Regulatory and New Business Models Articles

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Juridica: The Crypto Assets in Estonian Enforcement Proceedings

Crypto-assets are technologically decentralized and anonymous, making them difficult to monitor and regulate. The explosive growth of crypto-assets brings new challenges for lawyers

Baltic Startup Funding Report 2024: Key Takeaways

In the article, you will find a summary of the Baltic Startup Funding report, which covers the investment trends for the first half of 2024 for Estonian and Baltic startups.

Enhancing the EU Regulatory Framework for the Deeptech Sector

The EU's deeptech sector is growing, but needs a more flexible regulatory framework to fully unlock innovation.

Hedman Law Firm: Women in Business Law 2024 EMEA Award Winner

At the Women in Business Law 2024 EMEA Awards held in London, Hedman Law Firm Legal received the coveted "Baltics Firm of the Year Award."

One of the Biggest Restraints in the Financial Sector Removed by Law Amendment

In the early summer of 2024, Estonia adopted the Crypto Asset Market Act to address the gaps left by the EU's regulation of cryptocurrency markets for its member states.

Google makes the cookies crumble: Phasing out third-party cookies

A cookie-free world is almost here.

How to draft an authorisation agreement: a practical guide and tips

In this article, we explain in detail the nature of an authorisation agreement, its main elements, and the key considerations to take into account when drafting an authorisation agreement.

Cybersecurity evolved: The EU’s Digital Operational Resilience Act (DORA)

In this article we introduce how DORA strengthens IT security for EU financial entities by 2025.

Lay-Off – Comprehensive Guide for Employers

Here is an overview of the main requirements that an employer should keep in mind when laying off an employee.

Expanding Cross-Border: Legal and Regulatory Challenges of Fintech

This article highlights some of the most common challenges faced by our clients based in Estonia.

Copyright and privacy implications of using artificial intelligence to generate code

With the lines between human and machine creativity blurred, who can be considered the creator of AI-generated code and, thus, the holder of copyrights?

The GDPR celebrates its sixth anniversary

The GDPR marks its sixth anniversary, having significantly reshaped global data protection.

Help! My company has been deleted! – What to do if the Estonian commercial register has deleted your company?

Learn the necessary steps for getting your business back on track.

When to turn to the Labour Dispute Committee?

We outline the procedure and deadlines for resolving labor disputes for employers and employees in Estonia.

Connection between ESG and Data Protection

Get to know the importance of aligning business practices with ESG principles and regulatory requirements, particularly regarding data protection and environmental sustainability

Investment Agreements – A Comprehensive Guide

Discover the essentials of investment agreements in this guide, covering the key aspects and considerations for startups

Foreigners Working in Estonia: Opportunities to explore

Key visa and residence options for foreigners working or starting a business in Estonia

Convertible loans: benefits, risks, and legal considerations for businesses and investors

All you should know about convertible loans as a startup

How to draft an option agreement: a detailed guide, recommendations, and advice

We explain the key aspects to consider when drafting an option plan and option agreements.

EU Countries have just approved the technical details of the AI Act

A consensus has been reached on the EU AI, which represents a critical advancement towards the next stage in the legislative process

Valued-added tax (VAT) is going to increase by two percent

We explain with some examples what you should take into account when calculating VAT from the new year

Enforcement has just been made easy with the new Central Enforcement Register

The new register is expected to become operational on 1 January 2024

The European Union unveils groundbreaking AI Act to foster responsible AI development

What you should know about the EU AI Act and preparing for it

Essential updates for businesses and individuals in Estonia: Key regulatory changes for 2024

This guide provides a comprehensive overview of the key regulatory updates that will take effect in the coming year

Biometric data and privacy: Issues arising

Discover how the GDPR impacts biometric data use, learn from real-world case studies, and get insights into the EU's future AI and privacy regulations.

Dealing with overdue invoices and debtors in Estonia

Managing overdue invoices and handling debtors can be quite frustrating. So, what should you do if an Estonian company owes you money?

