Predictions 2021 DLA PIPER IPT TEAM - ITALY
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Predictions 2021 DLA PIPER IPT TEAM – ITALY
Predictions 2021 Contents
Contents
Back to Technology Sports, Media and Gaming and
the Future Entertainment Gambling
Finance and Life Sciences and IP Litigation Fashion and Retail
Insurance Wellness
Food and
Beverages
2Predictions 2021 Back to the Future
Back to the Future
The predictions we compiled last year did not take into account the COVID-19 Among them, and first of all, the uncertainty: in all sectors radical changes are
pandemic outbreak. The future we imagined did not happen, and just a minority under way and more are expected.
of the changes that we focused on reached a full development in the course
of 2020. Then the innovation: most of the answers confirm that changes are going to be
driven or caused by technical developments. The sign of these developments is
Instead, the past year brought a rearrangement of priorities that affected most the digital revolution, something no-one can ignore or resist to.
if not all the businesses and sectors.
Another element emerging from the overall picture is the need to rearrange
In a number of cases, this rearrangement translated into a real crisis, the relationship with business partners and clients, and the overall customer
as happened in the travel and hospitality industry, in the sports and live show experience. Solutions developed in the past ere not valid anymore and need to
business and in many other sectors. be reimagined and reinvented in this age of digital disintermediation.
In other cases, the pandemic forced a major change of the business, whose Zooming out from the picture it is also possible to see a relationship between
size and overall revenues however did not decrease significantly. In those cases the level of digitalization of each industry and sector and the impact of the
the crisis meant mainly that the operators had to evolve on the spot in order COVID-19 outbreak, that affected more seriously the businesses whose digital
to accomodate new demands and requirements. The companies capable to travel was less advanced.
react in this way managed to thrive, and possibly provided a lesson of resilience,
an abused but significant word in those difficult times. This is probably the most important lesson we learnt from the crisis: the digital
revolution is not an option, is the way to secure our future.
Whichever the effect of the pandemic in each specific business, there have
been significant changes, so that any attempt to cast predictions required to With this knowledge and the vaccine campaign already started in many
chart an unknown territory. Hence the decision , for this year, not to rely only Countries we now have the privilege to look again to the future and see how it
on our experience of business lawyers and legal advisors but to ask directly to can develop. Indeed, the very act of drafting predictions, based on actual data of
the clients. We therefore made a survey, compiled by more than one hundred living companies successfully adapting their business to grow despite the crisis
companies, both domestic and international, grouped by sectors. is per se a relieving exercise and the confirmation that the future is back, and we
are (again) ready for it.
The questions were the same but the answers of each group of respondents
provided slightly different pictures; more precisely, different pictures of the Gualtiero Dragotti
same object. If you put them side by side, the result could be compared to an
abstract painting, with multiple prospectives and angles contributing to focus
the attention on different particulars and features.
3Predictions 2021 Technology
Technology
How is the COVID-19 outbreak going to affect
The fundamental goal in managing dynamic and
your business strategy?
unpredictable challenges is resilience: the COVID-19
pandemic has forced a large-scale adoption of technology
ANSWER CHOICES RESPONSES
to master various critical aspects of the crisis, such as
ensuring business continuity. This massive shift to digital We are investing in digital transformation and
services has had an enormous impact on the technology remote working products due to the new remote 11.76%
sector, which saw companies forced to manage working environment
unprecedented demand. Our survey results show
We are investing in digital transformation products
that the tech sector has proven to be one of the most
and services to manage a remote relationship 58.82%
resilient and – unsurprisingly – compared to the overall
with customers
results, tech companies have reacted better than others
to the crisis, achieving more extensive revenue growth We are facing a high demand on artificial intelligence
and smaller losses. However, the vast demand increase and machine learning products to control risks and 17.65%
represents a critical challenge for tech companies. become more efficient
The attack surface in cybersecurity continues to expand
We are keeping the same offering as before the
as we enter a new phase of digital transformation. 11.76%
occurrence of the pandemic
The pandemic accelerated existing digital transformation
efforts and pushed an overall increase in IT investments.
Interestingly, our survey shows that most tech companies
(76%) believe that digital transformation will positively
affect customer interaction. As a result, tech companies
are investing more than others in technological solutions
aimed at managing the remote relationship with
customers (58.82% compared to an average of 47%)
while allocating less financial resources in remote working
products, mainly because such companies had already
largely adopted a remote working business model.
4Predictions 2021 Technology
In this context, the mastering of remote identification and What do you think that will be the main hype in All this is playing out when EU data protection supervisory authorities are
contracting solutions will be pivotal both for B2B businesses your sector during the next 12 months? starting to exercise their enforcement powers, forcing tech companies
with high adoption of electronic signature and electronic and their customers to substantially increase the strength and resilience
document management products and for B2C firms as we ANSWER CHOICES RESPONSES of technical and organizational security measures to limit the risk
expect a further uptick of the eCommerce market for an of data breaches. But AI can be both a risk generator and mitigator.
