Personal data protection as stated in the constitutional law article 57 of 2014 that the law protects private life and any source of communication. Moreover, the penal code no. 58 of 1994 considers any action that abuses the private places of the individual by recording or taking images as a crime. The cyber security law also stated the protection of the private data that they store. From this, on 15 July 2020 President Abdel Fatah el Sisi ratified the personal data protection law (PDPL) no.151 of 2020 and it was published in the official gazette which means that it came into force. The personal data protection law (PDPL) defines personal data as “any data that is related to an identified or indefinable natural person, directly or indirectly by reference to any other data such as name, voice, picture, identification number, online identifier or any data that determines the psychological, medical, economic, cultural or social identity”. The law provides requirements that should be known to protect personal data whether the corporate clients are Egyptian or a resident. In addition to this, this law stipulated tremendous criminal penalties.

Scope of the law:

This law specifies the processor and the controls that can apply this law. Moreover, the personal data protection law has extraterritorial applicability which applies to the Egyptian citizens and non-Egyptian citizens.

• What does the controller mean? Article 1 of the PDPL defines the controller as a natural or legal person who has the right to receive personal data and set the means, purposes, and criteria for keeping, processing, and controlling it due to the nature of their work.
• What does the processor mean? The PDPL stated that the processor is any natural or legal person who processes Personal Data for its advantage or on behalf of the Controller as agreed with and instructed by the Controller due to the nature of their work.
• Extraterritorial Applicability:

As mentioned above, this law applies to Egyptian citizens and non-Egyptians who are residents in Egypt. Therefore it applies extraterritorially intending to protect the data of the residents and the Egyptian citizens that are based in Egypt.

The PDP law granted the data subjects tremendous rights and excluded some data that does not fall under the personal protected data law which are the following:

1. Natural persons’ data is held for the benefit of others and their purpose.
2. Data that processed for official statistics or in the application of a legal provision
3. Data that is processed for media purposes.
4. Data that is related to judicial records, investigation and legal claims.
5. Data is held by national security authorities, as well as whatever else they decide for other reasons. The Center shall notify the controller or processor, under national security considerations, to change, delete, hide, make public, or circulate personal data within a set period upon request from national security authorities. The controller or processor must respond to the notification within the timeframe stated in the notification.
6. Data held by the Central Bank of Egypt and banks are subject to data protection laws and regulations enacted by the Egyptian banking laws and regulations.

Other than the data that is mentioned above shall be regulated by the personal protected data law. On the other hand, here are the rights that the PDPL provided to the data subject:

• to be knowledgeable of who is processing personal data and to have access to it
• revoke consent to the processing of personal data
• the right to correct, modify, amend, delete the personal data 
• Limit processing the personal data within a limited scope
• Be warned by any breaching of personal data.

Types of personal data:

The PDPL stipulated some activities that are regulated by personal protection law which are sensitive personal data and cross border data transfer, electronic marketing, and data that is performed safeguarding, handling and processing operation.

• Sensitive personal data:

This type of data includes the following:” psychological, mental, or physical health, or genetic, biometric or financial data, religious beliefs, political views, or criminal records and data related to children”. Egyptian legislators are prohibited from transferring, storing, saving or processing any data that is related to sensitive data unless the controller or the processor gets the consent of the data subject and authorization from the center.

• Cross border data transfer:

This type of data means that data shall transfer to the third party whether from Egypt to outside or vice versa. So this type is important for the organization that uses cross border data transfer like online IT services and cloud-based services.

To transfer the data to a third party requires the following conditions:

1. Explicit consent of the data subject or his representative is obtained and
2. The transfer shall be for one of the following:

• Preserve the life of the data subject
• The right to prove r claim or defend before the judiciary 
• To conclude or implement an agreement for the benefit of the data subject
• To handle the international judicial cooperation procedure 
• To protect the public interest
• To transfer money to another country
• If the transferor circulation is made by a bilateral or multilateral international agreement to which Egypt is a member.

• Electronic marketing:

This activity means sending any message, advertisement or marketing content by using any technological means. According to PDPL which states that this kind of direct marketing to the data subject is considered prohibited unless:

1. Acquiring the Data Subject’s consent.
2. Stating the identity of the sender.
3. The sender must provide a legitimate and full address to be reached.
4. An indication that the aim of communication is for marketing and
5. Establishing clear and simple ways for the Data Subject to opt out or withdraw his or her permission in this regard.

The sender shall preserve electronic records demonstrating the Data Subject’s consent to receive Electronic Marketing communications, including any amendments, or his/her non-objection to their continuation for three years from the date of the last communication. 