Securing your crypto assets: What you should know as an investor

Explore the complexities of securing crypto assets in Estonia, including the challenges and solutions for investors in this evolving landscape

The changing attitudes towards filing letters of demand

Facing a defamation demand letter? This blog post explores the shift in legal perspectives, outlines your options, and offers practical tips on how to respond effectively.

Tech developments driving legal evolution in Estonia

Experts share their most innovative recent projects and pinpoint what makes Estonia a technology powerhouse.

Evaluation of foreign direct investment and its implications for businesses

Explore the critical implications of EU Regulation 2019/452 and Estonia's VUHS Act on foreign direct investment, from assessment procedures to potential penalties for businesses

Data breach response plan: A step-by-step guide for businesses

Master the essentials of responding to data breaches in line with GDPR guidelines, from identification to notification, with this comprehensive guide for businesses.

The list of shareholders is going to be kept by the Commercial Register – who will be affected by this change?

It comes into force this September.

A growing number of people are losing their family’s estate to total strangers

Here's all you should know about the recent increase in legal battles between enforcement agents and successors regarding family estates.

Why do real estate reservation agreements often end up being void?

Real estate reservation agreements and the legal complexities surrounding them.

Understanding employee rights in termination for economic reasons

Understanding employee lay-offs for economic reasons: what you need to know.

Estonian crypto tax guide: Which transactions are considered tax-free or “nothing” in the crypto sphere?

The categorisation of crypto transactions as either taxable or exempt for VAT purposes.

Estonian companies could face even more huge data protection fines

Due to changes to the European Union law coming into force, it will be much easier for the Data Protection Inspectorate to fine companies for data protection breaches.

Wage attachment notices: a nerve-wracking added workload for accountants

Issues related to wage attachment can be quite daunting for both employers and accountants. However, with this guide, it can be less complicated.

GDPR: companies and public authorities fined nearly €3 billion

Several companies have been fined significant amounts since the GDPR came into force about five years ago, and there's no sign that this is about to change. What should you know?

Google Analytics 4: revealing upcoming privacy changes

Now that Google Analytics 4 has replaced the Universal Analytics, discover the upcoming privacy changes designed to enhance GDPR compliance and prioritise user privacy.

How to pay taxes in the sharing economy?

There are new amendments to the Tax Information Exchange Act and the Taxation Act and they affect reporting obligations for various online platforms. Here's what you should know.

Revolutionize your business with AI: Expert legal guide to harnessing the power of ChatGPT and DALL-E

AI can be both good and bad news for your business, depending on your approach. Here is the right way to harness ChatGPT and DALL-E.

The Supreme Court: banks can no longer terminate contracts concluded with consumers without good reason

It is now clear in which circumstances a credit institution can unilaterally terminate a payment service contract with a consumer.

Best jurisdiction for starting a Web3 start-up?

While Estonia and Switzerland are two of the most attractive jurisdictions for setting up a Web3 company in Europe and even worldwide, some significant differences highlighted here might influence your choice destination

Stop! Halt the AI

With the undeniable growing capacity of AI to compete with and supersede humans comes the fear of the danger this might pose. In a public letter, experts call for caution.

Are you aware of Estonia’s new language requirement for employment-based TRP renewal?

Foreigners seeking to extend a TRP will now need to provide evidence of proficiency in the Estonian language. What should you know?

GDPR fine statistics show no signs of decline

GDPR fines are increasing. The focus is shifting to AI and machine learning.

Trademark registration and protection

A comprehensive article on what a trademark is, how to check if it's already registered, and what to do to protect your trademark.

Liquidating a company in Estonia

The process of liquidating a company can be pretty daunting. However, it doesn't have to be if done right. This is how to go about it in Estonia.

Savings and loan associations to face a number of legislative changes

What are the main changes that current savings and loan associations will have to take into account, and when? Here is all you should know.

