ArticlePDF Available
268 R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
Marcelo Negri Soares*
Marcos Kauffman**
1 Introduction. 2 Industry 4.0. 3 The Impact of I4.0 on Businesses. 3.1 The Intellec-
tual Property World Map and Brazil’s Distance from the Fourth Industrial Revolution
Protagonists. 4 Intellectual Property. 4.1 The Implications for Intellectual Property.
4.2 The Integrated Life Cycle – Model Based Definitions. 4.3 Digital Businesses and
the Human Cloud. 4.4 Horizontally Integrated Businesses and the Value of Data. 5
The Need to Adapt IP Strategies. 5.1 Business Strategy Recommendations. 5.1.1 A
Look at Competitors’ Patents. 5.1.2 The Growing Importance of IPR. 5.2 Intellectual
Property Recommendations: Life Cycle Recommendations. 5.2.1 Always Use NDAs
(Non-Disclosure Agreements). 5.2.2 Always Share Only the Necessary Layers Informa-
tion. 5.2.3 Always Use Confidentiality Notices. 5.3 Human Cloud Recommendations.
5.3.1 Use Non-Disclosure Clauses in Employment and Contractor Contracts. 5.3.2
Implementation and Physical Security Measures. 5.4 Data Sharing Recommendations.
5.4.1 Categorization of the Different Data Types. 5.4.2 Data Ownership Rights. 5.5
IP Ownership Clauses. 6 Conclusion. References.
Intellectual Property (IP) is increasingly recognised as a paramount intangible asset influencing
the value of companies, as well as their corporate strategies and management. This paper focuses
on the impact of implementing Industry 4.0 (I4.0) on the management of IP in collaborative
inter-organisational interconnected networks. Such interconnected networks will allow groups
of companies, often competitors and/or customers, to share data and to collaborate in the
design, development and manufacture of complex products and/or services, exchanging large
amounts of proprietary technical data. Furthermore, this paper explores how companies can
benefit from the interconnected network capabilities, whilst protecting them from any risks
regarding the vulnerability of IP assets to misappropriation, unauthorized use or leakage. The
* Lawyer, Accountant, Teacher and Writer. Post-Doctorate from Universidade Nove de Julho - São Paulo (2017). PhD
in Law from Pontifícia Universidade Católica de São Paulo (2013). Master by the same PUC-SP (2005). Graduated
in Law from the State University of Maringá, Paraná (1997). Specialist in Procedural Law at the Paulista University
(1998), in Commercial Law at Mackenzie (2006), in Public Law at the Federal School of Law (2008) and Account-
ing at the Maringá State Institute of Education (1989). Professor of the Stricto Sensu Post-graduation Program in
Legal Sciences at Unicesumar. Researcher at FAPESP and at ICETI - Cesumar Institute of Science, Technology and
Innovation. E-mail: <>.
** Doctorate Student, Centre for Business in Society – Faculty of Business and Law – Coventry University. Coventry Uni-
versity-U.K./Centre for Business in Society – Faculty of Business and Law. E-mail: <>.
Submetido: 21 fev. 2018
Aprovado: 8 maio 2018
Editora responsável: Profa. Dra. Fayga Bedê
Esta obra está licenciada sob uma licença Creative Commons Atribuição - Não comercial - Compartilhar igual 4.0 Internacional.
Industry 4.0: Horizontal Integration and Intellectual Property Law Strategies in England
R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
focus of this study is the UK manufacturing industry, where formal contractual tools are being
deployed to support IP management in collaborative projects. It relies on an in-depth study of
IP management practices in the UK manufacturing supply chain to critically assess the current
state of practice in order to provide answers to the risks emanating from IP management in
this new and complex collaborative setting. This paper concludes that IP and contractual
tools deployed in this new environment must be underpinned by the business strategy and
the business model. In addition, changes to organisational structures are necessary to bring
together functions that typically operate in silos in many manufacturing businesses, namely:
Engineering, Information Technology, Commercial and Legal Departments.
Keywords: Fourth Industrial Revolution. Intellectual Property. Business Strategy. Intellectual
Property Strategy.
The Fourth Industrial Revolution, also known as Industry 4.0 (I4.0), is described as a
“digital revolution” in which the deployment of the Internet of Things (IoT) and the inter-
connecting of all things and businesses in the manufacturing industry leads to “blurring the
lines between the physical and digital spheres” (SCHWAB, 2016, p. 9). Such paradigm shift
comes along with the prospect of disrupting the global manufacturing industry and leading
to substantial economic growth and prosperity (MAN; STRANDHAGEN, 2017, p. 721).
The available literature indicates that the levels of integration of the I4.0 and data
exchange between businesses will lead to extensive organisational consequences resulting in
risks and opportunities to the manufacturing business (BAUERNHANSL; HOMPEL; VO-
GEL-HEUSER, 2014; BOTTHOF, 2015). Furthermore, it also recognises that established
manufacturers will be required to re-evaluate and innovate their Business Models (BM) in
order to stay competitive (JONDA, 2007; KAGERMANN, 2015; LOEBBECKE; PICOT,
2015), as the phenomenon will lead to new ways of creating value and disrupting the current
supply chain structures (KAGERMANN, 2015). Finally, the literature also points out that
there is a backlog in business management research regarding the impact on current business
(BRETTEL et al., 2014; EMMRICH et al., 2015).
Therefore, as manufacturing businesses embark in the Fourth Industrial Revolution
and go digital, the key questions troubling many practitioners and businesses managers are:
What will be the impact on business? How will intellectual property (IP) and IP strategies
be affected by the new interconnect environment associated with I4.0?
This paper proposes that, in order to answer these questions, business leaders, academics
and IP law practitioners must understand the changes taking place and then adapt their prac-
tices and strategies in order to mitigate any risks and capture and secure value in the form of
IP. Furthermore, it is also argued that the failure to recognise and adapt to the new industrial
Marcelo Negri Soares | Marcos Kauffman
270 R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
paradigm will result in a failure to secure a sustainable future and long-term business growth.
This article aims to contribute to the literature by assessing the concept of Industry 4.0
and its impact on manufacturing business and its Intellectual Property Strategies.
Despite the popularity and focus given to I4.0, which since its conception has arguably
struggled to achieve a clear definition, even the “Industrie 4.0 Working Group” (KAGER-
MANN, 2015), which has been created by the German government with the objective of
promoting and developing I4.0, only provides a description of the I4.0 vision and the basic
enabling technologies and applications, but not a clear definition.
Furthermore, even though the I4.0 has since its conception moved up in the agenda
for universities, companies and governments, the definition provided by the myriad of publi-
cations in both academic and practitioner domains has varied massively and accomplished
Thus, whilst the scope of this article falls outside the engineering disciplines involved
in the technology enabling I4.0, it will attempt to provide a brief overview of I4.0 from an
engineering perspective in order to form a business strategy and IP strategy view of its impact.
Therefore, we begin with an overview of a key concept at the core of I4.0, the Internet
of Things (IoT). A simple way to explain the IoT is to use the widespread, well-understood
technological concept known as the Internet.