Artificial intelligence and machine learning 35.29%
exponentially large array of solutions, which according to Indeed, with an increasing number of malware and web-based attacks,
more than 35% of respondents needs to be supported by Cybersecurity 35.29% in 2021, artificial intelligence and machine learning within cybersecurity
legislative intervention aimed at easing the use of technologies. practice will drive efficiency, enabling a reduction of the manual steps in
Electronic signature, documents and remote contracting
A significant trend towards legaltech products is likely to occur 11.76% the monitoring of the attack surface instead of chasing malicious activity.
of customers
to reduce costs and handle automation needs as clients will be
moving at a greater speed. Data monetization 17.65% Finally, even though, according to the World Economic Forum, cloud IT
infrastructure investments increased by 35% in the second quarter of
According to 70% of the tech companies that took part in 2020, almost 65% of the survey respondents identified the upcoming
our survey, artificial intelligence and cybersecurity will be the changes in their customers’ business models as a significant threat
significant trend in the technology sector in 2021, with figures for their business. And these changes might be driven by regulatory
substantially higher than the average (43%). This different point interventions such as the recent CJEU decision in the Schrems II
of view may be influenced by the cybersecurity paradox tech case, which considerably affected data transfers outside the EEA
companies have faced during 2020. Due to the massive shift to and might lead companies operating in the EU to switch to different
digital services, the swift changes imposed in the information technology providers.
technology landscape risk weakening existing cybersecurity
measures, turning their speedy adaptation into a challenge. While the outcome of the geopolitical discord is uncertain, it is easy to
At the same time, cybersecurity is the primary enabler of trust predict that the future of tech companies in 2021 will depend on their
in emerging use-cases for digital services. Thus, it represents ability to earn trust from their customers, governments, and users,
a crucial component to facilitate digital transformation where andthis will require business leaders and regulators to be able to refresh
AI technologies are increasingly used, even though users are their mindset. We believe Peter Drucker’s famous quote reflects the
often unaware of it. current situation; “The greatest danger in turbulence is not turbulence;
it is to act with yesterday’s logic.”
5Predictions 2021 Sports, Media and Entertainment
Sports, Media and Entertainment
Our survey results on the impact of the COVID-19 pandemic on the Conversely, the extra time to spend indoors led consumers to
media, sports, and entertainment (SME) sectors were predictable, find entertainment elsewhere, namely online in the media sector,
with 80% of respondents saying they have suffered a slight decrease in which indeed proved to be one of the areas that benefitted the most from
revenues, 10% significant losses, and 10% an increase in revenues. the constraints imposed by COVID-19. Companies offering streaming or
SVOD (subscription video-on-demand) services increased their revenues
How is the COVID-19 outbreak going to affect your and gained new subscribers. Other means of leisure, such as TV, social and
business strategy? online entertainment platforms and radio maintained or acquired a new
audience, undoubtedly leading to a slight increase in revenues.
ANSWER CHOICES RESPONSES
As customers were forced to observe social distancing rules and move to
It is leading to an increase of our revenues 10.00%
remote working, SME companies had to accommodate a high demand for
It has not triggered a change in our revenues 0.00% digital content, accessible everywhere, especially on the dominant mobile
platforms. Although digital transformation has already changed the SME
It caused a slight decrease in our revenues 80.00%
sector landscape in recent years, the pandemic outbreak is accelerating this
It led to major losses 0.00% trend in an unprecedented way.
Regarding the film industry, well before the pandemic started we assisted
The entertainment and sports markets were definitely among the most in the rise of a “streaming war” between traditional significant production
affected by the outbreak. Live events – such as music shows, theatre companies and new players to provide the best SVOD and streaming
performances, sports competitions – were severely hindered by the services. The pandemic simply helped them gain new subscribers. But the
decision to lock down countries in the first phase of the pandemic and circumstances also meant an increase in demand, with service subscribers
then were given little chance of recovery due to the short post-summer pushing for “fresh” premium content. The situation might have initially
reopening. Then the second wave of the pandemic required countries to favored historical production companies since they could rely on their
impose new social distancing constraints. centenary archives. However, though the lockdown caused the temporary
cease of shooting in many countries, we have started to see an increase
(and we expect an explosion in 2021) of own branded productions by the
new players of the market that can now count on the massive budgets
gained over the past few years, especially in 2020.
6Predictions 2021 Sports, Media and Entertainment
The new status quo forced the sports and entertainment sector to reinvent Which will be the major threat for your business?
itself by creating new formats; from digital concerts to live streaming operas Data monetization will be mainly driven by personalized marketing
and virtual museum tours, as confirmed by 40% of survey respondents ANSWER CHOICES RESPONSES and advertising. New social media that developed their business
who declared that their companies are investing in products and services model predominantly (or exclusively) around algorithm-driven
Potential cyberattacks 00.00%
to manage remote relationships with their customers. These changes will entertainment will continue to expand their reach at the expense
lead to a change in the business model that may affect employees and the Pace of the technological development 0.00% of traditional media, attracting more and more advertisers.
