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Applying the Full Protection and Security Standard of International Investment Law to Digital Assets

Applying the Full Protection and Security Standard of... I INTRODUCTION In international investment law, the phrase Full Protection and Security ('Fps') refers to a standard of protection for foreign investments that provides security against physical damage that may occur to a foreign investor's property arising from war or civil unrest in the host state. The Fps standard is now common to many of the more than two thousand Bilateral Investment Treaties ('BIT'S) concluded between states to attract foreign direct investment ('FDI') and protect multinational investors.' While the Fps standard was traditionally held to govern the physical security of investors' tangible assets, this understanding may need to be modified to fit the nature of security threats faced by investors in the 21st Century, namely the integrity of digital investments like computer systems and websites from attacks levied through or against the internet. An application of the FPS standard in this manner will be difficult because of the nature of control that host states retain over digital networks. Moreover a host state's fulfilment of its Fps commitment in a treaty instrument may involve security undertakings that are beyond its economic capacity, especially in the case of Developing States, where many so-called 'cyber attacks' are believed to originate. This http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of World Investment and Trade Brill

Applying the Full Protection and Security Standard of International Investment Law to Digital Assets

Journal of World Investment and Trade , Volume 12 (2): 19 – Jan 1, 2011

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Publisher
Brill
Copyright
Copyright © Koninklijke Brill NV, Leiden, The Netherlands
ISSN
1660-7112
eISSN
2211-9000
DOI
10.1163/221190011X00184
Publisher site
See Article on Publisher Site

Abstract

I INTRODUCTION In international investment law, the phrase Full Protection and Security ('Fps') refers to a standard of protection for foreign investments that provides security against physical damage that may occur to a foreign investor's property arising from war or civil unrest in the host state. The Fps standard is now common to many of the more than two thousand Bilateral Investment Treaties ('BIT'S) concluded between states to attract foreign direct investment ('FDI') and protect multinational investors.' While the Fps standard was traditionally held to govern the physical security of investors' tangible assets, this understanding may need to be modified to fit the nature of security threats faced by investors in the 21st Century, namely the integrity of digital investments like computer systems and websites from attacks levied through or against the internet. An application of the FPS standard in this manner will be difficult because of the nature of control that host states retain over digital networks. Moreover a host state's fulfilment of its Fps commitment in a treaty instrument may involve security undertakings that are beyond its economic capacity, especially in the case of Developing States, where many so-called 'cyber attacks' are believed to originate. This

Journal

Journal of World Investment and TradeBrill

Published: Jan 1, 2011

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