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 and Singapore +852 2103 0610 +65 6512 9594 hengloong.cheong@dlapiper.com JOYCE CHAN Partner, Hong Kong +852 2103 0473 joyce.chan@dlapiper.com LOUISE CRAWFORD Legal Officer, Hong Kong +852 2103 0808 louise.crawford@dlapiper.com TECHLAW Hong Kong 2015 2
The Market TECHLAW Hong Kong 2015 3
Key Verticals of Adoption TECHLAW Hong Kong 2015 4
Why Now? Cheap Sensors Smartphones Cheap Bandwidth Wireless Coverage Key Enablers Cheap Processing Big Data IPv6 TECHLAW Hong Kong 2015 5
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 2015 6
Key Enablers in Focus: Big Data TECHLAW Hong Kong 2015 7
Case Study 1: Verizon TechLAW Australia 2015 8
Case Study 2: Fiat Chrysler Automobiles TechLAW Australia 2015 9
Case Study 3: IoT Corporate Venture Capital Aviva Ventures Industry of the Future Fund TECHLAW Hong Kong 2015 10
Case Study 4: Home Automation SmartThinQ sensor by LG Smartens up old appliances Can prevent obsolescence and prolong machine life TECHLAW Hong Kong 2015 11
Case Study 5: Philips (IoT partners) TECHLAW Hong Kong 2015 12
The Industrial Internet Growth in data volumes Internet of Things Analytics Technology Importance of Equipment to Industry THE INDUSTRIAL INTERNET TechLAW Australia 2015 13
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 2015 14
The Industrial Internet: Outcome Based Agriculture TECHLAW Hong Kong 2015 15
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 2015 16
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 2015 17
Key Legal Issues Liability Data Protection and Privacy Cybersecurity / Hacking Ownership of Data and IPR TECHLAW Hong Kong 2015 18
Liability TECHLAW Hong Kong 2015 19
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 2015 20
Cybersecurity and IOT the risk landscape Regulation Multitude of interconnection points Volume of data Risk factors The media Developing threat environment TECHLAW Hong Kong 2015 21
The evolving information ecosystem TECHLAW Hong Kong 2015 22
Data protection in Asia TECHLAW Hong Kong 2015 23
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 2015 24
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 2015 25
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 2015 26
Open data how to share the data? TECHLAW Hong Kong 2015 27
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 2015 28
DLA Piper Global Internet of Things group 200+ DLA Piper lawyers worldwide with IoT experience TECHLAW Hong Kong 2015 29
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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