technology & digitalisation news
Read through our technology & digitalisation articles, publications and news!
Austria: Schoenherr advises Austrian unicorn Bitpanda on expansion of its product portfolio to include exchange traded cryptocurrencies
Schoenherr advised the Austrian fintech Bitpanda on the expansion of its product portfolio to include exchange traded cryptocurrencies. This product provides investors with easy access to crypto assets via a liquid financial instrument traded on a regulated exchange.
A new era for cryptocurrencies in Poland
With the appearance of Bitcoin ATMs on the streets the cryptocurrency business seems to be blossoming. But do Poland's new cryptocurrency laws address all the issues, especially the risks, in the right way?
New warranty rules: old wine in new bottles?
Two new directives are trying to shape Europe's warranty rules. Member States must apply the Digital Content Directive ("DCD") and the Sale of Goods Directive ("SGD") from 1 January 2022. Austria and several others already implemented the DCD and the SGD in 2021.
Judgments issued ex machina? Are AI-made judicial decisions the future?
Digitalisation is invading all areas of our lives, including the judiciary. It is impossible to imagine everyday legal life without electronic legal transactions, the electronically managed land and company registers, the edict file or the possibility of submitting briefs to courts in electronic form.
Coming soon: The European Patent with Unitary Effect
The European Patent with Unitary Effect ("Unitary Patent") already has a longstanding and ambiguous history, although its underlying legal framework has not yet come into force. But 2021 brought a considerable push towards implementation of the Unitary Patent system.
The Digital Content Directive and the Sale of Goods Directive: when to apply which?
The constant and growing development of new technologies is leading towards an increasing availability of various digital products for consumers. This, in turn, triggers competitiveness and consumers' ever-greater expectations about the offerings, the ease of their purchase and conclusion of contracts without leaving home.
Don't be gentle it's a rental – or isn't it? Correctly classifying an IT service in a contract
There's no such thing as a one-stop software contract that covers all services.
The rise of the machines: The EU is getting ready to regulate AI
In April 2021, the European Commission (EC) released its long-awaited proposal for an Artificial Intelligence Act.1 But what is artificial intelligence?
Does the Digital Services Directive stipulate a right to updates?
The new Digital Services Directive (DSD) aims to harmonise certain aspects of consumer protection law by providing consumers a mandatory warranty for digital content and digital services supplied by a vendor. First and foremost this concerns contracts on the purchase or rental of software (usually comprising licence agreements) or cloud services.
New laws will be needed before real estate, shares and other rights can be tokenised
The transfer of title to real estate requires an entry in the land register. Likewise, the transfer of shares in companies necessitates an entry in the commercial register.
Evidence no. 5. How to sniff out cybercrimes and build a successful case
More and more companies are being subjected to cyberattacks. To effectively respond to this criminal phenomenon, it is essential to be prepared, meaning making sure you have solid evidence to build a criminal case.
Wie man ein 64-kg-Kunstwerk als NFT verkauft
Derzeit besteht ein regelrechter Run auf digitale Kunstwerke, deren Einmaligkeit durch „Non-Fungible Token“ (NFT) garantiert ist. Das gute alte ABGB ermöglicht es, diese Technologie für körperliche Schöpfungen zu nutzen.
16 December 2021
T.Kulnigg D.Tyrybon T.Veronesi C.Haid A.Reumann V.Wolfbauer D.Rutecka N.Kerschbaumer M.Schmiedinger P.Ocko
to the point: technology & digitalisation | December 2021
Non-Fungible Tokens: Ist digitale Kunst versicherbar?
Digitale Kunstwerke in Form von Non-Fungible Tokens (NFTs) erzielen bei Auktionen Millionenpreise. Für Sammler stellt sich daher die Frage, ob sie die Werke versichern können
FMA permits automated biometrical customer identification – a game changer for the KYC process?
Cultural Hackathon podcast: NFT – Is it worth it?
The NFT art market is growing and occupying the cultural sector.
19 October 2021
T.Kulnigg G.Leissler V.Wolfbauer J.Böszörményi F.Terharen D.Rutecka P.Ocko M.Trautinger M.Kern D.Tyrybon T.Veronesi M.Czernin M.Pressler
to the point: technology & digitalisation | October 2021
Limited network exemption under PSD2 – EBA consults on Draft Guidelines
In summer 2021 the European Banking Authority (EBA) published Draft Guidelines on the limited network exemption (LNE) under the Payment Service Directive 2 (PSD2) for consultation (available here). The Draft Guidelines are meant to foster supervisory convergence amongst the EU's national competent regulators (NCAs).
