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How a world-first law makes data a legal asset
Aga Strandskov, Head of Data Strategy, and Lyle Wraxall, Chief Executive, Digital Isle of Man, explain the pioneering framework to treat data as a legal asset – creating “title” to datasets, reducing friction in sharing and due diligence, and potentially unlocking new models for trusted collaboration in the AI-era.
For decades, data has been described as the “new oil” – a resource underpinning everything from financial markets and healthcare innovation to smart cities and artificial intelligence. Yet unlike oil, land or intellectual property, data has existed in a curious legal grey area. It is created, traded and relied upon at enormous scale, but rarely owned in a clear, enforceable sense. Instead, it is governed through a patchwork of contracts, permissions and regulatory frameworks that often struggle to keep pace with its growing importance.
That disconnect is becoming increasingly difficult to ignore. As organisations race to develop AI models, build digital twins and unlock new services, the lack of a coherent legal foundation for data is emerging as a critical bottleneck. It slows innovation, complicates collaboration and raises fundamental questions about trust, ownership and value.
Recognising this grey area, the Isle of Man has taken a bold step. The self-governing British Crown Dependency has introduced a world-first legal framework that enables data to be treated as a recognised asset in law. The move represents a fundamental shift in how data is defined and managed, with implications that could extend far beyond the island itself.
From digital strengths to a new economic question
The origins of the legislation lie in a broader effort to diversify the Isle of Man’s economy. Traditionally known as a global hub for e-gaming, the island has spent the past decade expanding into areas such as fintech, artificial intelligence, IoT and smart infrastructure.
As Lyle Wraxall, Chief Executive of Digital Isle of Man, explains, this evolution prompted a deeper question about how data could be harnessed as an economic driver:
“We started eight years ago with e-gaming as the biggest part of our portfolio, and the Isle of Man is very much known for that internationally. Whilst that’s been a huge success story, diversity is key. For economic reasons you want a more diverse economy, but you also want to build from your strengths. We looked at the skills we had, from gaming into blockchain, fintech, AI and IoT, and about three years ago the question became clear – how can we use data to drive the economy of the Isle of Man?”
The island was already well positioned to explore that question. It has a strong digital infrastructure, including multiple data centres, and a workforce with deep expertise in analytics, finance and technology. Translating those advantages into a coherent data economy wasn’t exactly straightforward, however.
“We had this one word – data – and had to work out how it impacts the economy. We brought in consultants, did a lot of brainstorming, explored ideas like data sovereignty and protection. As we dug deeper, we saw a growing global challenge around how we deal with data.”
What began as a local economic question quickly revealed itself to be part of a much larger global issue – one that affects organisations of all sizes and across all sectors.
A structural problem in the data economy
That issue became clearer as the team examined how data is currently governed. According to Aga Strandskov, Head of Data Strategy at Digital Isle of Man, the problem is not just technical or operational, but deeply structural.
“The data economy has been built on a legal fiction,” explains Strandskov. “It is governed indirectly through contracts, confidentiality, intellectual property laws and data protection regimes that regulate processing rather than conferring rights in the thing itself. Despite its scale, it operates with underdeveloped legal and institutional infrastructure. When you compare it to other assets like land, securities or intellectual property, which benefit from well-established frameworks, data does not enjoy the same benefit, even though it has become one of the most important assets of this century.”
This lack of direct legal recognition has far-reaching consequences. Organisations must rely on complex contractual arrangements to define how data can be used, shared or monetised. These arrangements are often bespoke, time-consuming and difficult to scale.
Wraxall highlights how this plays out in practice: “In digital twin projects, for example, the most complicated part is understanding how we share data, how we source it and how we protect it. In one project I was part of, that process alone took over two years. For something already complex, having years of legal conversations before you can even begin is a huge barrier, and it stops many organisations from taking that first step.”
The result is a system where innovation is frequently slowed not by technology, but by governance and legal uncertainty.
“To have an asset with clear rights, permissions, purpose, governance, metadata, liabilities and restrictions is hugely valuable.”
The Isle of Man’s response is to establish a new legal construct that treats data as an asset. At its core is the creation of Data Asset Foundations, which provide a mechanism for assigning rights directly to datasets.
“Currently no one owns data in simple terms, and there is no legal framework that guarantees ownership and rights beyond permissions,” explains Strandskov. “The first problem we are solving is creating a form of title to data. We are establishing personal property rights that attach to data registered on a data assets register.”
This concept of a “title” to data represents a significant shift. It moves data from being something governed externally through contracts to something that carries its own intrinsic legal identity.
“To have an asset with clear rights, permissions, purpose, governance, metadata, liabilities and restrictions is hugely valuable. Today, data due diligence can take years because it relies on contracts and licences. This creates a much clearer and more efficient structure.”