market at large. Also, though the lockdown put a stop to traditional filming and live
Change in the model of business of customers 40.00%
events, brand influencers never stopped creating “micro-stories”
The creation of new formats also poses further legal questions, mainly linked Requests from customers to negotiate the pricing of for the entertainment of the “large public,” making compliance with
with the need to ensure copyright protection and manage the risks of our products/services or reduce investments due to 60.00% influencer marketing regulatory obligations even more crucial for the
data protection law violations connected to aggressive data monetization the COVID-19 strategy of any business.
strategies. Data monetization will be one of the significant trends of the next
year for the SME sector, according to 50% of respondents. Operators will shift Relying on the abovementioned new business models can be,
their offering to online/streaming services and, as a consequence, they will however, particularly difficult for the sports sector. In the last year,
need to monetize online content to balance the losses due to customers’ significant events, from football to tennis, skiing and basketball,
requests to renegotiate prices or to reduce investments due to COVID-19, have been disrupted. Essential revenue streams – from sponsorship,
which is a significant threat for the sector, according to 60% of respondents. production, and distribution of media rights, to ticketing and in-
stadium corporate hospitality – have suddenly dried up. Indeed,
50% of respondents called for financial measures to support the
SME sector.
However, these events led the sports industry to expand its services,
in particular investing in the esports sector, which had a significant
level of visibility during the lockdown and might become a new
pillar of the market. But, to do that, new clear rules operating
internationally need to be introduced to attract investments.
Hopefully, the COVID-19 outbreak will end soon. But it is a lesson
learned for the SME sector in understanding how to create a
business that is less affected by external factors.
7Predictions 2021 Gaming and Gambling
Gaming and Gambling
The COVID-19 pandemic has had a significant impact on the gaming and Do you think legislative measures or intervention
gambling industry. Unlike data reported by other markets, according to 62.5% to support your sector will be necessary? At the same time, gaming and technology have evolved in giant leaps in
of respondents, COVID-19 led to an increase in revenues in the gaming and recent times. The technology is improving, bringing higher resolutions,
gambling sectors. The video games and esports industry has seen significant ANSWER CHOICES RESPONSES better fields of view, and virtual characters have the potential for more
success. Even before the pandemic, esports proliferated as entertainment, depth, adding realism when interacting with players. New product
Yes, in particular financial measures 12.50%
but the lockdown accelerated the growth. Simultaneously, the closure of development is the area that is most affected by technology and digital
brick and mortar casinos, betting shops, and gambling venues (i.e. gambling Yes, in particular regulatory intervention 50.00% transformation, according to 37.5% of the respondents against 19%
lounges, bingo halls, horse racing betting shops) led to a steady increase in of average respondents. And, according to most respondents, such a
No, the present legislative framework is appropriate 12.50%
revenues for the online gambling sector. product development appears to be mainly driven by artificial intelligence
No, we instead would need a more and machine learning, which allow companies to offer more suitable
25.00%
In this scenario, it is not surprising that 50% of respondents are calling for deregulated environment products for the audience and limit the risk of fraud, but at the same time
regulatory intervention to support the sector, which in the video gaming reveal data protection compliance issues that are – from our point of view
sector might translate to more transparent rules for esports that still operate – sometimes overlooked in the industry. This situation may depend on the
in a grey area. At the same time, recognition as a sport would trigger the lack of significant GDPR fines against gaming companies so far, but given
applicability of an international framework of rules to boost investments for the type of sensitive data processed by the industry, the risk of fines is
growth. On the contrary, regulatory intervention in the gambling sector would high and cannot be underestimated.
result in removing unjustified restrictions like the Italian gambling advertising
ban that leads to losses for the sports sector and does not benefit consumers Identifying the right balance between innovation and compliance
in terms of reduced gambling addiction. appears to arise as a pivotal dilemma from our survey responses on
the gaming and gambling sectors. According to most respondents,
the pace of technological development is the primary threat to their
business. Companies need to remain competitive, increasing the level
of engagement of their players, but this requires an in-depth analysis of
their behavior to predict their preferences and the upcoming trends and
at the same time a review of monetization strategies to avoid becoming
excessively invasive.
8Predictions 2021 Gaming and Gambling
For instance, esports opened new revenue streams with events tickets and several operators have gone digital. The question is whether online players
merchandising and advertising revenues, broadcasting fees, and increased will go back to offline activities after the pandemic or if they can be officially
in-game revenues. They represent an opportunity for video game publishers, considered newly acquired players. To avoid the trend of the last few months
event organizers, esports teams, and gambling companies that are being exceptional, gaming companies need to invest considerably in their
steering some of their investments towards the sector to diversify their dual channel strategy to increase the level of synergy and make their business
sources of revenues and catch a new generation of adult players’ attention. more resilient.
But, as previously mentioned, according to the respondents to our survey,
such a shift must be supported by a regulatory intervention to grant more The most confident prediction that we can make for 2021 is that gaming
confidence to investors in the regulatory environment. as a whole (including esports) will no longer appear ancillary to sports.
Operators, publishers, and event organizers gained enough input from 2020
Compared to average data, our survey findings can be explained only in the to better focus their investments and make them more successful in the
sense that the gaming and gambling industry has already experienced a long term.
significant migration from offline to online, and we expect this shift to increase
further in 2021. In response to the closure of many gambling establishments,
How is the COVID-19 outbreak going to affect
your sector?