Founding a company with 1 cent – 3 reasons why this is NOT a good idea

It is now possible to establish a LLC with a share capital of just one euro cent. We list 3 reasons why this is NOT a good idea.

The autonomous employee – more flexibility in employment relations

A new amendment to the Employment Contracts Act entered into force on 24 December, introducing the concept of an autonomous employee.

Markets in Crypto-Assets (MiCA) Regulation – long awaited but feared

Estonia has become known as one of the more strictly regulated jurisdictions for establishing crypto-related businesses.

Options and marriage – does the employee’s spouse become a shareholder together with the employee?

Spousal assets may also include options and shares in companies distributed as part of an employee incentive package.

Can data from public LinkedIn profiles be collected and used for business purposes?

A US court ruling in a long-running case between hiQ Labs and LinkedIn has left the legal boundaries of data privacy and use of data from the platform still in dispute.

Learning from the FTX fiasco – the importance of regulation

The FTX fiasco might have changed the market for good. Here is what it means for regulations now and in the future.

Equity in red – how to rebuild your net worth?

Your equity might be in red, but it is not the end. This is what to know and do to rebuild your net worth.

Originality in copyright – 3 real-life examples

Toomas Seppel uses three real-life examples to examine the concept of originality and how it applies to copyright under EU law.

Selling a company in Estonia: how to go from first interest to concluding a successful contract?

Several issues need resolving before one can sell a company in Estonia. Our Senior Associate Kati Pino explains.

3 important updates to the Employment Contracts Act

These updates will increase employee protection and ensure that employees are informed of the terms and conditions of their employment relationship.

Fines for data protection have set a new record

Fines for data protection have set a new record this year, with companies such as Clearview AI, Google and Meta being fined millions of euros. There seems to be a pattern.

GDPR data protection audit – why and when is it needed?

Why you need to do a GDPR audit, how to plan an audit and everything else you need to know.

Women at the top of law firms: Merlin Seeman

The Estonian Bar Association has an article series about notable female lawyers. Here's our Managing Partner Merlin Seeman's story.

All you need to know about IP transfer agreement

IP is the most significant value most companies have. When it's not transferred correctly, the company is exposed to multiple risks & loses its attractiveness in the eyes of investors.

Personal data transfers outside the EU need a legal update by the end of this year

There is a need for SCC updates when transferring personal data from EU businesses to third countries. We will take a closer look.

A Two-part Look into Latitude59 2022: Part 2

The 2nd part of the series “A Two-part Look into Latitude59 2022” with insights from the tech conference’s Future Stage panels.

A Two-part Look into Latitude59 2022: Part 1

For seven years, Hedman has been supporting Latitude59. We looked at what was discussed on the Hedman & Binance-powered Future Stage.

Cryptocurrencies in Estonia – the final list of updates to the AML Act

Hedman's lawyer Vladislav Linko takes a look at the most important changes to the anti-money laundering act (AML act).

Does an NFT platform need a crypto license?

NFT platforms have always been at risk of violating licensing requirements. It is, therefore, best to consult with legal professionals already during the business development stage to minimise the risks.

Crypto business and crypto licenses in Estonia. What you should expect from Estonia crypto regulation in 2022

What is the most significant potential change in the crypto legislation since 2017? Our experts will walk you through it.

Is Google Recaptcha GDPR compliant

Did you know that Google ReCaptcha can create problems for you regarding GDPR compliance? Our Specialist Data Privacy Counsel, Andres Ojaver, elaborates.

Do you need a trademark?

A great chance for small and medium-sized enterprises (SMEs) to apply for trademark registration grants through the European Intellectual Property Office.

Is data protection baring its teeth?

European data protection has started fully implementing the GDPR & technology giants' fine decisions about turnover numbers have become common. Therefore, every company has to review its data processing processes.

