Privacy and data protection

Privacy and data protection for intellectual property rights holders

Protecting intellectual property today means processing personal data. Anti-counterfeiting investigations, online trademark surveillance, AI training datasets and employee invention disclosures all collect data covered by the EU General Data Protection Regulation (GDPR) and, since 2024, the EU AI Act. Dreyfus & Associés helps international rights holders run their IP strategy in full GDPR compliance, in France, the EU and beyond.

Table of contents

Why privacy law matters for IP rights holders

Enforcement creates personal data. Cease-and-desist letters, customs interventions, civil and criminal proceedings, online take-down notices and UDRP cases all collect names, addresses, IP addresses, transaction records and sometimes biometric data. The GDPR applies to every step.

Your assets contain personal data. Software products, AI models, databases and trademark portfolios increasingly involve datasets covered by the GDPR or the AI Act. Treating IP and privacy in silos is no longer a viable strategy.

The fines are high enough to dwarf IP damages. GDPR fines can reach 4 percent of worldwide annual turnover or 20 million euros, whichever is higher. AI Act fines go up to 7 percent of turnover for prohibited practices.

4% of worldwide turnover

Maximum GDPR fine for serious violations

Article 83 of the GDPR allows fines up to 4 percent of worldwide annual turnover or 20 million euros, whichever is higher. Several enforcement decisions exceed 1 billion euros since 2023.

7% worldwide turnover

Maximum AI Act fine for prohibited practices

Article 99 of the AI Act sets fines up to 7 percent of worldwide turnover or 35 million euros for prohibited AI practices, with phased application from 2025.

Article 27 GDPR

EU representative for non-EU companies

Companies established outside the EU that process EU residents’ data must appoint an EU representative. Failure to comply exposes them to administrative fines.

Schrems II

Threshold for international data transfers

Since 2020, every transfer to a third country requires a transfer impact assessment and an appropriate mechanism: EU-US DPF, SCC or BCR.

When does the GDPR apply to your IP matter?

Trademark watch on social media

GDPR applies. Lawful basis is usually legitimate interest. Data minimisation and retention policy are essential.

Anti-counterfeiting test purchases

GDPR applies. The purpose must be documented, storage secured, deletion organised after litigation.

UDRP and domain disputes

GDPR applies to registrant data. Use only what is strictly necessary for the dispute.

Employee inventor identification

GDPR applies. Article 88 rules on employment data and French Labour Code obligations apply jointly.

AI model training on copyrighted works

Multiple regimes apply: text and data mining opt-out, GDPR, AI Act transparency.

Customs intervention (AFA application)

GDPR applies. Lawful disclosure to customs must be documented in the record of processing.

International data transfers, IP and the post-Schrems II era

Cross-border IP work necessarily involves transferring personal data outside the EU/EEA. Since the Schrems II CJEU ruling in 2020 and the EU-US Data Privacy Framework in 2023, every transfer must be backed by a valid mechanism.

Practical playbook for IP teams:

  • Transfer to a US correspondent under the EU-US Data Privacy Framework if certified.
  • Transfer to a non-DPF country with standard contractual clauses (SCC) and a transfer impact assessment (TIA).
  • Intra-group transfer through binding corporate rules (BCR).
  • Disclosure to foreign courts or administrative authorities: Article 48 GDPR analysis required.

We routinely draft SCCs adapted to anti-counterfeiting cooperation agreements and IP litigation between France, the US, the UK, China and India.

AI Act, training data and IP rights

The AI Act is the first horizontal regulation on artificial intelligence in the world. For IP rights holders, the most relevant rules combine three layers.

Transparency obligation (Article 53). Providers of general-purpose AI models must publish a sufficiently detailed summary of their training data. This is the gateway for copyright owners to identify whether their works have been used.

Text and data mining opt-out (Directive 2019/790, Article 4). Rights holders can reserve their rights through machine-readable opt-outs (robots.txt, ai.txt, metadata). Failure to respect a valid opt-out can amount to copyright infringement.

Prohibited practices (Article 5). Some IP uses cross the line: emotion recognition in the workplace, biometric categorisation by political views, mass scraping of facial images for facial recognition databases.

Our services at the intersection of IP and privacy

  • Privacy-by-design audit

    Review of trademark watch, anti-counterfeiting, UDRP and litigation workflows for GDPR risks.

  • International data transfer architecture

    SCC drafting, TIA, BCR, EU-US DPF assessment, transfer mechanisms for India, China and UK.

  • AI Act readiness

    Training data audits, opt-out strategy, transparency reports, fundamental rights impact assessments.

  • Employee creator data

    Article 88 GDPR compliance, French Labour Code interplay, NDA and assignment templates.

  • Joint controllership and licensing

    Analysis of joint controller status when licensing IP that involves shared data processing.

  • IP and data incident response

    Combined trade secret breach and data breach handling, regulator notifications, coordinated cease-and-desist.

FAQ on privacy and data protection for IP holders

How does the GDPR affect intellectual property enforcement?

The GDPR applies to most IP enforcement workflows because they involve processing personal data: names of alleged infringers, IP addresses, transaction records, customer testimony. Rights holders must identify a lawful basis, document a record of processing, apply data minimisation and adopt clear retention rules.

Can I transfer personal data to my US law firm for an IP case?

Yes, but only with a valid transfer mechanism. Options include the EU-US Data Privacy Framework if the law firm is certified, standard contractual clauses combined with a transfer impact assessment, or binding corporate rules for intra-group transfers.

Does the EU AI Act require disclosure of training data?

Yes. Article 53 of the AI Act requires providers of general-purpose AI models to publish a sufficiently detailed summary of the training data used. This obligation applies regardless of where the provider is established.

Article 4 of EU Copyright Directive 2019/790 allows commercial text and data mining of lawfully accessible works, unless the rights holder has expressly reserved its rights through a machine-readable opt-out.

Do I need a Data Protection Officer for my IP business?

A DPO is required for large-scale systematic monitoring of individuals (typical of trademark watch programs), large-scale processing of special categories of data, or public authority status.

Can the GDPR be enforced against companies outside the EU?

Yes. The GDPR applies extraterritorially under Article 3 when a non-EU company offers goods or services to individuals in the EU, monitors their behaviour, or is established in the EU. Non-EU companies must appoint an EU representative under Article 27.

Need a GDPR review for your IP or AI projects?