ANSWER CHOICES RESPONSES
It is leading to an increase of our revenues 62.50%
It has not triggered a change in our revenues 6.25%
It caused a slight decrease in our revenues 18.75%
It led to major losses 12.50%
9Predictions 2021 Finance and Insurance
Finance and Insurance
While COVID-19 marked 2020 as a grim year for several industries, it also In the past year, banks and other financial institutions had to make an
represented a decisive driver for many others’ digital acceleration. The finance extra effort in understanding the gaps in the provision of their services and
and insurance sectors are no exception. There is no doubt that the pandemic adapt to their clients’ new demands. According to 46.15% of respondents,
caused a business disruption, but it was accompanied by growing demand the decrease in interaction with customers encouraged operators to employ
in health insurance coverage and a rise in contingency claims that hit the digital channels and technological solutions that had not been among their
insurance sector hard. top priorities. Steps in this direction are expected to be reinforced next
year, with groups in the financial and insurance sectors already investing
The insurance market is one of the best equipped to deal with significant in instruments – such as electronic signatures, electronic documents,
loss events, but the unknown course of the pandemic and the difficulties in remote identification, and KYC checks – that will expand remote
predicting its long-term effects make 2021 a decisive year for the future of contracting. The adoption of such technologies requires a thorough legal
the sector. assessment of regulatory implications and the types of solutions to be
adopted since the legislative framework is struggling to stay abreast of
On the other hand, learning from past lessons of the 2008 crisis, the finance technological development.
sector was more prepared to face the uncertainties brought by the COVID-19
outbreak. Yet, even in this case, the prolongation of its consequences – What do you think that will be the main hype in
continued market volatility and fall in demand, unpredictable consumer your sector during the next 12 months?
behavior, increasingly lower incomes – and an economic crisis on the horizon
will be the significant challenges the finance industry will have to deal with ANSWER CHOICES RESPONSES
in 2021.
Artificial intelligence and machine learning 30.77%
More than half of the survey respondents (53.85%) reported a slight decrease Cybersecurity 19.23%
in revenues in such a scenario, with only 3.85% of interviewed companies
Electronic signature, documents and remote
suffering significant losses. 46.15%
contracting of customers
This data can only be interpreted in the sense that the industry was able to Data monetization 3.85%
accelerate its digital transformation process through heavy investment in the
sector, as confirmed by 50% of the companies participating in our survey.
The digitization and dematerialization of contractual documents are heavily
affecting these markets.
10Predictions 2021 Finance and Insurance
This process will also be forced by the growth of fintech. Traditional banks forecasting. All these technologies lead to the processing of a high volume
will be obliged, also because of the PSD2’s obligations, to the development of of personal data and deep profiling of individuals, triggering significant data IT outsourcing will encompass a wide array of solutions such
stronger partnerships with fintech companies to avoid losing market share protection related issues. as application management and infrastructure services,
and to further boost the offering of digital financial services. We expect that network administration, cloud optimization, cybersecurity,
2021 will lead to an additional trend in the fintech and insurtech markets. In line with data previously indicated, the rush towards digital transformation and support, allowing affordable access to cutting-edge technology
Banks, financial institutions, and insurance companies need to change their will focus – according to 61.54% of respondents – on solutions aimed at and global expertise, swift project start up and implementation,
business models to survive. bettering interactions with customers. But such a change in the business as well as benchmarking reviews to monitor competitors’ positioning
model is likely to lead to an increase in outsourcing deals. Outsourcing and best practices. Similarly, IT outsourcing will help to avoid a
Given the above, it’s no surprise that, according to 42.31% of the respondents will enable industry players to reduce costs, increase efficiency and speed, silo mentality, which may stifle growth. Internal processes will be
to our survey, the main threat for their business is the change in the business mitigate operational risks, and improve their services. refreshed through collaboration with third-party providers, often
model of their customers, which might be further accelerated by the within dedicated partnerships and joint ventures.
COVID-19 outbreak and the new habits it created, which might remain when Which will be the major threat for your business?
the pandemic is over. Business Process Outsourcing (BPO) will also be on the rise,
ANSWER CHOICES RESPONSES including payment and trading systems on the banking side
To surf the digitization wave, financial and insurance institutions will have to and management of employee benefits, policy administration,
Potential cyberattacks 26.92%
rely more and more on AI, machine learning and smart analytics. As confirmed and retirement services on the insurance side. Institutions and
by 30.77% of the participants in our survey, investments in AI and other data- Pace of the technological development 19.23% companies in the sector will be investing strongly in the years to
driven technologies will become an essential element for businesses to up come to enhance customer relationships in the digital environment
Change in the model of business of customers 42.31%
their game, anticipating customers’ behavior to offer a higher personalization and improve the underlying back-office functions.
