1. Quanzhou City, June 12, 2009 IPR 2 Project H A R D E R R E C H T S A N W Ä L T E Munich EU-China Workshop on the Regulation of Online Business and Related Services 11. Presentation: Focus on data retention

2. Bernd H. Harder H A R D E R R E C H T S A N W Ä L T E Munich Seite: 2 06/11/09 Role and Function of the Government in Germany in Online Transactions of Goods and Services Governmental Acts (German) Public Law „Non binding“ governmental Guidelines/Recommandations

3. Bernd H. Harder H A R D E R R E C H T S A N W Ä L T E Munich Seite: 3 06/11/09 German Regulations for the Government to regulate Online Transactions Act on cooperation of Federal Criminal Police Office and state Office of Criminal Investigation (in german: BKA Gesetz) Act on data retention (in german: Vorratsdatenspeicherungsgesetz) A SAMPLE § Competition Law (in german: Wettbewerbsrecht) Administrative Tax Directive for digital commercial documents (in german: GDPdU) Industry oriented regulations with effect on online transactions

4. Bernd H. Harder H A R D E R R E C H T S A N W Ä L T E Munich Seite: 4 06/11/09 Act on cooperation of Federal Criminal Police Office and state Office of Criminal Investigation entitlement for authorities to investigate computers via internet (online searching) Tenor requirements for online searching (judical decission) severity of criminal act (copyright infringement sufficient?) subject of discussion Law Enforcement Authorities Subscriber check concern of abuse of private data Effects on Online Transactions

5. Bernd H. Harder H A R D E R R E C H T S A N W Ä L T E Munich Seite: 5 06/11/09 Act on Data Retention (Execution of Directive 2006/24/EG) obligation for Internet Provider to store data for criminal prosecution (§§ 3 Nr. 24, 113a, 113b TKG) data: call number; e-mail adress; inception of treaty, name, date of birth and adress of keeper retention period: 6 months Tenor entitles Art 95 EG the EU for directive 2006/24/EG? (since Feb 2009 positive confirmed by the EUGH due to complaint by Ireland) data retention in contradiction to data privacy regulations (§ 3a BDSG data minimization) subject of discussion Storage ProviderSubscriber obligation concern of abuse of private data Effects on Online Transactions

6. Bernd H. Harder H A R D E R R E C H T S A N W Ä L T E Munich Seite: 6 06/11/09 German Competition Law with respect to the Internet Presentation of Online Shops internet presentation can easily violate competition law high attorney fees for violating competition law subject of discussion internet presentation has to strictly comply with competition law Tenor reluctant e-commerce operations Effects on Online Transactions

7. Bernd H. Harder H A R D E R R E C H T S A N W Ä L T E Munich Seite: 7 06/11/09 Background: „Cease and desist letter“ according to § 12 I UWG of German competition law Internet presentation has to strictly comply with competition regulations (to prevent abuse) Problem Aforementioned regulations to prevent abuse are abused by lawyers for „Cease and desist letters“ „in simple and non commercial matters“ fees for „Cease and desist letter“ at maximum amount is EUR 100.00 Amendment of Competition law in Sept 2008 About EUR 700.00 attorney fees per case Why? Internet provides (without investment) millions of „victims“

8. Bernd H. Harder H A R D E R R E C H T S A N W Ä L T E Munich Seite: 8 06/11/09 Tax administration directives by the german ministry of finance for local authorities (GDPdU) expensive technical effort demanding requirements subject of discussion digital documents must comply with: Tenor (electronic) storage regulations (§ 147 AO) qualified electronic signature, § 2 Nr. 3 SigG (according to directive 1999/93/EG) Personal Liabillity of D&O for tax issues according to § 69 AO Regulations apply in particular to e-commerce (electronic bills) Effects on Online Transactions

9. Bernd H. Harder H A R D E R R E C H T S A N W Ä L T E Munich Seite: 9 06/11/09 Industry oriented regulations with effect on online transactions general regulations (no purpose to restrict online transactions in particular) but regulations apply by their nature in particular to online transactions subject of discussion regulations for gambling Examples regulations for drugstores absolute monopoly of the state (§ 10 Glücksspielstaatsvertrag) intended regulations in Germany to sale medicine - only available on prescription - merely via retail Criminal liability for private gambling (§§ 284 – 287 StGB) Restriction/impracticability of online transactions Effects on Online Transactions

10. Bernd H. Harder H A R D E R R E C H T S A N W Ä L T E Munich Seite: 10 06/11/09 Guidelines/Recommendations Guidelines of the Federal Office of IT Security Guidelines by Public Authority Guidelines by Private Organisations Guidelines of German Association for Information Technology, Telecommunications and New Media International Electronical Commission International Organization for Standardization - in contrast -

11. Bernd H. Harder H A R D E R R E C H T S A N W Ä L T E Munich Seite: 11 06/11/09 best practice for IT security Tenor classification of the regulations (they are non- binding - so what effect?) high and voluminous standards (hard to comply with) subject of discussion high IT-Security standards are causing costs for online shops Effects on Online Transactions Public Guidelines/Recommendations

12. Bernd H. Harder H A R D E R R E C H T S A N W Ä L T E Munich Seite: 12 06/11/09 Online Shop IT Security Guidelines enacts Govern- ment Conclusion: Local Authorities applies indirectly enacts administrative directive (GDPdU) § competition law § prosecution regulations § government amends regulations as reaction on critical e-commerce developments (cease and desist letter) § industry oriented regulations with effect on online transactions enacts § Regulations

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