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Dear clients and cooperation partners,
We are pleased to provide you with a brief overview of the latest breaking news in Belarus law in the Communications, Media & Technology sector.
Communicating via Internet under New Rules
On 15 March 2016 the President signed the well-known Edict No. 98 On Improving Transmission of Electronic Messages. Its aim is to counter illegal traffic and unlicensed supply of telecom services. Right after the Edict was announced the authorised government body briefly explained the most heavily discussed provisions.
We would like to draw your attention to the following:
- telecom users must not use subscriber numbers that do not belong to the caller during message transmission;
- use of such messengers as Skype and Viber is allowed if: (a) the connection between Internet messengers is direct (e.g. Skype-to-Skype calls) or (b) a cooperation contract is signed between messenger owners and Belarusian operators;
- software or hardware means for passing or terminating IP telephony must be registered. Exceptions include telephones, modems, answering machines and other terminal subscriber devices;
- using and processing personal data for the purposes of the Edict do not require the consent of the individuals concerned;
- if violations occur, the supply of telecom services can be suspended and passing traffic for IP telephony can be blocked.
Use of “CLIR”, “anonymisers” and “VPN channels” is not restricted by the Edict.
The main provisions of the Edict come into force on 18 September 2016.
Currently, introduction of an extra charge for certain services including Internet-messengers and OTT services is being worked out in Belarus.
Additional 5%: VAT on Telecom Services Increased to 25%
Since 1 April 2016 telecom service providers are taxed at the rate of 25% instead of the usual 20%. This is established by the Edict of the President No. 111 On Taxation and Minimum Living Wages. The increase in VAT will most probably be offset by the growth of tariffs for end users.
Special Regulation for Personal Data
The Plan for Preparing Draft Laws for 2016 includes development of a Law on Personal Data concept. It should be ready for the President’s approval by September 2017.
Note: currently, Belarus has no special law on personal data.
Toughening Liability for “Piracy”
Innovations to the Code of Administrative Offences in the part on liability for possession for distribution of counterfeit works, other copyright and related rights objects came into force on 4 April 2016.
The main purpose is to hold liable mass distributors of “pirate” products, e.g. owners of resources similar to uTorrent.
Special administrative liability is set for attribution of authorship, compulsion to co-authorship, and disclosure of the essence of an industrial property object.
Programme for IT Development in 2016-2020
On 23 March 2016 the government approved the State Digital Economy and Information Society Development Programme for 2016-2020.
The programme provides for realisation of activities aimed, in particular, at implementing LTE and “smart home” technologies, development of an open key control system for verifying EDS, development of a paperless trade system, Service Delivery Platform (SDP) and Republican Cloud Platform.
EU GDPR Adopted
On 6 April 2016 the European Parliament and Council approved the General Data Protection Regulation (GDPR). This will apply in all EU Member States likely between May and July 2018. The GDPR also covers non-EU residents that are either involved in processing personal data of EU residents, or direct their business activities to the EU. GDPR violations will be fined heavily: for minor errors up to 2% and for major errors 4% of global revenues of the company for the previous year. Company groups are fined based on their consolidated global revenue.
We are pleased to present the latest significant projects in the Communications, Media & Technology sector handled by SORAINEN Belarus.
Facebook acquires MSQRD
SORAINEN Belarus office advised Facebook, Inc., the world’s leading social network, in connection with its acquisition of Masquerade Technologies, Inc., a Belarus-based developer of the popular mask and face-swapping app MSQRD, recently ranked as top mobile application in App Store across more than 60 countries in the world. Primary adviser to Facebook was Fenwick & West LLP.
SORAINEN service included limited due diligence of the target and advice on local aspects of the transaction. The team consisted of partners Kiryl Apanasevich and Maksim Salahub, IP associate Nadezhda Fomenok, and others.
Vista Equity Partners acquired Fiverun, Inc.
SORAINEN Belarus advised Fiverun, Inc., California based leading innovator in the mobile point of sale (mPOS) arena, on Belarusian aspects of its sale to Vista Equity Partners (“Vista”), a leading private equity firm focused on investing in software, data, and technology-enabled companies. Following this acquisition and merger of software developers MarketLive and Shopatron, the addition of Fiverun will create a unified omnichannel commerce solutions company called Kibo.
The client was advised by SORAINEN team consisted of the partner Kiryl Apanasevich and associate Alesia Tsiabus. |
