EGYPT Law and Practice Contributed by: Ibrahim Shehata, Hesham Kamel, Hana ElBarbary and Dima Mazen, Shehata & Partners
Mandatory Provisions and Supplier Obligations
Financial service providers must ensure compli - ance with telecommunications and data protec - tion regulations to mitigate risks. The General Authority for Financial Supervision emphasises the need for responsible AI application in the financial sector, particularly with the use of AI in robo-advisers for investment. Adaptations in Regulatory Framework The Telecom Equipment Regulation Law and E-Signature Law will need to adapt to innova - tions in AI and IoT for digital identity verification, secure communications, and blockchain-based applications, challenging existing regulatory structures, especially around authentication and electronic contracts. 7. Challenges with Technology Agreements 7.1 Legal Framework Challenges Technology agreements are recognised under Egyptian legislation in the context of the trans - fer of technology. To understand the challenges involved with transfer of technology agreements, it is important to first examine the related legal provisions. Transfer of technology agreements are dealt with under Trade Law No 17 of 1999. These agreements facilitate exchange of the technical know-how crucial for production, development or service provision. They encom - pass various forms, such as technical assis - tance, patents, utility models, commodity grants and licence agreements. By defining a transfer of technology agreement as a contract where technical know-how is exchanged for payment, the law provides a clear structure for these com - plex transactions.
These agreements must be meticulously drafted in writing, detailing all relevant technical know- how. Suppliers hold significant responsibilities, including: • providing essential information and technical services to ensure the technology’s seamless operation; • disclosing potential risks, legal obstacles, and compliance with local laws; • guaranteeing the conformity of the technol - ogy and related documents with the agree - ment’s terms; and • ensuring the production of the commodity or performance of services as specified in the agreement. These supplier obligations are default guaran - tees unless otherwise agreed in writing between the parties. Thus, it is crucial for parties to explic - itly agree on specifications and guarantees. Protection for Importers The law protects importers from restrictive provi - sions that could limit their freedom to utilise or enhance the technology. Specific prohibitions include: • mandating the acceptance of supplier improvements; • restricting technology modifications; • enforcing exclusive material purchases from the supplier; and • restricting sales exclusively to the supplier. Jurisdiction and Dispute Resolution Disputes arising from these agreements fall under the jurisdiction of the Egyptian courts. Arbitration is permitted, but only if conducted within Egypt under Egyptian law. This provision
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