Data protection mechanisms:

To make sure that the people follow these rules, the law provides the authority to the data protection officer and the personal data protection center to enforce the law. The Data Protection Officer is in charge of enforcing the provisions of this Law, its Executive Regulations, and the Centre’s decisions, as well as supervising and monitoring the applicable procedures within its relevant entity and receiving requests for Personal Data following this Law’s provisions. The personal data protection center is affiliated with the Minister of communication and information technology and the aim of this center is to supervise and enforce the personal data protection law. Adding to these responsibilities, article 19 stipulated various responsibilities such as raising public awareness, encouraging the creation of Codes of Conduct, issuing licenses and permissions, and advising the government and parliament on proposed related laws and international treaties.

Procedures for disclosing personal data:

The PDPL granted the controller and processor the following procedures to request to disclose the personal data:

1. The request must be in writing and presented by the appropriate person
2. Ensuring that all the required essential documents are fulfilled and 
3. Within six (6) working days after the disclosure’s submission, a decision on the disclosure and its accompanying papers will be made. If the request is denied, the decision must contain the reasons for the denial. If the specified period passes without a decision, it will be regarded as a rejection.

Penalties and sanctions:

Personal data protection law imposed criminal liabilities for those who are going to breach this law. The kind of sanctions includes fines and imprisonment. Here are some criminal penalties examples that are stipulated in the law:

• Collecting, processing, disclosing, providing access to, or circulating Personal Data by any means other than with the Data Subject’s consent or as otherwise authorized by law (up to one year in prison and a fine of between EGP 100,000 and EGP 1,000,000 (about US$6,300 and US$63,000).
• A violation in disclosing personal information that electronically proceeds shall cause a fine not less than EGP 100,000 and not exceeding EGP 1000,000. Moreover, the imprisonment shall be for a minimum of 6 months and double the fine if such unlawful disclosure was against a benefit or to harm the data subject.
• Unlawful acts in the sensitive personal data, the penalty will be imprisonment for not less than 3 months and/or a fine not less than EGP 500,000 and not exceeding EGP 5000,000.
• Violation of the cross-border data transfer rule, Imprisonment for not less than 3 months and/or a fine not less than EGP 500,000 and not exceeding EGP 5000,000.
• Violation of the electronic marketing rules. A fine shall be not less than EGP 200,000 and not exceeding EGP 2000,000.
• The data protection officer (DPO) shall be fined 1,000,000EGP in case any breach of law occurs.

After stating some examples of the criminal offences and fines. The Egyptian legislator made the law tougher for the users and the businesses. In addition to this, the manager of the organization shall be liable if it is proven that the manager knows that the organization has violated the law.

In conclusion, the personal protection data law considers one of the latest laws that were established. It aimed to protect personal data by fulfilling the requirements to register at the center. Moreover, the law had mentioned who the law applies to by mentioning its rights and the data that the law excluded from it. In addition, the types of personal data and its requirements. Finally, the law stipulated the penalties and sanctions that the processor and the controller should avoid.

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The Egyptian Commercial law no. 17 of 1999  included in part two, chapter one of the Transfer of Technology Contract (TOT), from Article 72 to 87, regulating all the matters regarding the Transfer of Technology including the significant changes in the technology field and the legal issues and conflicts between its parties.

What does the Transfer of Technology Contract mean?

Looking at it from a legal point of view, a Transfer of Technology Contract is an agreement whereby the (technology supplier) undertakes to transfer technical information in return to the (technology importer) for use in a special technical method for the production or development of a specific commodity, or for the installation, or operation of machines, or devices, or for the providing of services.

Buying, selling and leasing goods is NOT considered a Transfer of Technology

Nor shall the sale of trademarks or trade names or the licensing of their use be, unless this is stated as part of, or is related to, a technology transfer contract.

In other words, a Transfer of Technology Contract must include a transfer of the actual know-how of the technology rather than the product itself.

It is important to keep in mind that the provisions included in The Commercial Law no. 17 of 1999  shall apply to every contract for the transfer of technology to be used in the Arab Republic of Egypt, whether such transfer takes place internationally across the territorial borders of Egypt or internally. In both cases, the nationality of the parties to the agreement or their places of residence aren’t considered, the provisions of this chapter shall also apply to every technology transfer agreement concluded in a separate contract or within another contract.

Form of the agreement

According to Article 74 of the Commercial Code No. 17/1999,

(a)-The technology transfer contract must be in writing, otherwise, it will be null and void.

(b)-The contract must include a statement of the elements of knowledge and its dependents that are transferred to the technology importer.

(c)-This statement may be mentioned accompanied by feasibility studies, instructions, designs, engineering drawings, maps, pictures, computer programs and other documents that show knowledge in appendices attached to the contract and considered part of it.

Restrictions

Every condition under a Transfer of Technology Contract that restricts the freedom of the importer to use or develop it, or to define or advertise the production shall be void.

