Category: News

Lawyers from bpv BRAUN PARTNERS advised Czech tech startup SentiSquare in another round of financing

bpv BRAUN PARTNERS advised one of the leading Czech companies in the field of artificial intelligence (AI) application, SentiSquare s.r.o., on its second round of financing, in which it acquired one million euros for further development. New strategic and financial investors – Czech IT company IXPERTA and venture capital fund Fazole Ventures – participated in this second round, which also confirmed the increase in the company’s valuation in recent years. Ondrej Ponistiak and Arthur Braun advised in the transaction. SentiSquare s.r.o., which was originally founded at the Faculty of Applied Sciences at University of West Bohemia, and has received many awards, deals with text analysis and text processing and its main focus is on automated customer communication without limitations to languages by using a unique AI application known as NLP (Natural Language Processing). It plans to use the financing acquired to complete development on its current product and introduce a new no-code NLP product (software that does not require an NLP expert or other specialized developer to operate) onto the Czech and international markets.

bpv GRIGORESCU STEFANICA advised round lead investor Draper Esprit VC in the USD 60 million Series B financing of FintechOS

A multidisciplinary team of bpv GRIGORESCU STEFANICA advised the venture capital fund Draper Esprit in connection with its Series B lead investment in FintechOS. The total value of the round was USD 60 million and included existing investors Earlybird Digital East, Gapminder Ventures, LAUNCHub Ventures, and OTB Ventures.

The team was led by Catalin Grigorescu, Managing Partner and Head of Technology Practice, and included Iulia Dragomir – Managing Associate and other lawyers from the firm’s corporate, IP and tax practices. International counsel to Draper Esprit was the international firm Withers LLP.

Catalin Grigorescu commented: „We are very proud to have advised Draper Esprit on this significant Series B financing round and happy to experience first-hand the confirmation of Fintech OS’s exceptional global growth story. This round will help Fintech OS boost its sales of innovative highly automated and personalized technology that is aimed to change the way people experience and engage with financial technology. Our involvement in this transaction is a confirmation that the strategy and investments leading to our firm being ranked as a tier #1 law firm for advice in technology in Romania for the 5th year in a row are paying off.”

About Draper Esprit VC

Draper Esprit is a London-based venture capital (VC) firm that invests in the European technology sector. Draper Esprit’s portfolio includes approx. 70 investee companies, with 15 later-stage companies in the core portfolio (e.g. Trustpilot, UiPath, Cazoo, Revolut). Draper Esprit includes a range of funds (seed, EIS and VCT) within the group, as well as its flagship balance sheet VC fund.

Martin Provazník the newest partner at bpv BRAUN PARTNERS in Bratislava

JUDr. Martin Provazník has been named partner at bpv BRAUN PARTNERS as of April 1, 2021. This brings the number of bpv partners in Prague and Bratislava to nine. “Martin Provazník is an excellent attorney and I am delighted to welcome him as one of us. Expanding our circle of partners shows our continued growth and the respected position our firm occupies, which of course makes us proud,” commented Arthur Braun, managing partner at bpv. Martin Provazník has been an attorney since 2008 and his main practice areas include dispute resolution, insolvency, corporate law, contract law and IP/IT. Before joining bpv, he was a partner at bnt attorneys in CEE, where he led the dispute resolution practice. He represents a wide range of clients, from individuals to multinational corporations. In addition to his legal practice, Martin also publishes regularly in Slovak media outlets. He is a member of INSOL Europe, VIAC (Vienna International Arbitral Centre) and YAAP (Young Austrian Arbitration Practitioners), and also acts as a member of the Disciplinary Committee at the Slovak Bar Association and the Board of Directors for SAEI (the Slovak Association of Exporters and Importers). He is also on the list of arbitrators at the permanent arbitral tribunal in Prague and Vienna. Martin received special acknowledgment in the Via Bona Awards for helping with a systematic change in personal bankruptcies and debt-free regime in Slovakia. He speaks Slovak, English and German. The new partner will continue to focus primarily on dispute resolution with a secondary focus on insolvency, given the situation on the market and growing demand. “I greatly appreciate the opportunity to contribute to bpv’s good reputation,” comments Martin Provazník. Igor Augustinič, partner at the Bratislava office, had the following comments on the new appointment: “We are very glad to have a new partner on our team. Martin’s appointment represents another important step in expanding our engagement on the market in Slovakia and Central Europe.”

bpv BRAUN PARTNERS is pleased to be recognized again by Chambers and Partners

The latest Chambers Europe 2021 rankings confirm our firm’s expertise in our often recognized practice areas – labour, corporate and energy law – which we appreciate greatly.

