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Trade secrets: Partial declassification
The issue of trade secrets in Polish public procurement continues to generate doubts and objections. Recent actions by contracting authorities and rulings by the National Appeal Chamber show that less and less information can be classified as trade secrets. The chamber closely examines whether contractors have met all the prerequisites for treatment of classified information as a protected trade secret.
A long-awaited amendment to the Wind Power Plant Act
After nearly a year of promises, the government published a proposal to amend the Wind Power Plant Act on 25 September 2024. The amendment of March 2023 was deemed insufficient for accelerating the development of onshore wind power in Poland. Further liberalisation of the rules for siting of wind power plants aims to expedite Poland’s energy transition and stimulate the wind power sector, especially at the local level.
Convertible loans: A practical look
Convertible loans are still a relatively rare debt financing instrument in Polish practice, but have recently gained popularity among startups and in venture capital. In essence, a convertible loan involves granting a loan that may be repaid by converting the debt into equity in the borrower. But depending on the expectations, circumstances and identified risks, the loan provisions can differ widely, with flexibility to modify the positions of the parties. This means it is worth paying attention to a number of financial and legal parameters, including obvious ones that can affect the feasibility of the undertaking.
Sticks and carrots: Financial support for the automotive sector
The automotive industry is one of the pillars of the European economy, with a long tradition and a significant contribution to job creation and industrial activity. But the sector is facing difficulties, impacting even leading manufacturers. As the automotive industry is an important part of the energy transition, a question increasingly being asked is whether the industry can count on public financial support in the transition, and if so, what the funds are earmarked for.
Employee stock options in private gaming companies: Corporate aspects
Company shares are seen as an important element of the overall remuneration for professionals in the IT industry. This is also the case in companies developing video games. Prospective employees or contractors expect to be able to take a stake in the rapidly growing company as part of their remuneration package.
Compensation from a developer who despite a preliminary contract sells the property to another person
Residential real estate prices in Poland have been rising steadily for many years. A house or apartment promised to be built or sold just a few months earlier may now have a market price much higher than on the date of signing of the preliminary contract. This may tempt some developers to renege on the final contract and instead sell the unit to another purchaser at a higher price. In such a case, what relief can the frustrated buyer obtain against the developer?
The European defence industry urgently needs investment
For years, the European defence industry has been oriented towards peacetime production, resulting in low capacity. The war in Ukraine quickly exposed this, as well as the severe underinvestment which the EU’s defence sector has suffered from for years. Optimistically, the growing demand for defence equipment has also quickly raised the awareness that production capacity needs to be increased. But now this conviction must translate into action, first of all in the form of increased financial support.
Not all public assistance is state aid
Granting of state support in the EU, which businesses are increasingly taking advantage of, is based on a set of common principles. Mainly these include compatibility with the internal market, achievement of an objective of common interest, a clear incentive effect, proportionality, and full transparency. Violation of these rules when granting public support may mean a grant of unlawful state aid, incompatible with the common market and subject to recovery.
Fashion in video games
The growing role of fashion in the world of video games was confirmed by the Roblox report published in November 2023 analysing the behaviour of Gen Z. The survey found that for 84% of respondents, digital fashion is an important part of the game, with 56% of respondents admitting that their avatar’s appearance is just as important to them as their own real-life appearance—up from 42% the year before.
Tales from the National Appeal Chamber: Requiring additional evidence is an unreasonable barrier to fee indexation
The last two years in the public procurement market have been stormy. The Covid-19 pandemic and the war in Ukraine have caused a steady and dynamic increase in the prices of materials and services, and disrupted supply chains, translating into record inflation rates and unprecedented fee increases. With this tough economic situation directly affecting the market, contractors have faced the difficult task of indexing their fees in public contracts. The National Appeal Chamber, which hears challenges in public procurement matters in Poland, gave essential guidance on this issue in its ruling of 28 November 2023 (case no. KIO 3389/23).