level, improving risk management and investments. Practical AI applications Requests from customers to negotiate the pricing
will increasingly emerge in payment matching, consumption predictions, of our products/services or reduce investments due 11.54% Thanks to the ubiquity and sound business continuity plans,
credit scoring, and churn prevention. Similarly, AI investments are expected to the COVID-19 the outsourcing model is proving to be resistant and resilient in
to increase in the development of fraud detection solutions. Credit card fraud the face of the COVID-19 pandemic, mitigating risks of business
and identity theft remain the more widespread and expensive cybercrimes, disruption. There is no doubt outsourcing will be a crucial driver
worth billions in losses for the financial sector. The demand for technologies for the finance and insurance sector in 2021, and as technology
to monitor transactions and notify financial institutions of suspicious advances, institutions and companies will have to be ready to rely on
processes or identify process anomalies and assess data credibility will industry-savvy third-party providers exponentially.
exponentially increase, allowing companies to improve their fraud detection,
prediction, and prevention capabilities. Tools for automating complaint
management and AI-based analysis applications to analyze market trends will
also play an essential role in cutting organizational costs and stock market
11Predictions 2021 Life Sciences and Wellness
Life Sciences and Wellness
The approval of a vaccine against COVID-19 will pave the way for a slow The industry is expected to make consistent investments in technology
return to “normality” during 2021. While 2020 certainly affected our lives, it services to be applied in developing, evaluating, manufacturing,
also forced us to think outside the box, designing and developing innovative and distributing healthcare products. This digital transformation will inevitably
solutions to cope with the challenges brought by the pandemic, which may be expose companies to new issues related to cybersecurity and data protection
here to stay. compliance issues.
According to 54.55% of respondents, digital transformation to manage the The measures developed to cope with the COVID-19 pandemic may support
relationship with customers/patients remotely will be an area of significant the treatment of numerous further diseases. Those measures showed that an
investments for the life sciences and wellness sectors in 2021 with the integrated approach combining traditional therapies and digital solutions –
widespread adoption of digital instruments and telehealth services. including remote disease-monitoring and management and the possibility to
supply medicines directly to patients’ homes – could be critical pillars for the
How is the COVID-19 outbreak going to affect your sector in 2021.
business strategy?
In this sense, the pandemic has undoubtedly boosted the use of telehealth,
ANSWER CHOICES RESPONSES which now appears to be the here to stay. Under the WHO definition,
telehealth refers to providing healthcare services between patients and
We are investing in digital transformation and
healthcare professionals who are at distance but who come into contact for
remote working products due to the new remote 36.36%
diagnosis and treatment through information and communication technology
working environment
tools. Telehealth is not a new phenomenon born with the pandemic although
We are investing in digital transformation products – despite the push received by several providers and technology developers –
and services to manage a remote relationship 54.55% its expansion has been slow, and Italy still lacks specific legislation. However,
with customers authorities are working on new guidelines regulating telehealth services in
more detail, with view to treat them in the same way as in-person services,
We are facing a high demand on artificial intelligence
which should be adopted very soon. The pandemic and the need to limit
and machine learning products to control risks and 0.00%
contact with patients beyond what is strictly necessary to avoid contagion
become more efficient
have encouraged the use of telehealth tools. In 2021, we expect this trend
We are keeping the same offering as before the to consolidate, and to grow through specific laws and regulations, including
9.09%
occurrence of the pandemic potential reimbursement plans.
12Predictions 2021 Life Sciences and Wellness
And the same reasoning is valid for the wellness market, which faced a In this context, it is not a surprise that most respondents said that the change
significant hit with the COVID-19 outbreak but is now reinventing itself to in their customers’ model represents the main threat for their business.
adapt to a new world with remote relationships with customers. The industry is changing, and the change needs to be fast. But with such
a pace, there is no doubt that some significant issues might be put on the
Such circumstances explain why 72.73% of respondents said that their back burner.
companies are working on remote contracting solutions with their customers.
Cyberattacks are becoming one of the main risks related to digitalization,
What do you think that will be the main hype in as evidenced by the frequent occurrence of data breaches affecting life
your sector during the next 12 months? sciences companies, healthcare organizations, and governmental agencies
over the last few months. The widespread use of e-health and remote digital
ANSWER CHOICES RESPONSES wellness solutions will probably require deep interconnection between
different databases across various countries, potentially defining a unique
Artificial intelligence and machine learning 27.27%
information space whose main feature is the processing of massive amounts
Cybersecurity 0.00% of personal data and business-sensitive information. Information processed
by stakeholders in the sector is duly protected and processed according to
Electronic signature, documents and remote contracting
72.73% data protection laws and regulations.
of customers
Data monetization 0.00% But cybersecurity and data protection compliance not only depend on the
funds invested in security measures. Human error was and still is the main
cyber threat for any business, and life sciences and wellness enterprises
The life sciences and wellness industry proactively reacted to the COVID-19
need to work on making sure that a GDPR-compliant and cyber-savvy culture
emergency. The innovative and flexible instruments introduced in this
is instilled in their companies. And the level of attention required by such
exceptional situation will play a pivotal role in developing the sector in 2021.
issues will become even more important during a period in which – due to
Digital instruments are destined to increasingly support traditional therapies
the effects of the European Court of Justice’s decision in the Schrems II case –
and services, facilitating direct contact with providers of services to best
companies might experience a shift in their technology providers.
tailor treatments to customers/patients’ actual needs and the support of
artificial intelligence solutions that are pivotal in handling massive amounts of
data information.
