Digital Technologies and Law (
секция
на
английском
языке
)
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DIGITAL TECHNOLOGIES AND LAW
(
СЕКЦИЯ
НА
АНГЛИЙСКОМ
ЯЗЫКЕ
)
Ksenia M. Belikova,
Dr. Sci. (Law), Professor,
Kutafin Moscow State Law University (MSAL)
CERTAIN APPROACHES TO BUSINESS PROTECTION
IN THE DIGITAL ENVIRONMENT AND LEGAL SOLUTIONS
Abstract.
In the article in the context of the application of new digital technol-
ogies that stand or are capable of serving business certain approaches to business pro-
tection in the digital environment and legal solutions are given.
Keywords:
law, business, digital environment, business protection, legal solu-
tions
ОТДЕЛЬНЫЕ
ПОДХОДЫ
К
ЗАЩИТЕ
БИЗНЕСА
В
ЦИФРОВОЙ
СРЕДЕ
И
ПРАВОВЫЕ
РЕШЕНИЯ
Аннотация.
В
статье
в
контексте
применения
новых
цифровых
техноло-
гий,
которые
внедрены
или
способны
служить
бизнесу,
приводятся
определен-
ные
подходы
к
защите
бизнеса
в
цифровой
среде
и
правовые
решения.
Ключевые
слова:
право,
бизнес,
цифровая
среда,
защита
бизнеса,
право-
вые
решения
Introduction.
Digital technologies present information in a universal digital
form [1. pp. 189–192]. There is no general definition of digital technologies in Russian
legislation, however digital transformation is gaining momentum in business
[2. P. 149, 3. P. 6, 47, 64, 67, etc.]. In the same sense, the term “business” is used by
the Trade Representation of Russia, for instance, in South Africa when describing the
business climate and the directions and types of business activity of entities in South
Africa [4], etc.
Main part.
Keeping it in mind let`s look at the threats to business that can be
identified in connection with its digital transformation, for example, the following:
1.
(Cyber) threats to the physical infrastructure of enterprises (businesses) in
the real sector (e.g., the gas industry and others) and the services sector (e.g., banks),
including general threats such as corporate (cyber) espionage. These threats include,
for instance, unlawful activities by competitors, criminal groups, third parties, or
company employees in relation to the company's property and employees, including
those who have access to financial, material, and informational resources, as well as
deliberate actions leading to disruptions in the operation of technical systems and
Digital Technologies and Law (
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security
measures;
inadvertent violations of established requirements for accounting,
storage, circulation, and sale of inventory, financial resources, official documents, and
i
nformation;
emergency situations: fires, accidents, destruction, man-made disasters,
and natural catastrophes [5]
;
2.
Threats to the digital twins of enterprises in the real sector (e.g., the gas
industry) through threats to industrial internet security, and cyber threats to service
sector enterprises (e.g., banks) in the form of data leaks and fraud, voice forgery of
users, and others. Examples of digital twins include: SIBUR at Tomskneftekhim (a
subsidiary) in 2020 was the first in Russia to implement a digital modeling system for
the petrochemical process [6
];
the need for active IT implementation for the
modernization of enterprises and facilities is discussed by oil companies and the
Ministry of Energy of Russia [7]. In the USA, several technological digitalization
initiatives are being developed, such as the National Network for Manufacturing
Innovation (NNMI) and the Industrial Internet Consortium (IIC). IIC, for instance, is
being developed in the form of a consortium by leading multinational corporations
such as General Electric, Intel, IBM, Cisco, AT&T, and is aimed at effective
cooperation among competitors to improve goods and services [8. P. 16–25
];
3.
Issues with legal means of protection against fraud with new digital objects
(e.g., NFTs in connection with the growing implementation of entrepreneurial
strategies in metaverses) [9. P. 34-
46];
4.
The problem of protecting not the infrastructure of enterprises themselves,
but the quality of their products.
In the first two cases, legal solutions are presented in the existing legal
regulation – normative legal documents for physical protection [20. P. 27–29].
Furthermore, industrial espionage (in both the first and second cases) – as a
form of unfair competition, in which there is unlawful obtaining, use, or disclosure of
information constituting a commercial, official, or other legally protected secret for the
purpose of gaining advantages in entrepreneurial activities or for obtaining material
benefits – is prosecuted by law under Article 183 of the Criminal Code of the Russian
Federation [10].
These drawings were sent by fax and email. Davis pleaded guilty and was
charged with espionage. He faced a total of 15 years in prison and hundreds of
thousands of dollars in fines [5].
Documents that are of a general and recommendatory nature applicable in the
second case include: Recommendation Y.2060 of the International Telecommunication
Union under the UN
[11];
Best Practices for Ensuring the Security of the Internet of
Things in the Context of Intelligent Manufacturing by the European Union Agency for
Network and Information Security
[12];
ISO/TR 22100-4:2018 “Safety of machinery –
Relationship with ISO 12100 – Part 4: Guidance to machinery manufacturers for
consideration of related IT-security (cyber security) aspects” [13], etc.
Due to the identified and other threats and the need for protection from them,
educational courses are emerging in university programs, such as the master's program
'Comprehensive Security of State Corporations and Businesses' in the 'Economics'
discipline at RUDN University. As explained in its description, this program is driven
by the complex economic situation in the world, the imposition of sanctions against
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Russia, the difficulties of conducting business, threats and new economic challenges to
business and state corporations, as well as the need for qualified personnel in state and
private organizations to carry out supervisory, informational-analytical, auditing, and
other functions to ensure their comprehensive security (see at clck.ru/3D5nNx).