In effect, the framework introduces a standardised way of defining, documenting and transferring data – similar to how property titles or financial instruments are managed.
“Your data is no longer just protected, it is creating value. It can generate revenue, support partnerships or contribute to research.”
From compliance burden to economic asset
One of the most transformative aspects of the new framework is its potential to turn data from a cost centre into a revenue-generating asset.
Wraxall explains how this changes the dynamics for organisations that are rich in data: “Many organisations are data rich, whether they are retailers, pharmaceutical companies or others. They have data that is critical to their business and want to protect it, but also share it with partners. Right now that means complex agreements and repeated legal work, which slows everything down. With this model, you structure that data once and reuse it. You can even place it into a marketplace for trading, with a clear catalogue of what the data is, how it can be used, where it comes from and what limitations it has.”
This ability to structure data once and reuse it repeatedly could dramatically reduce friction in data sharing and commercialisation. It also opens up entirely new business models.
“Your data is no longer just protected, it is creating value. It can generate revenue, support partnerships or contribute to research. What was previously a compliance burden that cost money is now an asset that can pay for itself,” says Wraxall.
Strandskov emphasises that this shift also addresses a longstanding imbalance in how organisations approach data governance: “Data on its own has no value without proper data management and governance, which generate significant costs. Currently these practices are internal and rarely tested externally. We are taking those processes and turning them into external measures with checks and controls, and in doing so we are rewarding organisations for good governance because that creates value, quality and trust.”
Portable governance and the role of AI
A key innovation within the framework is the idea of “portable governance”, where rules and controls travel with the data itself rather than remaining embedded within individual organisations.
“Governance becomes portable. As AI takes over more processing of data, it is essential that data carries governance signals, auditability and provenance,” explains Strandskov. “We are developing a data asset passport that is machine readable and aligned with open standards, allowing for AI governance and compliance with emerging regulations.”
“Collaboration is essential, but organisations are reluctant because once they lose control, it is hard to regain. That fear has held back many data-sharing initiatives.”
This is particularly relevant as organisations increasingly rely on AI systems trained on large and diverse datasets. Ensuring that those datasets are trustworthy, compliant and properly governed is becoming a critical challenge.
Wraxall points to the practical implications for AI development: “People need to move quickly, but today they struggle to access the right data and often rely on synthetic data to fill gaps. The delay is in getting access to legitimate, verified data. This framework allows that to happen much faster, enabling better models and predictions, and creating a cycle where outputs feed back into the ecosystem and improve outcomes in near real time.”
By embedding governance into the data itself, the framework aims to create a more transparent and reliable data ecosystem – one that supports both innovation and accountability.
Enabling collaboration and reducing risk
The framework also addresses one of the most persistent barriers to data sharing – the fear of losing control.
“You can enforce your rights because you can prove ownership of your data,” says Strandskov. “Collaboration is essential, but organisations are reluctant because once they lose control, it is hard to regain. That fear has held back many data-sharing initiatives.”
This issue is particularly acute in areas such as smart cities, where effective solutions depend on collaboration between public and private stakeholders.
“Civic data cooperatives require public bodies and private organisations to work together, but adoption has been limited because participants worry about losing control. Without proper structures, that trust is missing.”
By introducing enforceable ownership and clear governance, the Isle of Man’s approach could help unlock these collaborative models, enabling more effective sharing of data across sectors.
A global ambition from a small jurisdiction
While the initiative is rooted in the Isle of Man, its ambitions are explicitly global. The framework is designed to align with international standards and encourage adoption beyond the island’s borders.
“This will not work if only one country does it – we need others to lean in. Our role is to act as a catalyst and help drive this globally. We are not being overly protective of the model because it needs to be adopted internationally to succeed,” explains Strandskov.
The island’s size and governance model have been key enablers of this approach. As a smaller jurisdiction, it is able to move more quickly than larger countries. It has its own legislature and can pass primary legislation in weeks rather than years, with a legal system less complex than larger jurisdictions allowing greater agility and the ability to respond more quickly to new concepts.
Wraxall sees this agility as both an opportunity and a responsibility: “There is a view that smaller jurisdictions have a responsibility to take risks and move first into the unknown. That is what makes this exciting and gives us the opportunity to create global impact.”
Despite the enthusiasm, Wraxall is clear that this is only the beginning of a longer journey, explaining that there are any number of future use cases that have not yet been imagined. In order to manage this he says it is important to move carefully, work with trusted partners and ensure this change becomes a gold standard that can be relied on. There is also an understanding that the true value of the framework will only become apparent as it is adopted and tested in real-world scenarios.
If successful, the Isle of Man’s approach could mark a turning point – transforming data from an abstract, difficult-to-govern resource into a clearly defined, tradable and trusted asset. In a world increasingly driven by data and AI, it’s a shift that could prove essential.
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