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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
Out now: Buxbaum, “Extraterritoriality in Comparative Perspective” (Ius Comparatum)
In an increasingly interconnected world, the application of laws by States beyond their territorial borders is an everyday reality. Yet, almost a century after the (still) leading findings by the PCIJ in the Case of the S.S. “Lotus”, the details of the concept of “extraterritoriality” remain elusive, and one can easily get lost in the multitude of national practices, ranging from “presumptions against extraterritoriality” to be found mostly in federal systems (mostly for sub-units) to “effects doctrines” and the like in certain areas of law such as e.g. (early) in Germany, (later) in the EU’s competition law and today many other jurisdictions, in particular in Asia.
Given this complexity, this latest publication of the Ius Comparatum Series on “Extraterritoriality in Comparative Perspective” edited by Hannah L. Buxbaum offers a great deal of valuable guidance and insights. Featuring the reports from the most recent IACL/AIDC General Congress in Asunción, the volume provides the reader with unique insights by renowned legal scholars into the practices of 14 national jurisdictions (inter alia China, Germany, Japan, Korea, UK, U.S.) and the the European Union (EU). As is explained in the preface to the book:
Much of the vast scholarly literature on extraterritoriality approaches the topic from the outside in, assessing the extraterritorial projection of state law from the perspective of international law and the constraints it places on state authority. The goal of this project is to approach the topic from the inside out. Considering a range of legal systems, the authors investigate the geographic scope that states claim for their own laws, and the mechanisms by which states translate and locally implement principles of international jurisdictional law.
The Latin American and Caribbean Journal of International Law (LACJIL) has been launched
Today the Latin American and Caribbean Journal of International Law (LACJIL) was launched at the auditorium of the Hague Academy of the Peace Palace. Among the speakers were Prof. Diego Fernández Arroyo, president of the curatorium of the Hague Academy, and H.E. Leonardo Nemer Caldeira Brant, judge of the International Court of Justice. In addition, a very interesting panel was moderated by the Ambassador of Guatemala to the Kingdom of the Netherlands H.E. Ana Cristina Rodríguez Pineda. The panel was composed of the judge of the International Criminal Court H.E Althea Alexis-Windsor, the Ambassador of Colombia to the Kingdom of the Netherlands H.E. Carolina Olarte Bácares, the Ambassador of Argentina to the Kingdom of the Netherlands H.E. Mario J. A. Oyarzábal and the president of ASADIP Prof. Verónica Ruiz Abou-Nigm. The purpose of the panel was to discuss the recent legal developments in Latin America and the Caribbean, which included the ASADIP principles on transnational access to Justice (TRANSJUS). Read more
Seminar on the Lex fori processualis principle – University of Milan, 24 January 2025
The seminar The Lex fori processualis principle at the interface with EU judicial cooperation in civil and commercial matters will take place on 24 January 2025 at the University of Milan. The seminar is organized as part of the 4EU+ Visiting Professorships Call, supported by the 4EU+ European University Alliance and co-funded by the Erasmus+ Programme of the European Union.
Hosted by the Department of International, Legal, Historical, and Political Studies of the University of Milan, the seminar will open with welcoming addresses (Antonella Baldi and Marco Pedrazzi) and an introduction (Francesca C. Villata). Bartosz Wolodkiewicz (University of Warsaw), currently a 4EU+ Visiting Professor at the University of Milan, will present the findings of his new book on foreign procedural law in civil judicial proceedings (Obce prawo procesowe w sadowym postepowaniu cywilnym, Wolters Kluwer 2024). Following this, a round table with international scholars will explore various aspects of the lex fori processualis principle, covering topics such as historical perspectives (Carlos Santaló Goris), legal standing (Lenka Válková), burden of proof (Martino Zulberti), ne bis in idem in EU judicial cooperation (Marco Buzzoni), and res judicata in international commercial arbitration (Michele Grassi). The seminar will conclude with a discussion and closing remarks by Elena D’Alessandro (University of Turin).
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With thanks for the tip-off to Dr Lenka Válková, University of Milan