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Markus von Fuchs advises in intellectual property law, in particular in competition, patent, and trademark law as well as on the protection of know-how. He advises companies on protecting and commercially exploiting intellectual property, for example through licensing, sales, R&D, and cooperation agreements. He also focuses on the judicial and extrajudicial defense of intellectual property rights in interim injunction and principal proceedings. He further advises on border seizing procedures, initiates and advises on criminal measures relating to product and brand piracy, and on the infringement of business and business secrets. Markus von Fuchs also advises many companies on developing and introducing new technologies and business models. He has particular expertise in the optical and medical technology sectors.
Norbert Klingner specializes in national and international movie/TV and advertising film production, financing, insurance, and distribution. He represents well-known producers, distributors, global distributors, and movie financing entities. His expertise ranges from negotiating and drafting contracts from the beginning of the material development to all matters related to production and financing up to the strategically correct exploitation and licensing. A selection of the film productions in which Mr. Klingner was involved can be found on the Internet Movie Database IMDb.
Margret Knitter advises her clients in all matters of intellectual property and competition law. This includes not only strategic advice, but also legal disputes. Her practice focuses on the development and defense of trademark and design portfolios, border seizure proceedings and advice on developing marketing campaigns. She advises on labelling obligations, packaging design, marketing strategies and regulatory questions, in particular for cosmetics, detergents, toys, foodstuffs and Cannabis. She represents her clients vis-à-vis authorities, courts and the public prosecutor's office.
In the field of media and entertainment, she mainly advises on questions of advertising law, in particular product placement, branded entertainment and influencer marketing. She is a member of the board of the Branded Content Marketing Association (BCMA) for the DACH region and member of the INTA Non-Traditional Marks Committee.
Dr. Matthias Nordmann advises international groups, mid cap companies, investors and entrepreneurs on company, commercial and corporate law in particular on structuring and mergers & acquisitions. He has a special focus on transactions in IP/IT driven industries as well as real estate.
Dr. Andreas Peschel-Mehner has provided legal counsel to all forms of digital business since the inception of the world wide web. His advisory spans start-ups, multi-channel offerings and international internet companies and focuses on all applicable legal fields with a particular emphasis on data protection and usage, terms and conditions, consumer protection, compliance, advertising, gaming and competition law, among numerous others. Dr. Andreas Peschel-Mehner also commands broad expertise in media and entertainment law, in particular issues touching on the film and television industry and those related to media production finance and the global exploitation thereof, with digital media advisory on changes to utilization models, revenue streams and video on demand platforms composing a significant part of his counsel.
An excerpt of the projects Dr. Andreas Peschel-Mehner has accompanied can be found on the Internet Movie Database IMDb. His advisory expertise is augmented by decades of involvement with and counsel of national and international computer game publishers and studios. Finally, developments and use of KI technologies across all his expert areas has become a strategic element of his practice.
Legal expertise – digitally sophisticated
Stefan Schicker has been advising clients at the intersection of law, technology, and innovation for over 20 years. As an experienced and award-winning lawyer specializing in IT and IP law, he assists national and international companies in the legally compliant design of digital business models – from the design of complex internet platforms to the protection of intellectual property.
One of Stefan Schicker's special areas of expertise is the legal structuring of corporate influencer initiatives: with specially developed workshops, he supports companies in setting up corporate LinkedIn communication in a legally compliant and effective manner – in accordance with copyright, personality rights, competition law, etc. – More information.
Legal tech & law firm development – with leadership experience
In parallel to his legal practice, Stefan Schicker is one of the most prominent legal tech experts in the German-speaking world. As former COO and CEO of SKW Schwarz, he played a key role in shaping the digital transformation of the law firm – from strategy to operational implementation.
Today, he supports law firms and legal departments in establishing and expanding modern structures:
- Development and introduction of AI-supported tools
- Establishing internal teams of experts and training concepts
- Change processes for the sustainable anchoring of digital working methods
- Organization of law firms as companies
Stefan Schicker brings a unique combination of legal depth, technological experience, and operational law firm management to the table – recognized, among other things, as one of the “Top 3 Legal Leaders of the Year” (Best of Legal Awards).