13Predictions 2021 IP Litigation
IP Litigation
How is the COVID-19 outbreak going to affect
While IP Litigation is not a sector or a specific industry, we decided your sector?
to extend our survey to a number of clients that include the active
protection of their IP rights and portfolio in their DNA, in order to ANSWER CHOICES RESPONSES
understand how the COVID-19 outbreak affected their business;
It is leading to an increase of our revenues 18.18%
we also investigated how IP-heavy companies are dealing with digital
transformation and technology innovations. It has not triggered a change in our revenues 18.18%
It caused a slight decrease in our revenues 27.27%
According to collected data, due to the COVID-19 pandemic, most
(more than 60%) of the companies participating in our survey It led to major losses 36.36%
experienced either a slight decrease or significant losses in revenues.
In comparison, only around 30% had either an increase in revenues
The above comments contribute to confirm that IP litigation is indeed
or the same revenues as the previous year. At the same time, most of
anti-cyclic. When business slows down, companies are likely to increase the
them (54%) believe that it is time to look at the future and invest in
enforcement of their intangible assets, which paradoxically leads to more
digital transformation products, either for remote working or for
IP litigation in times of crisis. 2020 stands out as an emblematic example
products and services.
of such a trend. There has been an increase in IP litigation in Italy – even
with the enforcement of pandemic-related IP assets – notwithstanding the
Those data, reflected in the below table, are indeed interesting,
interruptions and delays in the judicial system caused by the pandemic and
and they confirm that companies relying on IP and actively protecting
the containment measures adopted.
their immaterial assets are more edged toward crisis and sudden
market changes.
More demand for IP litigation in 2020 has prompted a call for action in
adopting measures for increasing the efficiency of the judicial system. In this
regard, the pandemic acted as a boost in transformation by accelerating the
“telematic proceedings” already in the course of implementation in Italy.
14Predictions 2021 IP Litigation
What areas of your business are you seeing The Italian government ordered all Italian Courts to stop postponing
that will be most impacted by technology and hearings and start implementing different tools to avoid excessive
digital transformation? delays in proceedings. On this basis, two tools were implemented
to manage the hearings that could not be held in the presence
ANSWER CHOICES RESPONSES of the parties and of their lawyers: “live” hearings held through
videoconferencing platforms, where the parties and the judge could
Internal organization 0.00%
connect simultaneously; and hearings held through the exchange of
Supply chain management 18.18% written notes between the parties instead of oral discussion. These
tools allowed a rapid resumption of proceedings that had been
New product development 27.27%
suspended during the first lockdown.
Interactions with your customers 54.55%
Later on, gradually, and so far, judicial hearings have been allowed to
be held in person in some cases only. For the time being, the other
At the beginning of the pandemic, during the first lockdown, due to the
two methods have remained the preferred and recommended ones.
absence of an infrastructure that could allow the remote management of
proceedings, all hearings were postponed, and all deadlines were suspended.
As we all know, this is a time of change and transformation.
IP proceedings were postponed, with the sole exception of extremely urgent
Digitalization will be a driver of efficiency both in the public and private
proceedings, which continued to be managed to stick to a strict sanitary
sectors, creating the ideal conditions for conceiving and implementing
protocol. It soon became clear that the national justice system needed to
the judicial system of the future.
speed up to cope with the issues presented by the pandemic, the end of
which was not foreseeable.
15Predictions 2021 Fashion and Retail
Fashion and Retail
How is the COVID-19 outbreak going to affect your
Due to an extremely interconnected supply chain and its seasonal business strategy?
calendar, the fashion and retail industry is undoubtedly one of
the most affected by the COVID-19 outbreak. It is no surprise that ANSWER CHOICES RESPONSES
most of the interviewed companies, namely 53.33%, declared that
We are investing in digital transformation and
the pandemic led to significant losses.
remote working products due to the new remote 26.67%
working environment
This scenario reflects that, although a significant part of the
industry is facing challenges, some segments are growing, We are investing in digital transformation products
as they rapidly adapted to customers’ needs. Over the last year, and services to manage a remote relationship 73.33%
the fashion and retail industry has also experimented several new with customers
services, products and features, and it is likely to continue on this
We are facing a high demand on artificial intelligence
path in 2021, diversifying the modalities of offering their products
and machine learning products to control risks and 0.00%
to their customers and advertising them.
become more efficient
In other words, the fashion world is reinventing itself quickly, We are keeping the same offering as before the
and, in the next 12 months, it will increasingly intertwine with 0.00%
occurrence of the pandemic
other sectors such as cinema, art, videogames and music.