Taxation of share options in Estonia

The taxation of share options is explicitly regulated by law only when giving share options to employees. As details are always the basis of taxation, it is worth using the help of a tax advisor.

How to set up a subsidiary company in Estonia

Estonia can be considered one of the hotspots for businesses entering the European Union (EU) market, especially in the technology sector.

New crowdfunding service providers regulation in EU & Estonia

Estonia plans to provide solid regulation to all relevant areas of Fintech, including creating a framework for P2P consumer loans similar to the one applicable to business loans.

Fundraising: convertible debt or straight to equity?

Two main ways a start-up raises money are convertible debt or an equity investment. The devil is in the details and dependent on the circumstances. Let's dig in!

Start-up must have: three necessary documents for every start-up

We enlist the three essential documents that a start-up entrepreneur cannot do without. And take a closer look at what is 'dead equity.'

The ABCs of Teleworking for the Employer

An overview of the legal nuances associated with teleworking, including terms for working remotely and ensuring a safe working environment.

How to notify the consumer of the terms of use?

We outline the legal requirements for notifying consumers of standard terms of use when using online services and the guidelines for designing consumer-oriented online stores.

Clubhouse: The social media newcomer that also carries privacy risks for those who do not use it

Clubhouse's practices are clearly in breach of European data protection requirements. Are you aware of the privacy risks they pose for users and non-users?

Direct marketing rules and exceptions under the GDPR

This article explains the rules and exceptions for direct marketing activities under the GDPR and ePrivacy Directive, providing an overview of the related legal provisions.

GDPR in B2B Marketing

We provide an overview of GDPR for B2B marketing and the differences between opt-out, single opt-in, and double opt-in approaches in various EU countries.

What does a data protection officer (DPO) do and who will need one in 2024?

Hedman data protection experts can help you to decide whether your organisation specifically must appoint a data protection officer or outsource one.

What is an option?

All you need to know about options, including their legal and tax aspects and how they can help motivate and retain employees.

What is a payment institution, a commercial agent and an e-money institution?

What you should know about financial institutions and how they are regulated by the Payment Institutions and E-money Institutions Act of Estonia (PIEIA)

Startup Estonia Model Documents Vocabulary 101

This blog post covers the vocabulary used in the startup scene and explains crucial concepts peculiar to this sector. The vocabulary sheet is also available for download.

Attracting investments and exercising of share options has been simplified

How Estonia has simplified the process for foreign investors to attract investments and exercise share options.

Protection of personal data in the midst of facial recognition and fingerprint readers

What companies should consider before implementing security solutions using biometric data to protect personal data and avoid data breaches.

Termination during the probationary period – What should the employer keep in mind?

Legal conditions employers should consider concerning employment termination during the probationary period.

The advent of legal analytics

Henrik Trasberg discusses the implications of legal analytics algorithms and what the future holds.

Investorial: Registering trademarks

Learn how to register trademarks and protect intellectual property for startups with Investorial's online training programme featuring Kati Pino.

Investorial: Protecting domains and social media

In this Investorial training video, Kati Pino covers the main concepts of protecting intellectual property, domains and more.

Investorial: Software as IP

Kati Pino discusses what intellectual property (IP) means, why software is a crucial IP, as well as how to protect it.

Investorial: Startups and Intellectual property

In startups, the founders have to think of some core things like software, name, logo and how to protect them.

New Data Protection Rules: What Does It Mean for Startups?

We explain the new data protection regulation coming into existence in May 2018 and how it will influence start-ups.

Does the Copyright Directive also apply in practice to Estonian companies?

The Copyright Directive 2019/790, what it means for online content-sharing service providers, and possible exceptions.

Does ticking the box give consent to the processing of personal data?

This article explains the concept of consent and examines the conditions for obtaining valid consent from a data subject.

What you should know about selling face masks?

We discuss the requirements you should fulfil before selling masks.

Using Instagram content outside of Instagram: What is allowed and what is forbidden?

