In an era when business increasingly relies on digital technology, artificial intelligence and automated information processing, the role of the IT lawyer has become one of the organization's key strategic resources. Their job goes far beyond simple advice - they become the architect of legal security for innovation, protecting the company's intellectual property and ensuring strict compliance with the law in a rapidly changing digital environment.
The legal protection of an IT company rests on three supporting layers: legal protection of software, protection of databases, and compliance with personal data processing requirements. Each of them is regulated in its own way, and a gap in any one layer nullifies the reliability of the other two.
Key tasks of the IT lawyer in protecting intellectual property
1. Legal protection of software and copyright
Under copyright law, computer programs and databases are expressly classified as objects of copyright. Legal protection arises for the company from the moment the software is created and covers all types of programs, operating systems and software suites, whether source text or object code. This means software is protected in the same way as literary works.
The specifics of the IT sector require particular attention to several aspects. First, there is the registration of software with the intellectual property office. Although this is not mandatory for rights to arise, it offers undeniable advantages: the ability to file claims in court without having to prove authorship, simplified licensing, and the possibility of carrying the software as an intangible asset on the company's balance sheet.
Second, the correct transfer of rights to the software is critically important. Unlike traditional goods, licensing agreements for software have their own specifics: they define the territory, the term and the methods of use (for example, with or without the right of modification). The IT lawyer must understand the various types of open-source licences (GPL, MIT) and how their use affects the future commercialization of the product.
Registration delivers three practical gains: a court claim without having to prove authorship, simplified licensing, and recording the software on the balance sheet as an intangible asset. The fact of protection is automatic, but defending the right in a dispute is easier when you hold a certificate.
2. Protection of databases and the maker's exclusive right
Databases have a legal nature different from ordinary software. The exclusive right of the database maker arises for the person who organized its creation and the work of collecting the materials, and lasts for 15 years from 1 January of the year following the year of its creation.
This right applies regardless of any copyright in the individual elements of the database and gives its holder the ability to prohibit the extraction and reuse of materials from the database. For a business whose value lies in data (for example, marketplaces, analytics platforms, CRM systems), protecting this right is critically important.
Data protection compliance when deploying AI and processing personal data
The recent reforms have been a turning point for personal data law. Fundamental amendments were introduced to the data protection framework, and as of September 1, 2025 new rules for drafting consents took effect, directly affecting the operation of any systems based on AI and big data processing.
1. Key recent changes and new requirements
Personal data operators are now required to:
- Draft consent to personal data processing solely as a separate document, not combined with other agreements (for example, with the terms of service). This rules out situations where consent is given by default upon registration on a website.
- File a notification with the data protection authority about the start of personal data processing (the fine for failure to file is up to $3,300).
- Localize the data of individuals on local servers.
- Raise the level of data protection - fines for personal data breaches have grown significantly and now reach $170,000.
The main risk zone when deploying AI is automated decision-making without human involvement and the opacity of algorithms. If consent is drafted inside the terms of service, data is stored abroad, or the notification to the data protection authority is not filed, the operator is vulnerable on several grounds at once: up to $3,300 for failing to file the notification and up to $170,000 for a personal data breach.
2. What the IT lawyer does to ensure data protection compliance
To minimize risks, the IT lawyer must ensure:
Checking that all data processing consents exist and comply with the new requirements.
Developing and implementing personal data processing policies and appointing a person responsible for processing.
Legal review of how the AI processes data and whether that process complies with the law.
Building a system of notices to data subjects about the collection and purposes of processing their data.
Compliance checklist for the latest requirements
| Requirement | What to check | Risk if violated |
|---|---|---|
| Separate consent to personal data processing | Consent is drafted as a standalone document, not embedded in the terms of service | Consent is deemed invalid |
| Notification to the data protection authority | A notification of the start of data processing has been filed | Fine up to $3,300 |
| Data localization | Data of individuals is stored on local servers | Blocking and enforcement orders |
| Breach protection | Protection measures match the level of risk | Fine up to $170,000 |
| Transparency of AI algorithms | Users are informed of the purposes and methods of processing, and separate consent is obtained | Unlawful automated processing |
| Data processing officer | An officer is appointed and processing policies are in force | Breach of organizational requirements |
Support from consulting firm G-Invest
Navigating today's legal environment requires deep expertise and practical experience. Consulting firm G-Invest offers comprehensive legal and financial consulting services, specializing in building effective corporate structures. G-Invest's experts are ready to provide the full range of services for IT companies: from auditing and registering software and databases to developing personal data processing policies and providing legal support for the deployment of AI systems. Working directly with business owners, the G-Invest team delivers not just legal protection but strategic support for the sustainable growth of your business.
Close all three layers of your IT business protection
G-Invest will audit your software, databases and personal data processing systems, register rights with the IP office, and bring your consents and policies into line with the latest data protection requirements - before an inspection does it for you.
Frequently asked questions
What does the concept of "personal data" cover, and what new requirements have appeared recently?
Personal data means any information relating directly or indirectly to a specific individual (name, address, phone, e-mail, biometrics and so on). Key changes have recently taken effect: consent to personal data processing must be drafted as a separate document (not embedded in other agreements), and fines for breaches have grown to $170,000. Requirements for storing data on local servers have also been tightened.
What risks arise for a business when using AI to process personal data?
The main risk is automated decision-making without human involvement. In addition, the company must ensure the transparency of its algorithms - that is, inform users about the purposes and methods of processing their data - and obtain their separate, informed consent.
How does an IT lawyer help protect intellectual property during software development?
The IT lawyer registers the software with the IP office to make proving rights easier, drafts licensing agreements setting out the terms of use of the product, and audits the code for the use of open-source licences (for example, GPL) that may impose restrictions on further commercialization. The lawyer also helps protect databases by formalizing the rights of their maker.