Understandinginnovation & steeped inIT & anticipating change& cracking the code &advice you can trust & init from the start & that’sIT with
Big DataThe incredible and continuous production of – both structured and unstructured –digital data coming from the widespread use of digital devices and on-line systems ispushing business to define Big Data strategies. Machines, devices and networks areconstantly producing data which are often simply too voluminous for the humaninterface to take them in consideration. Increasingly, in the business context the dataitself turns out to be the core asset of business transactions. The Big Data revolutionand data management is turning into a major point of interest for CIOs and thefocal point of attention at board level. Providers of software solutions are growingexponentially in this dynamic segment of the IT industry, with smart innovatorscompeting against large multi-nationals to provide scalable and integrated Big Datasolutions.Bird & Bird draws on a deep understanding of theimpact that Big Data has throughout the entire value What is Big Data?chain of technology-based service offerings.Bird & Bird’s International IT Sector Group is following “Big data” refers to datasets whose size is beyondclosely some of the major and most advanced providers the ability of typical database software tools toof Big Data projects, and is perfectly positioned to capture, store, manage, and analyze. This definitionadvise on the legal issues around complex Big Data is intentionally subjective and incorporates asolutions, both in the private and the public sector. moving definition of how big a dataset needs toFrom common propositions for Big Data solution be in order to be considered big data—i.e., weproviders right up to cutting-edge innovators don’t define big data in terms of being largerdealing with coding methodologies that ensure data than a certain number of terabytes (thousands ofcategorization and analysis, Bird & Bird has leading gigabytes). We assume that, as technology advancesexpertise and insight into the industry on a broad scale. over time, the size of datasets that qualify as big data will also increase. Also note that the definition canOur lawyers are frequently engaged in government vary by sector, depending on what kinds of softwareand industry initiatives dealing with the legal tools are commonly available and what sizes oframifications and regulatory demands of Big Data, datasets are common in a particular industry.including questions of standardisation and data With those caveats, big data in many sectors todaymanagement programmes. Further, Bird & Bird draws will range from a few dozen terabytes to multipleon considerable practical experience in dealing with Big petabytes (thousands of terabytes).Data on an international basis, including coordinatedproject management outside of the jurisdictions where McKinsey Global Instituteit has its own offices.
Big Data & the Legal SideBig Data & Data Centres key asset in helping both government as well as private enterprise in exploiting the potential that lies with BigQuite obviously, the exponential growth of data Data made available publicly.volumes is one of the drivers of the increasing global Public entities generate and hold enormous amounts ofdemand for data centres and related services. Bird & data which in many cases are sensitive or confidentialBird’s International Data Centres working group draws in nature. Government and public institutions haveon a unique international experience in advising on an inherent interest in managing carefully this largethe legal issues throughout the life cycle of data centres amount of data, both to improve their performanceand the procurement of data centre services. We work and generate savings that allow for much sought-afteron overarching strategy, including country selection spending cuts, but also to be able to provide open dataand corporate finance, through site acquisition and to their citizens and business entities.development, on to the operational issues, includingend-user contracts and facilities maintenance. Big Data management is an important asset for the public sector to better conduct its public mandate as well as distribute knowledge and information to theBig Data & Innovation public, empowering citizens and business with open data and information.Big Data is likely to push innovation through softwarecompanies, service providers, internet-based businesses We are at the forefront of this data revolution andand similar service offerings, all the way up to large capable of providing strategic advice, both to privateholders of Big Data. Following its deep industry and public institutions for the best integration of theirknowledge, Bird & Bird has a long track record in data strategies.advising innovative companies on the legal feasibility oftheir business models, providing support on corporate,financing, employment and regulatory matters during Big Data & Data Ownershiptheir start-up phase and further growth, facilitating Given that access and use of Big Data is turning to betheir international expansion, and protecting their key a key for future business success in many sectors, oneassets – people and intellectual property. Bird & Bird’s of the central questions is whether and to what extentunderstanding of computer-implemented inventions companies can claim proprietary rights in Big Data.