As for the threat of fraud with new digital objects, such as NFTs, there is
currently no specific legal regulation of NFTs in Russia. NFTs are not recognized as
either property or a result of intellectual activity. From this perspective, in terms of
protection, it is advisable to consciously strengthen self-protection and explore
variable legislative measures. For example, Bill No. 126586-8 proposed to amend
Article 1225 of Part Four of the Civil Code of the Russian Federation to include non-
fungible tokens among the list of protected results of intellectual activity [15]. In the
doctrine, it is proposed to introduce the concept and definition of “digital things
(objects)” [16. P. 66-74] or, under certain conditions (e.g., recognition of this
possibility by the legislator, issuance of NFTs according or to differentiate legal
regulation depending on the nature and functions performed by NFT records in the
distributed ledger system (blockchain). In our opinion, NFT objects should be divided
into two groups: those having a creator-author of existing material objects (paintings,
music, and other types of art) and those having a creator-author of digital copies of
other objects (voices, appearance of a specific person).
As for the fourth case (protection of product quality), the solution to this
problem appears to lie in the creation of state digital marketplaces for various purposes
(industrial, agricultural products, etc.) while maintaining competition in the spirit of
D.A. Medvedev's words [18] that protecting the digital environment is a task for the
state: “Since global processes on our planet, such as the management of large systems
like nuclear facilities and power plants, <…> are also carried out using the digital
environment, <…> the state's task is to protect and safeguard the digital environment.
<…> The issue of establishing a digital culture both in our country and globally is one
of the main ones. This is a big and complex state
task;
it is a very serious task for
everyone involved in it' and 'We must transition to new services, to the use of artificial
intelligence, but under no circumstances should we allow the emergence of so-called
digital totalitarianism.”
At the same time, it should be noted that as a vector for increasing the ethics of
business and its protection, we see a multifactorial approach in the form of:
−
Digitizing control and supervisory functions and corporate activities to
eliminate the fragmentation of intra-agency and similar controls. In this format, based
on Article 11 of the Federal Law of July 31, 2020, No. 247-FZ “On Mandatory
Requirements in the Russian Federation” [19], a Registry of Mandatory Requirements
has already been created to systematize mandatory requirements and inform interested
parties, containing, in addition to the requirements themselves, information on the
regulatory legal acts that established them and their term of validity. The
corresponding information system (https://ot.gov.ru/) has already been put into
operation;
−
The “transition” of business in the current and future periods to Bitcoin as a
new way of preserving value and (in the long term) as a way of reorganizing global
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wealth, where Bitcoin essentially turns into a bank in cyberspace, where the price of
Bitcoin and its market capitalization will indicate how much money is in such a
bank;
−
Increasing the resilience of the economy through the tokenization of
externalities of enterprises/businesses (e.g., when an enterprise installs protective
structures, it receives tokens that can later be exchanged for tax benefits) –
−
As a result of which, cumulatively, very soon, the long-term capitalization of
the enterprise in Bitcoin (tokens) will not allow the entrepreneur to ethically disregard
the honor of the enterprise for the sake of profit (a paradox, but this will happen, it is
dialectics) without any supervisory authorities. Karl Marx spoke of 300% profit at
which a capitalist would do anything. Yes, a swindler will do it, but only once. The
name was more valuable to the merchant, and this will be true again.
Conclusion.
1 Addressing the issues arising from the digital transformation of business
requires a comprehensive approach that involves strengthening legal frameworks,
enhancing cybersecurity measures, and promoting the ethical conduct of businesses.
By integrating advanced technologies, such as blockchain and artificial intelligence,
within a robust legal structure, enterprises can better safeguard their assets and
operations against emerging threats.
2 Furthermore, fostering a digital culture that emphasizes the protection of both
physical and digital infrastructure will be crucial in ensuring the long-term stability
and success of businesses in the modern economy.
3 The evolving legal landscape must also adapt to new forms of digital property,
such as NFTs, and offer clear guidelines for their protection and regulation. As the
digital economy grows, so too will the necessity for legal professionals to be equipped
with the necessary skills and knowledge to navigate the complexities of digital
business and intellectual property. Educational programs and training courses that
focus on digital security and legal aspects of the digital economy will become
increasingly important.
4 In the face of digital transformation, businesses must be proactive in
implementing strategies to protect their digital and physical assets. This includes
adopting best practices in cybersecurity, ensuring compliance with evolving
regulations, and being prepared to respond to new types of threats that arise as
technology continues to advance.
5 Overall, the future of business in the digital age will depend heavily on the
ability of legal systems and corporate policies to adapt to new realities, and on the
commitment of businesses to uphold ethical standards in their operations.
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Nikolai Budnetskii,
PhD, LL.M. (Münster),
All-Russian State University of Justice
Advocate (Moscow Bar), Legal Consultant (Dubai Legal Affairs Department),
Solicitor (Senior Courts of England & Wales)
OVERVIEW OF APPROACHES TO DIGITAL ASSETS REGULATION
IN THE UAE, GERMANY AND RUSSIA
Abstract.
This article proves that the regulation of electronic property – be it
defined as) crypto/ digital/ virtual assets, cryptocurrency, etc. (or e.g. electronic money
– which is out of the scope of this article) is subject to different regulatory drivers (and
thus, approaches) and dispersed across many sources of law in Germany, Russia, and
the UAE. To suggest and implement a reasonable approach to regulation, one shall
start with understanding the electronic property–specific features and assessing the
current economic environment in a State, rather than applying usual regulatory ap-
proaches. Practice shows that a de-centralized (not to say chaotic)
ad hoc
regulation