For companies and law firms that don't want to wait for the future
Whether companies with digital business models or law firms undergoing change: Stefan Schicker combines legal certainty with entrepreneurial foresight – and makes complex transformations understandable, feasible, and effective – More information.
News
CJEU Judgment on Geoblocking: The Limits of the Borderless Internet
While information on the internet is accessible worldwide at any time, its legal regulations and intellectual property rights are always subject to strict territorial limits. Anyone who publishes content online must therefore be aware of the risk of infringing third-party rights abroad. The Court of Justice of the European Union (CJEU) has now ruled that effective geoblocking can prevent such infringements in other countries (judgment of 9 July 2026, Case C-788/24 – Anne Frank Fonds).
The Anne Frank Case: Geoblocking as Protection Against Copyright Claims
The legal proceedings involved a dispute between the Anne Frank Fonds and the Anne Frank Stichting regarding the online publication of the diaries of the world-famous Jewish teenager. While the works are already in the public domain in Belgium, they remain partially protected by copyright in the Netherlands until 2037. The defendants published a scientific edition on a Belgian website but blocked access for users from the Netherlands using geoblocking. The Anne Frank Fonds nevertheless considered this an infringement of its copyrights, arguing that users could bypass the restriction via standard VPN services.
The CJEU ruled that an unauthorized "communication to the public" — and thus an infringement of the copyrights still existing in the Netherlands — does not occur, provided that the geographical restriction is effective. To achieve this, the block must primarily correspond to the latest state of the art. Absolute security is not required. A user-side circumvention by means of VPN services does not automatically render the restriction ineffective.
Relevance Beyond Copyright Law
At the same time, the CJEU emphasizes conversely that an active duty applies to anyone who knows or ought to know about existing intellectual property rights abroad. Anyone who, with knowledge of such rights, fails to implement effective geoblocking measures is deemed to be targeting their content at the entire global audience (para. 42 of the judgment). The CJEU left open when such knowledge (the duty to know) can be assumed. Previous business relationships or the existence of delimitation agreements could already be sufficient.
This duty by no means affects copyright law alone. Geoblocking is also playing an increasingly important role in trademark law. An infringement of a national trademark on the internet requires that the use of the trademark actually takes place within the domestic territory. In this context, courts examine whether the use of the sign produces a noticeable economic effect in the domestic market—the so-called "commercial effect".
Whether such a domestic nexus exists must generally be assessed based on the specific circumstances of each case. Relevant factors include, among others, the language of the website, the top-level domain, information provided on the website, or—if available—specific delivery options, as well as other circumstances such as economic activity in the country. Now confirmed by the CJEU, the absence of geoblocking measures is at least a strong, if not decisive, indication that the website in question is (also) directed at the domestic public. This is likely to be particularly relevant for global websites.
Liability of the Website Operator, Not the VPN Provider
According to the CJEU, it is solely the website operator who is liable for ineffective technical measures — not the VPN provider whose service is used to circumvent them. This applies even if the VPN provider is aware that its service can be used to access protected content without the rights holders’ consent.
Conclusion
The CJEU judgment provides much-needed clarity for online business practices. Geoblocking has become a central tool for legally secure market segmentation in intellectual property law. At the same time, the lack of geoblocking measures can indicate that accessing the content from abroad is intentionally desired. Conversely, anyone who deliberately restricts their online activities to specific countries and implements this technically soundly via geoblocking can effectively eliminate liability risks abroad.
CJEU: Consumers Cannot Waive Their 14-Day Right of Withdrawal When Signing Up for a Streaming Subscription
Is the supply of a streaming service to be classified as an offer of ‘digital content’ or of a ‘digital service’ within the meaning of Articles 2(11) and (16) of the Consumer Rights Directive 2011/83/EU (hereinafter the ‘CRD’)? With regard to this question, whether a waiver of the right of withdrawal is possible (digital content) or not (digital services), opinions differ sharply.
Austria's Supreme Court sought clarity and referred this question – which ultimately determines when consumers' right of withdrawal lapses and thus goes well beyond a mere semantic distinction – to the Court of Justice of the European Union (CJEU). On July 9, the CJEU ruled in favor of stronger consumer protection (Judgment of 9 July 2026, Case C-234/25).
