VOLUME: 08, Special Issue 04, (ICESD-2021), Paper id-IJIERM-VIII-IV, June 2021 31 INTELLECTUAL PROPERTY RIGHTS RELATING TO AUTONOMOUS VEHICLE SECTOR:
A STUDY IN CONTEMPORARY ENVIRONMENT Dr. Goldie Zaki
Assistant Professor, St. Paul Institute of Professional Studies
Abstract - Today’s world is characterized by automation and automotive industry is no exception. Autonomous vehicles are resultant of recent rapid advancement in technology and have high growth potential. The features of autonomous vehicles are significant and the firms illustriously synergize to produce best model that would have an edge in the market.
Intellectual property right particularly patents plays an important role. This research paper includes the number of patents being filed in by autonomous vehicle companies from 2651 in the year 2015 to5320 in the year 2019. The number has witnessed a sharp rise.The study entails fundamental challenges that automotive industry is facing due to autonomous driving and related car technologies. The major challengesfaced by autonomous industry is deficient patent laws in order to obtain protection for vehicle frameworks and patent becoming futile by the time it is issued. This demands cautious contemplation. The study concluded with the fact that the ongoing patent case law requires considering proposed changes to existing patent resolutions and to decide best secure programming-based developments for patents, trade secrets and copyrights. protection for autonomous vehicles under Intellectual property right is inventive and the law need to develop rapidly.
Keywords: Patents, Legal Framework, Features, Challenges, Prospects.
1 INTRODUCTION
Autonomous vehicle is a kind of automotive that can drive itself to the predetermined destination with an autopilot mode. The vehicle uses numerous technologies and features such as sensors, adaptive cruise control, automatic steering, anti-lock braking systems, GPS navigation technology, lasers and radar. The key manufacturers of the autonomous car include Bosch, Waymo, Aptiv, Autoliv, Continental, Baidu, Daimler, FCA, Ford, BMW, General Motors, Honda, Intel, Toyota, Jaguar, Nissan, Nvidia, Hyundai, Volvo, Subaru, Tesla, Uber and Volkswagen. The market of autonomous vehicles is very competitive because of large number of automotive and technology producers in the market. The automotive players collaboratewith technology solutions providers and semiconductor device manufacturers to increase technical proficiency and decrease the cost of production.
Additionally, the manufacturers invest largely to expand their research & development endeavours to raise self-driving technology. This calls for strict adherence of laws related to intellectual property right particularly patents.
VOLUME: 08, Special Issue 04, (ICESD-2021), Paper id-IJIERM-VIII-IV, June 2021 32 Source: Research Nester
1.1 Justification of Study
Technology is undergoing rapid advancements and the world today is significantly characterized by technological upgradation, research and development and competition.
Autonomous vehicle sector is a perfect exemplary of both latest technology and competition.
Features and design of the vehicle play a very vital role. Naturally the companies earnestly yearn for patents and trademark that could protect their invention and innovation. The aim to study about the intellectual property rights governing this thriving sector, the number of patents applied by the companies and the ever-increasing technology flareup forms the rationale of study.
1.2 Objectives of Study
1. To study the number of patents applied by autonomous vehicle manufacturers 2. To study the patent law applying to autonomous vehicle sector.
3. To study the future trend of autonomous vehicle industry.
4. To study the challenges posed on the industry.
1.3 Research Methodology
The study uses secondary data for attaining the objective of study. The secondary data is collected from websites and reports in India. The outcome of the study is based on secondary data/literature review of various websites, journals, and articles.
2 REVIEW OF LITERATURE
1. Rico Lee-Ting Cho, John S. Liu and Mei Hsiu-Ching Ho(2021) explored the technological development by systematic and quantitative analysis of U.S. patents pertaining to autonomous driving technology. They conducted cross-citation analysis (CCA) and main path analysis (MPA). CCA revealed knowledge flow among major players, while MPA depicted the technology growthcourse and the related players. The results of CCA indicated several companies in US utilising locational benefit to build industrial chain and facilitate exchange of technical know-how. The results of study include more solutions in communication systems to be patented in the future, perception technologies integration with artificial intelligence, players to take up roles as technology developer, integrator and technology implementer and traditional vehicle makers to reinforce their cooperation with Information and Communication Technology (ICT) companies.