(Software Patents), advising on strategic portfolio build “Who owns the data?” is an increasingly relevant andand expansion and helping companies protect their largely unresolved question– would “nobody can ownintellectual property and market position as part of Big Data” be the appropriate answer? Can anyone usetheir growth strategy, can benefit companies that aim to data that is publicly available, and/or is it possible toforefront innovation around Big Data. claim ownership rights in structured or unstructured data? Is it possible to claim proprietary rights in singleBig Data & Open Data & Public data entries? Does the answer change for a massive accumulation of data entries, even if it remains largelySector unstructured? Does the law offer sufficient protection where Big Data is exploited in a proprietary manner?The Open Data movement and governments around the Does the protection under the various trade secrets lawsworld, including the EU, are committed to make data help?publicly available and usable. Proper evaluation, protection and ownershipThe EU’s current review of the Public Sector identification of data can be essential in particularInformation Directive 2003/98/EC aims at unlocking in crisis and insolvency situations; evaluating andthe potential of Big Data held and accumulated by assessing ownership of data is an essential step forgovernment authorities – both with regard to the public determining the value of a company or of its assetssector itself leveraging the potential and efficiencies that in case of bankruptcy. Bird & Bird’s Insolvency andcome along with a Big Data strategy, as well as to enable Restructuring Group has a unique understanding of theinnovators and private enterprise to access Big Data implications that technology issues have in insolvencyheld by public authorities. Bird & Bird’s vast experience and crisis management.in technology matters regarding the public sector is a
Big Data & Database Licensing Big Data & Data ProtectionOne of the possibilities that may provide legal protection While Big Data is not limited to data protection issuesfor Big Data is the sui generis right of the database right – in many instances personal data plays no role atholder under the EU Directive on the Protection of all – privacy concerns are nevertheless an importantDatabases 96/9/EC of 1996. Wherever an investment factor in any Big Data strategy. The multitude ofis made into systematically or methodically arranging sources feeding into Big Data, related issues ofdata (which could include Big Data), there are legal data controllership and the applicable law result ingrounds for the investor to commercially exploit and regulatory complexities which are very difficult totransact with such type of Big Data. But that may not resolve, including heterogeneous requirements on datasuffice where market participants are using and dealing security. The controversial areas of user sentiment andwith Big Data that – as according to some definitions – is social data analysis, cross referencing and mixingcharacterized by large amounts of unstructured data. In of data obtained from diverse sources trigger highaddition one should consider the ramifications deriving demands for a safe and secure legal framework that canfrom the use of Open Data and open license content protect both data users and suppliers.in the Big Data context. Bird & Bird draws on vast Bird & Bird’s International Data Protection Group is oneexperience in advising on the requirements for database of the largest data protection groups in any law firm,protection, as well as determining where these rights with members present in all our offices, that deals withcannot be invoked. numerous issues in cutting-edge technology markets, and is ideally placed to advise on the challenges of anyBig Data & Copyright Big Data strategy, both on the side of Big Data solutions providers, as well as in favour of Big Data corporateTraditional copyright laws already struggle to deal users.with new technologies and digital content distributionmethods. They face even greater challenges as a resultof the new Big Data search and analysis tools that can Big Data & Security Breachescontribute to copyright infringements as well as the A number of European jurisdictions have implementedemergence of new questions such as whether newly regulations requiring remedial action in case of securityaggregated and reorganised data could be protected as breaches, to an extent following the regulations onnew copyrighted work. security breaches as enacted in the United States.Bird & Bird is recognized as one of the leading firms Bird & Bird draws on profound experience in dealingworldwide in intellectual property protection, with a with security breaches on an international basis,unique experience in drawing the interconnections including coordinated project management outside ofbetween copyright law, innovative technology and the jurisdictions where it has its own offices, includingdigital and on-line content and delivery methods, the United States. Based on that experience we providesetting us at heart of any Big Data strategy where sets of strategic advice on balancing risk and leveraging thedata could be protected by copyright laws. regulatory constraints in data processing agreements and other service arrangements with an explicit exposure to data security breaches.