These changes are driven by the need, felt by everyone in
Some 73.3% of fashion companies surveyed said that they are investing
the industry, to reengineer the – even remote – relationship
in digital transformation to offer their customers innovative products and
with customers. This situation means that – as confirmed by
services to manage their relationship from a distance. Fashion companies
33.33% of the companies that participated in our survey – the
are launching new services on their websites and e-commerce channels
fashion industry is facing a radical change in its business model.
to offer a new shopping experience to customers. In particular, new virtual
This shift will lead to innovation in legal terms, focusing on
assistants and e-concierge services, provided through chatbots, interact with
digital technologies, e-commerce, new advertising trends (e.g.,
customers and allow them to try on clothes – even from home, respecting
brands appearing on videogame players’ skins), and the creation
social distancing rules – thanks to interactive fitting rooms providing feedback
of multimedia works that require a profound assessment of
or recommendations on customers’ outfits.
legal implications.
16Predictions 2021 Fashion and Retail
A fundamental role is played by personal data related to customers collected from companies’ But the change in the business model of fashion companies will also have an impact. What was already
websites and e-stores, with 56.25% of survey respondents saying that remote contracting a trend in the fashion industry has become a must: virtual fashion shows, with avatars as models and
with customers will be a significant trend for 2021 in the sector. Through collected personal guests, have been streamed online as freely accessible movies. Now more than ever, fashion shows are
data, companies can profile customers, their interests and tastes to propose a tailored service. the result of the work of several contributors, including video-makers, producers, set designers, sound
However, when fashion companies address their innovative service to European customers, and lights technicians.
they have to deal with the hurdles caused by the GDPR and cookies regulations and the upcoming
ePrivacy regulation. Fashion shows, however, raise complex intellectual property-related issues since they might fall under
at least two different regimes provided by copyright law for works made by more than one contributor.
If we consider streamed shows as “composite works,” where their various parts cannot be separable,
Which will be the major threat for your business?
copyright will be vested in each co-author of the components, falling within the communion regime.
On the other hand, if we look at it as a “collective work,” defined as the union of works or parts of
ANSWER CHOICES RESPONSES
works by different authors that are autonomous creations, brought together as a result of the choice
Potential cyberattacks 40.00% and coordination for a given purpose, the author is considered to be whoever organizes and directs
the creation of the work. In the case virtual catwalks, the author of the fashion show is thus likely to
Pace of the technological development 13.33%
be considered the external video-maker appointed explicitly by the fashion house to create the video
Change in the model of business of customers 33.33% under the fashion director’s directions.
Requests from customers to negotiate the pricing
Therefore, given the uncertainty in applying the composite or collective work regimes, if the fashion
of our products/services or reduce investments 13.33%
house wants to acquire the intellectual property rights in the video of the fashion show, it needs to
due to the COVID-19
ensure the transfer of all the economic rights in the show not only by the video-maker but also by all
the relevant contributors (including the creators of the original music and scenography).
Fashion companies will have to carefully consider which kind of data to collect through their
digital platforms, how they process it, and how long and how data is protected. Indeed, 40% of the Finally, the creation of avatars who resemble celebrities in video games and other electronic platforms
respondents consider potential cyberattacks to be the main threat for their businesses. also poses the issue of image rights in relation to the use of a look-alike. Under Italian case law,
the protection of the right of image extends to elements not directly referable to the person itself,
The European Court of Justice’s recent decision in the Schrems II case raises new obligations in such as clothing, ornaments, make-up, and others that, because of their peculiarity, immediately
terms of data transfers outside the EEA, which might lead to a change in technology suppliers. evoke in the viewer’s perception the person to whom these elements are inextricably linked.
Global CRM platforms might be impaired, with one of the main assets of fashion companies at risk Therefore, even the use of look-alikes, if aimed at clearly evoking the image of a well-known character
unless adequate contractual and technical measures are adopted in line with a transfer impact for promotional purposes, is a violation of the right to economic exploitation of the image, and the
assessment, which will become decisive for their business. legitimate owners must necessarily authorize it. The issue has not come to the attention of Italian
courts yet, but it would be interesting to see how it would be decided since Italian law provides a
broad definition of “advertising” as well as a relatively narrow fair use exception, which does not likely
encompass any use made for commercial purposes.
17Predictions 2021 Food and Beverages
Food and Beverages
The survey carried out for the food and beverages sector shows that the The most significant challenge for the food and beverages sector will
COVID-19 outbreak affected the sector and its business strategy enormously, be managing remote relationships with customers. Some 38% of the
with significant losses foreseen by almost half of the respondents that require interviewed companies said that they are investing in innovative and digital
rapid development of the industry from a technological perspective. products and services to get in touch with their consumers, reinvent their
websites, and create new eCommerce channels to offer a renovated “tasting”
Such losses will lead to new remote working solutions, according to 53.85% of experience. New online delivery services will allow consumers to order and
respondents. Simultaneously, the industry is working on remote contracting taste products from home, respecting social distancing.
tools to sell their products through eCommerce platforms, according to
46.15% of respondents. However, the online sale of food and beverages online raises some legal
issues regarding the requirements for distance contracts provided for by
What do you think that will be the main hype in the applicable consumer laws. In particular, when companies decide to sell
your sector during the next 12 months? products and services online, they need to grant certain warranties and
rights to consumers (i.e., the right of withdrawal and return for products
ANSWER CHOICES RESPONSES purchased online), which – in some cases – can contrast with the perishable
nature of food and beverage products. Furthermore, such products require
Artificial intelligence and machine learning 0.00%
special attention to the delivery chain, guaranteeing that meals are consigned
Cybersecurity 15.38% securely, so as not to alter the properties of the food and beverage,
therefore ensuring their quality. In light of the above, to sell and deliver meals,
Electronic signature, documents and remote
46.15% companies need to carefully consider how to comply with all the applicable
contracting of customers
consumer laws and food safety regulations.
