PORTUGAL Law and Practice Contributed by: Jorge Silva Martins, João Carminho and Inês Coré, CS’Associados
7. Challenges with Technology Agreements 7.1 Legal Framework Challenges Challenges While not unique to Portugal, the challenges associated with technology agreements in the country reflect broader issues faced by organi - sations across the EU. Businesses entering into such agreements in Portugal must navigate a range of legal, regulatory, and commercial com - plexities. Some of the key challenges include: • Data privacy and security concerns: With increasing emphasis on data privacy and security, technology agreements must incorporate stringent privacy and security provisions. This is particularly critical in highly regulated sectors – such as healthcare, bank - ing and finance, telecommunications, and insurance – where compliance with strict data security standards is mandatory. • Cross-border operations and jurisdictional issues: Technology agreements involv - ing parties from different jurisdictions often encounter legal and regulatory discrepancies. Establishing the applicable laws and dispute resolution mechanisms requires careful nego - tiation to mitigate jurisdictional uncertainties. • Performance and service level compliance: Defining and enforcing performance stand - ards in service level agreements (SLAs) can be complex. Ensuring compliance with agreed-upon service levels necessitates continuous monitoring and, where necessary, contractual adjustments to maintain opera - tional efficiency. • Cybersecurity vulnerabilities: As technological interconnectivity increases, so does exposure to cybersecurity threats. Technology agree -
ments must incorporate robust cybersecu - rity measures, incident response protocols, and liability provisions to address potential breaches and mitigate associated risks. Portugal does not have a specific legal regime governing technology agreements. Instead, these contracts are generally regulated by broader principles of private law, primarily under the Civil Code and the Commercial Code. In addition to these general legal frameworks, several specific legislative instruments are par - ticularly relevant in this context: • Law No 58/2019, which ensures the imple - mentation, in the national legal order, of the GDPR; • Decree-Law No 63/85, which approves the copyright and related rights code; • Decree-Law No 252/94, concerning the legal protection of computer programs, transpos - ing Council Directive 91/250/EEC; • Decree-Law No 122/2000, on the legal pro - tection of databases, transposing Directive 96/9/EC, of the European Parliament and of the Council, of 11 March 1996; and • Decree-Law No 446/85, which approves the Standard Contractual Clauses Regime. 7.2 Service Agreements and Interconnection Agreements Key Elements of Telecommunications Service Agreements • Scope of services: clearly define the type of services (eg, broadband, mobile, or voice) and performance standards; • Service levels (SLAs) and performance met - rics: include measurable SLAs, penalties for non-compliance, and provisions for service continuity;
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