Big Data & Corporate Big Data & StandardisationTransactions A complex global networked environment demands security and interoperability at all levels. In line withMany jurisdictions are only now waking up to the a holistic approach to information systems, softwarefact that their legal systems do not provide sufficient development and deployment need to meet industryguidance on the proper protection of Big Data. In any standards for resilience, reliability and interoperability.corporate transaction the accurate assessment and At Bird & Bird, we have profound experience in anydue diligence analysis of proprietary rights in relation licensing, contractual or intellectual property issuesto data owned or used by the entities involved, will that may arise from the compliance with standards,become one of the key areas of review. the development and protection of standards,The dynamic growth of Big Data software solutions and interoperability, reverse engineering, and R&D.architectures is driving start-ups to seek financing and We collaborate with and provide legal counsellingresults in more advanced companies becoming targeted to clients, industry associations and governmentand acquired by large multi-national players. Bird & Bird organizations in creating and managing standards anddraws on highly specialised expertise in dealing with with regulatory and scientific research bodies to studyfinance and corporate transactions in the IT sector, standardisation of IT, Cloud and Big Data architectureswhich allows us to drill down to the critical points of any and tools.transactions with much greater efficiency than manyof our competitors, as well as to make available to ourclients our in-depth industrial insight and contacts inthe markets. Our expertise spans the financial lifecycleof Big Data software companies, from start-up to exit. Big Data & Antitrust To the extent companies hold Big Data that areGiven that Big Data is turning into a key asset, it is indispensable for the implementation of certainobvious that data ownership and the right to access business models they may be confronted with requestsdatabases must increasingly be taken into consideration to grant third party access to their data. Refusing thirdwhen entering into M&A transactions or selling assets party access to such data or discriminating licenseesand businesses. The value of an organization could of such data may constitute an illegal abuse of thebe substantially increased where it actually owns, has Big Data holder’s dominant position and could resultaccess to and is capable of using and analysing Big in civil litigation and significant fines. Bird & Bird’sData in compliance with the law. On the other hand EU & Competition Group has a strong reputation inmismanagement of data can lead to civil and criminal providing cutting-edge advice on competition law issuesliability as a result of violations of data protection, in technology markets and has extensive experiencecopyright or property rights. Bird & Bird adds value in advising and representing clients in litigation orto any transaction by analysing the relevant legal administrative proceedings regarding abusive conductframework and assessing the real position of any in technology markets.organization that is using or will use Big Data.Big Data & Open Source Big Data & Taxation The evaluation of the ownership, asset value andSome of the most stable, trusted and technologically transactional value of Big Data is yet to be developedadvanced Big Data solutions, including Apache Hadoop, within the frame of local taxation regimes. Bird & Bird’sare developed and run on the basis of open source International Taxation Group is known for its ability tosoftware. The open source licensing provisions and think through the tax aspects arising within innovativelimitations raise specific issues around risk and risk technology companies. Our expertise includes a broadassessment for developers, as well as users of such range of tax matters pertaining to Big Data, Data Centresproducts and solutions. Bird & Bird has specialised and e-commerce, such as VAT, transfer tax, transferexperts in practically all of its jurisdictions dealing with pricing and tax incentives.open source issues and providing strategic adviceon risk optimisation and building the appropriatestrategies, both on the distribution as well as on theprocurement side. We help develop open sourcepolicies, carry out due diligence on IT assets andanalyze the interactions and ramifications betweenopen source and proprietary software and providestrategic advice for open source projects for Big Dataapplications.