2. Shaoshan Liu; Liangkai Liu; Jie Tang; Bo Yu; Yifan Wang; Weisong Shi (2019)opined that safety is an important prerequisite for autonomous vehicles, thus, designing computing ecosystem to deliver computing power, redundancyand guarantee.
Autonomous integrate technologies like sensing, localization, perception and smooth interactions with cloud platforms for high-definition map generation and data storage.
VOLUME: 08, Special Issue 04, (ICESD-2021), Paper id-IJIERM-VIII-IV, June 2021 33 The study conclude that edge computing systems need to process an enormous amount of data in real time and have strict energy consumption restrictions. Thus, sufficient computing power is a must and safety cannot be guaranteed if security is compromised.
The paperreviewedadvanced approaches in these areas andfound outpossible solutions to address the challenges.
3. Hubertus Bardt (2017) conducteda research on autonomous vehicle companies in Europe and found out that the industry contributes upto 14% of total production and capital investment in this manufacturing sector and the share amounts to 22% in Germany. Structural change is imperative in this contributing sector that would be beneficial for the whole economy. The paper also mentions about alternative propulsion systems i.e. electromobility and explains that disruptive changes pose threat to the existing market, whereas, systematic introduction of latest technology augments competition. The companies owing to their sturdy market position in the elite segment can gain through relevant research activities. The European automotive producers are capable to effectively master the coming threats in the automotive market.
4. J. Baber; J. Kolodko; T. Noel; M. Parent; L. Vlacic (2005) presented Intelligent Control System Laboratory's (ICSL) Cooperative Autonomous Mobile Robot technologies and the application thereof. The positioned decision and control algorithms have made the autonomous vehicles proficientenough to undertake cooperative autonomous manoeuvres. Though considerable progress has been made but some problems that require to be addressed include decision and control algorithms for navigating roundabouts, real-time integration of all data, and decision-making algorithms. The study concludes with the fact that continued research is imperative for coexistence of cooperative autonomous vehicles alongside human drivers.
2.1 Background of Autonomous Vehicles Industry
The history of autonomous vehicle industry goes back to the year 2000 whenthey initiated incremental automation features for safety and convenience with cruise control and antilock braking systems in the autonomous cars. As per the National Highway Traffic Safety Administration (NHTSA) features such as rear-view video camera, lane assistance, automatic emergency braking and collision detection were added between 2010 to 2016.
These are advanced driver assistance features. From the year 2016 the companies proceeded to launch self-driving vehicles. The major players in industry are:
1.
BMW Group2.
Tesla Inc.3.
Ford Motor Company4.
General Motor Company5.
Daimler AG6.
Toyota Motor Corporation7.
Volkswagen AG8.
Continental AG9.
Baidu Inc.10.
Bosch GMBH11.
Audi AG12.
Google Inc.2.2 Autonomous Vehicles in the World of Intellectual Property Rights
According to the Society of Automotive Engineers International (SAE) and as recognized by National Highway Traffic Safety Administration (NHTSA) for Automated Driving Systems (2017), the autonomous vehicles have 5 level of automation. Level 0 indicates no automation. Level 1 include driver assistance. There is partial automation at Level 2 which includes combined automated functions but needs driver to engage with driving related tasks. Level 3 is conditional automation which means the driver has to be prepared to take control of the vehicle when notified, but is not expected to consider the environment. Level 4 is a high degree automation where the vehicle is can perform all driving tasks under certain conditions. Level 5 is full automation wherein the vehicle is capable of executingthe entire driving functions and that too under all possible conditions.
1. Intellectual Property Rights
Autonomous vehicle companies and their allies acquire advantageous positions in the industry with the help of protection of intellectual property (IP). As per an online survey as part of Managing IP’s report on IP and the Automotive Sector, 95% of industry respondents predicted that IP rights would play a crucial role in the sector. All the aspects of IP that are
VOLUME: 08, Special Issue 04, (ICESD-2021), Paper id-IJIERM-VIII-IV, June 2021 34 patents, trade secretsand copyrights each possesstheir advantages. An appropriate planning and use of IP rights can supportthe firmsbecome class apart and stay ahead of the curve.
