Law firm warns of Post Brexit GDPR impact

Conexus Law, the specialist advisory firm that provides legal and commercial advice to clients who work in sectors where the built environment, technology, engineering and people converge, is urging companies to prepare for the strong possibility that the EU will fail to agree that the UK has an “adequate data protection regime” after the transition period at the end of the year. This will mean that businesses will face barriers transferring personal data to and from the UK to EU countries under GDPR. The warning comes on the back of the ruling by the European Court of Justice at the beginning of July that reversed the prior adequacy decision of the EU for the USA – rendering its Privacy Shield ineffective.

Ed Cooke, Founder at Conexus Law said: “The UK’s use of mass surveillance techniques, our Investigatory Powers Act, and our membership of the Five Eyes intelligence sharing community has raised particular concerns with the EU – especially in relation to the sharing of data with the US, and even more so given the recent Schrems II decision on the Privacy Shield scheme. What is clear is that once a decision has been made then companies will need to move quickly to ensure they are not severely impacted.”

Failure to reach an agreement would mean that companies will need to look at alternatives such as Standard Contractual Clauses and binding corporate rules. Ed reiterates that merely relying on consent is not really an option for most businesses.

“Each of these options has its challenges with consent generally viewed to be unworkable as it can be revoked at any time. Standard Contractual Clauses were upheld in the ECJ in its judgment on Privacy Shield, but the judges did cast some doubt on whether or not these offer suitable protection in all cases without businesses adopting further practical measures such as encryption, to ensure the protection of personal data,” explains Ed.

Conexus Law is advising companies to start preparing now. Companies should already have a full audit of what personal data they collect and where it is stored and transferred to, including back-ups that may be held by cloud-based providers with datacentres all over the world. This audit needs to include all suppliers and partners that data is shared with. The next stage is to look at standard contractual clauses and decide whether further measures are required based on the specific data being transferred. If not, consideration should be given additional methods such as encryption.

“It seems that an adequacy ruling under GDPR is being used as a BREXIT bargaining chip in relation to other unrelated diplomatic negotiations taking place. Unfortunately, businesses may end up bearing the brunt of this and I would highly recommend that they start to prepare now,” concludes Ed.

Fact Sheet: Publishing a modern slavery statement during the pandemic

Under the Modern Slavery Act 2015, commercial organisations that meet the requirements below are required to publish an annual modern slavery statement setting out the steps they have taken to identify and address their modern slavery risks:

  • ‘body corporates’ or partnerships, wherever incorporated or formed
  • that carry on a business, or part of a business, in the UK
  • and supply goods or services
  • with an annual turnover of £36 million or more.

Fact Sheet: Renegotiation – An art not a science

Chances are, that as a result of COVID-19, you are either going to have to seek to renegotiate your agreements with another party or deal with parties wishing to do so with you.

In respect of renegotiation, here are some points to consider…

Contract concerns? Digitalisation World

Conexus Law offers the latest guidance for companies.

“Life and business has got a lot more difficult and complicated since the classification of COVID-19 as a pandemic. As a result, all businesses are or will be looking at their financial and logistical obligations to third parties.”

This is according to Ian Timlin from Conexus Law, the specialist advisory firm that provides legal and commercial advice to clients who work in sectors where the built environment, technology, engineering and people converge.

In the latest free guidance sheet that can be found on the company’s website, he is advising companies that as a first step they should check their written contracts to see if they contain any terms can help clarify things. These may include force majeure, material adverse change clauses and general break clauses.

“Companies may also want to look to see if the counterparty to the contract is going to find it difficult or impossible to perform its own obligations now or in the future (particularly in the short term). That may give them scope to negotiate sensible variations all round,” suggests Ian.

Source: digitalisationworld.com/news/58929/contract-concerns

COVID-19 to push growth trajectory of data centre industry, Data Economy

COVID-19 has changed the business landscape in all industries across the globe, and the data centre sector is no exception.

The data centre has emerged into the spotlight as the pandemic forces the increase of remote working and information from governments, causing the growth trajectory of the industry to scale up.

With data centre operators being established as key/ essential workers, data centre operators are facing a number of COVID-19 related challenges, including limiting routes for infection whilst providing continuity of service.

Taking a little trip down memory lane – pre-COVID-19 – the growth of cloud technology played a major part in the data centre sector’s success.

In 2018, global revenue from the wholesale and retail data centre colocation market amounted to around $38 billion, according to Statista; with industry revenues expected to increase to over $50 billion per year by 2023 – as an increasing share of global businesses adopts data collection and analysis into their strategy.

Ed Cooke, Founder of Conexus Law told Data Economy that the virus will not have too much of a negative impact on the data centre sector as its need becomes more prevalent.