How big is Big Data? 10% 90% Structured Information relates to data in databases. While the 90% of data categorised as unstructured covers emails, videos, social media interaction, CCTVBig Data is comprised of structured 10% footage, mobile phone calls, website clicks and anything and unstructured 90% else which could be considered “Human Information” 976,000,000 Google results for “What is BIG Data”? 90% of the data in the world today was created in the last two years 6,000,000,000 mobile phone 2.7 zettabytes of Digital Content subscriptions produced in 2012, it is predicted that 7.9 zettabytes will be produced in 2015 2.2 million terabytes of new data is created every dayIn every internet minute there are: 100 new LinkedIn accounts 47 000 app downloads on iTunes 277 000 Facebook logins 1.3 million video 20 million photo views on YouTube views on Flickr
Big Data in the BusinessBusinesses throughout numerous sectors are just beginning to discover the potential that lies in Big Data.Bird & Bird is known for its industry knowledge, its international reach and its excellence in client service. We areideally placed to discuss and advise on the legal implications, for example, in regard to the following:Big Data & Automotive Big Data & Banking & Finance• Collection and analysis of data from vehicles and • Promoting financial products and services in a usage to improve design and customer experience targeted manner• Improvement and enhancement of driver and • Banking exposure calculation and portfolio analysis passenger experience using driver behavioural • Customer sentiment analysis and evaluation analytics (sensors, navigation tools, telematics, apps, weather forecasting). Creation of feedback • Collection of spending patterns and purchasing and suggestions, instructions, monitoring of erratic history for onward distribution behaviour, preventing accidents and roadblocks • Risk assessment of potential customers• Parts forecasting and distribution, studying • Predicting and recovery of bad debt warranty trends by geography and season, plus • Market stability – facilitating compliance with predictive maintenance and performance problems. regulation Improvement of inventory effectiveness, distribution • Risk management and fraud detection and supply chain efficiency. Costs reduction and greater partner and customer satisfaction• Predictive maintenance, by on-board sensor Big Data & Energy generated data to flag abnormal events immediately • Analysis of consumer usage patterns, improving and commencement of problem solving efficiency and enabling demand side management• Enhancing product performance. Analysis of models and peak pricing actual functioning of design solution to aid product • Optimisation of grids and energy supply networks, improvement and modification allowing networks to deal with greater volatility• The automatic vehicle, self driving and controlling in energy supply from renewables and domestic other parameters (in agricultural or mining or other generation services) • The advent of smart building technology through the• Use of internally generated data, external and social installation of sensors and tools to improve efficiency networks data, vehicle sensors generated data as well as safety• Warranty analysis, predicting warranty costs and • Smart meters, smart cities and smart grids are liabilities by integrating consumers’ comments built around a coherent strategy that uses data to (internal and external), dealer service notes and deploy technology and unlock investment where it existing warranty claims data generates most effect
Big Data & Healthcare Big Data & Logistics• Assess products and therapies already in use • Integration of retail data such as customer by observing drug safety, comparing product preferences, promotional initiatives, warranty effectiveness, assessing health economics and information and other sale data with shipping and designing pay-for-performance criteria logistic organisation to optimise deliveries and to target sales at specific locations• Characterise diseases and patient population by understanding epidemiology trends, treatment • Real time logistic operation for delivery optimisation, patterns, patients’ adherence to care plans and same day delivery for on-line retailers disease management opportunities • Utilisation of detailed address and geo-location data• Develop new products and therapies by assessing to enhance delivery planning and increase delivery use of competitive products in the market, designing efficiency inclusion and exclusion criteria for clinical trials, • Times, temperature, integrity of loads data for safer performing predictive models on virtual trials, and controlled shipment identifying patients for recruitment and identifying unintended uses and indications • Vehicles, trains, planes and ships monitoring for travel optimisation and prediction of delivery and goods• Develop public and private healthcare solutions that conservation optimise the use of healthcare infrastructure (such as hospitals) in combination with technology enabled • Warehouse, stock and parcels monitoring and real care in the community and telehealth technology time geo-location, courier and transportation pattern analysis and optimisationBig Data & Insurance• Allowing premiums to better reflect risk profile of insurance coverage• Risk analysis and fraud detection• Study of historical, geographic and meteorological data to determine risks in pricing for catastrophic events• Ascertaining customer behaviour in the context of claims• Collating health data from various sources to incentivise and reward good customer behaviour in the context of medical and life insurance
