Make IT clear - 06-07/2023

Amendment to the Code of Civil Procedure

On July 1 2023, a major amendment to the Code of Civil Procedure came into effect. The amendment concerns a major part of the framework as the changes will affect nearly 150 provisions of the Code. Among many changes, some of the more significant ones include:

• Raising the minimum amount in dispute for cases pending before a regional court from PLN 75,000 to PLN 100,000 (cases where the amount in dispute will be less than PLN 100,000 are going to be processed by district courts),
• introducing a new separate proceeding for consumer cases to speed up the judicial review and strengthen the consumer's position vis-a-vis a company,
• changes to interim relief procedures in intellectual property cases.

In our newsletter, we aim to explain the changes regarding the interim relief in IP cases in an easy and concise manner.

Changes related to intellectual property

What do these changes mean for your business?

When someone infringes your intellectual property rights

In a situation in which someone violates your organization's intellectual property rights (e.g. there is an infringement of a trademark, patent or copyright), the most common first step you take at the competent court is to apply for an interim relief to secure your claim against the allegedly infringing party. Nowadays, intellectual property cases are reviewed in separate proceedings. The new interim relief regulations, among other things, introduce a 6-month time limit for submitting an application for an interim relief, and, in the case of industrial property rights, an additional obligation to state whether an IP revocation proceeding is or has been pending. Both of these issues are crucial to protect the interests of the organization whose IP rights might have been infringed.

When someone accuses you of infringement of intellectual property rights

In case you find yourself on the side of someone accused of infringing intellectual property rights of third parties, it is worth to remember that the latest changes under the amendment - apart from the exemptions mentioned in this article - guarantee the right to a hearing before the court grants any interim relief at the expense of your organization.

On July 11 2023, the European Commission adopted a new strategy on Web 4.0 and virtual worlds. In the strategy, the Commission presented its vision and proposed roadmap which aim to make a significant contribution in achieving the objectives of the Digital Decade in regards to technological leadership, sovereignty and competitiveness by 2030.

The strategy sets out to shape Web 4.0 technology as well as virtual worlds in a way that reflects the values and principles of the EU, guarantees respect for the rights of people living in the EU, and provides an environment in which European businesses can thrive. 

The four key pillars of the strategy

1. Empowering people and enhancing skills

By the first quarter of 2024 at the latest, the Commission will publish guidelines for the general public in the form of a „toolkit for citizens”

The Commission will work with the Member States, in order to build a talent pool and support the enhancement of skills, also among women and girls, through projects funded under the „Digital Europe” programme.

2. Transformation of businesses

The Commission will support digital content creators and media companies in the EU in testing new tools, ensure collaboration between developers and commercial users, and work with Member States to provide regulatory sandboxes related to Web 4.0 and virtual worlds.

3. Transformation of public services

The Commission is investing in important initiatives, among others „Destination Earth” (DestinE), Local Digital Twins for Smart Communities and the European Ocean Digital Twin

The Commission will launch two new flagship initiatives: „CitiVerse” – i.e. an immersive urban environment that can be used for city planning and management, and the European Human Virtual Twin, i.e., a copy of the human body to support clinical decision-making and treatment in individual cases.

4. Shaping global standards for open and interoperable virtual worlds and Web 4.0 technology

The Commission will work with stakeholders in the area of Internet governance around the world and promote standards for Web 4.0 technology which are in line with the vision and values of the EU.

Why has the Commission launched the new initiative on Web 4.0 technologies and virtual worlds?

The European Commission aims to ensure that the EU’s public, businesses and public bodies are ready to take advantage of the opportunities created by the 4.0 tech and the virtual world. Virtual worlds offer significant chances in industrial and social fields. In the manufacturing sector, digital twins help test and optimize production processes, rendering them more efficient and sustainable. In the cultural and creative sectors, virtual worlds offer new ways to create, promote  and distribute European content and interact with audiences. 

One important potential in the virtual world is education and training, particularly in the medical field, for such things as emergency situations or surgical simulations to reduce the risk of surgical complications and to increase the accuracy of diagnosis. Additionally, virtual classrooms will enable students and teachers to visualize abstract objects or simulate scientific experiments without endangerment. 

