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Sierd J. Schaafsma, Intellectual Property in the Conflict of Laws; The Hidden Conflict-of-law Rule in the Principle of National Treatment
This book presents a new explanation as to the conflict-of-law rule in the field of intellectual property. In addition, it also provides new insights into the history of the conflict-of-laws, aliens law and their relationship.
The book focusses on the difficult question whether the Berne Convention (on copyright) and the Paris Convention (on industrial property) contain a conflict-of-law rule. Opinions differ widely on this matter today. However, in the past, for the nineteenth-century authors of these treaties, it was perfectly self-evident that these treaties contain a conflict-of-law rule, namely in the ‘principle of national treatment’ as it is called. How is that possible? These are the fundamental questions at the heart of this book: does the principle of national treatment in the Berne Convention (article 5(1)) and the Paris Convention (Article 2(1)) contain a conflict-of-law rule? And if so, why do we no longer understand this conflict-of-law rule today?
The study reveals a ground-breaking new explanation why the principle of national treatment in these treaties contains a conflict-of-law rule: the lex loci protectionis.
Key to understanding is a paradigm shift. The principle of national treatment was developed as a doctrine-of-statute solution addressing a doctrine-of-statute problem. In that way of thinking, it is self-evident that the principle of national treatment contains a conflict-of-law rule. However, today we have started to think differently, i.e. within the paradigm of Von Savigny. This causes a problem: we look at an old, statutist solution through Savignian glasses, and as a result the conflict-of-law rule in the principle of national treatment is out of the picture. Meanwhile, we are not even aware that we are looking through Savignian glasses and that these glasses narrow our field of vision – and as a result, this conflict-of-law rule is beyond our reach. The explanation in this book results in a comprehensive and consistent interpretation of the respective provisions in these treaties, and it explains why we no longer understand this conflict-of-law rule today (see especially paragraph 5.1.2).
The search for this new explanation has, in addition, generated several new insights into the history of the conflict of laws in general (see especially paragraph 5.2.3), aliens law, and the relationship between these two fields of law.
Finally, the book is also detailed and authoritative explanation of the intersection of the conflicts of law and intellectual property law, providing a full and detailed analysis of the current state of affairs of the intersection of these fields of law. It also deals with less common themes such as material reciprocity (Chapter 6).
This book is an English translation of Sierd J. Schaafsma’s book, which appeared in Dutch in 2009, and is now updated with the most significant case law and legislation.
Elgar, 2022; see Elgar website.
Bitcoin and public policy in the field of international commercial arbitration
Is a foreign arbitral award granting damages in bitcoin compatible with substantive public policy? The Western Continental Greece Court of Appeal was recently confronted with this question. Within the framework of the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, it ruled that the recognition of a US award runs contrary to Greek public order. Cryptocurrency, such as bitcoin, favors tax evasion and facilitates economic crime, causing insecurity in commercial transactions to the detriment of the national economy.
FACTS
The applicant, a German national, was a member of a website, governed by a US company. The website was a platform through which members could conclude credit contracts in cryptocurrency (bitcoin). The applicant agreed with a resident of Greece to finance his enterprise by providing a credit of 1.13662301 bitcoin. The Greek debtor failed to fulfill his obligations, and he refused to return the bitcoin received. On the grounds of an arbitration agreement, an award was issued by an online arbitration court, located in the USA. The debtor appeared in the proceedings and was given the right to challenge the claim of the applicant. The court of first instance decided that the arbitral award may not be recognized in Greece for reasons of substantive public policy (CFI Agrinio 23.10.2018, unreported). The applicant lodged an appeal.
THE JUDGMENT OF THE COURT APPEAL
The appellate court began with a short description on the nature of bitcoin. It then mentioned the position of the European Central Bank with respect to the same matter. It concluded that the use of bitcoins endangers transactions both for the parties involved and the state. This comes from the fact that any income resulting from the use of cryptocurrency is tax-free, given that this kind of transactions are not regulated in Greece. Hence, importing capital in bitcoins and generally any kind of cryptocurrency, irrespective of the type of legal matter, infringes the domestic legal order, because it favors tax evasion and facilitates economic crime, causing insecurity in commercial transactions to the detriment of the national economy.
As a result of the above, the recognition of an award which recognizes bitcoin as a decentralized currency unit (peer to peer), and orders the payment of a certain debt in bitcoins, runs contrary to public policy, i.e., to fundamental rules and principles of Greek legal order in present times, reflecting predominant social, financial, and political values.
Finally, by enhancing transactions in bitcoin and promoting its equalization to legal currency, the recognition of such an award in Greece would essentially disturb prevailing standards of the country, given bitcoin’s sudden and unpredictable fluctuations [Western Continental Greece Court of Appeal 27.09.2021, unreported].
COMMENT
Unlike the profound analysis of the first instance court, the appellate court confirmed the judgment mechanically, with zero references to legal scholarship and case law. The developments in the subject matter between 2018 (publication of the first court’s ruling) and 2021 (publication of the appellate court’s judgment) were not taken into account. The Hellenic Republic has transposed crucial directives related to cryptocurrency (see DIRECTIVE (EU) 2019/713 of 17 April 2019 on combating fraud and counterfeiting of non-cash means of payment and replacing Council Framework Decision 2001/413/JHA). New income tax rules and regulations focusing on cryptocurrency are prepared by state authorities. Even now, i.e., without a special law on cryptocurrencies, bitcoin profits must be declared for taxation purposes. Bitcoin exchange offices are active in the country. To conclude, the judgment seems to be alienated from contemporary times.