This year we are particularly proud to be ranked in real estate law amongst the top eight law firms on the Czech market, especially considering how complicated last year was due to the pandemic. Like last year, individual mentions in this area go to partners Gabriela Špak Porupková (“is held in high esteem for her role in the real estate field, with commentators describing her as a ‘good and commercial lawyer’.”) and Miroslav Dudek (“a respected lawyer in the real estate arena”). Partner Gabriela Špak Porupková comments, “I am so pleased at our firm’s ranking – this recognition belongs not only to the people mentioned in press releases and updates, but our whole team that stands behind each project. So I would like to thank all my colleagues and clients who are helping us move our labour law practice forward.”

bpv is mentioned as one of the top law firms in the Czech Republic for labour law and a popular choice for German-speaking clients, and that clients particularly appreciate the way the team works together: “Clients are grateful that the team ‘provides us with any information required for us to operate within the current regulations, proactively informing us of any applicable changes’.” Clients praise attorney Lucie Kalašová for her ability to handle a full labour law portfolio.

In the category of energy law and project financing, Chambers underscores the fact that as a leader in its field, bpv has the business know-how of its clients as well: “Clients praise the firm for ‘understanding our business needs and the ability to transfer that into legal advice’.” Partners Marc Müller and David Vosol are listed as key contacts.

Managing partner Arthur Braun is mentioned in the category of corporate law / mergers and acquisitions due to his wide range of expertise in many areas including real estate, energy and the automotive industry. We would like to thank all our clients and business partners for the trust they have placed in us, which allows us to maintain our exceptionally good position on the market and which means a great deal to us.

Dispute with the insolvency trustee for Viktoriagruppe concludes in favour of the Czech state

A final ruling has been made after several years of litigation in which which bpv BRAUN PARTNERS, led by partner Marc Müller, represented the Czech Ministry of Finance in the first two instances of an international dispute with the insolvency trustee for Viktoriagruppe.

In mid-February 2021 the civil panel at the Federal Court of Justice (where the Czech Ministry of Finance was represented by Mennemeyer & Rädler) dismissed a complaint by the insolvency trustee against the ruling of the Higher Regional Court in Munich, which stipulated that the insolvency trustee must respect the decision of the Czech financial and customs administration. This provided new confirmation of the rulings of the lower court as well as the court of appeal, which supported our client’s legal opinion regarding its rights concerning the insolvency proceedings for Viktoriagruppe, which exceed 5 million euros in value.

bpv BRAUN PARTNERS: We represent 10% of power plants affected by recycling fees

Early this year we reached an important milestone in our longstanding case over recycling fees: the total installed capacity of the photovoltaic power plants we represent in this matter passed 200 MW, which represents about 10% of all affected power plants.

bpv BRAUN PARTNERS has been representing clients in this matter since 2014. A statement from the European Commission we acquired before the first cases began has proved essential.

We are currently waiting for a statement from the Court of Justice of the European Union on a preliminary matter raised by the Supreme Court regarding the correct transposition of EU Directive No. 2012/19/EU, on waste electrical and electronic equipment, into Czech law.

As of January 1, 2021 the financing of this solar panel waste recycling is governed by Act No. 542/2020, on end-of-life products, instead of the Waste Act. Unfortunately the new legislation also left in place the current (and, in our opinion, incorrect) mechanism for financing the recycling of solar panel waste, which requires the photovoltaic power plant operators in the Czech Republic to pay the recycling fees, rather than the manufacturers of the solar panels as under the directive.

bpv BRAUN PARTNERS advises Kappenberger and Braun Group on the sale of K + B Expert, s.r.o. to Slovakia’s NAY Group

bpv BRAUN PARTNERS provided comprehensive legal advice to its client, Kappenberger + Braun GmbH & Co.KG during the sale of a 100% share in K + B Expert, s.r.o., a leading consumer electronics retailer in the Czech Republic with over 20 brick-and-mortar stores and a successful e-shop, to Electro World s.r.o. from Slovakia’s NAY Group.

The bpv BRAUN PARTNERS team was led by managing partner Arthur Braun and managing associate Ondrej Poništiak. The transaction was closed in early January 2021. The parties decided not to disclose the value of the transaction. The transaction must still be approved by the Antitrust Office.

