FDPPI has presently constituted wo internal committees one on “Deceased Data Principal’s Assets” and another on “Data Valuation”. The committee on the Deceased Data Principal’s asset under the chairmanship of Dr Mahendra Limaye is submitting an internal report shortly. The “Data Valuation Committee” is in the process of engaging other external institutions in a discussion to establish consensus on the need to value data and present it as part of the published accounts.
As a follow up to the activities of these two groups, it is recognized that there is a need for a proper legislation and FDPPI should take the discussion to the logical end by drafting a proposed legislation and try getting it as a Private MP bill in the Parliament.
The Proposed “Digital Valuation and Succession Act” may include
1) Defining Data as a new class of asset and not necessarily to be compared with the known asset classes such as movable, immovable, actionable claims etc.
2) Defining a method of valuation of Data
3) Defining the a means of disclosure of data value in an organization to the public
4) Defining the ownership rights and means of transfer
5) Possibility of “Nomination” of Data
6) Possibility of “Joint ownership of data” (eg: Either or survivor or Former or Survivor of data held with data processors like Twitter or Facebook)
7) An established methodology for recognizing handling of data of deceased data principals, without automatic deletion or automatic appropriation by the data fiduciary
8) An established methodology for the legal heirs of a deceased to “Claim” data assets in the hands of intermediaries.
9) An established methodology for the Government to appropriate “Unclaimed Data Assets” after classifying them as “Unclaimed” through a process similar to branding a data asset as “Dormant” and “Inoperative”.
10) Establishment of a “Uniform Data Disputes Resolution Policy” (UDDRP) to be adopted voluntarily by Data Fiduciaries on the lines of UDRP/INDRP to facilitate data disputes resolution through an ADR process.
and Any other aspect relevant to data valuation, data value disclosure.
Such a law should be compatible with the current data related laws such as Information Technology Act 2000, Personal Data Protection Act (as proposed), Non Personal Data Governance Act (As envisaged) and any other laws likely to be considered in the meantime.
FDPPI has been described as the “Dada of Data Protection Agencies in India” and therefore has the responsibility to take constructive steps in finding a solution to these problems of the industry.
In this direction FDPPI shall constitute a special committee to draft a bill on “Data Valuation and Succession Act”, deliberate on the issue in consultation with other academic institutions such as law colleges and professional bodies who may be interested.
A proposal will also be sent to the Government of India if it would be interested in setting up such a committee in which case FDPPI may withdraw its committee.
Naavi
This is the right approach. The data as a property first needs to be defined. It is a unique way of property and ownership also a special kind. Here private data and commercial data have different features as regards to ownership and rights involved. Later it has its impact on valuation. Valuation also differs as way of exhaustion, type of rights, utility etc., differ as well as the marketability. But if it is taken as a suigeneris, we can examine each of them. Then data belonging to dead person could be a part in addition to many such categories that could be carved. Here I am happy that you have provided the right way to proceed and progress. M G Kodandaram