The Internet is comprised of a global network of interconnected computer servers, which
can be accessed simultaneously by multiple users via a range of endpoint devices (mobile pho-
nes, laptops, tablets, PCs, etc.). These connected users (almost 4 billion) add source materials,
access the internet and use the information contained in those servers.
The next step then is to expand the concept of connecting these users and imagine that
everyday objects containing embed sensors capable of communicating information are also
connected to networks and to the Internet (BELDIMAN, 2013, p. 72).
Such objects can include mobile phones, wearable devices, washing machines, light
bulbs, electric cars, etc. Furthermore, in an industrial setting these include robots, machines,
jet engines, etc. All of these “things” are now “smart” objects which are capable of communi-
cating and exchanging data with the wider network about themselves (e.g., what, where, when,
temperature, pressure, acceleration, speed, status, etc.), making this network the Internet of
In the same fashion as the concept of I4.0, there is still no consensual definition for IoT.
Nonetheless, one of the most enlightening definitions was presented by the ISOC report as:
“Internet of Things” and “IoT” refers broadly to the extension of network con-
nectivity and computing capability to objects, devices, sensors, and items not
ordinarily considered to be computers. These “smart objects” require minimal
human intervention to generate, exchange, and consume data; they often feature
Industry 4.0: Horizontal Integration and Intellectual Property Law Strategies in England
R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
connectivity to remote data collection, analysis, and management capabilities
(ISOC, 2015, p. 12).
Thus, with a basic understanding of IoT, one can relate to the concept of I4.0, which can
be characterised as a form of “Industrial Internet of Things” (IIoT) (LEBER, 2012). Therefore,
alluding to the IoT applied in the industrial context, as already mentioned above in the form
of connected robots, machines, jet engines, other equipment, etc.
This characterisation is similar to the one made by Kirazli and Hormann (2015, p. 864),
which provides the following definition for I4.0: “Industry 4.0 is the systematic development
of an intelligent, real-time capable, horizontal and vertical networking of humans, objects
and systems.”
Therefore, I4.0 is the deployment of IIoT within the boundaries of an individual business,
also known as “Vertical Integration”, as well as the deployment across a value chain, industry
or even cross-industry, also known as “Horizontal Integration” (KAGERMANN, 2015).
To conclude this section, it is proposed that the deployment of IIoT within individual
businesses, whilst undoubtedly leading to operational gains and other benefits such as incre-
ased speed, control and overall productivity, would not lead to major implications regarding
the way businesses generate, protect, distribute and capture value. This is due to the fact that
the knowledge and integration of all “things” and any data and knowledge exchange would
remain under the control of a single entity.
On the other hand, the deployment of IIoT across value chains and/or industries, cros-
sing individual business boundaries, will pose particular challenges, especially with regards
to the strategic sharing, or not, of data and knowledge. To this end, the next few sections will
explore the key implications to manufacturing businesses, as well as the need for the businesses
to adapt their models and IP strategies in order to mitigate risks and secure value.
Having clarified the concept of I4.0, this section will turn to what is changing for cur-
rent businesses. Why does these changes matter to businesses? And why should anyone care?
The vision of I4.0 is that integrating products, operations, businesses, supply chains and
industries via the IIoT will result in a seamless product or service lifecycle and the potential
to perform the exploitation of data emanating from the smart devices connected to each
other and scattered in all industrial dimensions, which in turn will lead to new insights into
products, operations, businesses, users and services.
Such vision, also called “digital transformation” is already taking place in many indus-
tries, where businesses are gravitating away from just selling hardware (e.g. parts, jet engines,
robots, motors, etc.), and heading towards a model focused on commercialising solutions that
provide a combination of hardware with embedded sensors and communication capability,
generating field data and software solutions that enable users to utilise analytics to operate,
Marcelo Negri Soares | Marcos Kauffman
272 R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
monitor, control and maintain the hardware in a new way (e.g. preventative maintenance).
There are various estimations regarding the volume and impact on businesses and the
wider economy, if such a vision is achieved (FOROOHAR, 2016, p. 18). These estimates de-
monstrate a substantial importance to businesses and wider society: “In 2015, there were 10
billion connected devices. (BUSINESS INSIDER, 2015). IoT will generate between US$3.9
and US$11.1 trillion by 2025 (MANYIKA, 2015, p. 2.).”
To illustrate the impact of the digital transformation, imagine the change in how various
forms of navigation technology have evolved. The first devices for satellite navigation (Sat Navs)
were simple digital versions of the old style hardware (paper maps), which in turn replaced
other methods of navigation (celestial navigation with stellar maps).
The original Sat Navs offered their users a massive improvement on the way the hardware
was used due to their ease to operate, to search for a destination and to track your progress
to the destination. Nevertheless, the early Sat Navs were disconnected from the real world,
in the sense that their core information was static and the parameters were never adjusted
to reflect live conditions such as traffic or roadworks. As such, the estimated time of arrival
was almost always inaccurate.
The new generation of Sat Navs came along, powered by the IoT and big data analytics,
which combine for example the information from the driver’s mobile phones with traffic
cameras and wider emergency services information in order to accurately estimate the arrival
time for each route. Furthermore, it very often also analyses all the alternative routes to your
destination and provides the most effective option.
This analogy demonstrates a simplistic example of the transition from the first industrial
revolution all the way to the fourth. The key point in this analogy is that the driver using the
latest, fully connected Sat Nav, will inevitably have an advantage in comparison to drivers
utilizing the older systems, as they will have a dynamic and efficient way to travel, which in
turn will lead to faster journeys, lower fuel costs and higher reliability.
In conclusion, as in the analogy above, businesses that stay out of I4.0 are likely to be
left behind and be less competitive. Furthermore, it is argued that as the benefits estimated
above begin to be realised across industries and sectors, businesses will quickly embark in
their digital transformation and business leaders and IP practitioners will need to use the
existing structures, models and devices to generate, distribute and capture value and to stay
competitive in the face of I4.0.
Having discussed the wider impact of I4.0 on businesses, attention now turns to an
assessment of the implications of this transformation to Intellectual Property.
Brazil has advanced to the forefront of Intellectual Property Legislation, as seen with
Industry 4.0: Horizontal Integration and Intellectual Property Law Strategies in England
R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
the Lei de Propriedade Industrial (L. 9.279/1996, amended by L. 10.196/2001), aimed at mee-
ting the global rules regarding business relations; also contemplating the regulation of rights
and obligations relating to industrial property (Decree no. 2.553/1998); also other laws that
address the theme of I4.0, such as the Marco Civil da Internet (L. 12.965/2014), among several
other laws, and the most recent of them, establishing the Innovation Program for Connected
Education (Decree nº 9.204, November 23, 2017). Brazil also innovates with the creation of
the Brazilian Association of Artificial Intelligence (ABRIA) in May, 2017, in order to map and
thereby foster the Brazilian initiatives in the field of artificial intelligence.