Dissonant Optimism: Mergers and Acquisitions in the Bulgarian Technology Industry
Austria: Schoenherr advises on the sale of the oral hygiene start-up Playbrush to the Sunstar Group
Schoenherr advised the shareholders of the Austrian oral hygiene start-up Playbrush on the sale of the majority shares to the international health care company Sunstar Group.
IP-Day 2021
IP-Day is dedicated to current and fundamental questions regarding intellectual property law – not just in an academic way, but also practically.
The tension between the GDPR & NFTs
If you are unfamiliar with the world of NFTs, please see our self-experiment. If you want to quickly recap what NFTs have to do with smart contracts, please see here.
19 July 2021
D.Tyrybon M.Mihaljčić D.Hofmarcher S.Khalil G.Kucsko D.Rutecka A.Tipotsch F.Terharen V.Wolfbauer R.Vesenmayer
to the point: technology & digitalisation | July 2021
Blockchain and (Un)Real Estate
Blockchain technology has – so far – not lead to a transfer of the world's land registers onto this technology or to a "tokenization" of title (documents). The only significant exception in this respect is Georgia where a purchaser's title to real property can be registered by execution of a smart contract.
NFT art: The most important (legal) questions for artists, buyers in general and museums
24 June 2021
A.Popp M.Stimakovits M.Simsa T.Kulnigg G.Petric P.Kalser F.Urlesberger J.Frank M.Thorbauer
Austria: Schoenherr advises Adevinta on the sale of Shpock to Russmedia
NFT: An all-round legal view of Non-Fungible Tokens | Webinar
Did you miss our webinar, or do you want to listen to the discussed topics again? Watch the NFT webinar video recordings here!
When a museum buys an NFT: Legal challenges and considerations
The story of our NFT self-experiment does not end with the selling of the token. To the contrary, it is only the start: The buyer – in our case the Museum Francisco Carolinum in Linz – wants to use the artwork for their purposes. In general, what legal considerations should a museum keep in mind?
14 June 2021
S.Khalil C.Cudlik M.Kern G.Kucsko T.Kulnigg G.Leissler A.Natterer A.Tipotsch F.Terharen D.Tyrybon
to the point: technology & digitalisation | June 2021
Let the NFT Self-Experiment begin!
Non-fungible tokens (NFTs) aren't new, in fact they've been around for years. However, it took the auction of an NFT linked to an image by Christie's Auction House and the fall of the hammer at a spectacular USD 69 million to create worldwide attention and interest in NFTs.
Czech Republic / Austria: Schoenherr advises Twisto group on senior and mezzanine debt (re)financings
Austria: Schoenherr and Museum Francisco Carolinum clarify NFT Art
Schoenherr's IP & Technology practice group has set itself the goal of providing clarity on Non-Fungible Tokens (NFTs) in the art and culture industry. In collaboration with the Museum Francisco Carolinum Linz in Upper Austria, the questions preoccupying artists, collectors and museums will be addressed at one of the world's first art exhibitions on NFTs in art. An important milestone for this has already been reached: The museum recently acquired their first NFT artwork – a work of art by conceptual artist and Schoenherr partner Guido Kucsko, that was also used in a Schoenherr team's self-experiment.
Facial recognition technology: regulations and use
In recent years there has been an increased use of technologies that match a person's digital image (eg, from a surveillance camera) to a picture database. These technologies facilitate various tasks, including:
The ECJ's VG Bild-Kunst case: Are there (legal) limitations to the use of links?
YES - In its previous case law, the court has recognised the importance of hyperlinks for the operation of the World Wide Web and for freedom of speech. On these grounds, the European Court of Justice (ECJ) generously allowed the use of links to make third-party content accessible via one's own website.
Checking In: Data Protection Compliance in CEE
For our Checking In feature, we reach out to partners and heads of practice across CEE to learn how specific practice areas are faring in their jurisdictions. This time around we asked Data Protection experts: Overall, how compliant would you say economic agents are with relevant local regulations on data protection, and what are the main gaps that have yet to be addressed?
Zum rechtskonformen Einsatz moderner Technologien im Beratungsalltag
Anforderungen des Berufsrechts an externe elektronische Datenverarbeitung iZm Cloud Computing
COVID-19 – a catalyst for digital assets and crypto trading regulation?
The economic impact caused by the COVID-19 pandemic has not only significantly changed the way we work, travel and shop, but has sent a large number of investors on the search for assets that can provide a safe haven during the ongoing crisis and its macroeconomic events.
IT projects: Everything agile or still waterfall?
Agile project methods have been a topic of conversation for years. There is hardly a management consultant who does not swear by them and hardly a company that does not prescribe "agile" as a miracle cure for many homemade problems. Agility in project management has almost become mandatory, for better or worse.