We discuss the legal terms associated with using and sharing Instagram content.

Coronavirus and Payday: Crisis Mitigation Measures

Does your company qualify for the Estonian government's €2 billion crisis mitigation package?

How to prove force majeure?

Understand what constitutes force majeure and how to prove it in international agreements.

Coronavirus And Payday: Lay-Offs

Legal and financial conditions you should consider when laying off employees.

Coronavirus And Payday: What To Consider Regarding Wage Cuts

How to reduce wages without compromising your employees' rights.

A day for an employee’s personal data

A working day with personal data processed within one day would include applying for a job, screening, job interviews, tests, concluding an employment contract, and more.

What kind of rights does a registered residence provide?

We discuss the legal significance of registered residence and the rights associated with the registration of residence.

How much does it cost to insult someone?

We discuss the legal and financial consequences of insulting another individual, whether online or offline.

When to choose arbitration instead of costly litigation?

This is when and why you might consider arbitration instead of litigation.

Can an employee’s personal data be processed based on consent?

We discuss the can dos and don'ts of processing your employees' personal data.

Summer events and music – royalty reminder

Here is what you should know about music copyright and how to apply for a music use permit if you need one.

The website plug-in requires visitor consent

In light of the recent ruling of the European Court of Justice, website plug-ins now require visitors' consent. Here is what it means.

Can you require the performance of an agreement to fund research?

No, the performance of an agreement is not binding to fund research. We discuss what this means.

A new era in privacy

We discuss how the GDPR has marked the beginning of a new era in the interpretation of data protection and privacy.

When can the state collect personal data?

The state may process personal data only within the limits prescribed by law. We discuss some of the questions you might have concerning this.

Can a restaurant ban food photography?

In this blog post, we discuss some questions you might have about food photography in restaurants.

Opportunities to use foreign labor in Estonia

Here is all you should know about hiring foreign labour in Estonia as well as how to get started.

10 songs that can no longer be used in beer advertisements

We discuss some songs that the Advertising Act prohibits being used in alcohol advertising.

Flight delayed? Bag up to 600 euros in your pocket!

We discuss in detail the compensation rights of air passengers based on the European Union regulation.

Rainer Vakra lost his diploma: How long a citizen must actually fear the state?

This blog post discusses some statutes of limitations you should be aware of in the law and within the state.

Who is responsible if a car breaks down during the first hundred kilometers?

Take a look at this case where a private seller was found liable for selling a faulty vehicle and was required to refund the sale price and reimburse costs incurred by the buyer.

Copyright law also applies to supermodels

Can people on the street be photographed?

We discuss the legal aspect of photography at events and public spaces.

Valentine’s Day Special: Marriage through “Teleportation”

In Estonia, most notarial acts and transactions can now be performed remotely. This is what you should know.

The European Union has imposed strict security requirements on Facebook and Skype

Online communications services will be covered by the ePrivacy Directive. We discuss what service providers should keep in mind.

Instagram and sponsored post – is it the Wild West?

The Advertising Act entails so much for Instagram advertising. As an advertiser, promoter, or marketer, this is what you should know.

Liquidation preference: Where did the 20 million from „Chasing Unicorns“ go?

This blog post explains the concept of liquidation preference, how it works, and why it's necessary.

The EU guides the member states towards a more efficient control over crypto assets

This article discusses why the EU needs to set new goals and create a comprehensive legal framework for trading and managing crypto assets.

Abolition of geoblocking: what changes and what doesn’t change for an e-merchant?

As of 3 December 2018, geo-blocking is no longer allowed in the EU. We discuss what this means for e-merchants.

Can an algorithm decide whether you can get a loan?

While the algorithm can make your loan approval decision, there is much more you should know.

E-sports – decathlon or roulette?

This article discusses treating e-sports tournaments in Estonia as sports competitions rather than gambling.

The first GDPR fines are here: millions of euros for inadequate explanation

We provide examples of some of the first GDPR fines from several countries within Europe.