The Brazilian jurisprudence is sensitive to internal legislative changes and also to inter-
national conventions, particularly those of which it is a signatory, in accordance with the laws
recognised worldwide. Aligned with its position, the Brazilian Superior Tribunal of Justice
points out that:
The Lei de Propriedade Industrial restrains the granting of trademarks: A) trade
name, title or insignia (art 124 V and 195 V); b) signs that reproduce brands the
applicant could not be unaware of because of their activity, whose owner is esta-
blished in a country that Brazil has an agreement with, if the brand is intended
to distinguish similar or identical products or susceptible to cause confusion or
brand association with such third party trademark (article 124, XXIII.); c) well-
-known brand in its field of activity pursuant to art. 6a (I) of the Paris Convention
for Protection of Industrial Property. The Paris Convention established in 1883
gave rise to the international industrial property system in order to harmonize
the protective system for the signatory countries, which include Brazil and the
UK. (BRASIL, 2014, online, free translation).
There are also many studies in Brazil focused on the legal impacts arising from robotic
advances, such as robots deployed to support and care for children, elderly or disabled people,
as well as in surgical medicine, autonomous vehicles and drones. These themes are recurrent
in the studies and scientific research in the law field, especially in regards to intellectual pro-
perty law and its derivations. Indeed, in February 2017 the European Parliament adopted
the report initiating the legislative process on these issues. Besides other digital issues, such
as Bitcoin and Blockchain.
The economic impact brought by I4.0 and its radical changes are increasingly recurrent.
Chief Data Officers (CDO) of this industry experience ever increasing amounts of transactions
and data aggregation, increasing the risk of leaking private information, making it necessary
to control and mitigate risks and liabilities contractually in order to ensure accountability
regarding privacy and the protection of sensitive enterprise data, for example, DPOs – Data
Privacy Officers, or CPOs – Chief Privacy Officers.
However, compared to the leading countries, such as the UK, the registration of patents
in Brazil is far away from occupying a protagonist position, which follows the limited perfor-
mance in general in Latin America as a whole, as demonstrated in the historical map (Exhibit
1), which depicts the size of each county according to their volume of intellectual property
in 2002. Thus, although Brazil has improved massively since 2001, it is still just in the 24th
Marcelo Negri Soares | Marcos Kauffman
274 R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
position in patent registration, 14th in trademark registration and 22nd on registered designs,
according to the latest WIPO report (Exhibit 2) published in 2017 with the data collected
during the year 2016.
Exhibit 1 - Patents Granted in 2002 World Map
Source: SASI Group (University of Sheffield) and Mark Newman (University of Michigan) (WORLDMAPPER,
2006, online).
Origin Patents Trademarks Designs
China 111
U.S. 224
Germany 542
Japan 337
Rep. of Korea 483
France 658
U.K. 7 7 11
Italy 11 11 5
Switzerland 813 9
Brazil 24 14 22
Exhibit 2 - WIPO Ranking of IP filling by origin in 2016
As such, I4.0 is still not a reality for most Brazilian companies, and speaking of horizontal
integration strategies, it is in an even farther step. Alongside this, the Country must insist on
the verification of these cutting-edge models, such as the discussions that we will initiate in
this article, especially regarding the strategies for effective protection of intellectual property,
just to spark the interest in breaking these barriers.
A recent example of complete transformation is China, which in the last ten (10) years
moved out of the intermediary space to take the top spot in the world ranking of intellectual
Industry 4.0: Horizontal Integration and Intellectual Property Law Strategies in England
R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
property registration. It is argued that China realized that with the advance of technology
and in particular the I4.0, countries that do not care about such protection will be less com-
petitive and place themselves out of the world’s stage for exporting end products. Thus, it is
also argued that some countries are and will be marginalised and be positioned as producers
of raw materials and commoditised goods.
According to the World Intellectual Property Organization (WIPO), Intellectual Property
(IP) can be characterised as creations of the mind (WORLD INTELLECTUAL PROPERTY
ORGANIZATION, 2011). These include inventions, literary and artistic works, symbols, na-
mes, images, and designs used in commerce. IP can be categorised, according to the subject
matter it covers, into two main categories: industrial property, which includes inventions,
industrial designs, integrated circuit topographies, trademarks, and geographical indications;
and copyright, which includes literary, dramatic and artistic works. IP-based innovation covers
a wide spectrum of innovations, including drugs, machines, processes, business methods,
software, maps, designs, computer chips, etc. Within this broad scope, IP can be found in any
drawings, songs, books, logo, invention from an inventor and many others. IP Law provides
for exclusive rights for the creators of IP. Such rights are referred to by the term intellectual
This section explores IP protective measures and the difference between formal and
informal protection measures. Protecting IP can be understood as a prohibition, which is
intended to ensure that no one uses IP in a way that is contrary to the owner’s will.
The protective measures can take effect in various forms, in the form of a trade secret,
copyright protection, which forbids someone to reprint a book, remix a song, or patent pro-
tection, which prevents the use an invention, or trademarks, which protect the use of logos,
among many other possibilities. As shown by these examples, the protection of IP can mean
quite different things. However, all the possible protections of intellectual properties fall into
one of the two categories: formal protection measures and informal protection measures
Historically, the focus of IP practitioners has been to use IP rights as the traditional
“Shield and Sword” to protect the physical things, devices, structures, or the configuration of
physical systems, physical outputs, or the operation of physical systems, physical connections,
However, with the implementation of I4.0 the focus needs to be expanded in IP pro-
tection for intangible things, such as methodologies, configuration of virtual systems, data
Marcelo Negri Soares | Marcos Kauffman
276 R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
ownership, handling and storage, processing algorithms, brand recognition, etc.
The implementation of I4.0 challenges the current understanding and use of IP protec-
tion and commercialisation strategies, justifying the development of new approaches better
suited to the rapidly changing, highly integrated business networks.
As a result of the implementation of interconnected communications and the utilization
of application programming interfaces (APIs) to more collaborative inter-company models,
businesses must carefully consider how to protect their IP, whilst at the same time facilitating
the interoperability of connected businesses.
The sub-section below presents a non-exhaustive list of challenges for IP strategy in the
face of this new highly collaborative and interoperable environment emanating from I4.0.
In order to achieve the levels of integration across the product life cycle from design
to recycling, the I4.0 will require a change in the nature of proprietary files. This will un-
doubtedly impact manufactures who will be pushed due to efficiency and market pressures,
whether they like it or not, towards migrating to “Model Based Enterprises” (MBE) <http://>, where manufacturing
businesses will move away from utilising 2D engineering drawings and specifications, to utili-
sing digitalised 3D product drawings and definitions (i.e., Model Based Definitions “MBD”)
(VEZZETTI; DESTEFANIS; ALEMANNI, 2011). These files can be shared across the supply
chain (HEDBERG, 2016).
In fact, as highlighted by Hedberg on pg. 12, studies have demonstrated that manu-
facturing businesses could save millions and reduce their time to market and new product
introduction time by almost 75% in average by utilising MBD.