2021
Quickly adapt with an e-commerce presence and digital business models
The COVID-19 crisis has forced many businesses to sell their goods and services online. Limitations on the number of people who can enter a store or restaurant have made e-commerce solutions necessary even for companies that have never used this channel before.
New technologies and legislation: speed of developments vs. legal adaptations
From self-driving cars to AI and new forms of cybercrime: new technologies are developing faster and faster. And so are the legal challenges, particularly since the legislator is usually only able to react, and not to proactively set the course in this field.
Internet platforms do not have to report the true online identity of copyright infringers
The internet as a remote platform for day-to-day human interactions has been growing exponentially for many years – and internet crime along with it. Therefore, the existing legal framework, which often comes from the "offline" age, is sometimes tested for its ability to cope with the new online reality.
13 January 2021
T.Kulnigg E.Stalmach Bajáková J.Böszörményi C.Haid G.Leissler D.Rutecka F.Schneider M.Trautinger D.Tyrybon V.Wolfbauer
to the point: technology & digitalisation | January 2021
Cyber security: the last days for operators of essential services in Romania to notify CERT-RO
Operators of essential services are required to notify CERT-RO - the national competent authority for security of networks and information systems - for registration in the Register of operators of essential services by 17 December 2020. Otherwise, these companies risk fines of, in some cases; up to 5 % of their turnover.
10 December 2020
T.Kulnigg F.Urlesberger C.Haid M.Woller J.Stalzer J.Frank M.Stimakovits P.Kułak
Austria: Schoenherr advises voestalpine on foundation of technology joint venture for production of TransAnt
Schoenherr successfully advised voestalpine Stahl GmbH on the establishment of a joint venture with the ÖBB Rail Cargo Group for the production of the TransAnt – an innovative platform car. The 50/50 joint venture which aims to further combine the activities of both companies to additionally enhance the jointly developed TransAnt platform car is now entering a preparatory phase.
OGH - Aufgriffsrechte in der Insolvenz sind zulässig
Hintergrund: In der Praxis vereinbaren Gesellschafter einer Gesellschaft mit beschränkter Haftung (GmbH) im Gesellschaftsvertrag häufig sog. Aufgriffsrechte, das sind im Wesentlichen wechselseitige Erwerbsrechte, die bei Eintritt von definierten Ereignissen (sog. "Aufgriffsfälle") zum Erwerb des Geschäftsanteils des vom relevanten Ereignis betroffenen Gesellschafters berechtigen. Ein Aufgriffsfall ist zB der Tod eines Gesellschafters, der eine natürliche Person ist.
Austria: Schoenherr advises sell-side in LINK Mobility's acquisition of WebSMS
Schoenherr advised the owners of the Austrian CPaaS ("Communication Platform as a service") companies atms, sms.at and their WebSMS brands (referred to as "WebSMS") on selling WebSMS to Norwegian LINK Mobility Holding ASA.
Ein Do-it-yourself-Weg zur Legal-Tech-Lösung
Für maßgeschneiderte Lösungen kann dennoch manchmal die Eigenentwicklung einer Legal-Tech-Plattform der richtige Weg zum Ziel sein. Die Erfahrung einer Großkanzlei
30 October 2020
to the point: technology & digitalisation | October 2020
Welcome to the October edition of Schoenherr's to the point: technology & digitalisation newsletter!
We are excited to present a selection of legal developments in the area of technology & digitalisation in the wider CEE region.
Global Legal Insights to: Blockchain & Cryptocurrency Regulation 2021 - Chapter Montenegro
Czech Republic: Schoenherr advises Celonis SE on acquisition of Integromat group
Schoenherr advised Celonis SE ("Celonis"), a global leader in process mining software, on the acquisition of Czech Integromat, s.r.o. and its subsidiaries, one of the most progressive providers of automation software. The acquisition allows Celonis to achieve full synergy in the provision of process mining services offering professional automation solutions.
Austria: FMA publishes guidance on ICOs and token classification
The Austrian Financial Market Authority (Finanzmarktaufsicht, FMA) has recently published guidelines on how it views Initial Coin Offerings (ICOs) from a financial services regulatory perspective.
Czech Republic: Schoenherr advises KB SmartSolutions, a.s. on the strategic entry and acquisition of a stake in Platební instituce Roger a.s.
Schoenherr advised KB SmartSolutions, s.r.o. ("KB Smart Solutions"), a subsidiary of Komerční banka, a.s. focusing on collaborating with innovative fintech companies and start-ups, on the strategic entry and acquisition of an almost 25 % share in Platební instituce Roger a.s., which connects investors with companies that suffer from long invoice maturities.
