economy in which the principal role is played by data. Data are becoming an asset in their own right which is more and more often the subject of commercial exchange. This doesn’t mean only personal data. It also, or even primarily, means non-personal data of all sorts, including those generated or gathered by machines, whose value we are only beginning to discover.
We were spurred to develop a series of texts on this topic by the more and more frequently encountered question “Who owns data?” We hear this from clients, tech firms, and startups. Under the surface of this seemingly trivial question lurks the essence of the legal challenges connected with the data economy. It turns out that the legal status of data is not always obvious and it cannot easily be determined who owns data or what is the substance of rights to data.
We would like to expose some sensitive areas where the law does not yield the desired answers to fundamental questions about the rules of the data economy. Along the way, we will attempt to systematise the existing regulations, to determine to what extent they could apply to data.
Blockchain and outsourcing
The Polish regulations directly
referring to blockchain will be joined on 19 September 2020 by the Regulation of the Council of Ministers of
9 March 2020 on Documents Connected with Banking Activities on IT Data
Carriers. It expressly permits banks to store documents connected with
banking activities on blockchain.
Under §5(2) of the new regulation, “A document may be stored in the form of a distributed and decentralised database. The bank shall operate the database in a manner ensuring the security and integrity of the documents contained in the database.” The phrase “distributed and decentralised database” used in this provision refers to blockchain, as is expressly stated in the justification to the draft of the regulation. Moreover, the identical phrase is used in other legal acts to refer to blockchain technology (e.g. in the provisions of the Commercial Companies Code devoted to the ledger of stockholders).
Expanded legal significance of electronic seals
The Regulation of the Council of Ministers of
9 March 2020 on Documents Connected with Banking Activities on IT Data
Carriers enters into force on 19 September 2020. This is a good occasion
to discuss the expanded legal significance of the electronic seal.
The new regulation supersedes the prior executive
regulation under Art. 7 of the Polish Banking Law. The noteworthy features
of the new regulation include the systemic consolidation of the terminology
through introduction of concepts consistent with the EU’s eIDAS Regulation (910/2014)
and a direct reference to distributed ledger technology. (I will address the
treatment of this technology in a separate article.)
It appears that inclusion in the new Polish regulation of terminology consistent with the eIDAS Regulation is more than a mere technicality. A closer analysis of the provisions raises the question of whether the regulation in fact expands the legal significance of the electronic seal.
Legal aspects of the video game industry
The video game development sector has grown rapidly in recent years. With the spread of smartphones, new business models, and distribution platforms, the market for video games has taken off, becoming a key sector of the creative industry. Its growth stirs the imagination and appetite not only of game producers and publishers, but also of the biggest companies in sectors like IT and film, who are increasingly oriented toward the game market. It is also a promising field for investors, particularly from Asia. The industry’s growth has not even been slowed by the COVID-19 pandemic. To the contrary, the industry has taken advantage of this time to reinforce its position and achieve new growth.
The competitiveness of the video game market is also growing, and smaller producers and publishers must compete with global giants. This is not discouraging Polish producers and publishers. In addition to the largest studios, smaller but equally ambitious ones continue to spring up in Poland, with backing from various programmes and accelerators.
Tech versus virus: Remote diagnostics
This time we address solutions from the front lines: devices for remote diagnostics which can improve effective detection of the coronavirus and also unburden the health service in other areas. These solutions can also serve as a proving ground for the regulatory approach to oversight of algorithms.
The immediate inspiration for writing this text was a solution from the company StethoMe presented at the DemoDay organised by the MIT Enterprise Forum CEE. It is a wireless stethoscope combined with an application allowing respiratory examination at a distance. The system also enables analysis of the collected data using an artificial intelligence algorithm. StethoMe is currently testing the possibility of using a remote stethoscope to examine symptoms caused by the coronavirus. Remote diagnostics could greatly improve the effectiveness and safety of our fight against the virus.
We could bet with great odds that one of the effects of the pandemic will be an increased interest in remote diagnostics solutions in the near future. Thus we should point to some of the special regulatory challenges these solutions will necessarily entail.