GLOBAL TRADE & GOVERNMENT AFFAIRS DLA Piper 1
In today's regulatory environment companies involved in cross-border activity have a
clear and on-going requirement to identify, manage and, where appropriate reduce
the financial and reputational risks associated with an increasingly complex network
of international trade rules and regulatory requirements. Over the past decade, the
rapid pace of technological advances in the telecommunication and IT sector, in
areas such as cloud computing and hosted infrastructure services, has coincided
with a widening of European and wider international export control regulations.
Export control and sanctions requirements cover a broad range of
telecommunications and IT hardware, software and technology. Controls include
restrictions on the export of systems, equipment and components and prohibitions on
both the physical and electronic transfer of associated software and technology.
Software vendors, computer manufacturers, companies providing data control and
protection solutions, or those involved in the provision of IT, security, and
communications solutions need to consider their exposure to export control and
sanctions risks.
The consequences of any failure to comply with the applicable rules in the various
jurisdictions where your company operates and the risks associated with violations
by third parties have been all too apparent in recent years.
GLOBAL TRADE & GOVERNMENT AFFAIRS DLA Piper 2
NAVIGATING TRADE COMPLIANCE -CHALLENGED FOR THE IT AND TELECOMS SECTORIntangible transfers of software via the intranet, intra-corporate dissemination of controlled technology
via shared server environments and controls on the transfer of hardware and software which
incorporate encryption or cryptographic functions are caught in a complex matrix of export control
regulation.
The implementation of legislation aimed at prohibiting electronic transfers, for example web-based
sales, has led to confusion on the scope and potential application of regulatory requirements.
Regulators struggle to keep pace with continued developments in the sector and commercial
operators face difficulties in assessing their legal obligations as they relate to day to day commercial
reality.
To add to the confusion, similar products and activities may be subject to different controls or licensing
requirements dependant on where they are destined for use, who the end user is or whether the
ultimate destination subject to a trade embargo or economic sanctions programme. For example,
certain dual use technology is specifically carved out from prohibitions on export from the EU to Iran,
but is currently controlled for export to certain end users in Russia.
Despite the undoubted compliance challenges that the sector faces, the procedures for investigating,
prosecuting and penalising violations export controls on the transfer of telecommunications and IT
hardware, software and technology are the same as those in relation to illegally exporting military
equipment, arms and ammunition.
GLOBAL TRADE & GOVERNMENT AFFAIRS DLA Piper 3
ONE TEAM TO GUIDE YOU ON TRADE COMPLIANCE WHEREVER YOU OPERATEOur Global Trade Practice advises on all aspects of international trade law, including financial
sanctions, export controls, trade embargoes, customs procedures and international trade agreements.
Our worldwide network of offices cooperates seamlessly across national boundaries, allowing you to
access the best legal advice from one source. We remain partner-led, client-orientated and
commercially-focused to provide rapid, professional support to assist your decision making and deliver
innovative trade compliance strategies and effective risk management.
Partnering with a trade compliance specialist, attuned to your particular needs in relevant jurisdictions,
helps to ensure that your business is well placed to meet the associated regulatory challenges, stay
one step ahead of the competition and secure the best commercial outcome for your company.
OUR GLOBAL TRADE PRACTICE
We are experts in international trade regulation and are regularly instructed by some of the largest
multinational corporations to boutique start-ups to advise on the development of compliance policies,
the implementation of fit for purpose procedures and the management of regulatory risk in relation to
potentially sensitive commercial transactions. Our detailed knowledge of trade compliance regimes
across the globe and experience in handling complex transactions and commercially sensitive
investigations means that we are experienced in working with clients at all levels to manage financial,
criminal and reputational risk.
We regularly advise clients on the handling and coordination of multijurisdictional investigations
involving potential violations of international sanctions, export controls and customs regulations. We
have developed a number of innovative tools to assist clients with the assessment of their trade
compliance risk profile. We work with multinational companies to develop and implement global
policies and procedures for the identification and management of risk associated with cross-border
activity. We advise clients on their legal and regulatory obligations in relation to potentially sensitive
cross-border transactions including: trade financing and payment transactions; import and export
activity and associated licensing and reporting requirements; fund management, M&A activity and
investment transactions; and, the management of third party risk, enhanced counter-party screening
and due diligence.
GLOBAL TRADE & GOVERNMENT AFFAIRS DLA Piper 1
OUR EXPERIENCE
DLA Piper's Global Trade Practice has extensive experience in advising and representing a wide
range of companies on export control regulations and transactions involving countries and entities
subject to economic sanctions and trade embargoes.
Our lawyers in Europe and the United States regularly advise telecommunications and IT clients on
across the full range of legal and practical implications associated with the current regulatory
framework, minimising compliance risks and keeping abreast of current enforcement trends.
Examples of our specific experience include:
Advising an international software developer
and telecommunications company on product
classification issues for the identification of
export controlled hardware and software,
compliance risk associated with distribution
networks and cloud computing solutions and
regulatory obligations associated with export
authorisations, licensing conditions and
regulatory reporting.
Assisting various multinational
telecommunications and IT companies with
product reviews and obtaining necessary
approvals for exports and re-exports from the
EU and U.S. of sophisticated products,
services and technology to sensitive countries
and regions (such as Russia, China and the
Middle East).
Advising a global IT & communication
solutions company in relation to its
compliance with EU and US sanctions and
export control requirements .
Advising various European based software
developers, including subsidiaries of U.S.
companies, on the applicability of EU and
U.S. export control and sanctions laws to their
activities and related licensing requirements.
Assisting a major telecommunications
company in undertaking a multi-jurisdictional
investigation involving a comprehensive
transactional review and wider compliance
audit of the organization’s European business
units.
Advising a global provider of business and
financial news services on carrying out an
internal investigation into approximately
10,000 unlicensed transfers of controlled
products from its European distribution
centre.
Designing and refining compliance
programmes, for a number of European
based IT and telecommunications solutions
providers, tailored to the individual
companies' export activities across a range of
European jurisdictions.
We regularly assess and develop processes
to address complex compliance concerns,
such as employment of third-country and dual
nationals by the exporter and recipients of
technical data and assistance, the
implications of shared information technology
networks, e-mail servers and outsourcing
relationships and brokering and trafficking
rules.
Conducting export control and sanctions due
diligence in connection with exports and re-
exports, distributor/supply agreements, in
relation to a number of telecommunications
and IT mergers, acquisitions, and joint
ventures.
Counselling several telecommunications and
IT clients with respect to their exposure for
export violations committed by third parties
and potential courses of action to protect their
business interests.
GLOBAL TRADE & GOVERNMENT AFFAIRS DLA Piper 1
OUR GLOBAL REACH
CONTACTSJohn Forrest
London
T +44 20 7153 7835
DLA Piper is a global law firm operating through various separate and distinct legal entities.
For further information please refer to www.dlapiper.com.