The Impact of Data Protection Regulations on Start-Up Enterprises

The Impact of Data Protection Regulations on Start-Up Enterprises

Cumhur Boyacioglu, Orkun Yıldız
DOI: 10.4018/978-1-7998-3045-0.ch007
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Information is vital for enterprises. However, the usage of information uniquely personal data leads to various legal problems. On the one side, enterprises require free and unlimited usage of personal data as much as possible for their continuity and progression. On the other side, natural and legal persons seek legal protection regarding their personal information or market position. It is challenging to find a fair and reasonable balance that can last for an extended period in such a dynamic field. This article evaluates the general tendencies concerning data usage, sharing, and protection problems considering Start-Up enterprises' situation aside from their legal form. The problems mainly arise in the fields of data protection and unfair competition. Some of the legal problems are also related to intellectual property. Instead of trying to find general and local solutions, it seems more useful to seek and find solutions that shall take the interests of various enterprises and companies from diverse sectors and legal traditions employing good practices. Of course, it is not very easy to reach solutions that will be accepted by all the related parties. The legal solutions should not constraint Start-Up enterprises' innovative progress, as well as meeting related parties' protection and fair trade expectations. Otherwise, privacy violations and abuse of competition will be inevitable.
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With the widespread use of the Internet in commercial and daily life over the past 30 years, the supply of information has increased at a level that cannot be compared to previous periods. In this process, intellectual property rights have been adopted to protect the rights of individuals and organizations that invented for commercial products in many different countries around the world. It is possible to divide the intellectual property rights in question into three different categories. These are new sui generis rights, which cover exotic issues such as databases, plant varieties, or placement of integrated circuits, traditional copyright, and trademark and patent, respectively (Michael, 2016).

It can be said that the countries that adopt the rules for the three different intellectual property rights mentioned above, especially in line with the pressures of cartels in pharmacology, because the vast majority of accepting countries do not have local industries and entrepreneurs who benefit from protections, or very few. Pharmaceutical companies apply to regulatory authorities (hereinafter referred to as regulatory data protection) (Michael, 2016). In this way, the area of property rights is expanding, and this enlargement has become a situation that will affect many different sectors. The mentioned expansion of property rights can also be seen in the issues covered by the studies in the literature. It has been determined that the researches dealt with the pharmaceutical sector (Arrivillaga, 2003; Bansal et al., 2009; Christini, 2012; Janodia et al., 2009; Kennedy, 2018; Khatri & Walia, 2018; Komatani, 2016; Ku, 2015; Land et al., 2008; Lazonick& Tulum, 2011; Manu, 2015; Panico, 2011; Priya & Kurian, 2018; Styhre&Remneland-Wikhamn, 2016; Sugumaran, 2012; Unit, 2007), the manufacturing sector (Bader, 2006, 2008; Barbu&Militaru, 2019), the information and communication sector (Bossuet et al., 2015; Chana & Quinton, 2012; Chiarini et al., 2017; Gang, 2015; Geller, 2010a, 2010b; He &Qiao, 2018; Jeong et al., 2019; Judge &Scassa, 2010; Mitra‐Kahn et al., 2016; Smith, 2013), and the commercial agreements between countries in comparison (Aksan, 2013; Cesaroni & Piccaluga, 2005; Chen & Puttitanun, 2005; Forero-Pineda, 2006; M. Liu & La Croix, 2015; T. Liu et al., 2011; Markusen, 2001; Maskus & Lahouel, 1999; Yang & Maskus, 2009; Zhao, 2006).

Key Terms in this Chapter

SMEs: Enterprises that employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.

Unfair Competition: Any behavior or business practice that is deceptive in nature or that in any other way infringes the principle of good faith and which destabilizes the balance in an unlawful way between competing enterprises or between suppliers and customers.

Intellectual Property Rights: Intangible assets such as ideas, information, signs, labels, musical, literary or artistic works and software which grant their owners certain exclusive rights and enable them to use specially regulated protection mechanisms.

Data Protection Regulations: Laws and regulations which make it unlawful to store or share some types of information concerning natural and legal personalities without their knowledge, open consent, or permission.

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