By Jagannathan Arumugam
Internet of Things (IoT), in simple words, is a wide area network (WAN) connecting computing devices and other devices that typically would have no connection to the internet such as industrial machinery, kiosks, kitchen appliances, etc. Such a WAN enables data collection and device sharing to communicate and share data in real time to realise the unification of virtual and physical worlds.
The main objective of IoT is to allow the connected devices to communicate among themselves to realise one or more desired functions in an autonomous manner. For example, one or more IoT sensors installed in each vehicle in a city may communicate with each other and share data such as vehicle parameters, journey destination and nearby traffic, to ensure smooth and hassle-free traffic.
Each day, millions of IoT devices are getting connected and communicating extremely large datasets – analysis of which would discover patterns, trends and associations relating to various things. It is expected that there would be 5 connected devices for each person on the planet by 2022 and the number would double in 2025. As the number grows, the amount of data grows exponentially and analysis of such a huge amount of data may lead to surprising inferences and break-through inventions in other industries.
In the above-mentioned example, analysis of data from such vehicle-mounted sensors would reveal the driving profile of each person, fuel consumption pattern, carbon emission pattern of each vehicle, route information and the like, which would help in designing vehicles that emit less pollution, optimizing traffic routes, investigating accidents, and so forth.
Activities in the ASEAN region
The prevailing rush to capitalise on this new technology across the globe can be seen in the ASEAN region as well. In 2015, the Malaysian Ministry of Science, Technology and Innovation (MOSTI) launched a national level initiative, called the National IoT Strategic Roadmap, for the adoption of IoT. The Malaysian government expects this initiative to contribute RM42.5 billion to the country’s gross national income (GNI) by 2025. Likewise, Singapore launched the “Smart Nation” initiative, while other ASEAN cities, including Bangkok and Jakarta, have launched Smart City programs to implement IoT in day-to-day lives and businesses.
Apart from the governments, private companies like Ooredoo, Ericsson and Billion Electric Co. Ltd., are showing a lot of interest in launching IoT initiatives in ASEAN countries too.
Patenting IoT
Even though it has been three decades since John Romkey and Simon Hackett developed the first ever IoT by connecting a toaster to the internet, many IoT developments happened in recent times. Further, experts opine that there is a lot more to be developed in IoT. This is mainly due to recent developments in the technologies supporting IoT such as Artificial Intelligence (AI), data communication, and nanotechnology. As the supporting technologies grow, opportunities for developing IoT become broader.
Just like how the early bird gets the worm, early adopters of any technology usually enjoy major benefits and maintain them over time, which is why non-practicing entities (NPE) such as Interdigital and ETRI compete with tech giants like LG, Samsung, Ericsson and Qualcomm in patenting IoT inventions, according to WIPO’s landscape study.
Global management consulting firm, Bain & Company, has predicted that the market value of IoT would surpass USD500 billion by 2021, which is almost twice its value of USD235 billion in 2017. A study by McKinsey Insights and Publications estimates that IoT has the potential to generate annual revenue of around USD2.7 trillion to USD6.2 trillion by 2025 in different sectors including healthcare, agriculture, manufacturing, infrastructure, power, security and transportation. Market players have realised the potential demand for IoT, while new players are keen to enter the market.
Basic Structure of IoT
In comparison to any other technology, IoT faces higher chances of patent suits. Even a simple IoT-based system would include four basic elements:
- One or more IoT devices operating within an environment;
- Method of operating by the IoT devices;
- Method of communication among the IoT devices and/or central controller or server; and
- Method of analyzing IoT data and decision making by the central controller or server.
And so, patenting happens mainly around these elements. Even though all these elements work towards the same objective, it is not possible to protect all of them in a single patent application all the time. Sometimes, it requires hundreds of active patents to cover even the simple features of a single IoT product. Therefore, it is necessary to take special care while drafting to avoid suits and save on the cost of patenting without compromising on the applicant’s business interests, scope of invention and potential value of the invention.
Apart from these, there are a few other issues from the Patent Office. The fourth element in the list, the method of analysis and decision making, may sometimes attract objections related to non-patentable subject matter, as being computer software. Besides functionalities, applicants should also focus on the design of IoT products. Similar to utility patents, a strong design patent can also protect a company against counterfeit products.
With the rapid growth in supporting technologies, the day on which each person carries multiple connected devices is not so far. It follows, then, that the next war of patents would start any time soon. Therefore, companies should adopt IP strategies that best suit their businesses, to reduce the risk of getting entangled in such wars and to increase their competitiveness in this emerging market.