Data monetization 38.46%
In addition to the above, when companies use e-commerce and delivery
websites and platforms to offer their products, a fundamental role is played by
data collected from customers, including through cookies, to understand their
interests and tastes and provide a tailored service. However, when companies
address their innovative service to European consumers, they have to deal
with the restrictions imposed by the GDPR.
18Predictions 2021 Food and Beverages
GDPR compliance will be pivotal for businesses whose significant threat, Several technologies (and newer ones are to come) can support companies
according to 53.85% of respondents, is the change in the customer business in testing and monitoring food safety products at every stage of the supply
model. Companies need to understand consumers’ preferences to predict chain, such as software that aims to provide an up-to-date track record of
them and offer solutions that are suitable. the supply chain for complete transparency to consumers. In particular,
blockchain and DLT, in general, can be of aid in building a trusted tracking
Which will be the major threat for your business? system. Moreover, AI tools can be used for equipment cleaning and may serve
hygiene purposes too, for food sorting, or to create more accurate forecasts
ANSWER CHOICES RESPONSES to help manage prices and inventory or manage a restaurant.
Potential cyberattacks 15.38%
From a legal perspective, we foresee a call for expert lawyers that should
Pace of the technological development 7.69% collaborate in designing and creating the systems (tracking technologies
and similar other solutions) in compliance with food safety regulations
Change in the model of business of customers 53.85%
and for the designation of origin, geographical indications, and traditional
Requests from customers to negotiate the pricing specialties guaranteed.
of our products/services or reduce investments 23.08%
due to the COVID-19 Similarly, we envisage an increase in the attention towards the protection of
investments made in these new technologies through copyright, patents and
trade secrets.
Companies in the food and beverages sector will inevitably be called on
in the coming years to participate as central players in the move towards
Finally, we expect an increase in the EU and national regulators’ attention
sustainability. Embracing such a challenge means pursuing the mission of
towards the protection of new contemporary declinations of valuable business
increasing the efficiency of their supply chain and reducing waste, as well as
assets for companies operating in the sector. In the future, the existing IP
placing greater attention on the quality and safety of food. And as part of this
legal framework will be better exploited and enforced to protect, for instance,
process, new technologies and digital transformation solutions will become
the preparation method of a dish through patent law, or recipes through
fundamental tools.
copyright law, unfair competition, or trade secrets. Likewise, and especially
within the era of highly talented and educated chefs, protection in a dish’s
presentation through design, copyright law, and unfair competition will likely
become more popular in 2021.
19Predictions 2021 The Italian IPT Team
The Italian IPT Team
Gualtiero Dragotti Annamaria Algieri Vincenzo Giuffrè Valentina Mazza Tommaso Ricci
Partner – Location Head annamaria.algieri@dlapiper.com vincenzo.giuffre@dlapiper.com valentina.mazza@dlapiper.com tommaso.ricci@dlapiper.com
gualtiero.dragotti@dlapiper.com
Giulio Coraggio Giordana Babini Filippo Grondona Maria Chiara Meneghetti Alessandra Tozzi
Partner giordana.babini@dlapiper.com filippo.grondona@dlapiper.com maria.meneghetti@dlapiper.com alessandra.tozzi@dlapiper.com
giulio.coraggio@dlapiper.com
Alessandro Ferrari Laura Borelli Micaela Jerusalmi Andrea Michelangeli Elena Varese
Partner laura.borelli@dlapiper.com micaela.jerusalmi@dlapiper.com andrea.michelangeli@dlapiper.com elena.varese@dlapiper.com
alessandro.ferrari@dlapiper.com
Marco de Morpurgo Benedetta Cordova Nicola Landolfi Ludovica Mosci Giulia Zappaterra
Partner benedetta.cordova@dlapiper.com nicola.landolfi@dlapiper.com ludovica.mosci@dlapiper.com giulia.zappaterra@dlapiper.com
marco.demorpurgo@dlapiper.com
Roberto Valenti Cristina Criscuoli Giacomo Lusardi Deborah Paracchini
Partner cristina.criscuoli@dlapiper.com giacomo.lusardi@dlapiper.com deborah.paracchini@dlapiper.com
roberto.valenti@dlapiper.com
Laura Gastaldi Lara Mastrangelo Chiara Perotti
laura.gastaldi@dlapiper.com lara.mastrangelo@dlapiper.com chiara.perotti@dlapiper.com
20“Any fool can know. The point is to understand”
Albert Einstein
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