Thus, the MBE digital files, also known as the “digital thread” or “source of truth” as
referred to by Siemens (RICHTER; WALTHER, 2017), will be produced by 3D Computer
Aided Design (CAD) software, which will contain the specifications for components and
final products, including dimensions, tolerances and materials, as well as bills of materials
and manufacturing information.
It is not difficult to imagine the potential damage caused if such files fall in the wrong
hands, as this confidential information would enable a rapid copying of the product. As such,
the potential loss of valuable IP obviously increases as manufacturing businesses migrate to
the integrated life cycle model of I4.0 and begin to utilise the MBD files.
Despite the trend towards digitalization of businesses, one part of the organizations
will remain unchanged, that is, the reliance on human beings to setup, coordinate and make
Industry 4.0: Horizontal Integration and Intellectual Property Law Strategies in England
R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
decision regarding critical activities.
Of particular importance in this context is the fact that, in the current technological
setting, more and more technical work is being done by suppliers, contractors or even the
employees themselves, which are working remotely, which is the so called “human cloud.”
This trend is a key factor in the I4.0 labour environment, where programmers, data
scientist, IT professionals, statisticians, etc. provide specialized services to hundreds of projects
scattered across a virtual cloud. These workers can perform their task from anywhere in the
world, and the only thing necessary is to have internet access (O’CONNOR, 2015).
Furthermore, the available literature (AURIGA, 2015) points out that IT employment
has the highest turnover rate compared to any other industry, reaching 20–30% annually
and only lasting from one to four years of tenure. Painting an even more aggravating picture,
a report by Symantec (2013) presents evidence from a survey showing that nearly 60 percent
of software developers based in the United States believe to have the right to reuse code that
they have written in previous assignments for the purposes of their next employment and over
40 percent believe that they should have the IP in their inventions.
This challenge was illustrated by the legal case between Formula One teams and a service
provider, namely Force India vs. Malaysia Racing (2012) EWHC 616 (Ch) and Force India v.
Aerolab (2013) EWCA Civ 780.
A key issue raised on paragraph 61 of Force India vs. Arolab was the need to distinguish
between the personal skill and knowledge of the employees of the service provider and the
corporate trade secrets of its clients. A concern was expressed that the development contract
should not “unduly restrict the ability of Aerolab’s employees from making use of their skill
and knowledge, even if that skill and knowledge had been enhanced by information that
they had acquired in the course of working on the Force India project.” (FORCE INDIA
FORMULA ONE TEAM LTD, 2013, p. 12). This dispute shows the difficulties in defining
the scope of protection of trade secrets in an era characterized by employee mobility and open
innovation models.
In conclusion, the confluence of digitalised business and high labour mobility, in com-
bination with the above MBD files and the vertically integrated businesses carrying a vast
amount of aggregated know-how and technical information, gives rise to one of the biggest
risks to business IP due to unclear ownership of rights and knowledge spill over as a result of
a subsequent competitor employment.
In the typical pre-I4.0 environment, IP strategies have focused on protecting hardware
and software that process and store data. However, the data itself, especially in the newly
interconnected environment, is of high value and worthy of protection. This value emanates
from the ability to perform analytics on data from integrated smart objects, generating new
Marcelo Negri Soares | Marcos Kauffman
278 R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
knowledge, which can be the source of competitive advantage and innovation. As such, the
rights to these data sets, as well as the bigger aggregated data sets, as well as the knowledge
and insights emanating from it are of critical importance to businesses.
Data, in its more simplistic form, is typically protected by trade secrets and copyright
law, saved in the case of databases under EU jurisdiction via the “sui generis” protection
scheme provided by the EU Directive 96/9/EC (Directive 96/9/EC, European Parliament
and Council) (EUROPA, 1996).
Although the above methods of data protection can be useful in many circumstances,
they very often fall short in scope and are considered by many as non-adequate (DLA Piper,
Rights in Data Handbook) (DLA PIPER, 2013, p. 46.). In this case, it is very likely that bu-
sinesses and IP practitioners will have to resort to contractual agreements in order to govern
the operation and the inter-company relations in the I4.0 environment.
Therefore, IP strategies will have to take account of the required contractual agreements
surrounding data exchange, particularly addressing the types, rights, and licensing constructs
related to I4.0 interconnected data.
After discussing some of the challenges in relation to Intellectual Property in this new
industrial paradigm, attention now turns to the need to adapt the current IP strategies.
With the current rate of technological and industrial change, and the unpredictable natu-
re of technologies involved in the I4.0 environment, a variety of techniques should be utilised
in order to effectively identify and protect IP. While there are a number of common strategies
to be deployed in the arena, it is important to emphasize that a one-size-fits-all solution does
not exist, as each individual business performs to achieve its own strategic objectives and will
be setup according to a particular business model. As such, it is recommended that various
legal mechanisms be considered alternatively or concurrently, with the non-legal mechanisms
as part of a comprehensive IP strategy.
This section will be split into two sub-sections, covering first the non-legal recommen-
dations about Organisational Strategies. The second subsection will then explore a set of
recommendations related to the three IP challenges raised above.
IP management involves a lot more than just law and legal knowledge. Even so, IP
management is very commonly left to a particular technical or legal department within the
business. Such department will typical only focus on the protection of the business from po-
tential infringement of other businesses IP and the protection from the infringement of its IP
by competitors. It is argued that this approach to IP management, albeit marginally relevant
Industry 4.0: Horizontal Integration and Intellectual Property Law Strategies in England
R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
to business, is nevertheless unable to deliver tangible benefits and income to businesses, as
there is too much emphasis on protection and on the legal issues, but not sufficient emphasis
on the commercial aspects and the role of IP in the wider business strategy.
In order to bridge the IP and Business strategy, the team responsible for IP management
must be not only competent in legal matters related to IP but also competent and directly
involved in the business strategy and long-term objectives. The Handbook of European Intel-
lectual Property Management uses an example of a technology company to illustrate this point.
In the example, the technology company identifies that a given market is shifting to a
position where another technology company has a strong patent portfolio. In this case, typically
a specialist team member from the legal department should flag the potential issue, provide
evidence and offer advice to the business regarding a particular strategy to enter this market.
At the same time, a senior IP specialist may devise and propose a strategy for the company to
achieve particular agreements with competitors, in order to utilise their patents and reduce
the risks and development costs in exchange for some of the company’s own IP.
A significant problem occurs when businesses neglect IP management and fail to allocate
relevant resources to monitor the potential markets in which the business plans to enter, as
well as the IP landscape. Furthermore, businesses often also fail by delegating the IP mana-
gement to inappropriate areas of the business. For example, if strategic decisions regarding
IP management are delegated to operational level IP experts, such decisions are likely to be
unsuccessful, as the employee is often unable to reach appropriate conclusions due to insu-
fficient knowledge of the business and its strategies.
In addition, the typical approach in most businesses it that the IP experts are only called
upon when it is too late and the problem has already occurred or when the business has already
infringed the IP rights of another business or if another business has infringed their IP rights.
On the other hand, it is argued that by integrating IP strategies with the business stra-
tegies, a business can make effective decisions as the part of the managerial responsibility,
thus transforming IP into a real asset and an important resource adding value to the business.
