Digital Law Alert: your regular update on technology legislation from DLA Piper UK

In this edition of DLA Piper’s Digital Law Alert, we provide an overview of the main developments in technology law from the previous month.

The European Commission has published a draft declaration on digital rights and principles to support the digital age goals that Europe aims to achieve by 2030. Rather than establishing new rights, the draft declaration brings together existing EU rights that apply to the digital age in a single point of reference. The seven key principles for values-based digital governance established as part of the 2020 strategy Berlin Declaration are reflected in the declaration, including the need to validate and respect fundamental rights and democratic values ​​in the digital age and the need to create a resilient and sustainable digital society in line with the EU Green Deal. The draft declaration aims to put people at the center of digital transformation and foster a protected and secure online environment as part of its principles.

As previously stated in a DLA Piper Privacy Matters blog postin early 2022, the UK government launched its cybersecurity strategy for 2022-2030 outlining how UK public services should seek to cope with rising rates of cyberattacks. According to the report, approximately 40% of incidents handled by the National Cybersecurity Center in a one-year period before August 2021 affected the public sector. Immediate and longer-term actions are clearly needed to address this trend. The report focuses on detecting and minimizing the impact of cyberattacks and includes a cybersecurity assessment framework that was developed by the NCSC to provide a means of assessing whether risks to critical functions are being properly managed. .

The European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority have published a report recommendations on the future regulation of digital finance. Released in response to the European Commission’s “Call for Advice on Digital Finance”, the report calls for a high level of consumer protection and focuses on ways to address the risks posed by the growing platformization of the experience. consumers. The proposals presented in the report also include applying a holistic approach to the regulation of the financial services value chain and supporting greater convergence of methods to combat money laundering and the financing of terrorism in a digital context.

As discussed by Simon Kenyon and Paul Hogarth of DLA Piper in a recent previewin the case of Transparently Limited v Growth Capital Ventures Limited [2022] EWHC 144 (TCC) the UK technology and construction court refused to grant a binding injunction for the delivery of bespoke software which was the subject of litigation before its development was completed. The judgment considers that the “balance of convenience” test should be applied when considering the granting of mandatory injunctions to deliver unfinished software. The case serves as a useful reminder of the need to carefully consider the terms of a software development agreement that may require the surrender of partially developed software in the event of early termination of the agreement.

The European Commission has propose the introduction of a European chip law aimed at addressing shortages of semiconductors and strengthening Europe’s position as a leader in the digital and green transition. The impact of recent shortages of semiconductor materials is still being felt around the world, exposing the need for legislative action to ensure a reduction in reliance on component materials and existing semiconductor designs. drivers as far as possible. The new law recognizes the need for innovation and investment in chip design and manufacturing and a mobilization of private and public investment across Europe to achieve this.

February 15, 2022 saw the launch the first coordinated enforcement action of the European Data Protection Board (EDPB), which will involve investigations into public sector use of cloud services by 22 national data protection authorities in the European Economic Area . The survey applies the EDPB’s Coordinated Enforcement Framework, which was put in place in October 2020. The survey was triggered by an increase in the adoption of cloud services in the public sector, fueled in part by the impact of COVID-19 and coupled with the realization that many public bodies seeking to implement cloud technology risk breaching EU data protection law. We recommend that you keep an eye on our Privacy issues blog for further reports on the investigation as it unfolds.

The UK Government’s Department for Business, Energy & Industrial Strategy (BEIS) has updated its 2015 report advice about testing automated vehicles (AVs) in public. The updated guidance sets out clearer guidance on conducting trials in a safe and responsible manner, improving trial transparency, and how to engage with the public, authorities and other relevant bodies when conducting trials. test planning. See also the recent DLA Piper report seriesMan vs Machine: Legal Liability in Artificial Intelligence Contracts and the Challenges That May Arise”.

Also important for the audiovisual industry, the Law Commission of England and Wales and the Scottish Law Commission have published a joint report report recommending new laws to regulate audio visual vehicles in Britain. The report was produced after three rounds of consultations and hundreds of meetings with interested parties. He recommends a new legal test to determine if an AV is “self-driving” alongside the introduction of safety assurance programs to be applied before and after AVs are released. A summary of the report is also available.

The UK Artificial Intelligence Public-Private Forum, set up by the Bank of England and the Financial Conduct Authority, has published its final report highlighting key findings from the Forum which, over the course of a year, discussed barriers to adoption, challenges and risks related to data, model risk and governance. The report provides examples of best practices to mitigate the identified risks and aims to promote an ongoing discussion on methods for the safe adoption of AI in the financial services industry, noting that the discussion on the safe adoption of AI AI is just getting started.

As expected in our first Digital Law Alert, the potential of quantum computing is increasingly in evidence, as indicated by the launch of a UK consultation by BEIS on February 14, 2022, seeking views from the quantum research and business community and broader interested parties to inform the development of its quantum strategy. The consolation seeks feedback on technology adoption, the regulatory environment, and the innovation ecosystem, among others. The consultation closes on March 10, 2022.

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