Big Data & Retail • Big Data analysis regarding the use and interpretation of mass social communication and interaction,• Customers knowledge and spending capacity analysis, enabling brand marketers to engage more efficiently including through utilisation of “loyalty card” data with the public on social media• Customers preference and recommendation engines • Coordinating social media messages as a marketing campaign; using Big Data for effective viral marketing• E-commerce and m-commerce sites visit tracking and view logs and associated targeted advertising • Use of advanced analytic techniques such as natural language processing, semantic analysis, machine• Mobile applications used by customers, partners and learning and cluster analysis to understand the true employees consequences of any marketing action online• Personalisation of shopping experience by using smart carts, smartphone apps or rfid codes to help building the perfect shopping list, help navigate Big Data & through stores and offers, give suggestions based on Telecommunications personal preferences real-time shopping, coupons • Enabling technology to ensure the transmission suggestions, customer budget optimisation and processing of Big Data, raising potential issues• Physical stores customer behaviour tracking software around network management, net neutrality, data and data interpretation processing and export• Retailers transforming into trusted shopping advisors • Optimisation and strengthening of mobile and fixed providing benchmarking, balance and savings data, network service offerings to sustain the generation, trends, recommendation, budget analysis and collection and transmission of Big Data and the limitations internet of things• Real time geo-location offerings and sales • Subject to regulations, Big Data technology could enable operators and carriers to analyse customer behaviour in real time with higher speed andBig Data & Social Media & efficiency than before, opening opportunities forAdvertising new, additional services • Big Data analytics and geo-location data are one of• Understanding the sentiment of the public and the the key drivers for a multitude of future applications interests of the users and their real-time reaction to promotional messages, specific content and social media offerings• Analysing the nexus of social media content and activities and the responsiveness of users and the public to marketing campaigns and sales offerings
About Bird & BirdWe are a leading international law firm with deep client and industry sectorknowledge, providing consistently high quality services in all countries and legalpractice areas and outstanding service management capabilities. Our chief aspirationis to be the lawyers of choice for clients operating in an international context and whowant business advice across their range of operations, presented in a unified way. Ourgoal is to apply our knowledge and expertise in the law in order to help our clientsachieve their commercial and strategic objectives.IT Sector Focus & PracticeExpertiseOur International IT Group has an unrivalledunderstanding of the IT sector built over more thantwo decades. The expertise of our international teamof more than 90 specialist IT lawyers spans across ourfull service capability – we provide advice in connectionwith all technology and outsourcing projects,including cloud and big data projects, procurementand delivery of IT systems and services, commercialcontracts, business process outsourcing projectsand managed services, software development anddistribution, import and export control, joint venturesand strategic alliances, mergers and acquisitions,e-commerce and internet-based businesses, dataprotection, privacy principles and security, regulatorycompliance, copyright law, patent portfolio strategyand implementation, competition and anti-trustissues, dispute resolution, procurement law, contractmanagement and best practice. We strive to standalongside our clients as trusted advisers and help themfind solutions to the challenges presented by theircustomers, suppliers and competitors. Our clientsare organisations in the public and private sectors,including a cross section of blue-chip companies as wellas developers, distributors and suppliers of IT systemsand services.
Contact Alexander Duisberg Roberto Camilli Co-Head of the International Senior European Counsel IT Sector Group D: +39 02 30 35 6000 D: +49 (0)89 3581 6239 email@example.com firstname.lastname@example.orgThis document gives general information only as at the date of first publication and is not intended to give acomprehensive analysis. It should not be used as a substitute for legal or other professional advice, which should beobtained in specific circumstances.twobirds.comAbu Dhabi & Beijing & Bratislava & Brussels & Budapest & Düsseldorf & Frankfurt & The Hague & Hamburg & Helsinki & Hong Kong& London Lyon Madrid Milan Munich Paris Prague Rome Shanghai Singapore Stockholm WarsawBird Bird is an international legal practice comprising Bird Bird LLP and its affiliated and associated businesses.Bird Bird LLP is a limited liability partnership, registered in England and Wales with registered number OC340318 and is authorised and regulated by the Solicitors Regulation Authority. Its registered of-fice and principal place of business is at 15 Fetter Lane, London EC4A 1JP. A list of members of Bird Bird LLP and of any non-members who are designated as partners, and of their respective professionalqualifications, is open to inspection at that address. 001057-01