“It is no secret that the use of social media, online videos, gaming and all other underling fundamentals to do with the Internet of Things (IoT) is all on track to boost the requirements for data, data processing and IT infrastructure,” he says when giving a general overview of the industry before the pandemic began.

“There were still great amounts of construction taking place in the tier one cities; France, London, Amsterdam and Paris and Dublin, and there has been growth occurring in other markets too – particularly in South America, the Nordics and in Africa, and quite a lot of expansion is happening in Asia.

He was right. In the last seven days, companies in the sector have still been announcing mergers and acquisitions as well as the beginning of a new data centre build in London by Netwise.

Despite all of this, Cooke says that there are some cracks that appear as there has been some constrain in the supply chain.

“There are very few main contractors out there who have expertise in building data centres securely, and they were over-reliant on an even smaller group of suppliers who would supply the equipment,” he explains.

“However, what is interesting about COVID-19 is that in many ways it will push the growth trajectory of the industry.

“People have had it demonstrated to them now that they can work remotely, and many companies have already had it demonstrated to them now that their business continuity plans are not what they thought they were.

“I suspect we will see an increase in the purchase of cloud technology and the purchase of IT infrastructure and backup systems.”

Cooke explains that he fears the supply chain may get even more constraint, as he predicts that businesses may be lost as a result of the virus.

“Many clients are now starting to think about what happens when construction starts again, there will be a real fight for resources both in terms of labour and spaces on the manufacturing lines of these equipment providers, the generator providers, the transformer providers.

“People will want to make sure that their project starts up again first. In the short term after COVID-19, it will be a bit of a battle.”

Cooke went on to explain that one of the other things that the industry is witnessing is the likes of big internet companies like the Microsofts of this world starting to take up the spaces that they had reserved in data centres.

COVID-19 effects on finances

Recently, US data centre power biz Vertiv cut its financial forecasts for the next quarter in response to the impact of the coronavirus outbreak on its supply lines.

HPE, Microsoft and Samsung have all warned that the virus is likely to affect their supply chains this year.

Facebook pressed the pause button on the construction of its Huntsville, Alabama data centre campus due to safety concerns over staff during the COVID-19 outbreak.

Cooke previously told Data Economy that the pipeline of new data centres is under threat as the supply of labour and parts have been paused by the international response to the COVID-19 pandemic.

All hope is not lost as companies like Tencent and CyrusOne amongst others have all pledged to donate money to combat the virus as well as offer support where it is needed.

Data centre businesses rally on markets fightback after governments around the world pour more than $1.5tr into economies.

Source: data-economy.com/light-at-the-end-of-the-tunnel-covid-19-to-push-growth-trajectory-of-data-centre-industry

Fact Sheet: Struggling to meet your contractual obligations? What are the issues and options?

Life and business has got a lot more difficult and complicated since the classification of COVID-19 as a pandemic.

As a result, all businesses have or will be looking at their financial and logistical obligations to third parties.

If you are struggling to meet any of those obligations, please consider this guidance to see if you can implement any of our suggestions.

Fact Sheet: The effect of Coronavirus on contractual obligations

The Covid-19 coronavirus outbreak is already having a significant impact on many individuals and many businesses. Unfortunately, it is becoming clearer that the impact will likely be more significant and longer lasting than we may have imagined at first.

Primarily, businesses should be focussed upon the health and wellbeing of their teams, and what they can do operationally to minimise the spread of the virus. Governments across the world are issuing guidance, and mandating actions that businesses and individuals must take to support this effort.

This is a fast-moving landscape. We are working hard to keep our clients up to date.

This note provides legal analysis alongside some valuable, practical steps that may be taken by parties who find the impact of Covid-19 affects their ability to meet contractual obligations owed to others (upstream), or who find that their trading partners can no longer meet the obligations owed to them (downstream).

In the modern commercial world, businesses are also more reliant on trading partners and long “just in time” supply chains in order to fulfil their contractual obligations. The impact of Covid-19 could significantly upset those finely balanced arrangements. The relationships between parties may be tested in ways they had not previously contemplated.

As trading relationships are now often global, one may have to consider a complex interplay of laws from different jurisdictions, some of which are potentially in conflict. The answers are not simple and are highly fact specific. This note gives some general legal guidance, but it is no substitute for proper legal advice – whether that advice comes from us, or your usual lawyers.

Various governments are introducing emergency legislation to provide support to businesses that may be affected by Covid-19. Some of that legislation may amend the general legal guidance provided in this note.

For countries that are key for our clients, we will endeavour to provide more detailed advice on the latest position.

The effect of Covid-19 on contractual obligations, Datacentre Solutions

Conexus Law, the specialist advisory firm that provides legal and commercial advice to clients who work in sectors where the built environment, technology, engineering and people converge, is launching a range of fact sheets on the legal implications of the Covid-19.