2. Patents
Patent rights is the most used IP strategy by most of the car manufacturing companies. The traditional car manufacturers file more patent applications. The autonomous vehicle makers too are also designing robust patent portfolios on automobile technologies. This has resulted inover 6,300 patents issued on autonomous driving technologies, according to Bloomberg Law.*
3. Patent Subject-Matter Eligibility
In the United States, 35 U.S.C. Section 101 defines patent-eligibility. Subject matter includes a “process, machine, manufacture, or composition of matter,” and excludes abstract ideas, laws of nature, and natural phenomena from patentable subject matter.*This standard was revised in 2014 and the section became stricter for “computer- implemented inventions” with the Supreme Court’s decision in Alice Corporation v. CLS Bank International. This established a heightened two-step test: (1) determining whether the invention is directed to a patent-ineligible concept, such as an abstract idea; and (2) determining whether there is any additional inventive step that transforms an abstract idea into something worthy of patent protection. The Alice Court held that the patent claims at issue covered abstract ideas without any inventive step because they were directed to a computer-implemented business process that could be performed without a computer.In accordance to a 2017 report (F. Hidemichi& M. Shunsuke), the average number of annually issued Artificial Intelligence (AI) patents increased from 250 (2005-2009) to 487 (2010- 2014) and rapidly to 1,550 (2015-2016).*This is because not all computer-implemented innovations are abstract ideas, and even for those that cover abstract ideas, they can be held patentable if their claimed invention is directed to improving the functioning of the computer itself or an existing technical process. The chances of survival for a patent application on an AI invention thus depend on different factors and can be improved by preparing claim language with sufficient details on how the invention’s novel autonomous feature is implemented with different components, so as to improve a certain technical functionality or process.
4. Litigation
The cases of litigation have eventually increased in the traditional automotive industry players. The report states that Automotive companies and their suppliers were sued in 51 cases in 2008, but were subject to 205 cases in 2013, according to a 2015 article authored by Melinda DeSantis.*
5. Trade Secrets
Trade secrets are considered as afeasible alternative of patent protection particularly for the software-based technology that are essential to autonomous driving.
*https://news.bloomberglaw.com/ip-law/insight
In fact, for many companies and inventors, trade secret protection rule over patent protection. This is true in light of the challenges that are being faced by software-based patents and patent applications post-Alice.* However, protection under trade secret can be claimed without publicly disclosing the invention and without registration with a government agency. Trade secret strategies include (i) requiring engineers and others with access to the trade secrets sign non-disclosure agreements; (ii) ensuring that trade secret information has limited distribution or availability even within the company; and (iii) having employees departing the company sign statements that they have not taken any confidential information. The company desiring to access trade secrets need careful documentation.Traditional car manufacturers obtain start-ups for key autonomous driving technologies and hire engineers away from their competitors.
VOLUME: 08, Special Issue 04, (ICESD-2021), Paper id-IJIERM-VIII-IV, June 2021 35 6. Copy Rights
Though patents and trade secrets are the major key IP mechanisms employed for protecting novel technologies, copyright issues are also expected to arise in case of autonomous vehicles. The copyright protection cannot be used for a functionality of a registered software that are used in autonomous vehicles but it provides protections for the underlying source code of the software. Design rights and trademarks that are other forms of intellectual property, can alsoplay significant roles in distinguishing the designs and branding of various autonomous driving technologies.
