March 13, 2022
Calcalist
By Elliot C. Cook; Matthew S. Johnson
Autonomous transportation, including so-called “smart” driving, is as ubiquitous a concept at this point as hybrid or electric vehicles. While significant regulatory hurdles still exist to its full deployment, the reality of widespread autonomous transportation is seen by many as inevitable. For the players in this industry—both established and emerging—intellectual property will have increasing importance. As companies stake out their intellectual property “turf,” and others try to monetize patents in this area, intellectual property will help shape the future of smart transportation.
What is, or will be, patented in the area of smart transportation? The answer is multi-faceted. Whether it is the hardware sensors required to maintain a vehicle in a safe position on the road; the software for compiling the thousands of inputs necessary for the vehicle to operate safely, efficiently, and most importantly independently; or methods of allowing disparate inputs of information to be translated into the hundreds of possible behaviors normally done by a human operator, the space for revolutionary and highly profitable technology is ripe for occupying.
In surveying recently granted patents, several takeaways are worth noting. First, there appear to be two predominant types of assignees in the smart transportation space: conventional automakers investing into internal research and development of their product lines, such as the teams at Ford, GM, Toyota, and Tesla; and developers of third-party products for use in a vehicle manufactured by another company. Second, the focus of more recent filings tends to be on how automated driving sensors are used rather than what an automated driving sensor detects. The reason for this emphasis appears to be because the concepts that make automated driving a reality are what make the technology innovative, while the radars, cameras, and computer systems used to implement those systems are well-known in the art with relatively modest advancements by comparison.
The landscape for automated driving-related patents has not yet matured. When the patents filed early in the development of these technologies, which tend to be broad, run squarely into the technologies that become foundational industry-wide, disputes are likely to arise. For instance, patents issued to cover the process of automating driving generally, with priority dates in the early 2010s, may become fodder for litigation. Other types of early-vintage patents may likewise become valuable to assert against those in the field. Just as other industries have faced this same dynamic (including, notably, the mobile phone industry), those in the smart transportation market should appreciate that patenting their own technologies and otherwise building strong intellectual property portfolios will be vital in defending against, or precluding in the first place, intellectual property battles.
A review of currently filed applications and recently issued patents in the smart driving space also demonstrates how much value remains untapped in terms of intellectual property. By recent estimates, automated driving technology is expected to reach multiple billions of dollars in market value as these technologies proliferate. What this market potential strongly suggests is the importance of innovation with a view toward market share growth and protection. There will be continually evolving improvements and breakthroughs in the industry. As the industry expands and matures, so too will the intellectual property underlying it. Wise companies in the field will look to bolster their intellectual property holdings lest competitors do so first. Those who fail to adequately protect their innovations may face the risk of being elbowed out of this growing market.
The day will come when the proverbial and literal wheel is taken out of a driver’s hands. This will have not only societal and technological consequences but also pivotal intellectual property implications. With the increasing level of innovation in this field—and the escalating patent procurement and enforcement that will follow—companies should take care now in protecting their intellectual property. A strong intellectual property position may be an important deciding factor in which companies ride the wave of market growth and which are crushed by it.
Originally printed in Calcalist Magazine on March 13, 2022. This article is for informational purposes, is not intended to constitute legal advice, and may be considered advertising under applicable state laws. This article is only the opinion of the authors and is not attributable to Finnegan, Henderson, Farabow, Garrett & Dunner, LLP, or the firm’s clients.
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