Personalized Streaming Services Constitute ‘Digital Services’
Consumers who wish to access films, series, or live sports on Sky or other streaming platforms before the expiration of the 14-day withdrawal period are typically required to waive their right of withdrawal when concluding the contract. Article 16(1)(m) in conjunction with Article 2(11) CRD provides such an exception to the right of withdrawal laid down in Article 9(1) – but only for ‘digital content’.
Following the view of the European Commission and the Advocate General, which the CJEU has adopted, streaming subscriptions generally do not constitute ‘digital content’, but rather ‘digital services’, to which this exception does not apply. Instead, the consumer's right of withdrawal expires only once the streaming provider has fully performed the contractual service (Article 16(1)(a) in conjunction with Article 2(16) CRD).
Unlike the supply of ‘digital content’, the supply of a ‘digital service’ is ‘necessarily defined by the dynamic nature of the offering proposed by the trader concerned, which goes beyond the mere stable and, as the case may be, continuous provision of specific content.’ According to the CJEU, this is the case, in particular, where ‘the offering is designed to adapt to the consumer’s individual behaviour or expectations, or to influence the manner in which the consumer uses the services concerned, for example by recommending specific content to the consumer.’ Such recommendation systems are an integral part of virtually all modern streaming services, helping users navigate an overwhelming volume of available content.
No Risk of Abuse Due to Appropriate Compensation
Sky Österreich Fernsehen GmbH (hereinafter ‘Sky Austria’) was unsuccessful in arguing that such an interpretation would open the door to abuse. Sky Austria pointed out that subscription numbers typically spike when a popular series’ first or final season is released, or when decisive matches in football championships take place. If customers were able to cancel their subscription immediately after viewing such content, they could effectively receive this premium programming for free.
The CJEU held that the legislature had already addressed this concern in Article 14(3) CRD, which entitles the trader to compensation proportionate ‘to what has been provided until the time the consumer has informed the trader of the exercise of the right of withdrawal, in comparison with the full coverage of the contract.’ In this regard, the trader is not required to calculate this compensation purely on a time‑proportionate basis (pro rata temporis); it may instead take the market value of the service provided as a starting point in order to reflect the differences in economic value between the offered content (for example, the final stage of a sporting competition compared with a daily television series). In plain terms, this means the compensation a consumer owes could actually exceed the monthly subscription fee; either way, charging at least a pro-rata (time-proportional) fee remains permissible. Seen in this light, the CJEU ruling is likely to be a theoretical victory for consumers – in practice, not much is likely to change, and probably rightly so.
Applicability to German Law
Since the Austrian provision at the centre of this request, Section 18(1)(1) and (11) of the Distance and Off‑Premises Contracts Act (Fern‑ und Auswärtsgeschäfte‑Gesetz), essentially corresponds to Sections 356(5) and (6) of the German Civil Code (Bürgerliches Gesetzbuch), the decision can readily be transposed to German law. In addition, the CRD does not expressly refer to the law of the Member States for the interpretation of the term ‘digital content’, which is why that term must be interpreted autonomously and uniformly under EU law.
Outlook
With this decision, the CJEU is significantly shaking up the existing landscape of streaming subscriptions, particularly since, on the one hand, the architecture of streaming services in the form of recommendation systems is affected, and on the other hand, claims for compensation in the event of withdrawal following prior streaming consumption are likely to meet with little acceptance at first.
Indirectly, the decision is also likely to have repercussions for other streaming models – whether the streaming of music tracks and podcasts via Spotify, audiobooks via Audible, or the magazine subscription with the Süddeutsche Zeitung – wherever the provider's performance goes beyond the mere provision of a single digital item. The CJEU has thus cut a dogmatic swath that points far beyond the specific question referred. In economic terms, this swath will be less significant, since compensation fees will become established for the usage that occurred prior to withdrawal.
KI-Flash: EDPB Publishes Guidelines on Web Scraping in the Context of Generative AI
Web scraping is practically indispensable for training large AI models – and, from a data protection perspective, one of the biggest open questions: who is liable if personal data ends up in a training dataset through the automated harvesting of the open internet? On 7 July 2026, the European Data Protection Board (EDPB) addressed this question in Guidelines 03/2026, presenting a concrete assessment framework for the first time. Having already reported on the EDPB's Opinion 28/2024 on AI models in an earlier KI-Flash, we now turn to this second major development from the same plenary session. We reported separately on the Guidelines on the Anonymization of Personal Data adopted at the same time. The new web scraping guidelines are likewise open for public consultation until 30 October 2026.
