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IT professionals everywhere now know that new data protection rules — the General Data Protection Regulation (GDPR) — went into effect on May 25th across Europe, changing how organizations treat personal data. This was the first overhaul since the EU's Data Protection Directive in 1995, shortly after the EU was established. Ostensibly, GDPR's mission is to strengthen and unify the EU's protection of online privacy rights and promote data protection for citizens of the 28 countries currently in the EU. In the global economy, however, GDPR serves as an alarm to all countries with business flowing across Europe and well beyond. Where business flows, data follow.
While GDPR is not currently in political debate, we should watch for this debate to bubble up. Staving off expanded EU policy from Britain survives as a BREXIT issue, and GDPR may urge other sovereign nations to question this expansion as well. It is a reminder that the EU is the policy-making umbrella for its member states. Initially, GDPR was welcomed by organizations having experienced data breaches and even more by affected individuals. A deeper concern is how the regulation will be imposed beyond the EU and how businesses and individuals will be affected as the umbrella opens to include other countries in the global economy.
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The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
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