EGYPT Law and Practice Contributed by: Ibrahim Shehata, Hesham Kamel, Hana ElBarbary and Dima Mazen, Shehata & Partners
ensures that legal proceedings remain within the national framework, providing consistency and predictability in dispute resolution. Guarantees and Liability Article 85 emphasises the supplier’s obligation to guarantee the conformity of the technology and its associated documents with the agree - ment’s terms. This default guarantee becomes enforceable unless the parties explicitly agree otherwise in writing. Additionally, both parties are liable for any third-party damages resulting from the use of the technology, highlighting the importance of precise and comprehensive con - tractual terms. Technology Services Requirements Parties must consider technology services requirements, especially regarding consumers, data privacy and cybersecurity. Proper attention to consumer protection rights and cybersecurity requirements under Egyptian law is essential, as these aspects may involve liability or other impli - cations. These requirements can vary based on the technology’s use and related activities. For example, data secrecy and security in the bank - ing sector are subject to additional requirements and stricter monitoring under applicable laws. Confidentiality and Secrecy Confidentiality is paramount in the transfer of technology agreements. Article 83 outlines the parties’ roles in maintaining secrecy: • importers must maintain the confidentiality of improvements they introduce to the technol - ogy (breaching this duty can lead to indemni - fication obligations); and • suppliers are required to protect only the con - fidentiality of importer-introduced improve - ments.
It is essential for parties to review and clearly define their confidentiality duties and rights within the agreement. Additionally, considera - tions regarding intellectual property rights and protection factors are crucial to avoid potential disputes. Termination and Amendment Article 86 grants parties the right to seek termi - nation or amendment of the agreement’s terms five years after the agreement date. To avoid the default application of this provision, parties must explicitly agree on the duration and spe - cific terms for termination or review within the contract. This foresight ensures mutual under - standing and clarity on the agreement’s lifespan and modification conditions. Technology transfer contracts in sensitive sec - tors like banking and insurance are subject to additional regulations and guidelines from their respective competent authorities. These meas - ures ensure the integrity, security and stability of financial systems are maintained throughout the transfer process. This includes strict data pro - tection, cybersecurity protocols, and compre - hensive risk assessments to mitigate the poten - tial risks associated with new technologies. 7.2 Service Agreements and Interconnection Agreements Considerations for Service Agreements Key elements In Egypt, telecommunications service agree - ments must comply with the Telecommunica - tions Law and related regulations. Key elements to cover are: • clear definitions of telecommunications services – categories include fixed services, wireless services, satellite services, interna - tional services, infrastructure leasing, tel -
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