Another promotion at Schoenherr: Matthias Pressler becomes Counsel
Matthias Pressler, member of Schoenherr's banking, finance and capital markets practice in Vienna, was promoted to counsel as of 1 October 2020. Pressler joined Schoenherr in 2015, and is an expert in financial services regulation, covering both transactional work as well as contentious and non-contentious regulatory advisory matters and administrative (criminal) proceedings.
30 September 2020
C.Benes D.Tyrybon T.Kulnigg V.Wolfbauer M.Trautinger S.Khalil
to the point: technology & digitalisation l September 2020
Austria: Schoenherr advises Bitpanda on its USD 52 million Series A financing round
Schoenherr advised Austrian fintech Bitpanda, on the largest European Series A financing round in 2020 led by Valar Ventures, and including other fintech investors such as Speedinvest. The funding secures USD 52 million to further drive Bitpanda's expansion.
Disclosure obligations and liability of UUC platforms in focus
It was in the very first Technology newsletter in fall 2019 that I reported about referrals to the CJEU concerning disclosure obligations and liability of user uploaded content (UUC) platform providers in relation to illegal (copyright infringing) uploads.
31 August 2020
D.Hofmarcher V.Wolfbauer T.Kulnigg C.Haid S.Khalil D.Rutecka M.Trautinger
to the point: technology & digitalisation l August 2020
Mandatory e-communication for companies seated in Croatia
The digitalisation of the Croatian court system is proceeding and e-communication is expanding. Snail mail and "paper" communication are on the verge of extinction. As of 1 September 2020, all legal entities will have to use e-communication with the court.
Bulgaria: Schoenherr advises United Group on EUR 1.2 bln acquisition of Vivacom
Schoenherr has closed United Group's EUR 1.2 bln acquisition of Vivacom (Bulgarian Telecommunications Company EAD), the largest telecoms operator in Bulgaria. Signed in November 2019, this was the largest deal in Bulgaria in 2019 both in terms of value and size of the assets.
European Court of Justice invalidates "Privacy Shield" but affirms Standard Contractual Clauses
Decision of the CJEU dated 16 July 2020, Rs C 311/18
WIPO PROOF: Launch of new online service to create trusted tamper-proof evidence through timestamps
Companies spend a lot of time and money creating, innovating and protecting their intellectual property. When the protection fails due to unavailable or insufficient evidence, the frustration is understandably high.
30 June 2020
czech republic slovakia slovenia austria
M.Woller M.Hornyik D.Rutecka V.Wolfbauer M.Trautinger T.Kulnigg G.Leissler E.Stalmach Bajáková
to the point: technology & digitalisation l June 2020
Welcome to the June edition of Schoenherr's to the point: technology & digitalisation newsletter!
Hungary: Data protection authority imposes highest post-GDPR fine
The Hungarian National Authority for Data Protection and Freedom of Information (the "Authority" or "NAIH") recently imposed a fine of HUF 100m (approx. EUR 285,000) on one of the biggest electronic communication service providers Digi Távközlési Szolgáltató Kft. ("Digi").
to the point: technology & digitalisation l May 2020
Welcome to our May edition of Schoenherr's to the point: technology & digitalisation newsletter!
Czech Republic: Crowdfunding can help businesses overcome COVID-19
The COVID-19 pandemic has affected almost all businesses worldwide and could end in collapse for many of them. One way businesses (especially SMEs) can get through this period and stand on their own two feet again is crowdfunding.
Global Legal Insight: Al, Machine Learning & Big Data 2020
The Global Legal Insights series provides essential insights into the current legal issues, providing readers with expert analysis of legal, economic and policy developments through the eyes of the world's leaders.
Czech Republic: Top ten most common mistakes in terms & conditions for e-shops (not only) in the time of coronavirus
Bulgaria: Lawyer Kristina Chakarova for the monitoring of mobile devices and the European experience
Under the state of emergency, a number of measures restricting personal freedoms were introduced. Among the controversial proposals was mobile device monitoring during the COVID pandemic.
One step towards virtual dispute resolution: hearings via videoconference
Court hearings via videoconference were unimaginable in Austrian courts pre-COVID-19. Witnesses could testify via videoconference in Austrian court proceedings only under certain circumstances, but they still had to attend court – just not the court in which the proceedings were pending.
Das COVID-19-GesG – aktuelles zu Virtuellen Versammlungen im Gesellschaftsrecht und zu elektronischen Notariatsakten
Update 10/04/2020
Der Nationalrat hat unter anderem im Zuge der COVID-19-Gesetzgebung mehrere gesellschaftsrechtliche Maßnahmen im Rahmen eines sog. gesellschaftsrechtlichen COVID-19-Gesetzes (COVID-19-GesG) beschlossen.