Four (More) Areas of the European Digital Market to Be Impacted by Future Regulation

In a recent article, we discussed four new European regulations impacting the digital market from 2021 onwards. While these pieces of regulation exist and produce effects already or will start producing effects in the months to come, there are other areas of concern for the European regulators that will receive increasing attention in the near future.

1. Data Governance

A draft proposal for a regulation on data sharing in the European Union was published for consultation this November 2020. This regulation aims to facilitate the exchange of data between public and private sectors withing all Member States and increase trust in data sharing within the EU.

This regulation has the potential to boost the re-use of data available in the hands of public actors which is normally protected by an available form of confidentiality, by other business and not-for-profit actors. These vast amounts of data can prove decisive in training AI models for various applications, can be poured into various R&D projects or help drive European or nation-wide public policies.

It also introduces the concept of data altruism as a new type of consent for the use of protected data (personal or otherwise) without reward for general interest.

2. The Common European Health Data Space

In February 2020, the EC published its European strategy for data in which digital health sector, including healthcare and medical devices, was specifically addressed. To remove the fragmentation between the Member States in the health sector, the EC proposes a Common European Health Data Space, supporting the idea of a single market for data.

Just like the Data Governance Act, this proposal is based on the use and re-use of data, in this case, health data, which is extremely important for innovation in the healthcare sector, for improving accessibility and effectiveness of the healthcare systems and the competitiveness of the European industry. Although such system brings numerous benefits to society in general and individuals in particular, all use and combination of health data within Europe will have to include adequate safeguards in compliance with, among other, the provisions of the GDPR.

3. Artificial Intelligence – White Paper and & Consultation Report

This year, the EC kick-started the process for a regulation on AI with the White Paper on Artificial Intelligence – A European approach to excellence and trust, together with a series of accompanying documents, including the aforementioned European strategy for data and a Report on the safety and liability implications of Artificial Intelligence, the Internet of Things and robotics. The documents discuss the objectives of a potential regulatory framework and address many potential risks and concerns related to the use of AI.

The White Paper on AI is the first step to start the legislative process, being a document used by the EC to launch a debate with the public, other stakeholders, EU Parliament and the Council to reach a concrete proposal for a European approach to AI. According to the EC, the main risks identified concern the fundamental rights, including data privacy and non-discrimination, and safety and liability issues. Taking this into account, the EC concluded that a new regulation specifically on AI is necessary to address these risks.

Following a period of consultation concluded in June 2020, a report was published summarizing the opinion of over 1,200 respondent from a broad spectrum of stakeholders. The report showed that the respondents were concerned, inter alia about AI potentially breaching fundamental rights, AI leading to discriminatory outcomes or posing a safety risk. Almost 75% of the respondents opined that regulators need to issue new regulations or strengthen existing ones to tackle the identified risks.

Among the high-risk application areas of AI, the respondents identified the defence sector (autonomous weapons), remote biometric identification and surveillance, healthcare, critical infrastructure, human resources and employment.

4. Crypto-Assets & Digital Operational Resilience

Two new regulation proposals, Regulation on Markets in Crypto-Assets(“MiCA”) and Regulation on digital operational resilience for the financial sector, published in September 2020, aim to establish a harmonized EU regime for the regulation of crypto-assets and to reduce ICT risk in the financial sector as well as to overcome regulatory fragmentation in this field among the Member States and sub-sectors.

MiCA concerns cryptocurrencies not presently included in general regulation, establishing separate frameworks for three categories of crypto-assets: e-money tokens, asset-referenced tokens and other crypto-assets, as well as a new subset of crypto assets, the so-called „stablecoins”, which recently emerged and attracted the attention of both the public and regulators around the world.

The proposal for a Regulation on digital operational resilience for the financial sector introduces an oversight framework to cover critical third-party information providers and communications technology services, including cloud service providers, as well as a ban on using critical ICT third-party service providers established outside the EEA.

Four new European regulations impacting the European digital market in 2021

+++ BONUS: THE DIGITAL SERVICES ACT PACKAGE

The regulation of the European digital market is a constant preoccupation of the European Commission. Be it for the increase of the consumer welfare, as the Commission claims, or for setting roadblocks on the path of the technology powerhouses to dominate the European digital space, as the industry claims, here are the most important European regulations that will shape the European digital market in 2021.

1. Audiovisual Services – Keeping Up with New Video Content Distribution Models

The 2018 Audio Visual Services Directive[1] is already here and brings significant changes for linear broadcasters and on-demand service providers, providing minimum harmonization standards. One of the most notable change brought about is the introduction of rules regarding video sharing platforms, which will be subject to stricter obligations to protect viewers, especially minors, from harmful content in the online world and will be required to take appropriate measures to protect individuals from incitement to violence or hatred and content constituting criminal offences (in essence, a public provocation to commit terrorist offences, child pornography and racism/xenophobia).

