Data has become one of the most valuable assets in the technology sector. Whether collected from users, generated through operations, or acquired from third parties, it fuels innovation, analytics and commercial strategy. However, the legal and contractual obligations surrounding data supply and processing are complex - particularly where personal, sensitive, or cross-border data is involved.
Well-structured data agreements define who owns the data, how it may be used and how it must be protected. They also establish liability for misuse, breach or loss. Without clear terms, businesses face legal exposure, operational disruption, and reputational risk.
Data Protection Framework
When it comes to processing personal data, there is the added layer of data protection law. Arrangements in the UK are principally governed by the UK GDPR and the Data Protection Act 2018, which regulate the roles and responsibilities of data controllers and processors. These laws require written contracts that set out:
- Purpose and lawful basis for data processing;
- Nature and duration of processing;
- Security and confidentiality obligations;
- Sub-processor management and oversight;
- Data subject rights and breach notification procedures;
- International transfer mechanisms, where data is stored or accessed outside the UK.
In addition, commercial considerations - such as pricing, exclusivity, data usage rights and intellectual property - often play a major role in determining how data can be supplied, licensed or monetised.
Typical Issues and Considerations
Common challenges for technology businesses include:
- Unclear ownership or usage rights in datasets developed jointly or sourced externally;
- Non-compliance with contractual or regulatory requirements for data processing;
- Inadequate data security and incident response procedures;
- Complex cross-border data transfers and localisation obligations;
- Misalignment between data protection policies and commercial data exploitation strategies.
Balancing compliance and ownership with commercial flexibility is key. Businesses must ensure that data is both protected and usable - capable of driving growth without breaching legal boundaries.
How We Can Help
Culbert Ellis assists technology companies, data suppliers, and processors in designing and managing lawful, commercially effective data arrangements, including:
- Drafting and negotiation of data supply, processing, and sharing agreements.
- Advising on roles and responsibilities under the UK GDPR.
- Structuring compliant cross-border data transfer and cloud hosting arrangements.
- Advising on data ownership and licensing for monetisation and reuse.
- Responding to data incidents, including breach management and regulatory reporting.
Our team combines deep sector knowledge with regulatory precision, enabling clients to build data-driven strategies that are innovative, compliant, and secure.
Free Initial Discussion
If you require advice on data supply, processing, or compliance with UK data protection laws, contact us for a confidential discussion with one of our technology law specialists.
