Internet of Things Market Insights, Opportunities and Key Legal Risks

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1 Internet of Things Market Insights, Opportunities and Key Legal Risks Heng Loong Cheong, DLA Piper Joyce Chan, DLA Piper Louise Crawford, DLA Piper December 2015

Presenters HENG LOONG CHEONG Partner, Hong Kong

2 Presenters HENG LOONG CHEONG Partner, Hong Kong and Singapore JOYCE CHAN Partner, Hong Kong LOUISE CRAWFORD Legal Officer, Hong Kong TECHLAW Hong Kong

3 The Market TECHLAW Hong Kong

4 Key Verticals of Adoption TECHLAW Hong Kong

5 Why Now? Cheap Sensors Smartphones Cheap Bandwidth Wireless Coverage Key Enablers Cheap Processing Big Data IPv6 TECHLAW Hong Kong

Key Enablers in Focus: IoT Value Proposition Huge productivity improvement potential Big Data technologies enable data analytics at 1/10 th of the traditional cost

6 Key Enablers in Focus: IoT Value Proposition Huge productivity improvement potential Big Data technologies enable data analytics at 1/10 th of the traditional cost Investment in software and shift away from hardware From automation-based savings to era of intelligence and value creation Revenue Generation opportunities TECHLAW Hong Kong

7 Key Enablers in Focus: Big Data TECHLAW Hong Kong

8 Case Study 1: Verizon TechLAW Australia

9 Case Study 2: Fiat Chrysler Automobiles TechLAW Australia

10 Case Study 3: IoT Corporate Venture Capital Aviva Ventures Industry of the Future Fund TECHLAW Hong Kong

11 Case Study 4: Home Automation SmartThinQ sensor by LG Smartens up old appliances Can prevent obsolescence and prolong machine life TECHLAW Hong Kong

12 Case Study 5: Philips (IoT partners) TECHLAW Hong Kong

13 The Industrial Internet Growth in data volumes Internet of Things Analytics Technology Importance of Equipment to Industry THE INDUSTRIAL INTERNET TechLAW Australia

14 The Industrial Internet: Monsanto Smart Farming has been used by Monsanto to analyse 25 million fields in the US producing data which can predict which seeds will grow best where TECHLAW Hong Kong

15 The Industrial Internet: Outcome Based Agriculture TECHLAW Hong Kong

The Industrial Internet: Enhanced Data Analytics and

predict onshore and offshore oil pump failures minimizing

real-time data to respond more quickly to critical

monitoring subsea conditions using unmanned marine vehicles

16 The Industrial Internet: Enhanced Data Analytics and Monitoring Apache Corporation using Big Data analytics to predict onshore and offshore oil pump failures minimizing lost production Thames Water using sensors, analytics and real-time data to respond more quickly to critical situations such as leaks or weather events Schlumberger monitoring subsea conditions using unmanned marine vehicles which can travel for a year on power from wave energy TECHLAW Hong Kong

17 Legal Challenges New contract types Cybercrime Competition law Intermediaries' liability Medical devices Telecoms Consumer protection Intellectual Property Rights Applicable law Financial services laws Data protection Product liability and recall TECHLAW Hong Kong

18 Key Legal Issues Liability Data Protection and Privacy Cybersecurity / Hacking Ownership of Data and IPR TECHLAW Hong Kong

19 Liability TECHLAW Hong Kong

20 Security and privacy risks Cybersecurity risks:- Privacy / regulatory Business Reputational IOT cyber risks extend beyond "inherent" privacy and business risks: Medical devices Connected cars Wearables IOT baby monitors Light bulbs TECHLAW Hong Kong

21 Cybersecurity and IOT the risk landscape Regulation Multitude of interconnection points Volume of data Risk factors The media Developing threat environment TECHLAW Hong Kong

22 The evolving information ecosystem TECHLAW Hong Kong

23 Data protection in Asia TECHLAW Hong Kong

24 What's happening elsewhere? European privacy directives Upcoming European regulation Fines of up to 5% of Turnover Safe harbor now invalid US: mandatory breach notifications TECHLAW Hong Kong

Challenges in data protection compliance Rapid development in technology outpacing development of the law When does IOT data become personal data?

25 Challenges in data protection compliance Rapid development in technology outpacing development of the law When does IOT data become personal data? Excessive collection Meaningful notification and consent Cross-border data transfer restrictions Jurisdiction creep which laws apply? TECHLAW Hong Kong

26 Practical steps Principles of privacy by design Proactive not Reactive; Privacy as the Default Setting Privacy Embedded into Design End-to-End Security Full Lifecycle Protection Preventative not Remedial Policies on BYOD and wearables Conduct an audit of privacy compliance and security arrangements Monitor legal developments Breach response strategy Organisation-wide training TECHLAW Hong Kong

27 Open data how to share the data? TECHLAW Hong Kong

28 Key Challenges and Opportunities for Businesses Unlocking the power of data analytics Being smart with your business to save costs Identifying products where connectivity legitimately adds value and is not intrusive Move from automation to intelligence and value creation Developing and becoming part of connected ecosystems Managing customer perceptions re: cybersecurity and privacy Considering and adopting new business models TECHLAW Hong Kong

29 DLA Piper Global Internet of Things group 200+ DLA Piper lawyers worldwide with IoT experience TECHLAW Hong Kong

30 TECHLAW Hong Kong

31 Internet of Things Market Insights, Opportunities and Key Legal Risks Heng Loong Cheong, DLA Piper Joyce Chan, DLA Piper Louise Crawford, DLA Piper December 2015

Our position. ICDPPC declaration on ethics and data protection in artificial intelligence

Our position. ICDPPC declaration on ethics and data protection in artificial intelligence ICDPPC declaration on ethics and data protection in artificial intelligence AmCham EU speaks for American companies committed to Europe on trade, investment and competitiveness issues. It aims to ensure