Building on our previous exploration in "Navigating the Legal Labyrinth of Virtual Worlds", where we examined the EU's draft report on the complex legal and ethical challenges in virtual spaces, we now turn to recent developments.
A brief time ago, the European Parliament's Legal Affairs Committee (JURI) voted on compromise amendments to the draft report on 11 December. With the indicative plenary session scheduled for 15 January 2024, where the initiative is expected to be adopted, it is crucial to understand the implications of these developments for the upcoming 2024-2029 European legislative period.
Key legislative implications for virtual worlds
The legislators concentrated on specific points. Thus, indicating certain topics where we may see legislative initiatives by the next Commission from 2025 onwards.
- Existing legal framework: Legislators highlight the applicability of current laws to virtual environments, including the Digital Services Act (DSA); the General Data Protection Regulation (GDPR); the Digital Markets Act (DMA), Data Governance Act, Data Act, (almost finished) AI (Artificial Intelligence) Act and others. These laws cover a range of issues from data protection to market regulation. This is a call to action for the European Commission to enforce the existing legislation, in particular the DSA and DMA should play a significant role. However, a reform of the GDPR is also in question, as a review is scheduled for mid-2024 and the German Bundesrat may call for decisive changes as part of a Bavarian initiative, including data protection-related product liability for digital service developers.
- Improved reporting and dispute resolution: In line with the DSA, there is a focus on establishing robust reporting and dispute mechanisms, a critical step in managing virtual world interactions.
- User anonymity and privacy: The requirement for user anonymity in virtual worlds, unless otherwise required by law, emphasises the protection of privacy and safeguards against unauthorised use of data.
- Creators' rights and AI challenges: The amendments address the need for accurate reporting on the use of copyrighted works, particularly considering the Artificial Intelligence Act. The call to action also includes the pressing issue of IP (Intellectual Property) protection in relation to and for AI-generated content, and hints at reforms.
The lack of IP protection for AI-generated works is a major concern, suggesting that the European Commission may propose solutions, including copyright reform, to address data scraping for AI training. MEP (Member of the European Parliament) Axel Voss, responsible for the resolution, has already called for an adaption of the Copyright Directive to the challenges of artificial intelligence.
Horizon Scanning: What's Next?
As we enter this new era, it is imperative to remain vigilant and informed about these legislative changes. They not only shape the framework of virtual worlds, but also influence how we interact, create, and protect within these digital realms.