Web Scraping for AI Training Purposes
More precisely, web scraping refers to the automated extraction of large volumes of data from publicly accessible internet sources – one of the central methods for sourcing training data for generative AI models. Until now, there was no specific, EU-wide guidance on how this practice can be reconciled with the requirements of the GDPR. The new guidelines close this gap and build on the Opinion 28/2024 mentioned above, as well as on Guidelines 1/2024 on Article 6(1)(f) GDPR. They are addressed to private entities that scrape data themselves, engage third parties to do so, or use already-scraped datasets for training or fine-tuning.
Controllership: Who Is Responsible for the Scraping Process?
A key question in practice concerns the allocation of roles under data protection law: the EDPB clarifies that the entity carrying out the scraping is not automatically a controller within the meaning of the GDPR. What matters instead is who determines the purposes and means of the processing. If an AI developer engages a service provider to carry out scraping under documented instructions, that provider will generally qualify as a processor, while the developer is treated as the controller. Where an already-scraped dataset is reused by a third party, the scraper and the reusing AI developer are, in principle, separately responsible for their own respective processing. Only where both parties jointly determine the purposes and means does joint controllership come into consideration.
Transparency: When Does the Individual Duty to Inform Not Apply?
With controllership clarified, this also raises the question of adequate transparency: the information obligations under Articles 13 and 14 GDPR pose practical difficulties for controllers engaged in web scraping, since data subjects are often not individually identifiable where data is collected indirectly. The EDPB acknowledges that individual information may be dispensed with where it proves impossible or would involve disproportionate effort (Article 14(5)(b) GDPR). This exception, however, does not apply across the board; it requires weighing the effort involved against the impact on the data subjects concerned, considering the volume and age of the data and the safeguards already in place. As a minimum measure, the EDPB requires controllers in such cases to make the information publicly available, for instance through a privacy notice specifying the categories of data, the sources and, where possible, the characteristics of the crawler used.
Data Minimisation: Measures Before, During and After Collection
The principle does not rule out training on large volumes of data as such, but it does require that personal data not needed for the purpose should not be collected in the first place. The EDPB proposes a multi-layered set of measures to this end. Before collection, controllers should, among other things, consider using synthetic data, define precise selection criteria, and exclude websites that structurally contain particularly sensitive data or that technically oppose scraping, for example through robots.txt, ai.txt or CAPTCHA. During and after collection, syntax-based filtering, pseudonymization and anonymization come into consideration as well. In addition, the EDPB requires controllers to ensure data quality by relying on reliable sources, timestamping the data and carrying out sample checks, to meet the principle of accuracy.
Legitimate Interest as the Key Legal Basis
The question of which legal basis could justify any of this in the first place usually leads, in practice, to Article 6(1)(f) GDPR: consent is practically impossible to obtain in the case of indirect, large-scale collection, which is why web scraping for generative AI is regularly based on legitimate interest instead. The EDPB applies the familiar three-step test: the existence of a legitimate interest, the necessity of the processing, and a balancing of interests. As examples of legitimate interests, it cites the development of chatbots or improvements to threat detection. In the balancing exercise, particular weight is given to data subjects' ability to control their own data, possible chilling effects arising from a sense of being under surveillance, and data subjects' reasonable expectations, for example whether a website technically excludes scraping or whether the data was made recognizably and publicly available.
Where the balancing test comes out against the data subjects, mitigating measures such as opt-out lists, shortened retention periods or enhanced transparency measures can restore the lawfulness of the processing.