This applies in particular to the conditions related to obligating the importer to do one of the following:

1. Acceptance of the improvements made by the supplier to the technology and the performance of its value.

1.  Prohibiting the introduction of improvements or modifications to the technology to suit the local conditions or the conditions of the importer\’s facility, as well as prohibiting the acquisition of other technology similar or competing with the technology under contract.

1. The use of certain trademarks to distinguish the goods for which technology was used in their production.

1. Restricting the volume of production, its price, or how it is distributed or exported.

1. The supplier\’s participation in the management of the importer\’s facility or his involvement in the selection of its permanent employees.

1. Purchasing raw materials, equipment, machinery, devices, or spare parts to operate the technology from the supplier alone or from the facilities designated by him exclusively.

Supplier obligations

The technology supplier is obligated to disclose to the importer in the contract or during the negotiations prior to its conclusion the following:

1. The risks that may arise from the use of technology, in particular with regard to the environment, public health, and the safety of life or money, and he must inform him of the means he knows of to prevent these dangers.
2. The lawsuits and any other obstacles that may impede the use of technology-related rights, particularly those relating to patents.
3. Provisions of domestic law regarding authorization to export technology.
   • The supplier is obligated to provide the importer with information, data and other technical documents necessary to absorb the technology, as well as the technical services required by the importer to operate the technology, in particular, experience and training.
   • The supplier is also obligated to inform the importer of the improvements that he may make to the technology during the validity period of the contract and to transfer these improvements to the importer upon his request.

The supplier is obligated, throughout the term of the contract, to provide the importer, upon his request, with spare parts that he produces and that is needed by the machines or devices that are used in the operation of his facilities. If the supplier does not produce these parts in his facilities, he must inform the importer of the sources of obtaining them.

Importer obligations:

Articles 79 to 83

• The importer is obligated to employ workers with a degree of technical know-how in operating the technology and to use technical experts whenever necessary, provided that the selection of these workers or experts is from Egyptians residing in Egypt or abroad whenever that is available.
• The importer is obligated to inform the supplier of the provisions of the national legislation related to the import of technology.
• It isn’t permissible that the importer transfer to a third party the technology he obtained without the approval of its supplier.
• The importer is obligated to pay for the technology and the improvements introduced at the agreed place and time.
• The consideration may be a total amount to be paid in one or in multiple payments, and the consideration may be a share of the capital invested in operating the technology or a share of the proceeds of this operation.
• The consideration may be a certain quantity of a commodity that uses technology in its production or a raw material produced by the importer and who undertakes to export it to the supplier.

Confidentiality obligation for both parties

• The importer is obligated to maintain the confidentiality of the technology he obtains and the confidentiality of the improvements made to it, and he is asked for compensation for the damage that arises from disclosing this confidentiality, whether this occurred during the negotiation stage of concluding the contract or after that.
• The supplier is also obligated to maintain the confidentiality of the improvements introduced by the importer and transferred to him under a condition in the contract, and the supplier is responsible for compensation for the damage that arises from disclosing this confidentiality.

Contract duration/Termination:

Each of the parties of the contract may, after the expiration of five years from the date of the contract, request its termination or reconsider its terms by amending them to suit the existing general economic conditions. 

This request may be repeated whenever five years have elapsed unless another term is agreed upon.

It seems that the legislator wanted to point out in the previous text to the contracting recipient of the technology the necessity of observing the term of the contract and that this period should not belong, and the requirement to review the terms of the contract after a certain period has passed in light of the successive changes in the progress of similar or alternative technology for the sake of the recipient’s economic interests.

Guarantees

• It may be agreed that only the importer of technology shall have the right to use it and trade in the production, provided that this right is specified in a specific geographical area and for a specific period agreed upon by the two parties.
• The supplier guarantees that the technology and the documents attached to it conform to the conditions set forth in the contract, and also guarantees the production of the commodity or the performance of the services agreed upon according to the specifications set forth in the contract unless otherwise agreed in writing.
• Both the importer and the supplier shall be liable, without jointly between them, for the damage caused to persons and funds resulting from the use of technology or from the goods resulting from its application.

Jurisdiction

According to Article 87 of the Commercial Code No. 17/1999, Egyptian courts have the jurisdiction to settle disputes arising from the technology transfer contract referred to in Article (72) of this law. 

It is permissible to agree on settling the dispute amicably or through arbitration that takes place in Egypt in accordance with the provisions of Egyptian law.

In all cases, the determination of the subject matter of the dispute shall be in accordance with the provisions of Egyptian law, and any agreement to the contrary shall be null and void.

Conclusion

Transfer of technology plays a key role in the industrial development of any nation, efficiency and growth are promoted by the rapidity with which new knowledge and new technologies are disseminated.

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