LEGAL SYSTEM IN THE DIGITAL AGE

Giuseppe Pinelli

Instructional goals

provide students with the fundamental principles of the Italian and European legal systems; develop an understanding of the legal implications of digital technologies; examine the regulation of artificial intelligence, data, digital platforms and cybersecurity; develop the ability to identify legal and compliance risks arising in technological and digital contexts; promote an interdisciplinary approach combining law, innovation and technological development.

Prerequisites

Non required

Intended learning outcomes

understand the fundamental principles of the Italian and European legal systems; analyse the regulation of digital technologies; interpret the main European regulatory frameworks; assess the legal implications of artificial intelligence, identifying the legal, ethical and compliance risks associated with the use of AI; apply the acquired knowledge to practical case studies and real-world scenarios.

Course Contents

The course provides an introduction to the Italian and European legal systems and examines the legal implications of digital transformation. Particular attention is devoted to artificial intelligence, blockchain technologies, personal data protection, platform regulation, digital markets, cybersecurity and emerging technologies. The course explores the interaction between law, innovation and technological development, analyzing the main European regulatory frameworks and their impact on business activities, public administration and society.

Reference Books

G. Iudica e P. Zatti, Language and Rules of Italian Private law: An introduction, latest ed., Cedam. or J.S. Lena and U. Mattei (eds.), Introduction to Italian Law, Kluwer, 2002. PowerPoint slides and lecture notes.

Teaching Methods

lectures; case-study analysis; discussion of regulatory developments; analysis of judicial decisions; practical examples concerning AI and digital technologies.

Assessment Method

written exam; open questions; case-study questions; application of legal principles to practical technological scenarios.

Thesis assignment criteria

Not applicable. No final thesis or coursework assignment is required for this course.

Week 1

Presentation of the lecturers Introduction to the course Overview of the study programme Teaching methods and learning materials Concept of legal system Concept of legal rule and legal effects Main theories of law: from Santi Romano to Hans Kelsen Overview of the Italian legal system Sources of law in Italy The Constitution Types of constitutions and comparative constitutional law Constitutionalism in the digital era Ordinary legislation Law-decrees and delegated legislative decrees Regional legislation Regulations and customs Future challenges for legal systems in the digital age Reading Material: G. Iudica, P. Zatti, Language and Rules of Italian Private Law: An Introduction; Constitution of the Italian Republic; articles and slides available online.

Week 2

The Parliament The Italian legislative process Direct democracy instruments The abrogative referendum Digital democracy: opportunities and challenges The Constitutional Court Constitutional review of legislation The President of the Republic The Government The Judiciary Digital transformation of courts and justice systems Reading Material: G. Iudica, P. Zatti, Language and Rules of Italian Private Law: An Introduction; Constitution of the Italian Republic; articles and slides available online.

Week 3

The European Union legal system Sources of EU law Regulations Directives Decisions Sources of international law International customs General principles of law UNIDROIT Principles and Lex Mercatoria Private international law Conflict of laws Jurisdiction in cross-border disputes Trusts and asset protection The 1985 Hague Convention on Trusts Reading Material: G. Iudica, P. Zatti, Language and Rules of Italian Private Law: An Introduction; Treaty on European Union (TEU); Treaty on the Functioning of the European Union (TFEU); 1985 Hague Convention on Trusts; UNIDROIT Principles; articles and slides available online.

Week 4

Structure of the Italian Civil Code Natural persons and legal entities Legal personality and legal capacity Capacity to act Legal acts: concept, forms and effectiveness Property rights Historical development Ownership and possession Rights in rem Intellectual Property Law Copyright Patents Trademarks Trade secrets Intellectual property protection in the digital environment Reading Material: Italian Civil Code; G. Iudica, P. Zatti, Language and Rules of Italian Private Law: An Introduction; Italian Industrial Property Code; Italian Copyright Law; articles and slides available online.

Week 5

Concept of obligations Sources of obligations Contract law Formation of contracts Types of contracts International contracts Applicable law to international contracts Contractual liability Non-contractual liability (tort law) Strict liability Emerging issues in digital liability Liability for automated systems Artificial intelligence and civil liability Reading Material: Italian Civil Code; G. Iudica, P. Zatti, Language and Rules of Italian Private Law: An Introduction; AI Act; articles and slides available online.

Week 6

Corporate law: concepts and principles The Italian corporate framework Types of companies Shareholders’ agreements (Patti Parasociali) Start-ups and innovative enterprises Legal framework Regulatory requirements Digital commerce E-commerce Consumer protection Online dispute resolution Applicable law to online transactions Case law in digital commerce Reading Material: Italian Civil Code; Italian Consumer Code; articles and slides available online.

