Investing In... 2026

GERMANY LAW AND PRACTICE Contributed by: Daniel Möritz, Jan Bonhage, Hendrik Bockenheimer, Carl-Philipp Eberlein, Markus Ernst, Matthias Rothkopf, Christoph Wilken and Alexander Rang, Hengeler Mueller

11.3 Data Protection and Privacy Considerations

tors notify their inventions to their employer. The employer may then claim the invention for itself in exchange for a reasonable remuneration in addition to the inventor-employee’s regular salary. • A contractual assignment or licence is also needed to obtain rights from an external software devel - oper or content creator. The compensation for work products of employed software developers or content creators is typically covered by their salary, unless this is materially below a reasonable amount. • Protection of AI-generated works is generally not granted in the form of IP rights but will often still be available in the form of trade secret protection.

The EU General Data Protection Regulation (GDPR) came into effect on 25 May 2018 and regulates data processing in Germany and other EU member states. Depending on the circumstances of the data pro - cessing, the GDPR can extend to data processing by foreign investors. Furthermore, there are various other German data protection laws, including sector- specific rules (eg, for the healthcare sector). The German data protection authorities can issue substantial fines for data breaches.

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