Nevertheless, it is a challenge to change the current practices, which arguably are driven
by the senior management perception of IP as a very complex and time-consuming area, which
should be entrusted to subject area experts within the in-house legal departments or external
third parties. Furthermore, it is argued that this is also the main reason for the tendency to
neglect the importance of IP and to link it to the wider business strategy.
Another challenge to businesses, as argued in the European Handbook of Intellectual
Property Management, is the fact that it is very difficult to recruit people with the right ca-
pabilities in this area and able to effectively assume the role of an IP manager or executive.
Furthermore, even if someone would succeed, they would become a significant drain on the
wage budget. The employee must be competent in legal, technical and business aspects. Most
IPR managers today have technical education combined with a degree in patent law, but they
lack training and practical experience in business. A good example of how difficult it is to find
Marcelo Negri Soares | Marcos Kauffman
280 R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
an employee who has all the necessary skills is one of the largest Danish companies, which
had its position of IPR executive vacant for 18 months.
There are several solutions available. The management can either engage potential talents
who are already employed in the company, invite them to strategy seminars, challenge them
on the issue of IPR and its significance in various fields, and send them on courses, or pay
external consultants to spar with the management.
5.1.1 A look at competitors’ patents
An appropriate IP strategy focuses not only on balancing the business own IP rights,
but also on dealing with those from competitors. These represent an important but highly
underestimated information channel, which provides valuable insight into which products
the competitors can be expected to develop during the next five years.
An ineffective approach to solving the task is to completely refrain from patenting and
worrying about competitors’ patents. The promising approach, on the other hand, is to make
efforts to translate competitors’ patent applications into something that is of relevance to one’s
own business. The competitors’ applications may in fact influence your decision about the next
product you may introduce into the market. Again, it is crucial for a company’s competitive
edge to have an IPR executive who not only has insight into technical and legal areas, but is
also a skilled businessperson.
This is also highly relevant in cases where mergers and acquisitions are on the agenda.
Here, a traditional legal approach would consist of focusing solely on assessing whether the
company that is being acquired has any potential or ongoing legal proceedings due to patent
infringements. However, the IPR executive should play a much more central role in these ca-
ses, and already at an early stage evaluate whether the intellectual property rights of the other
company have commercial relevance for their own business. Patents and other intellectual
property rights can be worthless, if competitors have something better, and assessments of
this sort require more than just legal expertise. They require that the person responsible for
IPR is part of the management team.
5.1.2 The growing importance of IPR
Working with IPR poses significant challenges for a company, firstly in finding the right
person for the job and secondly in managing effectively its IPR. We often see companies facing
these challenges by burying their heads in the sand. However, this can turn out to be a costly
affair because globalization means that the focus on patents and other intellectual property
rights is continuously increasing in importance.
Globalisation means that it is highly unlikely that you will identify a local need that does
not already exist elsewhere in the world. Presumably, somewhere in the world, someone else
will be in the process of developing something in order to meet that same need. Therefore,
Industry 4.0: Horizontal Integration and Intellectual Property Law Strategies in England
R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
it is important to have an IP strategy ready as soon as you have a new product or production
In order to mitigate the potential risks of utilising MBDs in inter-organisational
collaborations, businesses should be particularly careful when sharing files. The next three
recommendations form a non-exhaustive list, which is generic and applicable in most cases
where a MBD model is shared. Nevertheless, each individual business should ensure that the
information shared contributes to the business goals and objectives.
5.2.1 Always use NDAs (non-disclosure agreements)
MBD files should only be shared after the parties have signed a suitable and effective
NDA. Such agreement must clearly define the term ‘Confidential Information’ as including
electronic information such as, but not limited to, MBD models and associated files.
5.2.2 Always share only the necessary layers information
Businesses should pay particular attention to how much detail is shared within the
interconnected value networks. Each file should be configured specifically for the purpose
for which it is going to be shared. For example, a particular supplier may need the details
regarding a component inside a product, but not the model for the whole product. Thus,
the files should be suited for the different uses so that the unnecessary parts of the product
design are masked (UK-IPO, 2015, p. 33).
5.2.3 Always use confidentiality notices
Business should include confidentiality notices in all documents before sharing. Such
notices should at least include the business name and the word confidential “[Company]
Confidential” in the MBD file name. It is also a best practice to embed a proprietary notice
in the file to be shared, for example:
The information contained herein is the confidential and proprietary property
of [Company]. It is to be used only for the benefit of [Company] and shall not be
disclosed, transferred, reproduced, altered, or used for any purpose without the
express prior written consent of [Company] (MILLIEN; GEORGE, 2016, p. 21).
As mentioned above, these three recommendations are not exhaustive and attention
should be given to the particular relationship between the parties sharing and receiving the
Marcelo Negri Soares | Marcos Kauffman
282 R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
files, as well as any other protection that may be available in case of misappropriation of in-
tellectual property.
In order to address the risks related to knowledge spillover in relation to high labour
mobility and the vertically integrated businesses carrying a vast amount of aggregated know-
-how and technical information, business should consider at least the following two actions:
5.3.1 Use non-disclosure clauses in employment and contractor contracts
Businesses should ensure that contractual agreements for both employees and contrac-
tors contain non-disclosure clauses. Furthermore, these contracts should also include an IP
assignment clause specifying the ownership of IP at the first point of engagement.
5.3.2 Implementation and physical security measures
Businesses should ensure that adequate security controls are in place, preventing not
only physical risks (document management, disabling USBs, etc.), but also IT risks (network
monitoring, data loss software). These security controls should prevent the access to source
code files, MBD files, design specifications and other IP-rich documents.
It is also important to remember that these security measures must be implemented
in accordance with the particular jurisdiction, particularly the national and regional laws
governing employee privacy, inventor remuneration and limitations on employee invention
Data sharing is one of the most critical aspects of the Fourth Industrial Revolution. The
vast amounts of data to be shared and aggregated across the entire value chain is particularly
important as the rights to the individual data sets, as well as the bigger aggregated data sets
and the knowledge emanating from them are of critical importance to businesses. As such,
we lay out a non-exhaustive set of recommendations with the three basic actions, which will
improve the business IP protection.
5.4.1 Categorize the different data types
Businesses should be aware of the main data types to be shared in the inter-organisational
relationships emanating from Industry 4.0. Furthermore, contractual terms between businesses
exchanging data should address at least the following data types:
Industry 4.0: Horizontal Integration and Intellectual Property Law Strategies in England
R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
a) raw data, machine data and unprocessed data:
this is simply the big data sets that are collected from the relevant smart objects at
issue in the IoT-related contract;
b) processed data:
this is the set of data resulting from the analysis of the raw data by any actor (suppliers,
manufacturers, customers, end-users) in the Industry 4.0 environment and;
c) input data:
this is any data that is entered by the end-users who interact with the relevant smart
objects at issue (and/or their respective customers).