Special Categories of Personal Data
Handling sensitive data also poses a particular challenge: special categories of personal data under Article 9 GDPR are, in principle, subject to a prohibition on processing that can only be lifted where one of the exceptions under Article 9(2) GDPR applies. Because it is difficult to reliably rule out in advance that sensitive data will also be captured when scraping large volumes of data, the EDPB transposes the CJEU's reasoning in GC and Others (C-136/17), concerning the responsibility of search engine operators, to the web scraping context: the prohibition under Article 9(1) GDPR then applies only within the framework of the controller's responsibilities, powers and capabilities, provided the controller takes appropriate measures to prevent and delete such data before, during and after AI development. This transposition is subject to narrow conditions: it applies only where the activity is structurally comparable to that of a search engine, and only to the incidental, unintended capture of sensitive data.
Practical Note
Even though the guidelines have not yet been finally adopted, they already provide clear guidance that national supervisory authorities are likely to apply when reviewing existing and future training data pipelines. Companies that scrape data themselves, commission scraping, or purchase already-scraped datasets should promptly review their own documentation on the balancing of interests, data minimization measures and the handling of special categories of data against the criteria set out in the guidelines. The ongoing consultation also offers an opportunity to feed practical experience and concerns directly into the final text.
We would be glad to assist you in reviewing your training data pipelines for compliance with the new EDPB guidelines, as well as in preparing or updating your data protection documentation for AI training processes.
Margret Knitter named once again among the “Top 250 Women in IP”
Managing IP has published the latest edition of its “Top 250 Women in IP” ranking, once again recognising our partner Margret Knitter among the world's leading women in intellectual property.
Published annually since 2013, the “Top 250 Women in IP” ranking highlights outstanding female IP practitioners from more than 30 jurisdictions who have distinguished themselves through exceptional work for clients and their firms. The selection is based on extensive research conducted by the IP STARS editorial team.
Margret Knitter’s continued inclusion in this list reflects her longstanding expertise in trademark, design and unfair competition law, as well as her strong reputation within the international intellectual property community.
This recognition complements SKW Schwarz's excellent performance in the IP STARS 2026 rankings, where the firm was once again recognised among the leading firms for trademark and copyright law, with several of its practitioners receiving individual distinctions.
Congratulations to Margret Knitter on this well-deserved international recognition.
Guidelines on the Anonymisation of Personal Data – European Data Protection Board (EDPB) Launches Public Consultation
On 7 July 2026, the EDPB published its long-awaited Guidelines on the anonymisation of personal data (“Guidelines”). These Guidelines are currently in draft form and are expected to be adopted following the public consultation process, which is open until 30 October 2026.
What is this about?
The key criterion for the application of the General Data Protection Regulation (“GDPR”) is the processing of personal data (“PD”). This concept is defined broadly in Article 4(1) GDPR. According to Recital 26, sentence 5 GDPR, the principles of data protection do not apply to anonymous information. Consequently, the GDPR does not apply to information that does not relate to an identified or identifiable natural person. Existing links between information and an identifiable individual can be removed through anonymisation.
Although this fundamental distinction in data protection law already existed before the GDPR came into force, determining when information has been anonymised to a legally sufficient standard remains both a technical and legal challenge in practice.
The former Article 29 Working Party had already addressed this issue in its respective Opinion from 2014. Over the past ten years, the Court of Justice of the European Union (CJEU) has also issued several judgments on the subject (see, for example, most recently the SRB decision).
Key Content of the Guidelines
The EDPB aims to provide greater clarity in distinguishing between anonymous information and personal data by establishing a practical assessment framework.
According to the EDPB, the three key criteria are No Record Isolation, No Linkage, and No Inference (see paragraphs 52 et seq. of the Guidelines).
The first criterion, No Record Isolation, requires that a dataset does not contain any attributes capable of identifying an individual. Considered on its own, the data must not constitute personal data.
The second criterion, No Linkage, builds on the first. It requires that the dataset cannot be linked to another dataset in a way that would enable the identification of a natural person.
The third criterion, No Inference, requires that no conclusions about a specific individual can be drawn from the available data. Such conclusions or inferences must also not be possible through the combination of the data with reasonably available additional information. In practical terms, it must not be possible to re-identify a natural person through analysis, linkage, or statistical inference.
These three criteria interact with one another and may be satisfied to varying degrees. What matters is that, when assessed as a whole, the information has been effectively anonymised (see paragraph 53 of the Guidelines).
What Happens Next?
