The Internet of Things (IoT) interconnects devices and processes in all areas of life, with new applications being developed at an ever-increasing rate. Combined with artificial intelligence (AI) its potential grows even further, providing the basis for a wide range of fully automated and autonomous systems, and increasingly ubiquitous “as a service” business models (Anything as a Service – XaaS).
IIoT, or the use of IoT technology in an industrial context, is already reshaping manufacturing and business processes. Sensors, actuators and data analyses are used in real time to drive improvements in quality, sustainability, supply chain tracking and business process efficiency. This technology forms the backbone for a wide variety of automated processes in production and logistics as well as Equipment as a Service (EaaS) business models.
IoT solutions play a key role in the mobility services sector, used in all modes of freight and passenger transport (automotive, railway, aviation etc.), and in autonomous systems as well as Mobility as a Service (MaaS) and Logistics as a Service (LaaS) applications.
IoT technology is also transforming the healthcare industry, facilitating healthcare data exchange, telemedical services and digital administration.
And in the smart home setting, household appliances, smart TVs, wearables and digital assistants are connected and controlled via the internet.
But the rise of IoT raises a whole host of new legal issues. What requirements apply to the provision of IoT devices and processes? Who are the contracting parties when machines interact with each other? What needs to be considered when using adaptive and autonomous software agents? And if there’s nobody to actually negotiate the contents of a contract, what about accepting general terms and conditions? How can machine-to-machine payment transactions be automated so that they are legally watertight? And who is liable when data is transferred, and possibly lost?
We provide comprehensive support in structuring innovative IoT projects, drafting and negotiating contracts, including development agreements, contracts on distribution systems for IoT products and cooperation agreements between providers of IoT devices. We also advise on cooperative IoT ventures and help develop and implement compliance structures.
This includes handling of big data collected, utilised or analysed in the IoT. Where this involves personally identifiable information, compliance with data protection law is a must. We advise clients on the scope for using personal data, minimising the risk of fines and damages and incorporating “privacy by design” and “privacy by default” approaches.
IoT data can raise major competition concerns. Our antitrust experts advise on key issues such as data access, data pooling and data sharing as well as the requirements of the EU Data Act. We also focus on the antitrust regulation of digital business models under EU and German law, as well as the legality of the automated exchange of data and information.
The ever-increasing connectivity driven by IoT and Industry 4.0 means that more and more companies are using communication standards in their products. Many of these communication standards are based on patented technologies protected by standard-essential patents (SEPs). Anyone wishing to legally market or use such products requires patent licences and must pay licence fees. We help clients avoid liability risks from IP rights infringements.
IoT also places new demands on product regulation for market access and product liability law, for example with regard to the use of agile software or open source code. This means that businesses must navigate a growing maze of legislation at international, European and German level. IoT also increases cybersecurity risks, and market players will have to meet the requirements of the European Cyber Resilience Act or the European AI Act in future. A wide range of highly detailed regulations implemented to deal with the issues raised by IoT also apply to the different types of products.
As a full service law firm, we offer clients seamless legal advice on all aspects of the IoT ecosystem. Feel free to contact our experts if you have any IoT related questions.
