Fostering Innovation by Utilising Big Data: The Data Act and the Risk of Quasi-Exclusivity Reinforcing Data Lockups

Abstract

AbstractIn the digital economy, data has become a valuable asset and a crucial resource for driving innovation and progress. While large amounts of data are collected on a daily basis, only a small amount of this data is actually processed and utilised. As the data may still be of considerable worth in the future, it is guarded and oftentimes “locked away” by those who collect it. This is particularly regrettable considering the importance of data accessibility for innovative research activities. The unlocking of unused data has thus become a key concern for technological development in crucial areas including, but not limited to sustainable agriculture and medical technology. This Chapter addresses the European Data strategy and particularly the EU Data Act as adopted by the Council on 15 November 2023. One of the key objectives of the Data Act is to facilitate data access and improve the re-utilisation of available user-generated data. However, initial research raised concerns about the efficacy of the Data Act in this regard. While there exists no general ownership right to data, the Data Act may legally strengthen the de-facto control of data collectors, thereby establishing a quasi-exclusive right to this data. If not appropriately balanced, exclusive rights, however, limit access and tend to create obstacles for innovative endeavours. In this respect, the Chapter considers whether the Data Act is successful in striking an adequate balance between the rights and obligations of the various stakeholders in user-generated data. The Chapter highlights shortcomings of the European Data Strategy and addresses whether the Data Act provides for sufficient accessibility to facilitate that data can be re-used for innovation activity toward societal objectives.