5.4.2 Data ownership rights
Businesses should also be aware of the different data ownership rights in relation to
inter-organisational data exchange. Once more, contractual agreements in this area should
address at least the following points:
a) the smart object manufacturer may simply own the data regardless of whether the
smart object itself is sold or leased to a customer;
b) the smart object manufacturer may own the data, but the customer will receive a
license to some or all of the data;
c) the smart object manufacturer may own the data, but the customer and some third
parties will receive a license to some or all of the data or;
d) the customer may own the data, but the smart object manufacturer will receive a
license to some or all of the data and for all or some specific purposes.
Finally, businesses should also consider the fact that, similar to joint IP ownership
clauses, data rights provisions in Industry 4.0 related contracts will be the subject of a lot of
negotiation, which often times will likely be contentious negotiations as the powers of the
various parties in a value chain will influence how much each party will give in. Nevertheless,
such contracts should at least consider the following licensing constructs surrounding IP: What
data? What rights? What IP? Who owns the IP? Who are the licensor and the licensee? What
is the particular business model? What products, services or areas of use? In what territory?
What is the term (time) of such right? Are the rights exclusive or non-exclusive? Is there a
right to sublicense?
These constructs should be incorporated into the particular contractual agreements. The
following is an example of an ownership clause where a “smart object manufacturer owns the
raw and processed data, but the customer receives a license to some of the data.
The Customer acknowledges and agrees that the Manufacturer owns all rights,
Marcelo Negri Soares | Marcos Kauffman
284 R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
titles and interest in the Equipment Data. The Customer will upon request deliver
such data to the Manufacturer. The Manufacturer hereby grants the Customer a
perpetual, non-exclusive, non-transferable, royalty-free license to use, reproduce
and store the Equipment Data solely to the extent required to operate Customer’s
equipment (MILLIEN; GEORGE, 2016, p. 22).
Furthermore, in this case it is critical to provide a clear definition of equipment data as
in the following example:
Equipment Data means any data, metadata, logs or other information generated
by the operation of the Software or the Device, but does not include any perso-
nally identifiable information, nor any information entered into the Software
or the Device by the Customer’s employees, agents or end-users, except to the
extent where portions of such information appear in anonymized or aggregated
form or in automated logs or similar records through the normal operation of
the Software. (MILLIEN; GEORGE, 2016, p. 22).
Finally, in the Industry 4.0 inter-organisation relations, data from suppliers and custo-
mers will often aggregate data from other devices generated by a particular business. It is also
important to define expectations, responsibilities and liabilities regarding data security and
privacy, as both suppliers and customers may be vulnerable to breaches of data security and
Therefore, contracts about this must be made as clearly and carefully as possible. They
should include the details regarding the gathering, anonymizing, notifying and using customer
and supplier data.
The phenomenon of I4.0 will reach businesses of all sizes and across all industries,
which will generate rich data that, when coupled with analytics, will enable more efficient
monitoring and controlling of operations leading to increased levels of flexibly and efficiently.
While these new technology offers and business models have no effect on IP rights the-
mselves, they do affect how IP strategies should be formulated. That is, the basic requirements
for their registration and enforcement of IP obviously remain unchanged. But the practices and
strategies for securing and commercialising IP in such environment are completely different.
The interconnected supply chain allows devices in different businesses to work together
to provide new functionality and/or data analytics to businesses throughout the supply chain,
as well as customers. Flexibility imparted to products through their increased data processing
and communication capabilities creates uncertainty when it comes to IP protection. A flexible
and multi-faceted IP strategy informed by the business strategy and business model must be
implemented to ensure control over the business value offer, as well as the brand, technology
ownership, reputation and joint technological innovation, while preserving options for fast
route to market, configuration and customisation in light of the involvement of multiple
businesses within the Industry 4.0 value chain.
Industry 4.0: Horizontal Integration and Intellectual Property Law Strategies in England
R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
A Propriedade Intelectual (PI) é cada vez mais reconhecida como um ativo intangível primordial
que influencia o valor das empresas, as estratégias corporativas e a sua gestão. Este artigo
enfoca o impacto da implementação da Indústria 4.0 (I4.0) no gerenciamento de IP nas redes
colaborativas interligadas interorganizacionais. Tais redes interligadas permitirão que grupos
de empresas, muitas vezes concorrentes e/ou clientes, compartilhem dados e colaborem na
concepção, desenvolvimento e fabricação de produtos e/ou serviços complexos, trocando
grandes quantidades de dados técnicos proprietários. Além disso, este trabalho explora
o modo como as empresas podem se beneficiar das capacidades de rede interconectadas,
protegendo-se de qualquer risco a respeito da vulnerabilidade de recursos IP até apropriação
indevida, uso não autorizado ou vazamento. O foco deste estudo é a indústria de fabricação
do Reino Unido, onde ferramentas contratuais formais estão sendo implantadas para apoiar
o gerenciamento de PI em projetos colaborativos. Baseia-se em um estudo aprofundado das
práticas de gerenciamento de PI na cadeia de fornecimento de manufatura do Reino Unido
para avaliar criticamente o estado atual da prática, a fim de fornecer respostas aos riscos que
emanam do gerenciamento de PI nesta configuração colaborativa nova e complexa. Este artigo
conclui que a PI e as ferramentas contratuais implantadas neste novo ambiente devem ser
sustentadas pela estratégia de negócios e pelo modelo de negócios. Além disso, as mudanças
nas estruturas organizacionais são necessárias para reunir funções que normalmente operam em
silos em muitas empresas de fabricação, notadamente: engenharia, tecnologia da informação,
departamentos comerciais e jurídicos.
Palavras-chave: Quarta Revolução Industrial. Propriedade Intelectual. Estratégia de Negócio.
Estratégia de Propriedade Intelectual.
La Propiedad Intelectual (PI) es cada vez más reconocida como un activo intangible primordial
que influye en el valor de las empresas, en las estrategias corporativas y en su gestión.
Este artículo se centra en el impacto de la implementación de la Industria 4.0 (I4.0) en la
administración de PI en las redes cooperativas interconectadas interorganizacionales. Estas
redes interconectadas permitirán que grupos de empresas, a menudo competidores y/o clientes,
Marcelo Negri Soares | Marcos Kauffman
286 R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
compartan datos y colaboren en el diseño, desarrollo y fabricación de productos y/o servicios
complejos, intercambiando grandes cantidades de datos técnicos registrados. Además, este
trabajo explora la forma en que las empresas pueden beneficiarse de las capacidades de red
interconectada, protegiéndose de cualquier riesgo sobre la vulnerabilidad de recursos de la
PI la apropiación indebida, el uso no autorizado o la filtración. El enfoque de este estudio es
la industria de fabricación del Reino Unido, donde se están implementando herramientas
contractuales formales para apoyar la administración de la PI en proyectos colaborativos. Se
basa en un estudio exhaustivo de las prácticas de administración de la PI en la cadena de
suministro de manufactura del Reino Unido para evaluar críticamente el estado actual de la
práctica, con el fin de proporcionar respuestas a los riesgos que emanan de la administración
de la PI en esta configuración colaborativa nueva y compleja. Este artículo concluye que la PI
y las herramientas contractuales implantadas en este nuevo ambiente deben ser respaldadas
por la estrategia de negocios y el modelo de negocios. Además, los cambios en las estructuras
organizativas son necesarios para reunir funciones que normalmente operan en silos en
muchas empresas de fabricación, especialmente: ingeniería, tecnologías de la información,
departamentos comerciales y jurídicos.