Despite the implementation deadline of 19 September 2020, Romania is still to present for public consultation a draft implementation law.

2. European Electronic Communication Code – Consolidation and Reform

In December 2018, the first the European Electronic Communications Code (“EECC”) was adopted[2], representing a far-reaching reform of the European framework in the field of electronic communications. The notion of electronic communications service was expanded to incorporate the evolutionary changes in the sector, leading to more and more service providers being subject to the provisions of EECC (e.g. interpersonal communications services provided over the internet, such as Whatsapp, are now included in the electronic communication services).

EECC must be transposed by the Member States until 21 December 2020. In Romania, the draft implementation law is currently under debate and, with the deadline just around the corner and a Parliament in the making, it is unlikely that the implementing law will be adopted in time.

3. Expanding Consumer Rights in the Digital Space

2019 Digital Content Directive[3] and 2019 Sale of Goods Directive[4] aim to reduce transaction costs for businesses by aligning the EU legislation and to increase the level of protection and legal certainty for consumers when buying from across the EU. These come in addition to 2019 Platform-to-Business Regulation[5] which deals with the relationship between platforms and their business users, which came into effect in July 2020.

While the Sale of Goods Directive applies to sale contracts between a consumer and a seller for goods, including goods with a digital element (e.g. smartwatches, smart TVs etc.), while the Digital Content Directive applies to contracts concluded between a consumer and a trader which supplies digital content or digital services. The definition of “digital services and digital content” covers, inter alia, social media services, software as a service and various computer applications. However, certain services, such as healthcare, financial services and open-source software, are expressly excluded. A very important aspect is that the Digital Content Directive also applies when the consumer provides its personal data as payment in return for the digital content or service. The question of contract validity, in this case, is, however, left to the national laws.

Both directives must be adopted by the Member States before July 1, 2021, and shall apply from 1 January 2022.

4. Biggest Overhaul in Copyright Laws for 20 Years

The 2019 Copyright Directive[6] is the biggest overhaul of European copyright laws since 2001 in view of increased cross-border use of digital content. The new rules provide increased protection for authors and artists while opening new possibilities for accessing and sharing copyrighted content online across the European Union.

Online content sharing service providers are greatly impacted by this Copyright Directive. In an unprecedented shift in liability for copyright infringements, content sharing platforms will be, in principle, required to obtain licenses for copyright-protected content uploaded by users, unless certain conditions set out in the Copyright Directive are met. The new rules continue to be subject to intensive debate and the practical implementation of “policing” and rights collection systems is giving the whole industry a big of headache.

The Copyright Directive must be implemented across EU by 7 June 2021.

Bonus: The Digital Services Act Package 

The Digital Services Act (“DSA”) is a legislative package published on 15 December 2020 by the European Commission, which aims to create a modern legal framework for digital services[7]. DSA represents the biggest regulatory reform effort in the sector of digital services since the 2000 E-commerce Directive in 2000 and is aimed at strengthening the Digital Single Market and ensuring that digital service providers in the European Union act responsibly to mitigate risks faced by their users and to protect their rights. It aims to tackle the issues posed by the rising power of internet platforms, especially of the so-called gatekeepers (who, for example, would be required to observe requirements intended to ensure inter-operability with competitors) and marks a return by the European Commission to ex-ante type of measures rarely seen in a couple of decades.

 

[1] The Directive (EU) 2018/1808 amending Directive 2010/13/EU on the coordination of certain provisions laid down by law, regulation or administrative action in the Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive) in view of changing market realities (“AVMSD”)

[2] Directive (EU) 2018/1972 of the European Parliament and of the Council of 11 December 2018 establishing the European Electronic Communications Code, repealing the provisions of Directive 2002/21/EC

[3] The Directive (EU) 2019/770 on certain aspects concerning contracts for the supply of digital content and digital services;

[4] Directive (EU) 2019/771 on certain aspects concerning contracts for the sale of goods;

[5] Regulation (EU) 2019/1150 of the European Parliament and of the Council of 20 June 2019 on promoting fairness and transparency for business users of online intermediation services;

[6] DIRECTIVE (EU) 2019/790 on copyright and related rights in the Digital Single Market and amending Directives 96/9/EC and 2001/29/EC

[7] https://ec.europa.eu/digital-single-market/en/digital-services-act-package