31 March 2020
czech republic poland slovenia austria
S.Bednář T.Kulnigg M.Trautinger V.Wolfbauer P.Ocko S.Khalil A.Lengger D.Rutecka
to the point: technology & digitalisation l March 2020
Welcome to our March edition of Schoenherr's to the point: technology & digitalisation newsletter!
We help Start-Ups!
In an attempt to help start-ups during the current corona situation obtaining the much needed financial liquidity support from their shareholders or other investors, we put together a short and simple forward equity agreement, the "Simple Equity Investment Contract (SEIC)".
Court hearing via social network – has Europe missed its chance?
Digitalisation is on everyone's lips. Parts of the judiciary – at least in some European countries – are hesitant. Austria introduced an electronic legal communication system for most Austrian courts decades ago.
The Police, Drones, and the Corona Pandemic – Reflections on Austria
The Corona pandemic is putting our world to an unexpected stress test. But despite all difficulties, in only a couple of weeks, people dramatically changed the way they work, shop, seek health care, and interact with each other.
26 February 2020
czech republic poland romania austria
T.Kulnigg M.Trautinger A.Lopatka-Sint D.Rutecka U.Rath C.Benes E.Stalmach Bajáková P.Ocko V.Wolfbauer
to the point: technology & digitalisation l February 2020
Welcome to our February edition of Schoenherr's to the point: technology & digitalisation newsletter!
Digital Signatures
More and more companies are using digital signatures to sign their contracts electronically. But is this permissible and are the contracts valid?
Freedom of contract (Vertragsfreiheit) is an underlying principle of Austrian contract law. A contract is defined as consenting declarations of an offer and an acceptance and, in general, neither offer nor acceptance requires a specific form under Austrian law. Moreover, oral agreements are legally binding and enforceable. Contracting parties are therefore free to choose any suitable form for a contract according to Section 883 of the Austrian civil law (Allgemein Bürgerliches Gesetzbuch, "ABGB"), including tools to sign contracts electronically. This possibility to choose is called freedom of form (Formfreiheit), which is part of the mentioned freedom of contract ("Vertragsfreiheit").
The flying Fiaker: A case study
The Fiaker, a Viennese term for a horse-drawn four-wheeled carriage for hire (a "hackney coach"), has been trundling through the streets of Vienna for centuries. The first Fiaker was licensed in 1693. Back then, it was the first means of urban transportation to carry several passengers at once. Today, it is a tourist attraction and traffic obstruction. Nonetheless, the Fiaker survived and adapted. Just recently, the first electronic Fiaker hit the road in Vienna.1
It is heralded that the future of urban transportation lies in the third dimension: up! Soon drones will usher in a new era of urban aerial mobility. With the U-Space initiative, the European Commission established a process to develop a new regulatory framework that would enable complex (civil)2 drone operations in all types of operational environments within the single European Sky airspace.3 This new EU framework must be widely implemented by EU Member States starting from 1 July 2020 and is fully applicable to all civil drone operations as of 1 July 2022.
Czech data protection authority: Can the employer enter into its employee's e-mailbox?
In January 2020, the Czech data protection authority (ÚOOÚ) published on its website an anonymised inspection protocol, which contains valuable information on how the authority assess checking and reading employee emails after the GDPR came into effect.
In the case in question, the authority received a complaint which reads that "… after an employee leaves, his e-mailbox, which contains both working and private data, is handed over to such employee’s supervisor, who has a full access to the e-mailbox, administers it and uses it…". The authority initiated an investigation in which it expressed (and protocoled) its opinions on accessing employee mailboxes.
Romanian fintech start-ups combine powers and create the first Romanian fintech association
For the last couple of years, the fintech industry has become of great interest in the Romanian entrepreneurial scene. Numerous Romanian start-ups or long-existing financial and IT companies have switched focus on what fintech means and on what it can bring to the table.
31 January 2020
D.Hofmarcher A.Pabst T.Kulnigg V.Wolfbauer M.Trautinger S.Bednář E.Stalmach Bajáková S.Khalil
to the point: technology & digitalisation l January 2020
Welcome to our third edition of Schoenherr's to the point: technology & digitalisation newsletter!
Telemedicine on the rise in Austria?
Seven out of the 328 pages of the new green/conservative government's programme are dedicated to the health sector. One bullet point on this programme for the next five years is to implement telemedicine treatment in the best possible way. The government further explains that it aims to promote digitalisation in diagnosis, treatment and medical research and thus strengthen Austria as a health hub.
Dashcams: Panta rhei in the data protection world?