The EDPB invites all interested stakeholders to participate in the public consultation until 30 October 2026. As discussions are currently ongoing at EU level regarding the GDPR-related provisions of the Digital Omnibus Act-which also focus (or have focused) on the concept of personal data-we expect a significant number of submissions.
In our view, the Guidelines represent an important step towards making the GDPR's requirements and the relevant case law on anonymisation more practical and easier to apply.
We will also publish an analysis once the final version of the Guidelines has been adopted.
SKW Schwarz Among the Top 10 Mid-Sized Employers for Career Starters
SKW Schwarz has been ranked among the Top 10 mid-sized employers for early career lawyers and has been nominated for the iurratio awards 2027.
The nomination recognizes the firm's commitment to providing outstanding training and attractive career opportunities for young legal professionals. In the category "Best Employers for Career Starters – Best Mid-Sized Law Firm," SKW Schwarz is one of the ten nominated firms.
The iurratio awards are presented annually based on a comprehensive employer survey and a nationwide talent survey of law students, trainee lawyers (Referendare), research assistants, and fully qualified lawyers. The evaluation covers a range of criteria, including training and professional development, working models and career prospects, health and well-being initiatives, work-life balance, diversity and social responsibility, as well as legal tech and digitalization.
This nomination reflects our commitment to providing aspiring lawyers with an outstanding environment to launch their careers—offering challenging mandates, personalized development, and a wide range of opportunities for professional growth. We are delighted to receive this recognition and would like to thank all of our colleagues whose dedication has made this achievement possible.
You can find the full list of nominated law firms here:
https://iurratio.de/die-besten-arbeitgeber-fuer-referendariat-berufseinstieg-2027
The winners of the iurratio awards 2027 will be announced in November 2026.
NIS2 – LAST CALL: New Registration Deadline!
NIS2 is a European directive under which significantly more companies than before will be required to implement IT security measures within their operations, including many organizations that likely never expected to be classified as important entities for Germany’s critical infrastructure. The requirements of the EU directive have already been incorporated into the German BSI Act and are directly applicable without any transitional periods.
Among the obligations of affected entities is the registration with the German Federal Office for Information Security (BSI). The deadline for this registration, which is subject to administrative fines, officially expired on March 6, 2026.
So far, however, the BSI has shown some leniency despite the low number of registrations received. According to statements by the authority, fines (of up to €500,000) were not expected to be imposed at this stage (as we reported here).
Is that changing now? It appears so!
The BSI has now sent a letter to business associations in which the authority has noticeably tightened its tone.
Affected entities are expected to complete their registration no later than July 31, 2026. According to the BSI, these registrations are overdue. Even in difficult cases involving uncertainty about whether an entity falls within the scope of the regulation, the authority is showing increasingly little tolerance for further delays. Such entities are requested to submit their consolidated questions to the BSI and, if they are found to be within scope, complete their registration within six weeks after receiving the authority’s response.
In other words: “Last Call” for anyone who has not yet devoted sufficient attention to this issue.
The scope of the new IT security requirements is broad and by no means limited to traditional “critical infrastructure” operators. We have previously reported here on examples of rather unexpected cases falling within the scope of the regulation.
Our NIS2 applicability assessment tool (here) provides a free and easy starting point for companies that now need to determine whether they are affected.
SKW Schwarz at the Bitkom Social Media Roundtable
On June 12, 2026, the Bitkom Social Media Stammtisch met in person for the first time. Also in attendance: the SKW Schwarz team.
This time, the event focused on corporate influencers as part of modern corporate communications. Social media is personal – people follow people. Corporate influencers provide insights, build trust, and make messages more tangible than traditional corporate communications.
But what does this look like in practice? What legal considerations must be taken into account? Johannes Schäufele and Fabian Bauer, representing our Branded Content and Influencer Marketing focus group, provided an overview of the legal framework governing the use of corporate influencers. The discussion focused in particular on:
- Legally compliant use of copyrighted content
- Disclosure requirements
- Use cases and practical recommendations
Bitkom’s Social Media Roundtable is a networking and discussion forum for social media managers, communications, and marketing experts. At regular meetings, participants discuss current developments, trends, and challenges in digital communication. The focus is on practical insights, best practices, and an open exchange of experiences regarding strategies, platforms, and formats. At the same time, the roundtable offers the opportunity to make new contacts, learn from one another, and gain valuable inspiration for one’s own work. Detailed information can be found on the organizer’s website.