What regulations might apply currently to Web 4.0 technology and the virtual world?

The EU has a substantial regulatory framework that applies to several aspects related to the development of the virtual world and Web 4.0 technology.

With regard to protecting and enforcing the rights of individuals and businesses in the digital world, the Digital Services Act and the Digital Markets Act introduce a comprehensive accountability system for platform as well as search engine providers and core platform service providers, respectively. The said regulations also apply to virtual worlds and Web 4.0 technology.

The GDPR guarantees the proper processing of personal data, and EU consumer protection regulations, particularly the Unfair Commercial Practives Directive, protect against manipulation of consumers’ online choices and transactions. The newly adopted Markets in Crypto Assets Regulation (MiCA) addresses cryptoassets not covered by existing financial services regulations.

The aforementioned legal frameworks will be very important in the context of emerging virtual worlds.

Due to low levels of cybersecurity and insufficient understanding and access to information among users which prevents them from choosing products with an adequate cybersecurity level, hardware and software are increasingly falling victim to successful cyberattacks. In addition, cyber incidents often have a cross-border impact.

Therefore, the EU legislator has proposed the adoption of a regulation on horizontal cybersecurity requirements for products with digital elements and amendment of Regulation (EU) 2019/1020 (Cyber Resilience Act), which aims to create conditions for the development of secure products with digital elements and to enable users to take cybersecurity into account when choosing a product.

Work on the project has been ongoing since 2022. In July 2023, further modifications were proposed to the provisions of the regulation, which is approaching its final version.

On July 10, the European Commission adopted its Adequacy Decision, allowing easier data transfers between the EU and the US under the Transatlantic Data Protection Framework which came into effect the following day, July 11.

Introduction

The Transatlantic Data Protection Agreement seeks to update the legal basis under which transfers of personal data from the Union to the United States are permitted. Previous  regulations, the 2000 Safe Harbor and 2016 Privacy Shield, were invalidated by the CJEU in the Schrems I (C-362/14) and Schrems II (C-311/18) rulings, as a result of complaints brought to the Court by Max Schrems.

Meta Platforms Ireland operates the online social network Facebook in the EU. By registering with Facebook, its users accept Meta Platforms Ireland's terms and conditions in general, including its data and cookie policies. As a result, Meta Platforms Ireland collects data on user activity within and outside the social network and links it to user data accounts on Facebook. "Non-Facebook data" is data resulting from visits to third-party websites and applications, and data on the use of other online services belonging to the Meta group (including Instagram and WhatsApp). The collection of this data is used, among others, to create personalized advertising messages for Facebook users.

CJEU ruling

• When investigating abuses of dominance, a Member State's competition authority may also examine a company's compliance with other regulations such as the GDPR.

• Once the national competition authority considers that an examination of compliance with the GDPR is necessary, it must determine whether this or similar behavior has already been the subject of a decision by the competent supervisory authority, or the CJEU.

• The mere fact that a user visits websites or applications that may reveal "sensitive" data does not mean that the user is making his or her data public within the meaning of the GDPR. A user's posting of data on a social networking site as well as the use of "like„ and "share" buttons, or buttons for identification via email address and phone number, will only constitute "obvious" public disclosure of data if the user explicitly expresses his or her intent beforehand.

• Personalized advertising used to fund Facebook's activities is not a legitimate justification for processing data without user consent.

• The dominant position of a company can affect users' freedom of choice, which is an important factor when determining whether consent was given voluntarily.

The Council and the European Parliament have reached a provisional political agreement on simplifying regulations for contracts for financial services concluded at a distance, enhancing consumer protection and creating a level playing field for financial services offered online, over the phone, or through other forms of remote sales.

What initiated the need for changes?

The development of IT technology is causing more and more financial services (loans, insurance, investments, pension plans, etc.) to be advertised on the Internet, and contracts for such services to be concluded at a distance.

The above mentioned often makes consumers more exposed to:

• the use of interfaces designed to trick users and divert their attention towards products or services they did not wish to sign up for (dark patterns), or
• unclear, long or deceptive contracts that, once signed, are difficult to withdraw from.