Palabras clave: Cuarta Revolución Industrial. Propiedad intelectual. Estrategia de negocio.
Estrategia de Propiedad Intelectual.
AURIGA. Employee Tenure Becomes Hot Topic for Tech Companies. 2015. Available at:
<>. Access in: 20 May 2018.
BAUERNHANSL, T.; HOMPEL, M. Ten; VOGEL-HEUSER, B. (Eds.). Industrie 4.0 in
Produktion, Automatisierung und Logistik. Wiesbaden: Springer, 2014.
BELDIMAN, D. Introduction. In: BELDIMAN, D. (Ed.). Access to Information and
Knowledge: 21st Century Challenges in Intellectual Property and Knowledge Governance.
Cheltenham (UK)/Northampton, MA: Edward Elgar, 2013.
BOTTHOF, A. Zukunft der Arbeit im Kontext von Autonomik und Industrie 4.0. In:
BOTTHOF, A.; HARTMANN, E. A. (Eds.). Zukunft der Arbeit in Industrie 4.0. Berlin,
Heidelberg: Springer, 2015. p. 3-8.
BRASIL. Superior Tribunal de Justiça. REsp 1190341/RJ. Relator: Ministro Luis
Felipe Salomão, Quarta Turma, j. 05/12/2013. DJe, 28 fev. 2014. Disponível em:
COR&p=true&l=10&i=5>. Acesso em: 4 jun. 2018.
BRETTEL, M. et al. How virtualization, decentralization and network building change the
Industry 4.0: Horizontal Integration and Intellectual Property Law Strategies in England
R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
manufacturing landscape: an industry 4.0 perspective. International Journal of Mechani-
cal, Aerospace, Industrial and Mechatronics Engineering, v. 8, n. 1, p. 37-44, 2014.
BUSINESS INSIDER. The Internet of Things 2015 Report. [S.l.: s.n.], 2015.
DLA PIPER. Rights in Data Handbook. [S.l.: s.n.], 2013.
EIGHT GREAT TECHNOLOGIES. The Internet of things: a patent overview. The Intel-
lectual Property Office (UK), 2014.
EMMRICH, V. et al. Geschäftsmodell-Innovation durch Industrie 4.0: chancen und Risi-
ken für den Maschinen- und Anlagenbau. München, Stuttgart: Dr. Wieselhuber & Partner,
Fraunhofer IPA, 2015.
EUROPA. European Parliament and of the Council. Directive 96/9/EC. Official Journal
of the European Communities, 11 Mar. 1996.
and others. EWHC 616 (Ch). 2012. Available at: <
en-gb/force-india-formula-1-team-limited-v-1malaysia-racing-team-sdn-bhd-ors>. Access in: 4
June 2018.
Civ 780. 2013. v. 1. Available at: <
uk/5a8ff7b060d03e7f57eb140f >. Access in: 4 June 2018.
FOROOHAR, R. The 1 Thing on Everybody’s Mind at Davos, (Jan. 20, 2016).
HEDBERG, T. Testing the Digital Thread in Support of Model-Based Manufacturing and
Inspection. Journal of Computing and Information Science in Engineering, v. 16, n. 2,
HOWELLS, M.; LAITNER, J. A Technical framework for industrial GHG mitigation in
developing countries. Proceedings: Summer Study: Industrial Energy Efficiency. New York:
ACEEE, 2003.
JONDA, M. Innovation, Geschäftsmodell: “analyse - und planungsprozesse der strategi-
schen unternehmensführung.” Saarbrücken: VDM Müller, 2007.
KAGERMANN, H. Change through digitization: value creation in the age of industry 4.0.
In: ALBACH, H. et al. (Eds.). Management of Permanent Change. New York: Springer,
2015. p. 23-45.
KIRAZLI, A.; HORMANN, R. A conceptual approach for identifying Industrie 4.0 applica-
FERENCE, 2015, Geórgia, EUA. Proceedings… Geórgia, EUA: Institute of Industrial
Engineers, 2015.
Marcelo Negri Soares | Marcos Kauffman
288 R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
LEBER, J. General Electric Pitches an Industrial Internet. MIT Technology Review, 28
Nov. 2012.
LOEBBECKE, C.; PICOT, A. Reflections on societal and business model transformation
arising from digitization and big data analytics: A research agenda. The Journal of Strategic
Information Systems, v. 24, n. 3, p. 149-157, 2015.
MAN, J. C. de; STRANDHAGEN, J. O. An Industry 4.0 research agenda for sustainable
2017, Taichung City, Taiwan. Proceedings… Taichung City, Taiwan: Elsevier B.V. Procedia
CIRP 63, 2017. p. 721-726. 2017. Doi:10.1016/j.procir.2017.03.315.
MANYIKA, J. The Internet of Things: Mapping the value beyond the hype. McKinsey Glo-
bal Institute, p. 2, June 2015.
MILLIEN, R.; GEORGE, C. Intellectual Property Lawyering in the Fourth Industrial
Revolution (the IoT). 2016. Available from: <
the_IoT > Access in: 4 June 2018.
O’CONNOR, S. The human cloud: a new world of work. Financial Times, 8 Oct. 2015.
RICHTER, K.; WALTHER, J. Supply Chain Integration Challenges in Commercial Ae-
rospace. A Comprehensive Perspective on the Aviation Value Chain. [S.l.: s.n.], 2017.
SCHWAB, K. The fourth industrial revolution: what it means, how to respond. World
Economic Forum. [S.l.]: Crown Business, 2016.
SYMANTEC. What’s yours is mine: how employees are putting your intellectual property
at risk. 2013. Available at: <
pdfs/b-whats_yours_is_mine.en-us.pdf>. Access in: 4 June 2018.
THE INTERNET SOCIETY (ISOC). Overview. 2015. Available at: <https://www.internet->. Access
in: 4 June 2018.
UK-IPO. Intellectual Property Office: annual report and accounts 2014 to 2015. Printed:
UK, Majesty’s Stationery Office. 2015. Available at: <
blications/ipo-annual-report-and-accounts-2014-to-2015>. Access in: 4 June 2018.
VEZZETTI, E.; DESTEFANIS, F.; ALEMANNI, M. Model-based definition design in the
product lifecycle management scenario. The International Journal of Advanced Manufac-
turing Technology, v. 52, n. 1/4, p. 1-14, 2011.
port. 2011. Available at: <
ty/944/wipo_pub_944_2011.pdf>. Access in: 4 June 2018.
Industry 4.0: Horizontal Integration and Intellectual Property Law Strategies in England
R. Opin. Jur., Fortaleza, ano 16, n. 23, p.268-289, jul./dez. 2018
Indicators 2017. Geneva: World Intellectual Property Organization, 2017. Available at:
<>. Access in: 11 Feb.
