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Legal Certainty Crucial for AI Investment and Innovation

As the artificial intelligence (AI) sector continues to evolve, legal certainty is becoming increasingly important for investors and innovators alike. In Slovenia, the government has taken steps to provide a clear framework for businesses operating in the AI space.

Accessing Talent

Employment law in Slovenia is governed by the Employment Relationships Act (ZDR-1), which sets out the rules for hiring and dismissing staff. Employers must adhere to strict guidelines, including:

  • Providing a valid reason for dismissal
  • Meeting certain obligations before terminating an employee’s contract

Mandatory employment benefits include:

  • Providing work
  • Pay
  • Safe working conditions
  • Protecting employees’ personal data
  • Expense reimbursements
  • Subsidized food expenses

Overcoming Hurdles

For businesses looking to bring in talent from outside Slovenia, there are certain hurdles to overcome. Employers must:

  • Register their business
  • Meet specific requirements, including a minimum monthly turnover of EUR 10,000
  • Comply with specific provisions for workers, depending on their residence status and duration of stay in the country

Protecting Innovations

Innovations and inventions in Slovenia are protected through patents, which are granted for:

  • New ideas
  • Inventive ideas
  • Industrially applicable ideas

Patent holders have exclusive rights over their invention for a period of 20 years from the date of filing, with possible extensions. IP rights can also be enforced through international treaties or registration for international use.

However, there are some restrictions on exploiting IP, including:

  • Prohibitions on leasing certain types of IP, such as architectural buildings and original works of art

Monetizing IP

While there is no specific law on monetizing IP in Slovenia, businesses can exploit their rights through:

  • Exclusive leases
  • Licenses

However, not all IP categories can be leased, and new forms of IP, such as Non-Fungible Tokens (NFTs), have yet to be recognized by the Slovenian legal system.

Conclusion

Providing legal certainty is crucial for attracting investment and innovation in Slovenia’s AI sector. By clarifying employment law, patent protection, and IP rights, businesses can operate with confidence and focus on driving growth and development.