VAT on Sports Clubs: New Structuring Options Following BFH Decision
With its decision published on 13 November 2025, the German Federal Fiscal Court (Bundesfinanzhof – BFH) clarified that services supplied by charitable sports clubs to their members are, as a rule, taxable supplies. As a result, membership fees can in principle constitute consideration for the provision of sporting activities and therefore be subject to VAT.
While the decision triggered a wave of critical media coverage, its core reasoning also opens up attractive structuring opportunities in individual cases. The current – and politically preferred – practice of the German tax authorities, under which membership fees are generally treated as non‑taxable, conflicts with the court’s ruling. Going forward, it may be advantageous for sports clubs, particularly in years with significant capital expenditure on club infrastructure, to deliberately opt for taxability and thereby benefit from input VAT recovery.
Background
The case concerned a charitable sports club which, in 2015, offered various sports and operated its first men’s football team as a commercial business activity. Other sports offered included swimming, table tennis, gymnastics, apparatus gymnastics, dodgeball, running, athletics, dancing and Zumba.
The club built an artificial turf pitch on leased land and received a subsidy from the local municipality. In its VAT return, the club declared revenues from leasing and admission charges as well as from membership fees and applied the reduced VAT rate to all of them. Its reasoning was that the membership fees represented consideration for its services, so it wished to charge VAT in order to secure input VAT recovery on investments such as the artificial turf pitch.
The tax authorities, relying on established administrative practice, including the circular of the Federal Ministry of Finance (BMF) of 4 February 2019 (BStBl I 2019, 115), took the view that membership fees were to be regarded as participation fees for exempt sporting events within the meaning of section 4 no. 22(b) of the German VAT Act (UStG). On that basis, they denied input VAT deduction at least to the extent of the membership fees.
The club objected, arguing that membership fees are not participation fees within the meaning of the VAT Act and that, in particular, there is no clear statutory exemption provision for membership fees.
The Decision
The BFH held that services supplied by a charitable sports club to its members can in principle be subject to VAT. Membership fees are to be treated as consideration for the club’s services – and are thus taxable – where, from the perspective of the average member, there is a specific benefit in return, such as the right to use sports facilities and activities.
In doing so, the BFH expressly contradicted the tax authorities’ administrative practice, which for more than 15 years has departed from the highest court’s case law by treating such services as outside the scope of VAT. The BFH referred to EU law requirements, in particular Article 2(1)(a), (c) of the VAT Directive (MwStSystRL), which does not provide for any special exception for sports clubs. For the court, the decisive factor is that membership fees constitute consideration for access to the club’s offerings, irrespective of whether individual members actually make use of them.
According to the BFH, the exemption in section 4 no. 22(b) UStG applies only to sporting events where active athletes are able to engage in sport by virtue of the club’s organisational measures. Mere making available of sports facilities or unsupervised training without instruction will generally not suffice. What is required is an additional element, such as a qualified organisational framework or the presentation of sporting performances.
The BFH also emphasised that where there is a single composite supply comprising elements of equal importance, and not all elements fall within the exemption, the entire supply may be fully taxable. Due to inadequate findings by the lower court, the BFH set aside the judgment of the tax court (Finanzgericht – FG) and remitted the case. The FG must now examine whether the reduced VAT rate under section 12(2) no. 8(a) UStG is available and whether any additional state aid considerations need to be taken into account.
Implications: New Structuring Flexibility for Sports Clubs
The decision has been received critically in the media. The business daily Handelsblatt went so far as to warn of a looming “tax shock” for sports clubs (Handelsblatt). In response to the judgment, the Federal Ministry of Finance announced that it would review whether to adjust its administrative practice (FAZ). Sports associations such as the German Olympic Sports Confederation (DOSB) and the German Football Association (DFB), as well as political stakeholders, point to the risks of higher VAT burdens for clubs.