At present it seems nothing about the GDPR is fixed or settled. This was recently illustrated by an update to the Austrian Data Protection Authority's (DPA) online information on dashcams. While dashcams are rumoured to be inadmissible in Austria, the DPA's update may revive this discussion.
Exchanging views on current trends in Legal Tech and financing transactions
Legal Tech is currently on everyone's mind and has also become a central topic in the context of financing transactions. While marketable applications for buzzwords such as "automated document generation" or "artificial intelligence" are often still in their infancy in the field of legal transactional advice, such applications can already make a significant contribution to the success of a transaction in the field of efficient process management, e.g. in connection with the satisfaction of conditions precedents under loan agreements.
Electromobility on the rise
As part of the EU's efforts to achieve carbon neutrality, Regulation (EU) 2019/631 of the European Parliament and of the Council of 17 April 2019 (effective from January 2020) laying down CO2 emission performance standards for new automobiles and new light commercial vehicles (the "Regulation") was issued. Under the Regulation, individual manufacturers (or associations of manufacturers under Article 6 of the Regulation) will be obliged, inter alia, to reduce emissions from new automobiles by 37.5 % by 2030 (compared to the 2021 target of 95 g CO2/km).
Together on the blockchain: Finding consensus in a decentralised network
An essential element of the blockchain and the technology behind it is the validation of transactions, i.e. confirmation that data in the blockchain ledger is entered rightfully1. But how, exactly, can data entered in a decentralised ledger be validated? Who does the validating? These questions arise once you look deeper into the workings and structure of transactions on the blockchain.
What is AI and why should lawyers care?
Artificial intelligence (AI) and machine learning are familiar buzzwords when it comes to future technology and fundamental societal shifts. But what is it really all about and why is it so difficult to apply common legal concepts to these developments?
A new reality for ridesharing apps in Poland
The battle between traditional taxi drivers as well as their supporters and those advocating a more digitalised approach focused on ridesharing applications such as Uber, Lyft or Bolt began a few years ago and is being waged in almost every country. In Poland, Uber started back in 2014 as the first mobile taxi application on the Polish market. Taxi drivers began protesting the app almost immediately after it became clear that consumers preferred Uber's efficiency and prices to those of traditional taxis. Criticism from traditional taxi drivers about the safety of Uber and the qualifications of its drivers led to the need for legal changes. A first draft amendment of the Polish Act on Road Transport was submitted to the Council of Ministers in July 2017 (the "Amendment").
Romania: How to start-up an army of cyber guardians
This year, Romania's first tech unicorn reached a USD 7bln valuation. This has stirred things up, expanding the horizons for many Romanian entrepreneurs. While still far from being a major start-up ecosystem, the country is showing its potential, mostly due to high-quality tech talent available at still manageable costs.
Article 15(3) of GDPR and right to access files or documents – an Austrian perspective
Austria: Lawyer vs. Robot: Is there a future without human lawyers?
On 10 December, experts from both legal practice and academia spent the evening at the "Lawyer vs. Robot: A lost cause?" event which is part of the event series TECHNOLOGYLEGAL, a collaboration between Professor Christian Piska from the University of Vienna, and Christian Schmelz, partner at Schoenherr Vienna.
Fifth Schoenherr Construction Conference: Digitalisation brings more transparency to the construction industry
The Schoenherr Construction Conference took place for the fifth consecutive year on 29 November in Vienna. The conference was initiated in 2015 by the Schoenherr real estate & construction team.
Austria: Schoenherr advises European Investment Bank on EGFF-financing transaction with Bitmovin
Schoenherr, together with law firm Duane Morris LLP, advised the European Investment Bank (EIB) on their EGFF-financing transaction with the Austrian start-up Bitmovin.
European Commission's Expert Group publishes report on Regulatory Obstacles to Financial Innovation
Just in time for Christmas, the European Commission's Expert Group published its eagerly awaited final report on regulatory obstacles to financial innovation on 13 December 2019 (the "Report").
New Rules for Digital Content & Sale of Goods
The Sale of Goods Directive will apply to sales contracts between a consumer and a seller for goods, including goods with a digital element (e.g. smart TVs, smart fridges or smart watches) regardless whether concluded physically in shops or online.
Update on Artificial Intelligence and Competition Law
On 6 November 2019, the German Cartel Office and the French Competition Authority published a joint report on the competition risks resulting from the use of algorithms (the "Report"). The Report tackles four main issues:
Payment Services Directive 2 (PSD2) – Paving the way for Open Banking
The revised Payment Services Directive (PSD2), applicable since 13 January 2018, has paved the way for Open Banking. Open Banking describes a shift from a closed model of banking to one in which customer data is shared between different members of the banking ecosystem.
