Privacy is a hot topic in Iceland. The increase in public concern is due to the controversial genetics database constructed in Iceland, which houses the medical records of Icelandic citizens. As a result of legislation instigated by deCODE genetics, a Delaware biotechnology company working in Reykjavik, the Icelandic parliament adopted a law making it legal for the private company to construct an electronic database of the country's health records. Iceland is considered an ideal country to house such a database because it has one of the most homogenous populations in the world. The act granted deCODE exclusive rights to commercial exploitation of the database for 12 years. Accordingly, deCODE has entered into a (non-exclusive) arrangement with Hoffmann-La Roche which gives the company access to the database for the purpose of researching the genetic origins of 12 common diseases.

Although the medical records within the database are stored anonymously, many are concerned about individual privacy. The concerns do not only in health care industry, but in the widespread transfer of personal data in many forms. The dangers inherent in modern technology are judged to be considerable by many in Iceland, which has led to attempts to ensure protection through various international policy documents and legislation. Despite much opposition, the government has endorsed the genetics database, because it feels it is for the good of science. However, there are other data and privacy issues that the Icelandic government is addressing ranging from the taxation of digital information to the adoption of digital ID cards.
 

New Regulation 

According to the Icelandic Government’s Vision of the Information Society23, new laws will be passed in response to various issues raised by information technology, including:

• how import duties should be levied on digital information and how it should be taxed 
• how to ensure copyright when copies can no longer be distinguished from the original
• what the legal foundation is of companies that engage in commerce world-wide by computer, perhaps not within the jurisdiction of any state 
• what requirements must be met before a digital document is considered legal in commerce 
• dissemination of software, which can be used to undermine the public good (child pornography, propaganda promoting racism, terrorism, violence, etc.)

Areas under Examination by the Icelandic Government

• Libel and criminal laws will be re-examined and laws enacted on the freedom of expression and print that take new technology in mass communication into consideration. Computer communications also call for a reconsideration of legislation concerning telecommunications. 

• The practicality and legal aspects of digital identification cards are being investigated. Such cards can replace traditional, personal identification as well as passports and drivers' licenses. 

• Information technology can clearly be utilized to support health services. In formulating rules on the use of information technology in this field, the government feels confidentiality and security of all information handling and processing is a prime consideration. This is an especially critical issue for Iceland because of its genetics database.