Hogan Lovells 2024 Election Impact and Congressional Outlook Report
15 November 2024
EU Data Act applies to all types of “data” in general and introduces several new sub-categories to the concept of data. These categories include metadata, product data, related service data, readily available data, derivative data, primary data, and pre-processed data. Most of these newly introduced terms relate to the Data Act’s key rights to access, use, and sharing of data from connected products and related services.
This makes it essential for companies to understand which data categories are covered by these rights in order to comply with the Data Act. To draw a more precise picture of the scope of the data access and sharing rights under the EU Data Act, this article sheds light on the different data types covered by access and sharing rights. We highlight the difference between “readily available data” and “derivative data” as well as the difference between “derivative data” and “pre-processed data”.
The EU Data Act (DA – Regulation (EU) 2023/2854) came into force on 11 January 2024 with most of its provisions applying from 12 September 2025. The goal of the Data Act is to make data more widely accessible in the EU so that data can be utilized more broadly by different parties. To achieve this, the Data Act gives users of connected products or related services new rights to access and share data generated by these products:
The EU legislator adopted a broad definition of “data” and then refined it into more specific subcategories tailored to different areas related to data access and sharing obligations under the Data Act. This creates a system that may seem complex but is coherent when it comes to claims for accessing, using, and sharing data from connected products and services.
The following table provides an overview of the various types of data mentioned in the Data Act. All these data types are covered by the general definition of "data" defined in Art. 2(1) DA as “any digital representation of acts, facts or information and any compilation of such acts, facts or information, including in the form of sound, visual or audio-visual recording.”
Unfortunately, the Data Act provides little guidance on several key distinctions determining which types of data are covered by rights provided under Art. 3, 4, and 5 DA. The following two data terms are of particular interest:
a. “Readily available data” under Art. 4 and 5 DA
Art. 2 (17) DA defines readily available data as “product data and related service data that a data holder lawfully obtains or can lawfully obtain from the connected product or related service, without disproportionate effort going beyond a simple operation” – however, without providing further clarification. Examples of readily available data include information like temperature readings, energy consumption data, or activity logs.
To clarify the scope of the definition of readily available data, it makes sense to take an economic approach: If obtaining and providing access to certain data incurs significant additional costs that are disproportionate to what is provided by the product or service, then such data cannot be considered readily available. For instance, if substantial processing or analysis is needed to gain insights – such as predictive analytics, complex machine learning outputs, or aggregated user behavior trends – this type of processed information falls outside the definition in Art. 2(17) DA. While raw data might be readily available, the processed insights might require significant computational resources and expertise, resulting in additional costs.
Despite the (remaining) vagueness of the term, the distinction between product data and related service data (Art. 3 DA) on the one hand and readily available data (Art. 4 and 5 DA) on the other hand is understandable for two reasons:
b. Derivative data vs. pre-processed data
The second relevant distinction between pre-processed data and derivative data was subject to continuous change during the Data Act’s legislative process. Only briefly addressed in a subordinate recital clause in the Commission’s draft, the Council devoted an entire recital to the distinction in its negotiating mandate. The parliamentary draft even included it in the wording of Art. 3(1) DA. In the official text, the distinction is now somewhat hidden in Recital 15 DA, saying that information derived from pre-processed data is the outcome of additional investments into assigning values or insights from the data that do not fall within the scope of the Data Act.
While the term pre-processed data should not be interpreted in a way that the data holder would be obliged to make significant investments or a categorization based on their expertise (Recital 15 DA), derived data requires precisely such investments. To illustrate this, the Data Act names information obtained through sensor fusion and then further processed using complex algorithms. A further example of derived data could be the categorization of the pH value of arable soil as acidic or alkaline measured by an agricultural machinery robot or the subsequent recommendation of which plants the soil is best suited for.
For example: A smart thermostat collects temperature readings from a home along with the user's heating preferences. The resulting dataset is pre-processed if these readings are slightly refined or standardized (e.g., adjusting for time zones or correcting sensor errors). Next, the thermostat's data can be analyzed using algorithms to forecast future energy usage. This analysis takes into account user behavior patterns and weather forecasts through machine learning model input. The resulting predictions about energy consumption can be qualified as derivative data because it is the outcome of additional investment.
In order to ensure compliance with the Data Act, manufacturers and data holders should carefully consider the above distinctions of data types relevant under the Data Act. In particular, the following key take-aways should be taken into account from a product design perspective as well as with regard to the setup of customer agreements:
Authored by Jasper Siems, Henrik Hanssen, and Lennart Knutzen-Lohmann.