Czech Republic: Schoenherr advises Facebook on the acquisition of Czech company Beat Games s.r.o.
Schoenherr advised Facebook, Inc. and Facebook Technologies, LLC on the acquisition of Czech games studio, Beat Games s.r.o., which developed and continues to upgrade the hit virtual reality game Beat Saber as well as other games developed by the company.
to the point: technology & digitalisation l December 2019
Welcome to our second edition of Schoenherr's to the point: technology & digitalisation newsletter!
Second Tech Night @ Schoenherr: Digital adaptability as a prerequisite for success
Am 21. November fand die zweite "Tech Night @ Schönherr" statt. Die von der Schönherr Technology & Digitalisation Gruppe ins Leben gerufene Eventreihe befasst sich mit rechtlichen Rahmenbedingungen und Herausforderungen im Kontext aktueller digitaler und technologischer Entwicklungen.
Erste GmbH-Gründung über die Kamera
First published on Der Standard, 6.11.2019
Eine Gesellschaft kann in Österreich nun ohne physische Anwesenheit gegründet werden
Wiener Entwicklungshilfe für Legal-Tech-Start-ups
First published on Der Standard, 6.11.2019
Der Legal Tech Hub Vienna legt mit seinem Accelerator einen Fokus auf Produkte, die das Prozessmanagement und die Umsetzung von Geldwäscheauflagen für Anwälte erleichtern.
Global Legal Insights to: Blockchain & Cryptocurrency Regulation 2020 - Chapter Serbia
The Global Legal Insights series provides essential insights into the current legal issues, providing readers with expert analysis of legal, economic and policy developments through the eyes of the world's leaders.
Global Legal Insights to: Blockchain & Cryptocurrency Regulation 2020 - Chapter Montenegro
The Global Legal Insights series provides essential insights into the current legal issues, providing readers with expert analysis of legal, economic and policy developments through the eyes of the world's leaders.
Facebook's Libra: The new generation of cryptocurrencies?
"When I think about all the different ways that people interact privately, I think payments is one of the areas where we have an opportunity to make it a lot easier," Zuckerberg said on 30 April 2019 at Facebook's F8 annual software developer conference in San Jose, California.
Increased activity of the Polish Data Protection Authority
As of November 2019, the Polish Data Protection Authority (Urząd Ochrony Danych Osobowych; "UODO") has fined three Polish companies and one local government institution for non-compliance with the GDPR.
Digital foundation of an Austrian limited liability company
The Electronic Notarial Form Foundation Act (Elektronische Notariatsform-Gründungsgesetz) ("ENG") came into force on 1 January 2019 and enables going forward the digital foundation of an Austrian limited liability company ("GmbH") by way of an electronic notarial deed. The Austrian notaries were entrusted with the implementation of the digital foundation procedure. Since autumn 2019, the first notaries in Austria have been offering the digital foundation process of a GmbH. Schoenherr attorneys at law, was the first person in Austria to accompany a digital foundation process.
Before we describe the digital foundation in practice, we briefly describe the notarial process of founding a GmbH in general: (i) execution of the deed of incorporation / articles of association as Austrian notarial deed (Notariatsakt), which essentially requires that the notary reads out the agreement and the parties sign the agreement in front of the notary, (ii) appointment of the first managing director(s) by way of a shareholders' resolution (by way of a notarial protocol, circular resolution with certified signatures or – as this is done in practice – as part of the notarial deed described under (i)), (iii) execution of the specimen signatures of the managing director(s) with their signatures being certified by a notary public (this could also be done by a foreign notary or an Austrian embassy/consulate) and (iv) execution of the commercial register filing again with signatures being certified by a notary public or Austrian embassy/consulate.
The ENG now attempts to fully digitalize such process. The process in practice can be described as follows:
Payment Services Directive (PSD2) – Strong Customer Authentication and additional migration period for e-commerce businesses
The revised Payment Services Directive (PSD2), applicable since 13 January 2018, brought significant changes to the payment markets in the EU. In particular, PSD2 requires certain payment services providers (PSPs) to apply strong customer authentication (SCA, also referred to as two-factor authentication) in remote electronic transactions.
to the point: technology & digitalisation l November 2019
Welcome to our first edition of Schoenherr's to the point: technology & digitalisation newsletter!
Schoenherr digitally founds LLC for the first time in Austria
Am 8. Oktober 2019 haben Schönherr Rechtsanwälte GmbH und die Notare MMag. Dr. Philipp Nierlich LL.M. und Dr. Christoph Pfaffenberger vom Notariat NHP - Notare Huppmann, Poindl, Pfaffenberger, Nierlich erstmals in Österreich eine GmbH auf digitalem Weg gegründet.
