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Si Gyeongmin
Sep 05, 2021
Third, the theory assumes that the benefits of imposing restrictions on use or transfer outweigh the costs associated with inducing parties to incorporate these restrictions into their agreements. However, these costs can be huge. If it is difficult to foresee the potential uses and users of a certain type of data at the time of the initial transfer, then in the process of renegotiating the original restrictions, the use of new valuable uses and the benefits that users may generate will be completely lost or reduced. The costs associated with restricting the third-party restrictions on obtaining data without notice may become particularly large.
The fourth controversial premise of the theory is that specific forms of private litigation, such as class actions, are essential to ensure that restrictions on use or transfer are enforced. However, reputational sanctions and public enforcement may also result in sanctions that violate use or transfer restrictions, and the deterrent effect of such sanctions may be sufficient to eliminate the need for private litigation.
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