newtech.law - legal aspects of new technologies

Last week, without fanfare (compared to the bluster shown by the government a few days later in announcing support for the game industry at Poznań Game Arena), a draft of the Act on Financial Support for Production of Cultural Video Games was released. The solutions bruited for several months stir mixed feelings in the industry. Particular controversy surrounds the “cultural test” games will have to pass before they win support. Some commentators fear this may trigger a flood of poor-quality, superficially patriotic games developed solely with the aim of winning government support. It’s worth taking a closer look at the solutions provided in the bill to reach our own conclusions on how they may impact the Polish game market.

At the end of September the French personal data state processing regulator, the Commission Nationale Informatique & Liberté (CNIL), published a preliminary analysis of the issue of what kind of systems suitable for blockchain might apply to personal data processing. The CNIL has also been looking at the issues that are fundamental from the point of view of the GDPR, for example who the controllers and processors are on a blockchain. The CNIL has proposed a number of specific solutions but realises that it does not have extensive knowledge of this technology. It has said that it is open to proposals from experts and says they are welcome to propose their own solutions.

Regulatory sandboxes usually focus on financial regulations. However, these are not the only obstacle holding back innovative fintech start-ups. More extensive sandbox solutions that also cover data protection issues could make Poland a pioneer on the attractive global market supporting fintech.

Andrzej Sapkowski’s demands for more money for copyrights to The Witcher is the tip of the iceberg. Changes in the gaming industry, like increased production costs and the dominance of digital distribution platforms, will give rise to an increasing number of disputes, in particular over intellectual property rights. What could trigger these disputes and how can they be prevented?

When hackers exploited vulnerability due to software not being updated at a US credit agency, important data of millions of customers in the US, Canada, and the UK were leaked. The US federal authorities have launched an investigation that could lead to millions in fines. Bosses at the firm were questioned in a congressional hearing and the agency is facing the largest class action in US history. This sounds like the plot of a financial thriller, but the Equifax case did in fact happen and is a lesson for the future.

Apart from disrupting business activity, causing financial losses, and damaging a firm’s image, hacking can also lead to severe fines for failing to comply with personal data protection or cybersecurity regulations. Businesses which are victims of cybercrime might also be liable towards customers and employees for loss or leaking of important data. Compensatory liability is also possible under Polish law in cases of this kind, and may affect anyone. Cybersecurity reports show that approximately three quarters of businesses have experienced a cybersecurity incident of some kind, and these statistics are unlikely to fall in the near future. Former FBI director Robert Mueller summed up this situation well, saying “I am convinced that there are only two types of companies: those that have been hacked and those that will be. And even they are converging into one category: companies that have been hacked and will be hacked again”.

The legal status of cryptocurrency is particularly important not only for the so-called crypto space, but also for the future of development of blockchain technology. Recent EU legislative proposals classifing “virtual currencies” as financial instruments might significantly reduce blockchain activity in Europe.