Zivile Drohnen - ist Österreich auf die EU-Vollharmonisierung vorbereitet
Drohnen werden zunehmend häufig und vielseitig im Luftraum operiert. Der Unionsgesetzgeber hat auf den EU-Harmonisierungsbedarf für zivile unbemannte Luftfahrzeuge mit der VO (EU) 2018/1139 reagiert. In Zusammenschau mit deren tertiärrechtlichen Ausführungen muss das österr Luftfahrtrecht ab 1. 7. 2020 mit den unionsrechtlichen Anforderungen für die drei neuen uLFZ-Kategorien übereinstimmen. Eine umfassende Luftfahrtgesetz-Nov scheint unausweichlich.
Der vollständige Artikel ist hier zu finden.
FinTech 2019 in Austria
Financial technologies, or FinTechs, are rapidly changing the finance/banking sectors, and sometimes even shift whole markets online, and make it possible to deal, invest or lend money without ever needing to deal with a traditional bank.
Schoenherr advises Spanish manufacturer Torrot on delivery of electric scooters and related technology to ŠKODA AUTO DigiLab
Schoenherr Prague advised Spanish manufacturer Torrot Electric Europa, S.A. ("Torrot") on the delivery of complex technology solutions for scooter sharing (including also electric scooters, advanced IT technologies and IT services) to ŠKODA AUTO DigiLab s.r.o. ("ŠKODA AUTO DigiLab"), which will use them for its new e-scooter sharing service BeRider in Prague.
Serbia catches up with the GDPR
1. New Data Protection Law adopted and applicable
After a public hearing that lasted more than a year, the National Assembly of the Republic of Serbia adopted the new Data Protection Law (the "Law") on 9 November 2018. The Law is applicable as of 21 August 2019. The provisions of the Law itself have been modelled on, and largely comply with the provisions of the GDPR, as part of the wider process of harmonising the national law of Serbia with EU law, which was one of the main reasons for the adoption of the new Law. Besides many novelties, the new Law elaborates on certain procedures, rights, obligations and competences.
Some of the most important novelties follow.
EU-Finanz-Anpassungsgesetz 2019 │ New Challenges ahead for the virtual currency business
On 11 July 2019 the Austrian parliament adopted the EU-Finanz-Anpassungsgesetz 2019 ("EU-FinAnpG 2019") which implements the 5th EU Anti-Money Laundering Directive ("5th AML Directive") into Austrian law and introduces a number of amendments to Austrian laws relevant to the financial market.
In order to implement the 5th AML Directive, amendments to the Austrian Financial Markets–Money Laundering Act ("FM-GwG"), the Beneficial Owner Register Act (WiEReG) and the Act on Gaming (Glückspielgesetz), are necessary. These amendments include changes which will have a significant impact on business with virtual currencies.
Austria: Schoenherr advises SynerGIS on the sale of its GIS and FM software development business to AED-SICAD
Schoenherr has advised the shareholders of the Synergis Informationssysteme GmbH ("SynerGIS") on the sale of its GIS (geographic information systems) and FM (facility management) software development business to AED-SICAD GmbH ("AED-SICAD").
Cyber-attacks and business secrets - Protection under criminal law
Business secrets are essential assets of companies, and are often the reason for a company having a competitive lead in a market. Thus, they constantly seek to develop new technologies, algorithms or software to create such intangible assets.
Digital Services Tax proposed
In early April 2019, the Austrian Federal Government published a draft of the Digital Tax Act 2020 which is currently under review.
Schrems II.: the doom of Privacy Shield and Standard Contractual Clauses?
Read the Czech version below.
There are two fundamental legal mechanisms stipulated in the EU law for the transfer of personal data outside European Economic Area (EEA): Standard Contractual Clauses (SCCs) and Privacy Shield. Both of them are widely used in practice because they allow corporations within the EEA to legitimise the transfer of personal data beyond the borders of EEA. However, each of them behaves differently. SCCs are essentially contracts between (at least) two parties and a Privacy Shield on the other hand is an agreement between the United States Department of Commerce and the European Union, which regulates the transatlantic data transfers.
The Court of Justice of the European Union (CJEU) is prepared to hear a case challenging the validity of both of the above-mentioned transfer instruments. The case stems from a dispute between Max Schrems and Facebook dating back to 2013. Max Schrems is an Austrian lawyer and determined advocate for data protection. His focuses on the flow of (EU) personal data from US corporations to U.S. intelligence agencies. In 2017, Schrems set up a non-profit organisation NYOB1 with the aim to help citizens defend themselves against allegedly “omnipresent” technological corporations.