Cybersecurity and Drone Hijacking Threats

In an era where industrial espionage utilizes both sophisticated malware and physical drone interception, your company’s legal defense must be as robust as its firewall. This article addresses the specific legal risks foreign entities face regarding cybersecurity and drone threats in the Czech Republic, explaining how the NIS2 directive and liability laws impact your business. Our team at ARROWS, a leading Czech law firm based in Prague, European Union, is ready to secure your legal position.

Need advice on this topic? Contact the ARROWS law firm by email office@arws.cz or phone +420 245 007 740. Your question will be answered by "JUDr. Jakub Dohnal, Ph.D., LL.M.", an expert on the subject.

The convergence of cyber and physical threats

For foreign investors and corporations operating in the Central European market, the threat landscape has evolved. We are no longer discussing simple data phishing; we are seeing cases where commercial drones are hijacked to intercept sensitive Wi-Fi data from office buildings, or where company drones are spoofed to steal trade secrets.

From a legal perspective, this creates a complex web of liability involving the NIS2 Directive, GDPR, and civil aviation regulations. Many executives do not realize that falling victim to a cyber-attack often triggers legal penalties for the victimized company if "duty of care" was not proven.

As an international law firm operating from Prague, European Union, ARROWS handles these regulatory cross-sections daily. We understand that bridging the gap between Czech implementation of EU law and your home jurisdiction's requirements is critical to avoiding fines.

What are the legal risks of drone hijacking?

Drone hijacking (taking control of a drone via signal spoofing) poses a unique liability nightmare. If your company utilizes drones for logistics, surveying, or security, and that drone is hijacked to cause damage or steal third-party data, who is responsible?

Under Czech law, the operator is often strictly liable for damages caused by the operation of the aircraft. However, if the hijacking results in a data breach (e.g., the drone contained unencrypted camera footage of a third party), you face dual liability under aviation law and data protection laws.

Simply purchasing insurance is rarely enough, as standard policies often exclude "hostile cyber acts."

Drone Operations and Liability

Risks and penalties	How ARROWS helps (office@arws.cz)
Strict Liability for Damages If your hijacked drone injures a person or damages property, your company is liable regardless of fault. Damages can reach millions.	Liability Defense & Litigation We represent you in court and negotiate settlements.
Regulatory Fines (CAA) Operating non-compliant drones or losing control in restricted zones violates Civil Aviation Authority rules. Fines are substantial.	Regulatory Representation We represent clients before the CAA and oversight bodies to minimize penalties. W
Industrial Espionage Loss A hijacked drone can reveal trade secrets. The financial loss is immediate, but proving theft requires complex evidence preservation.	Intellectual Property Protection We draft protocols to legally protect your trade secrets and manage evidence.
Insurance Exclusion Traps Standard general liability often excludes aviation or cyber acts, leaving you personally exposed to costs.	Contract Review We audit insurance contracts to ensure coverage matches reality.

 FAQ – Legal tips about Drone Security

1. Can we be fined if our delivery drone is hacked and drops a package?
Yes. Czech law generally applies strict liability to aircraft operators. You must prove that the damage was caused by a third party and that you took all reasonable technical precautions.
Need a liability assessment? Contact us at office@arws.cz.

2. Does the "Safe European Harbour" concept apply to data stolen from a drone?
Prague is a safe European harbour for business, but EU GDPR rules still apply rigorously. If personal data is stolen from a drone, it is treated as a data breach and must be reported within 72 hours.
For immediate assistance with data breach reporting, write to office@arws.cz.

Cybersecurity: The NIS2 directive and management liability

The new EU NIS2 directive significantly expands the scope of companies that must comply with strict cybersecurity standards. This is not just an IT issue; it is a board-level legal obligation.

Directors and CEOs of foreign companies operating in the Czech Republic can now be held personally liable for failing to implement adequate cybersecurity measures. If your company ignores these regulations, you risk suspension of management functions and massive administrative fines.

Drafting internal security policies that satisfy Czech regulators requires more than translation; it requires localization. We see many foreign entities struggle because they apply their HQ’s policies without adjusting for local labor and privacy laws.

How can you avoid legal risks in cyberspace?

Implementation of cybersecurity measures is a legal process. It involves:

•       Updating employment contracts to include specific confidentiality clauses regarding digital access.
•       Reviewing supply chain contracts (your vendors are your biggest weakness).
•       Conducting legal audits of your incident response plans.

