The content of this book is rather controversial. It paints a rather bleak picture, that the current EU legal economic system being developed for the data-driven economy is both outdated and – to some extent – a policy at war with itself. It promotes dominant platforms to detriment of others. Moreover, the fundamentals for creating rules are also missing. A liberal economic system needs to be based on aspects of a rights system, otherwise, we risk losing innovation, the establishment of new markets, and the creation of wealth, while we will see increasing market failures. Without a legal system for rights to data, we will lose out of a just system for the distribution of wealth. Indeed, it is time that the data-driven economy and the internet economy are granted their ‘property’ rights, reflecting the new paradigm of the data-driven industrial revolution. Moreover, such a regime fits well with the European economic constitution now being established.

Data is vital to the internet-based economy and will become even more important in the old economy as the Internet of Things (IoT) gains ground. The competitiveness of firms will increasingly depend on timely access to relevant data and the ability to use that data to develop new, innovative applications and products. In consumer-oriented businesses, the relevant data is often personal information; although this data is becoming increasingly collectable, only a few firms have access to larger amounts of it.1

Chapter 18 covers the licensing of commercial software, data and databases. It begins with a discussion of database protection, including the history of legislative attempts to cover data and databases under copyright law, and the divergent pathways taken in the US and EU. It next addresses commercial data and database licensing practices (MD Mark v. Kerr-McGee, Eden Hannon v. Sumitomo). The chapter next discusses data privacy and protection regulations and their implementation in licensing agreements. It next moves to commercial software licensing, discussing the distinctions between source and object code. and offering some background on the legal protection of computer software through copyright, patent and trade secret law. Particular software licensing practices are discussed next, including provisions necessary to license source code, maintenance and support obligations, reverse engineering restrictions. It concludes with a discussion of licensing in the cloud and how different companies have approached this business model.

This chapter examines the development of digital business. It commences with a reflection on the huge benefits arising from digitalisation, including greater productivity, more competition, greater choice and convenience, innovation and profitability. It also notes that it is extremely difficult to separate the digital economy from the rest of the economy. The key features of digital businesses include direct and indirect network effects, economies of scale, anti-competitive lock-in effects, the importance of data and complementarity. The four most significant new types of business models are explained: multi-sided platforms, resellers, vertically integrated firms and input suppliers. Lastly, there are observations made about the key characteristics of highly digitalised business models which have significance and importance in the context of looking at the challenges to the international tax system.

This chapter examines the development of digital business. It commences with a reflection on the huge benefits arising from digitalisation, including greater productivity, more competition, greater choice and convenience, innovation and profitability. It also notes that it is extremely difficult to separate the digital economy from the rest of the economy. The key features of digital businesses include direct and indirect network effects, economies of scale, anti-competitive lock-in effects, the importance of data and complementarity. The four most significant new types of business models are explained: multi-sided platforms, resellers, vertically integrated firms and input suppliers. Lastly, there are observations made about the key characteristics of highly digitalised business models which have significance and importance in the context of looking at the challenges to the international tax system.