2.3 Leading Autonomous Driving Patent Companies
The number of patents registered by the leading autonomous vehicle companies are as follows:-
S. No. Name of Company 2015 2016 2017 2018 2019 Total 1. Toyota Motors 136 220 302 418 626 1702
2. Ford 70 106 202 381 518 1277
3. General Motors 97 108 183 312 426 1126 4. Honda Motors 57 81 141 236 373 888
5. VW Group 89 118 167 237 305 916
6. Bosch 77 141 176 226 294 914
7. Alphabet 108 149 183 218 290 948
8. Uber 1 10 55 121 253 440
9. Baidu 1 11 23 101 216 352
Total Each Year 2651 2960 3449 4268 5320 2651 Source: www.statista.com
*https://news.bloomberglaw.com/ip-law/insight
0 100 200 300 400 500 600 700
Toyota Motors
Ford General Motors
Honda Motors
VW Group Bosch Alphabet Uber Baidu 2015 2016 2017 2018 2019
VOLUME: 08, Special Issue 04, (ICESD-2021), Paper id-IJIERM-VIII-IV, June 2021 36 3 CHALLENGES FACED BY AUTONOMOUS VEHICLE INDUSTRY
The autonomous vehicles boast of numerous advantages like decline in number of accidents, lessening of traffic jams, hassle-free parking, saving of time andavailability to transportation. On the other hand, the industry is facing challenges due to the disadvantagesof autonomous vehicles. The major drawbacks of these vehicles include the price as they are very expensive, safety and security concerns, possibility of being hacked, reducing employment opportunities for others and non-functional sensors. Another key challenge faced is deficient patent laws as far as securing protection for autonomous vehicle frameworks is concerned. The patents cannot be used to protect machine-learning data orsoftware engineer's specific articulation source code. As per the laws the innovation is acceptable for patent protection only if it improves computer hardware or there is an improvement in practical application that enhances the working of autonomous vehicles or if there is an augmentation in the mechanical procedure linked with electronic sensors and
20%
15%
10% 13%
11%
11%
11%
5% 4%
Leading Companies in Autonomous Vehicles Patents 2015-2019
Toyota Motors Ford
General Motors Honda Motors VW Group Bosch Alphabet Uber Baidu
0 1000 2000 3000 4000 5000 6000
2015 2016 2017 2018 2019
Increase in Number of Patents of Autonomous Vehicles 2015-2019
VOLUME: 08, Special Issue 04, (ICESD-2021), Paper id-IJIERM-VIII-IV, June 2021 37 actuators. This calls for increased research and development expenditure which in turn make the vehicle even more expensive.
3.1 Future Prospects
As per the market expectation, the sales of autonomous cars were estimated to be over 24 million units in 2017 and compound annual growth rate (CAGR) over 14% during the forecast period. In 2019, the world autonomous cars market touched a worth of nearly
$818.6 billion, with an increase of 12.7% inCAGRsince 2015. As is evident that because of lockdown and covid-19 norms imposed in different countries and economic slowdown thereof, the market declined from $818.6 billion in 2019 to $772.8 billion in 2020 at a rate of -5.6%. The decline is mainly and the measures to contain it.Although, now the market is expected to revive and move at a CAGR of 12.7% from 2021 and reach $1,191.8 billion in 2023. The market is expected to reach $1,642.9 billion in 2025 growing at a CAGR of 17.4%, and $3,195.0 billion in 2030 growing at a CAGR of 14.2%, if the economies proceed as per the calculations.
Source: www.statista.com 4 CONCLUSION
Autonomous technology can be designated as one amongst the most noteworthy developments in the transportation sector. The automotive and electronics manufacturers all round the world are engaged in creating self-driving vehicles. The manufacturers are in the race to acquire intellectual property rights for protection in their technological advancements in this domain. The pace of filing patent application filing stands unprecedented because automotive sectors work hard to reinforce their patent sets.This sector is developing at such a high speed that the patent applied for may turn futile by the time it is issued. Acquiring intellectual property right for autonomous vehicles and associated developmentsdemandscareful contemplation. So as to continue enforcing important IP for vehicles or assembling, manufacturers need to compulsorily update their protection strategies. This to a large extent dependent on the existing patent laws and consequently needs considering suggested changes to ongoing patent resolutions in order to determinethe best secure programming-based developments for patents, trade secrets and copyrights. Intellectualpropertysafeguard for autonomous vehicles is a creative field and the companies are hopeful that the law would continue to develop swiftly.
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