The legal impact of Brexit - selected topics (Part II)

This is the second part of a two-part-series.

In the finance sector, financial institutions will no longer benefit from the so-called ‘Euro Pass’ allowing those entities based on their permit in the UK to provide services into other EU member states merely on the basis of a notification of the intention to do so to the supervisory authorities of that member state. Vice versa, this also applies to financial institutions doing cross-border business from the EU into the UK. In the field of IP law, Union Marks will no longer take effect in the UK, unless stipulated otherwise in a treaty between the EU and the UK. Therefore, the legal effect on registered Union Marks is uncertain. The same applies for the issue of priority. The questions are similar for Union Designs. As a consequence, the question also arises whether under license agreements for the ‘territory of the EU’ Brexit is likely to trigger a special termination right or at least a claim for renegotiation of license fees. Data protection law will also be affected by Brexit. Once the UK is no longer a member state of the EU it might possibly be considered as an ‘unsafe harbour’. Companies with a seat in the EU transferring data to the UK will have to review and possibly amend the data protection agreements with UK counterparts. If the target state (= UK) does not guarantee an adequate level of data protection, companies in the EU could face sanctions from the data protection authorities in their country.

In summary, Brexit will raise a number of legal questions. It appears that, presently, negotiations between the UK and the EU are getting in more difficult waters. However, the author is convinced that, in the end, prudence will prevail and most of the questions mentioned in this article will be dealt with in a fair and adequate manner in the ‘Brexit treaty’ between the UK and the EU.

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