The first one provides legal analysis alongside some valuable, practical steps that may be taken by parties who find the impact of Covid-19 affects their ability to meet contractual obligations owed to others (upstream), or who find that their trading partners can no longer meet the obligations owed to them (downstream).

Ed Cooke, Founder at Conexus Law, said: “In the modern commercial world, businesses are often heavily reliant on trading partners and long “just in time” supply chains in order to fulfil their contractual obligations. The impact of Covid-19 could significantly upset those finely balanced arrangements and the relationships between parties may be tested in ways they had not previously contemplated.

“As trading relationships are now often global, a complex interplay of laws from different jurisdictions may also be in play, some of which are potentially in conflict. For example, English law may govern your contract with your customer, but Chinese law may govern the law of your contract with a critical supplier enabling you to perform your customer contract.”

The Conexus Law fact sheet advises that organisations identify whether there are any express provisions written into the contract which might be relevant to the Covid-19 situation. For example, there is a large section on force majeure and whether it is applicable. Other areas include certain insurances and the importance of following all relevant procedures in the policy related to claims notification and submission of claims.

“The Covid-19 coronavirus outbreak is already having a significant impact on many individuals and businesses and it is becoming clearer that the impact will likely be more significant and longer lasting than we may have imagined at first. We hope these fact sheets provide helpful guidance during these challenging times,” concludes Ed.

Source: datacentre.solutions/news/58777/the-effect-of-covid-19-on-contractual-obligations

Press Release: Conexus Law announces new team

Conexus Law, the specialist advisory firm that provides legal and commercial advice to clients who work in sectors where the built environment, technology, engineering and people converge, has announced a number of senior appointments that are joining founder, Ed Cooke.

Emma Cordiner specialises in Real Estate & Data Centre Leasing with over 15 years’ experience in the world of commercial real estate transactions, both in the UK and internationally. This includes acting for datacentre industry clients, advising during the negotiation and legal transaction phases of securing space in data centres to create global networks spanning multiple jurisdictions.

Husna Patel specialises in construction and engineering law with a strong legal background in transactional and advisory work. She has worked in-house at a global electrical equipment suppliers who frequently supply the technology and data centre sectors, and so has seen negotiations from both sides. Projects include commercial and residential property development, technology projects such as data centres, on- and off-shore wind farms, bio mass and bio fuel plants, and land remediation projects in the UK and internationally. She has particular expertise with engineering and international contracts, such as those based on FIDIC.

Marilyn Heward-Mills has over 20 years of employment law experience focusing on contentious and non-contentious matters. She started at the predecessor to WilmerHale in 1996 as a dual-qualified English and US lawyer. Marilyn is also a published fiction author and a qualified therapeutic counsellor.

Philip Brown has over 15 years’ experience as a lawyer working in the technology sector. His clients include data centres, telecommunications providers, software developers and platform providers and their customers. He has put cloud and software platforms into some of the biggest global brands and advised on telecommunications systems arrangements within the nuclear sector and consumer-facing technology providers.

Commenting on the new team Ed Cooke, founder at Conexus Law, said: “Conexus Law is founded on the belief that we can only deliver the best counsel if we have a strong understanding of the sectors’ challenges and the underlying technology and processes. Therefore, every member of the team has specific industry expertise and is a leader in their field. I am extremely proud of this amazing group of people and look forward to welcoming others as we continue to grow.”

Law firm specialises in physical and digital infrastructure, Datacentre Solutions

A law firm that focuses solely on supporting companies at the intersection where the built environment, technology and people converge, has launched today. Conexus Law will work closely with clients in the connected world in both IT, telecommunications, infrastructure and datacentre construction and with engineering businesses delivering major infrastructure projects.

The company has been founded by Ed Cooke, a recognised expert in critical IT infrastructure, engineering, procurement and construction. He has previously been a partner in international law firms DLA Piper and Bird & Bird. Conexus Law is founded on the belief that its people can only deliver the best counsel if they have a strong understanding of the industry challenges and the underlying technology and processes, so every member of the team has specific industry expertise.

It will take a fresh and different approach to legal practice, in many ways mirroring the way its clients operate, using similar language and processes to enable seamless interaction, identifying key risks and creating flexible legal frameworks.

Ed Cooke, Founder at Conexus Law, said: “With growth continually outstripping predictions, the digital sector is facing major challenges around the unprecedented pace of change, lack of resources and an inability to predict what the future technology landscape will look like or demand. In addition, innovative technologists are pioneering emerging technology where there is often no legal precedent and the regulatory environment frustrates innovation. Conexus Law will deliver robust, creative and commercially pragmatic global solutions in this fast moving and unpredictable sector.”

Source: datacentre.solutions/news/58394/law-firm-specialises-in-physical-and-digital-infrastructure