Why is it not prudent to go too far with protecting personal data?

We discuss why it is not wise to go too far with protecting personal data and the consequences of unjustified or excessive regulations.

Complex legislation: the method for adding salt is intellectual property, the taste of the cheese spread is not

We explore the limits of intellectual property and its restrictions in relation to food products and viral sensations.

How to gain control over your personal data used by companies?

The article outlines the rights of individuals to control their personal data in accordance with the GDPR.

Helping the minister: what is a startup?

This article outlines the process for obtaining a start-up visa and the criteria for qualifying for such a visa.

Identity Theft In Fundraising – Nearly a Case Study

The article discusses the importance of being extra cautious when a foreign investor is looking to make a sizeable investment in your startup.

FaceApp collided with personal information. What’s wrong with the picture?

The article examines the potential privacy risks of using FaceApp, a photo editing app provided by a Russian company.

Seven ways to raise capital for start-ups

This article provides an overview of the different ways to raise capital for start-ups.

Storing cookies requires internet users’ active consent

We examine the requirements for valid consent for website cookies based on a recent ruling by the European Court of Justice.

The company does not have to use iron and concrete to catch debtors

The Estonian court rules that companies do not have to use physical barriers to protect their business model. Here's what this means.

Doing Business in Estonia

Here is an overview of aspects you should know before starting a business in Estonia.

Artificial Intelligence & Law Coffee Morning Takeaways

Henrik Trasberg discussed how AI could be regulated in particular areas of the law to ensure that the specific domains would be able to cope with the implications of AI.

The Estonian Limited Partnership Fund – A Guide for VC Investors

The article overviews the Estonian Limited Partnership Fund structure as an attractive scheme for closed-end collective private equity and venture capital investments.

How do you hire your team of developers?

In this article, we explore five different options for hiring a development team while running a business from Estonia.

When should a company apply for a crypto-license?

This article provides an overview of the regulations related to virtual wallets and virtual currency to fiat currency exchanges in Estonia.

Four Tips for Building a Business with Friends

In this article, Merlin Seeman provides four tips for starting a business with a close friend in order to maintain the friendship and the quality of the business.

Artificial Intelligence – Notorious BIG Talk? Hedman Partners Co-Conducted a Conference in Berlin

The panel at the IBA's European Start-Up Conference 2018 discussed the current and future use of AI in the legal domain. Here are our takeaways.

Hedman Partners in Silicon Valley: 5 Tips to Get Funding from US Investors

Following a vibrant week in Silicon Valley, we are sharing with you five tips for raising funds from US Investors.

Estonia ICO regulations in 2022

We discuss the latest updates concerning Estonia's regulations on token-based digital currencies.

Beginning from September 1st, 2018 companies in Estonia shall be obliged to report to the Commercial Register about the beneficial owners of the company

Estonian companies are now obliged to add the beneficial owners of the companies to the Commercial Register. We discuss this in detail.

Using online multiplayer game in-game assets as a way to launder money

This article will highlight some significant factors that prevent the prosecution of people who use in-game assets and marketplaces to launder money.

The Upcoming Data Rules for AdTech

A new General Data Protection Regulation (GDPR) enters into force on May 25th 2018. Here's what it's about.

Start-up Legal Basics

We have listed out the 5 most important legal basics for startups.

Let’s talk about cap tables! #WisdomWednesday

We explain what cap tables mean in relation to startups' ownership

What if one of the co-founders stop to contribute? #WisdomWednesday

Here is what to do when one of the co-founders stops contributing to your joint business.

Why you need to think about your brand! #WisdomWednesday

Why you need to truly understand your brand and its portrayal.

Hedman Lift presents #WisdomWednesday!

Weekly short videos for how to maximise your entrepreneurial success! From legal advice to actual working methods!

Legal reminder of using open source / free software

Legal and ethical considerations to keep in mind when using open source and free software.