Tech & Sourcing @ Morgan Lewis

The Law Commission of England and Wales has published a detailed analysis of the application of existing law to smart legal contracts and concluded that the current legal framework is able to facilitate and support the use of smart legal contracts. The Law Commission determined that the jurisdiction of England and Wales "provides an ideal platform for business and innovation, without the need for statutory law reform."

Investment in UK technology companies continues apace, with 2021 marking another record year. The UK government announced in December 2021 that the UK tech sector achieved its “best year ever” in 2021 through investments totaling £29.4 billion, with record IPO capital raising and 37% of all funding coming from the United States. The United Kingdom is creating on average almost one $1 billion “unicorn” technology business a week, primarily fintechs followed by healthtech and enterprise software businesses.

The UK government is considering responses to its proposed reforms to auto-subscription rules for consumer contracts, as part of a broader consultation on reforming UK competition and consumer policy.

The Intellectual Property Office (IPO) in the United Kingdom just closed a consultation on policy options for changes to patent and copyright legislation to better protect technology created by artificial intelligence (AI).

Many organizations have longstanding sustainability initiatives for reducing waste through efforts such as recycling or reductions in printing. However, organizations are now also looking to their use of technology to help improve the sustainability of their operations.

From all of us on the technology, outsourcing, and commercial transactions team at Morgan Lewis, we’d like to wish you and your loved ones happy holidays and a wonderful new year.

As 2021 comes to a close, we have once again compiled all the links to our Contract Corner blog posts, a regular feature of Tech & Sourcing @ Morgan Lewis. In these posts, members of our global technology, outsourcing, and commercial transactions practice highlight particular contract provisions, review the issues, and propose negotiating and drafting tips.

Morgan Lewis's website, morganlewis.com, has been redesigned with a new look and tools to make it easier to access and leverage information about the firm.  One-click navigation takes users directly to landing pages for Our Practice, Our Thinking, and Our Firm, where you can explore events and webinars, blogs and other publications, trending topics, and more. You can also learn more about our commitment to Diversity & Inclusion, community engagement, and pro bono services.

Broad awareness has been made about cyberattacks in the form of phishing that typically use email messages to lure victims into divulging sensitive information or opening a link that allows malware to infiltrate their device. Companies have learned how to combat phishing by training employees to recognize such scam attempts and report them as phishing to protect their organizations. “Vishing” is another tactic used by scammers that, while less familiar, is no less invasive and dangerous.

With the exponential growth of cyber threats, cloud computing and remote working, contract provisions regarding data security requirements have also expanded in size and frequency. It has become common practice to prepare schedules to detail (and limit) security requirements. Customers and vendors both have a vested interest in clearly identifying expectations and obligations for such requirements. In this week’s Contract Corner, we explore considerations when it comes to drafting security schedules.