Patent attorney Thomas Prock explores the threats posed by additive manufacturing to automotive intellectual property portfolios
The world has progressively digitised in recent decades and the pace of change is increasing, changing products and industries beyond recognition. The ready and rapid adoption of digital technology in all parts of society is testament to the benefits digital technology provides. At the heart of these new technologies is the management of data flows, be that for the purpose of optimising manufacturing processes or assisting people in the performance of everyday tasks or even automating them altogether.
The automotive industry is no stranger to digitisation, and the particular intellectual property (IP) challenges it brings. Originally, IP conflicts were between rival automotive innovators, and solutions such as cross-licensing IP were relatively easy to agree and cost effective. More recently however, Non-Practicing Entities – entities that have no intention to make or sell the invention covered by IP – have bought up IP rights with the sole purpose of extracting royalty payments from automotive companies. The frequency of such cases has been exacerbated by the digitisation of the automotive industry and the surge in innovation, and need for IP, in the automotive data communication field.
3D printing’s virtual inventories and on-demand manufacturing offer cost-savings and increased flexibility, but there are risks.
It seems a no-brainer to adopt digital supply chains, but they carry risks that are untenable if not eliminated. For example, how do big brands seize such opportunities while maintaining part consistency and quality and protecting their intellectual property (IP) – and ultimately upholding brand integrity?
The COVID-19 pandemic is shining a spotlight on the opportunities presented by 3D printing/additive manufacturing (AM), including the possibilities around virtual inventories and on-demand manufacturing. These advantages can deliver cost-savings, increased responsiveness and flexibility to customers, without the need for huge investments. As we’ve seen, the weak link in any supply chain is maintaining and replenishing the physical inventory – an enormously expensive task.
The need for IP to “catch up” with the capabilities of 3D printing is one of the points made in the book Supercharg3d: How 3D Printing Will Drive Your Supply Chain. Until it does, those considering adopting 3D printing in their supply chains should involve their legal and IP advisors to manage the risks. In this article – published in The Engineer – Marks&Clerk Senior Associate Matthew Jefferies, takes a close look at this topic.
Intellectual property law, and intellectual property strategies, need to move to keep up with the growing 3D printing market, says Matthew Jefferies MPhys, Senior Associate, Marks&Clerk.
The term ‘digital disruption’ has become something of a cliché in recent years, a catch all term used to describe the impact of technologies ranging from artificial intelligence to new communications technologies. What is the reality of digital disruption however, and what can manufacturing and engineering focused businesses do to mitigate the associated risks?
In the earlier days of Techdirt, Lego made multiple appearances as an IP bully. However, its IP bullying ran into some legal headaches as various courts pushed back again and again and again. The company failed, pretty spectacularly, in its quest to argue that no one could make similar, or even interconnecting, Lego bricks. Its patents long expired, and any copyright and trademark rights were much more limited.
For years, the company has relied on the fact that even with the ability of other companies to copy its designs, really only Lego could manufacture the toy bricks with the kind of exact precision that made them work properly. Knock-offs tended to not connect nearly as well. And Lego’s manufacturing was such that beyond the precision in the blocks, it could also make the blocks so cheaply that it was difficult for anyone to undercut them anyway. Finally, Lego’s brand is pretty powerful in its own right, and many people would buy official Lego products as the default anyway, because of the brand association.
SLM Solutions, a German metal 3D printer manufacturer, has announced that it will integrate the digital security platform of San Francisco-based Identify3D into its workflow. The partnership is an effort to protect intellectual property (IP) in additive manufacturing.
CTO of SLM Solutions Dr. Gereon Heinemann, said, “SLM Solutions recognizes the trend as additive transforms manufacturing into a digital workflow.”
Founded in 2014, Identify3D aims to protect IP in 3D printing by encrypting the digital supply chain. The company is partners with several leading enterprises including 3YOURMIND, Renishaw, Siemens, and America Makes.
The law and 3D printing is a very exciting emerging area of interest for many. What exactly happens with to 3D printed products and liability or IP? Most people in 3D printing don’t want separate laws for 3D printing or 3D printed goods. But, in 3D printed guns we’ve seen lawmakers jump into the crazy clown car of legislating by press release and make separate laws for 3D printing. What will the future hold? Rania Sedhom of Sedhom Law Group reached out to us to share her insights.
Lawmakers seem intent on creating new legislation specifically for 3D printing. Do you agree with that?
Yes, I do. While the technology is a mesh (pun intended) of software and textile, it is unique and needs its own legislation.
“The eventual low cost of 3D printing combined with their ability to produce most physical things will fundamentally change the economics of industrial manufacturing,” states Smith. “Much like the Internet, 3D printers separate the content of the product from the information used to create it, which, in turn, will substantially reduce the manufacturing costs. This feature will inevitably mean that the production of items can come from virtually anywhere which will certainly present problems for governments and markets.”
With the rapid rise of the additive manufacturing sector, it has become increasingly possible for industry players to make spare and replacement parts in a cost-effective manner. What’s more, the sector lends itself especially well to the fabrication of parts for the customisation of existing products and equipment. As such, all parties in the supply chain need to be acutely aware of the very real risks of IP infringement in this evolving space, says Jason Teng, partner and patent attorney at leading full service IP law firm, Potter Clarkson.
As things stand, different considerations apply depending on the type of IP rights covering a particular part or a complex product that includes the part. For instance, the manufacture of a whole patented product would normally constitute patent infringement, unless certain exceptions apply such as private non-commercial use. On the other hand, the manufacture of a spare/replacement part for incorporation into a patented product could either constitute an infringing “making” of the patented product or a non-infringing “repair”, which would vary on a case-by-case basis. On this note, some guidance can be found in a 2011 Supreme Court decision in the Schütz v Werit case.
CECIMO believes the current 3D printing intellectual property rights framework is fit for purpose.
CECIMO, the European Association of the Machine Tool Industries, has said the European Parliament risks stifling 3D printing innovation by introducing premature regulatory measures to protect Intellectual Property.
The European Parliament recently released a non-binding resolution entitled ‘Three-dimensional printing: intellectual property rights and civil liability’, with 631 votes in favour, 27 against, and 19 abstentions. It called for sterner parameters surrounding IP infringements and has suggested a potential revision of the Liability and Intellectual Property Rights (IPR) regulatory framework for 3D printing within the European Union, and has also raised the feasibility of national copyright levy systems.