ARROWS supports over 150 joint-stock companies and 250 limited liability companies in exactly these matters. We operate in 90 countries globally and can connect you with partners to ensure your cross-border data flows are compliant.

Cybersecurity and Corporate Governance

Risks and penalties	How ARROWS helps (office@arws.cz)
Personal Management Liability Under NIS2, executives can be personally fined or suspended for failing to manage cyber risks.	Professional Training We provide certified training for management on legal responsibilities.
Supply Chain Breach A vendor is hacked, compromising your data. Without a solid contract, you bear the liability for their failure.	Contract Drafting We draft robust vendor agreements transferring liability where possible.
GDPR Non-Compliance Fines up to 4% of global turnover or €20 million for data leaks resulting from poor security.	Legal Compliance Audits We review your data handling to prevent fines.
Ransomware Payment Legality Paying ransom to sanctioned entities (even accidentally) is a criminal offense in many jurisdictions.	Crisis Management & Legal Opinions We advise on the legality of payments and negotiate with authorities.

 FAQ – Legal tips about cyber defense

1. Is it legal to "hack back" if our company is attacked?
No. Active defense measures that intrude on another network are illegal under Czech Criminal Code. You must rely on defensive measures and law enforcement.
Need to report a crime legally? Contact our team at office@arws.cz.

2. Are we liable if an employee clicks a phishing link?
Vicarious liability usually applies. However, having proof of regular, documented employee training can significantly mitigate fines during regulatory inspections.
We offer documentation drafting to prevent penalties. Email office@arws.cz.

Why professional legal oversight is mandatory

Many foreign investors believe that purchasing "off-the-shelf" cyber insurance or using standard software agreements is sufficient protection. In practice, legal traps are hidden in the fine print of exclusion clauses and local regulatory nuances.

For example, a drone hijacking incident involves aviation law, telecommunications law, and criminal law simultaneously. A cyber breach involves administrative law (NSB), labor law (employee error), and commercial law (business interruption). Handling this without specialized counsel significantly increases the risk of procedural errors that void your insurance coverage.

ARROWS Law Firm handles this agenda daily. We are insured for damages up to CZK 500 million, offering you a level of security that internal teams simply cannot match. We are known for speed, high quality, and our ability to navigate the complex legal environment of the European Union.

Post-Incident legal fallout

Risks and penalties	How ARROWS helps (office@arws.cz)
Reputational Damage & Lawsuits Clients sue for negligence after a breach. Class action risks are rising in the EU.	Litigation & PR Management We defend your interests in court and coordinate with PR for damage control.
Loss of Business License Repeated regulatory failures can lead to the revocation of trade licenses for foreign entities.	Representation before Public Authorities We fight to keep your business operational.
Evidence Spoliation IT teams often accidentally destroy legal evidence while fixing a hack, ruining your chance of defense or insurance claim.	Forensic Legal Guidance We guide your teams on preserving evidence for court.

FAQ – Most common legal questions about Cyber & Drone Threats

1. What should we do immediately after detecting a drone hijacking or cyber breach?
Secure the evidence without altering it and contact legal counsel immediately to determine reporting obligations (72-hour window for GDPR, immediate for NIS2).
For immediate assistance, write to us at office@arws.cz.

2. Can ARROWS help us update our contracts for the new NIS2 directive?
Yes. We review contracts for hundreds of clients to ensure they meet the new "duty of care" standards and supply chain requirements.
Get your contracts reviewed by writing to office@arws.cz.

3. Does ARROWS represent clients in cross-border cyber disputes?
Absolutely. As a leading Czech law firm in Prague, EU, we use the ARROWS International network to handle disputes involving multiple jurisdictions.
Discuss your international needs at office@arws.cz.

4. Can we insure against regulatory fines?
Generally, you cannot insure against criminal fines, but you can insure against the costs of legal defense and civil damages. We review policies to maximize your coverage.
Review your coverage with us at office@arws.cz.

5. How do we prove we were not negligent in a drone accident?
Documentation is key: flight logs, maintenance records, and proof of pilot training. We help structure your internal compliance to create this "paper shield."
Prepare your defense now by emailing office@arws.cz.

Do not leave your digital and physical security to chance.

The intersection of technology and law is filled with hidden risks that can paralyze a business. ARROWS Law Firm offers the safety of a "Safe European Harbour" combined with deep local expertise. If you want to avoid errors, damages, or fines, entrust the matter to experts who handle it daily.

Don't want to deal with this problem yourself? More than 2,000 clients trust us, and we have been named Law Firm of the Year 2024. Take a look HERE at our references.