Week 7

Introduction to Artificial Intelligence Definition of AI Machine Learning Deep Learning Generative AI AI and Society Opportunities and risks Explainability and transparency Human oversight AI Governance Ethical AI principles Risk management Accountability The European AI Act Risk-based approach Prohibited AI systems High-risk AI systems General Purpose AI Models Enforcement mechanisms AI and Fundamental Rights Privacy Equality Freedom of expression Due process Future Perspectives Autonomous systems AI and labour markets AI in Professional Practice Reading Material: European Artificial Intelligence Act (AI Act); Charter of Fundamental Rights of the European Union; European Commission AI Guidelines; articles and slides available online.

Week 8

• Blockchain Technology Definition and core characteristics Types of blockchain systems Decentralisation, transparency and immutability Permissioned and permissionless blockchains • Applications of Blockchain Technology Financial services Supply-chain management Healthcare Public administration Digital identity systems • Blockchain and Data Protection GDPR challenges Data governance in decentralised systems Privacy-by-design and privacy-enhancing technologies • Smart Contracts Definition and functioning Smart contracts and smart legal contracts Automated contractual performance Legal enforceability • Legal Challenges of Smart Contracts Consent and contract formation Contract interpretation Jurisdiction and applicable law Liability and cybersecurity issues • Cryptocurrencies and Crypto-Assets Bitcoin and Ethereum Types of crypto-assets Opportunities and risks Financial innovation and digital markets • European Regulation of Crypto-Assets Markets in Crypto-Assets Regulation (MiCA) Crypto-Asset Service Providers (CASPs) Investor protection and market integrity Anti-money laundering requirements • Blockchain, Digital Identity and Trust Services European Digital Identity Framework eIDAS Regulation Trusted digital services Digital certification systems • Future Perspectives for Blockchain and Digital Finance Tokenisation of assets Decentralised Finance (DeFi) Central Bank Digital Currencies (CBDCs) Regulatory and governance challenges AI and Blockchain AI-powered smart contracts Blockchain for AI traceability Trust and verification systems Reading Material: Markets in Crypto-Assets Regulation (MiCA); eIDAS Regulation; Bitcoin White Paper; articles and slides available online.

Week 9

Concept of personal data The right to data protection European data protection framework GDPR (Regulation EU 2016/679) Italian implementation framework Principles governing personal data processing Lawfulness, fairness and transparency Purpose limitation Data minimisation Accuracy Storage limitation Integrity and confidentiality Accountability AI and data protection Automated decision-making Profiling Algorithmic transparency Reading Material: GDPR (Regulation EU 2016/679); Italian Privacy Code; EDPB Guidelines; articles and slides available online.

Week 10

Digital rights: concepts and evolution Digital rights within constitutional frameworks Freedom of expression online Platform governance The Digital Services Act (DSA) Online platforms Very Large Online Platforms (VLOPs) Content moderation The Digital Markets Act (DMA) Gatekeepers Competition in digital markets Jurisdiction and enforcement of digital rights Data Economy and Data Governance Big Data: concept and characteristics Volume Variety Velocity Value Algorithms and automated processing The European Data Strategy The Data Governance Act The Data Act Data portability and data sharing Business and industrial data ecosystems AI and Platforms Recommendation systems Generative AI content Platform accountability Reading Material: Digital Services Act (DSA); Digital Markets Act (DMA); Data Governance Act; Data Act; European Data Strategy; articles and slides available online.

Week 11

Big Data and fundamental rights The right to be forgotten Freedom of expression and information Consumer behaviour and algorithmic influence Algorithms and democratic processes Disinformation and misinformation Deepfakes and synthetic media Platform responsibility Case studies: Cambridge Analytica Social media and electoral integrity AI and Democratic Processes Data Economy and Data Governance Big Data: concept and characteristics Volume Variety Velocity Value AI and Platforms Recommendation systems Generative AI content Platform accountability Reading Material: AI Act; Digital Services Act (DSA); Charter of Fundamental Rights of the European Union; selected case law and case studies (Cambridge Analytica and others); articles and slides available online.

Week 12

Cyberlaw: concepts and legal foundations Internet governance and regulation Cyberlaw within the Italian Civil and Criminal Codes Cybersecurity regulation NIS2 Directive DORA Regulation Cyber Resilience Act Cybercrime Identity theft Ransomware Online fraud AI-enabled cyber offences Cybersecurity and Digital Resilience Governance and compliance Security by design Critical infrastructure protection Emerging Technologies and Cyber Risks AI and cybersecurity Cloud computing and IoT security Digital investigations and evidence. Reading Material: NIS2 Directive; DORA Regulation; Italian Criminal Code; articles and slides available online.