However, at least for a transitional period until any new legislation is adopted, the ruling also creates attractive planning opportunities:
First, the decision provides concrete guidance on the long‑standing key distinction between VAT‑exempt “sporting events” and (generally taxable) supplies consisting of making facilities available (see also BeckOK UStG/Reis, 48th ed. 15.3.2026, section 4 no. 22 UStG, paras. 130 et seq.). According to the tax authorities, a sporting event is an organisational measure taken by an eligible entity that enables active athletes to engage in sport. By contrast – as the BFH again underlines – there is no sporting event where the service is limited to the mere provision of sports facilities or equipment, or to isolated services (such as one‑to‑one training without any event character). In those cases, the exemption in section 4 no. 22(b) UStG is ruled out. Second, the judgment highlights the existing gap between case law and tax administration in relation to membership fees. While the tax authorities often exclude membership fees at the level of taxability (treating them as non‑taxable from the outset), the BFH assumes that they generally constitute consideration for services supplied by the club. This divergence effectively creates a choice:
Clubs may, after carefully weighing the consequences, either
- follow the administrative practice and treat membership fees as non‑taxable (with the result that no input VAT deduction is available), or
- follow the BFH’s case law and treat them as taxable consideration and – to the extent no exemption applies – as subject to VAT.
In the latter case, clubs gain access to input VAT on investments in club infrastructure (e.g. construction or refurbishment of pitches, halls or other facilities).
Against this backdrop, the requirements of Article 132(1)(m) of the VAT Directive take on particular importance. Under EU law, the exemption is not tied to the narrow concept of a “sporting event”; instead, it covers “certain services closely linked to sport or physical education”. The BFH has, however, abandoned its earlier case law which allowed businesses in the sports sector to rely directly on this provision, for example to treat the mere making available of sports facilities as VAT‑exempt.
In line with the current approach of the Court of Justice of the European Union (CJEU) and the BFH, the national legislature enjoys a margin of discretion in this area, although this must be exercised in conformity with EU law principles. The German legislator has clearly chosen to limit the exemption to sporting events within the meaning of section 4 no. 22(b) UStG. For sports clubs, this means that the range of VAT‑exempt services is essentially determined by this national concept and that simple facility rental – unlike what was assumed in earlier case law in some instances – is necessarily taxable.
In practice, the BFH decision requires charitable sports clubs to take a closer look at how their services are structured:
- Which elements of membership consist in participation in sporting events (with an additional organisational component), and which in mere use of facilities?
- From the perspective of the average member, is there a single overall supply by the club, or a bundle of separate supplies that must be assessed individually?
- To what extent do exemptions under section 4 no. 22(b) UStG come into play, potentially in combination with the reduced VAT rate under section 12(2) no. 8(a) UStG?
- Above all: which treatment of membership fees – following administrative practice or following the case law – is economically preferable in light of planned or ongoing investments?
For clubs with substantial investment projects, the new legal framework allows them, as a first step, to consciously opt for treating membership fees as taxable and subject to VAT in order to secure full input VAT deduction on investment‑related purchases and services. At the same time, clubs must bear in mind that a chosen VAT treatment can have consequences over many years due to the adjustment rules in section 15a UStG, and that any subsequent change of “model” requires careful planning.
The issues outlined are complex and highly dependent on the specific circumstances of each club. Whether, and to what extent, membership fees in a given club are taxable, subject to VAT or exempt, and how to structure a desired use of input VAT recovery in a legally robust way, will require detailed individual analysis.
Agreement on the AI Omnibus – Key Takeaways for Companies and Public Authorities
On 7 May 2026, the European Commission, the European Parliament and the Council reached political agreement on the so‑called “AI Omnibus”.
The most important points at a glance:
- The labeling obligations under Article 50(2) of the AI Act for AI-generated content are postponed until December 2, 2026. The labeling obligations under Article 50(4) of the AI Act remain unchanged.
- The rules for high‑risk AI systems listed in Annex III will be pushed back from 2 August 2026 to 2 December 2027.
- The rules for high‑risk AI systems under Annex I that are embedded in products will only apply as of 2 August 2028.
- Important: Machines listed in Annex III of the AI Act will be moved from Section A to Section B and will thus be exempt from a wide range of requirements for high‑risk AI systems (see Article 2(2) AI Act).
- The deadline for setting up AI regulatory sandboxes by the competent national authorities will be extended until 2 August 2027.
The European Commission’s press release is available here.
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