Referring to the judgment of the CJEU in the case Skatteverket / David Hedqvist (C-264/14), the first instance ruling underlined that the decision focused on the Swedish economic environment, which may not be compared to the situation in Greece. Therefore, and in light of recent developments in the country, we may hope that the courts will soon shift course towards a more pragmatic approach.
[Many thanks to Professor Euripides Rizos, Aristotle University of Thessaloniki, for his valuable insight into the field of cryptocurrencies]
EFFORTS Questionnaire on Digitalization of Civil Procedures Relating to Cross-Border Enforcement
In the framework of the EFFORTS Project, a questionnaire has been drawn up on the digitalization of civil procedures relating to cross-border enforcement.
The questionnaire aims at collecting quantitative and qualitative data on the digitalization of enforcement procedures at the national and European level, with a view to identifying technical solutions and legislative amendments to implement such digitalization.
The questionnaire, together with information on the EFFORTS Project, may be accessed here
The EFFORTS project partners thank you in advance for your time and contribution!
Project JUST-JCOO-AG-2019-881802
With financial support from the Civil Justice Programme of the European Union
News
Issue 4 of Lloyd’s Maritime and Commercial Law Quarterly for 2024
Issue 4 of Lloyd’s Maritime and Commercial Law Quarterly for 2024 was just published. It contains the following articles, case notes, and book review:
Katherine Reece-Thomas, “State Immunity and Sunken Treasure: Finders will not Always be Keepers”
Anthony Kennedy, “Unanswered Questions”
Michael F Sturley†, “The Centenary of the Hague Rules: Celebrating a Century of International Conventions Overmining the Carriage of Goods by Sea”
2024 marks the centenary of the Hague Rules, which still play a central role in allocating the risk of cargo loss or damage. To celebrate that milestone, it is valuable to review the history, beginning with the pre-existing risk allocation. When maritime nations applied widely accepted principles differently, efforts began in the late nineteenth century to achieve uniformity by international agreement. Those efforts failed until domestic legislation exacerbated the problem and created greater pressure for a solution. Even after agreement was reached in 1924, however, another fourteen years passed before the Convention was widely in force. Since then, international uniformity has been challenged in multiple ways, and the story continues to this day.
Marcus Teo, “Foreign Law as Fact”
In English law, “foreign law”, as applied under choice-of-law rules, is a question of fact. This “fact doctrine”, however, faces scepticism for three reasons: it remains unclear whether foreign law is truly treated as a question of fact, why it is so treated, and what the precise fact-in-issue is. This article addresses these concerns. It demonstrates that, today, foreign law is treated like any other question of fact. It then argues that foreign law should be classified as a question of fact, and should refer to foreign legal rulings, because this facilitates the accurate prediction of foreign decisions.
Adrian Briggs, “Book Review – Dicey+100. Albert Venn Dicey: A Centennial Commemoration”
Conference & Book Presentation ‘EAPO: Practical Challenges and Prospects for Reform’
The University of Luxembourg is proud to host a special event to present the newly released book, European Account Preservation Order – A Multi-jurisdictional Guide with Commentary, published by Bruylant/Larcier.
Co-edited by leading experts Dr. Nicolas Kyriakides (University of Nicosia), Dr. Heikki A. Huhtamäki (Huhtamäki Brothers Attorneys Ltd), and Dr. Nicholas Mouttotos (University of Bremen), this comprehensive guide offers a detailed analysis of Regulation (EU) No 655/2014, with contributions from 26 Member States.
The first panel will explore practical challenges in the use of EAPO in Luxembourg and France, moderated by Dr. Elena Alina On?anu (University of Tilburg) and featuring insights from Dr. Laurent Heisten (Moyse & Associates Law Firm, Luxembourg), Alexandra Thépaut (Étude Calvo & Associés, Luxembourg) and Lionel Decotte (SAS Huissiers Réunis, France). The second panel will examine future developments and reforms, moderated by Dr. Nicholas Mouttotos (University of Bremen), with contributions from Prof. Gilles Cuniberti (University of Luxembourg) Dr. Carlos Santaló Goris (University of Luxembourg) and Dr. Nicolas Kyriakides (University of Nicosia).
The event will take place on December 3rd, 2024 at Room A401, University of Luxembourg – Weicker Building, from 11:00 to 13:15 CET.
Virtual Workshop (in English) on December 3: Stéphanie Francq on “Overriding Mandatory Rules in Family Matters and Personal Status, Are Belgians the Only Ones?”
On Tuesday, December 3, 2024, the Hamburg Max Planck Institute will host its monthly virtual workshop Current Research in Private International Law at 2:45 p.m. – 4:15 p.m. (CET). Professor Stéphanie Francq (UCLouvain) will speak, in English, about the topic
“Overriding Mandatory Rules in Family Matters and Personal Status, Are Belgians the Only Ones?”
Are we really witnessing the occurrence of overriding mandatory rules in family matters and personal status? A new phenomenon seems indeed to surface in this area with examples of substantive rules or values, announced by the lawmaker, together with a clear intention to apply in identified international situations. Belgian law offers a series of examples. But are Belgian the only ones using this method? German law has also offered a better known and rather unfortunate illustration with the Act to prevent child marriage. These rules, their upsides and downsides, deserve close consideration. First and obviously for technical reasons: are we indeed facing overriding mandatory rules, similar to those concerning business transactions? Or is this some new form of public policy exception? Are these rules carefully designed legal objects or rather clumsy attempts to secure the application of the lex fori? Beyond the technicalities, the presentation will tend to investigate potential reasons behind this new phenomenon.
It turns out that these rules might have something to tell us about the current state of conflict of laws, its politics and its theories, and its need to look beyond its own borders.
The presentation will be followed by open discussion. All are welcome. More information and sign-up here.
If you want to be invited to these events in the future, please write to veranstaltungen@mpipriv.de.