TG 7 Business models and SLAs BEin GRID

TG 7 – Business models and SLAs BEin. GRID - Legal Issues ICRI – K. U. Leuven Davide M. Parrilli davide. parrilli@law. kuleuven. be

Agenda • Description and objectives: objectives what we do; • Tasks and topics covered in the project: fields analysed in project BEin. GRID; • Next Steps 2 Business Experiments in GRID

Description and Objectives • Overall mission: mission to address the legal framework that is applicable to Grid computing scenarios and tackle the possible legal hurdles that may hinder or impede the provision of Grid services on a commercial basis. • Case studies: studies 18 + 6 Business Experiments (BEs): real Grid-based businesses involving several partners. 3 Business Experiments in GRID

Tasks and topics (I) General analysis of legal issues related to Grid computing • Starting point: absence of specific legislation dedicated to the provision of Grid services: we need to be creative and flexible. • Under the European legal framework for electronic communications networks and services (5 Directives of 2002), Grid services should be characterized as information society services: the actors involved in a Grid scenario are all to be considered recipients of electronic communications services, as these are provided by the operators of the underlying telecommunications infrastructure, which enables the communication between the Grid actors, thanks to an electronic communications network. 4 Business Experiments in GRID

Tasks and topics (II) Intellectual property rights (IPRs) • Grid service provisioning is a nascent market: compromise between the interest of one entrepreneur, owner of IPRs, and the market as a whole: tension between proprietary software and open source. • Grid technology is prone to possible copyright infringements. • Databases: although Grid databases are of pivotal importance, it is doubtful whether or not they are eligible for protection under copyright law or a separate sui generis right provided by the EC lawmaker. • Patentability of Grid software: programs for computer can be patented if, when running on a computer, they cause a further technical effect going beyond the normal interaction between software and hardware (e. g. , where the program serves to control a technical process or governs the operation of a technical device). 5 Business Experiments in GRID

Tasks and topics (III) Personal data protection • Starting point: highly shared resources in BEs are prone to system insecurity and privacy violations. • Principle: data subject’s consent: it is not enough a general and a priori consent, every time the personal data processed change, there is need for a specific consent. • It is necessary to guarantee the data subjects’ rights, granted by the relevant legislation. • Necessity to draft a data protection policy in advance, taking into account the network infrastructure and deployment of resources in a Grid scenario, and aiming at the processing of the minimum data that are required for the proper provision of the Grid services (‘privacy by design’). • Network security is a prerequisite to privacy and data protection: confidentiality of communications in the provision of Grid services should be assured not only for the actual content transmitted but also for the traffic data that relate to such content (issue at level of underlying network). 6 Business Experiments in GRID

Tasks and topics (IV) Contractual relations and liabilities between Grid actors • Method followed: practical approach to the issues in order to show to the BEs which contracts they can use to make business in Grid environment and in which contractual liabilities they can incur. • Contracts analysed: outsourcing agreement and related contracts (SLAs), joint ventures, strategic alliances agreement, software contracts (licenses) • Liabilities: which clauses should be written in the contracts in order to set mutual liabilities? Which risks are involved in the analysed agreements? 7 Business Experiments in GRID

Tasks and topics (V) Consultancy with the BEs • Provision of templates of contracts; • Solutions to specific problems: face-to-face consultancy; • Legal evaluation of the BEs’ business plans. 8 Business Experiments in GRID

Next steps • FAQ for the new BEs; concrete solutions to real questions. • Taxation issues in a Grid environment: • Is a server a P. E. of the company? Does the government have the right to tax the profits generated by the server? • VAT profiles in the field of electronically supplied services. 9 Business Experiments in GRID