WORLDMAPPER. SASI Group (University of Sheffield) and Mark Newman (University of
Michigan). Patents Granted in 2002 World Map. 2006. Available at: <>. Access in: 10 Feb. 2017.
... Therefore, this protection must be broadened. The deployment of I4.0 puts the existing knowledge and application of IP protection and commercialization methods to the test [64]. ...
... I4.0 outcome is a novel environment that is highly collaborative and interoperable. China recognizes that with the I4.0 technologies, countries that do not care about protecting these technologies will be less competitive and place themselves out of the world's stage for exporting end products [64]. ...
... According to [64], new technologies establish a new ecosystem with new practices and tactics to secure and commercialize IP. Interdisciplinary collaboration is accessible through modern technologies. ...
Full-text available
Modern innovative models have the possibility of transferring research and development (R&D) output through technology transfer from scientific and research institutions or other enterprises. The complex process of technology transfer is significantly dependent on cooperation among academia, industry, and governments (I4.0) in response to the technological developments driven together through Industry 4.0. As a result, numerous technology transfer factors must be addressed for I4.0 to become a reality. However, the abundance of literature on I4.0 and associated technologies, the key ingredients, and insights for effectively executing I4.0 technology transfer are fairly limited. This study focuses on the success factors of technology transfer for I4.0. The framework is based on systematic literature to outline significant results and factors. Furthermore, this study summarizes, analysis, and criticizes the actual models and their influential variables for I4.0 technology transfer. One of the findings of this study is the significance of cooperation between technology recipients, agents, and inventors for I4.0 technology transfer. Another impressive finding is the significance of the ecosystem component in technology transfer. Combining I4.0 technologies and open innovation is a game-changer, enabling businesses to significantly save time and cost. This article will assist decision-makers in developing policies and strategies to improve the I4.0 technology transfer process. Furthermore, this involves identifying the kind of government assistance that will help accelerate the transition to I4.0 via technology transfer.
... (2) The above described datafication and the digitalization in general demand new IT-approaches for highly integrated networks, e.g. [12], [33]. Such highly integrated networks together with cyber physical system and smart, in real time connected products, increase the IT penetration in SC. ...
... This leads to the challenge that it is difficult to assign ownerships of the data and that classical IP law cannot be applied, e.g. [33], [56]. The unclear ownership of rights to aggregated know-how, and technical data, due to employee turnover, can lead to risks as well [33]. ...
... [33], [56]. The unclear ownership of rights to aggregated know-how, and technical data, due to employee turnover, can lead to risks as well [33]. This could not only affect employee turnover but also changing partners and limited transparency within the digital SC. ...
... It has also been found that the application of digital transactions and data aggregation rises day by day. As a result, the possibility of confidential information being leaked necessitates legal risk control and mitigation to assure accountability for privacy and the security of sensitive financial information [5]. To address these issues, the term legal informatics (LI) plays an important role in developing legal information systems. ...
... The second industrial revolution (1870-1914) focused on assembly lines and mass production using automation and electricity. Furthermore, the third industrial revolution began in the 1950s, marked by an increase in production through the transition from analog to digital technology [4,5]. As per Lee [12], the development of ICT's into the production system led to the fourth industrial revolution. ...
The growing number of applications of Industry 4.0 in the field of legal informatics offers huge opportunities for data scientists and academic researchers. The term Industry 4.0 is defined as “the fourth industrial revolution that connects embedded systems to Cyber-Physical-Systems”. It emphasizes the end-to-end digitalization of all physical resources and integrating digital environments with the value chain organizations. Industry 4.0 comprises a variety of technologies such as Cyber-Physical-Systems, Big Data, Internet of Things, Artificial Intelligence, Cloud Computing and Cybersecurity. It has been found that the implementation of these technologies may be useful in achieving the objective of legal informatics. It can help lawmakers to align jurisprudence by providing modern computational technologies to improve and advance the traditional legal justice system. Further, the integration of legal informatics with Industry 4.0 will be strengthening the legal justice system by providing decision-making support, data transparency, real-time monitoring, cost-effective solution, and triple-bottom-line performance in the future. Therefore, the article aims to determine the implementation patterns of Industry 4.0 technologies in legislative institutions and administrations. The study proposes a conceptual framework that integrates Industry 4.0 with legal informatics. The findings show that implementing Industry 4.0 technologies such as Artificial Intelligence, Big Data, and Cloud Computing plays a vital role for legal firms that are currently in the nascent stage of development.
... Emergence of the Internet of Things (IoT) (Matta & Bhasker, 2019) as a phenomenon of attachment of internet on any objects is obscuring boundaries between physical and digital realms. (Soares & Kauffman, 2018) Meanwhile, the "5.0 Society" may be defined as "intelligent society", where the physical and digital space are highly integrated. ...
Full-text available
Industry 6.0 is viewed as a futuristic industrial evolution. It aims to set the synergy between man and robot by providing the wealth affluence away from the trade, and customers solutions that would provide progress to the world in every field across all planetary boundaries. Industry 6.0 comprises numerous promising technology such as quantum computing, artificial intelligence, machine learning, cloud computing, and quantum artificial computing. These technologies have the massive capabilities to help the legal industry, metrology industry and many other organizations attain their goals by delivering excellent and best-suited insights. In the future, these technologies will assist the lawmaker and jurisprudence in improving the old law justice system into the advanced one. In this article, we first introduce a glimpse of industry 6.0 from the outlook of legal information, digital transformation in metrology, and strength, limitation, opportunities, and threat analysis in brief. Then we discuss key technologies of industry 6.0, framework of legal informative, a futuristic model for a legal informatics system based on quantum-based AI, machine learning, and digital legal metrology and its challenges in adoption in regard’s Industry 6.0. In subsequent sections, we discussed requirements, challenges, and progress in developed countries, preparedness of academia and industry in India. Then, we brief challenges for legal metrology in the future, opportunities for legal metrology in future legal challenges faced by lawyers and legal metrology, limitations of the study, research implication, and conclusion. Finally, the finding shows that industry 6.0 technologies have enormous capabilities to bring a revolutionary change in the legal industry but are present in the new born growth stage.
Full-text available
Os direitos da personalidade se relacionam com o direito do autor, na medida em que é corolário da dignidade humana a transparência nos royalties, dividendos e remuneração contratual, com seu caráter alimentar, sendo que a NFT, com a tecnologia blockchain, garante a segurança da veiculação da arte em meio digital, seja quanto à originalidade autoral, seja com a sequência registral dos direitos e usos. Nesse aspecto, por meio do método hipotético-dedutivo, o presente artigo, com esteio na liberdade de expressão, na arte e também em obras de arte que substituem o pincel e tinta, na música e tantos outros meios digitais, o presente artigo versará sobre o exercício do direito autoral sobre os NFTs de arte digital, observando os dispositivos da Lei nº 9.610/98, conhecida também como a Lei dos Direitos Autorais. Notadamente, demonstra-se a verticalização da investigação, de modo único, típica de trabalhos pós-graduados. O resultado é que, nesses standards e equiparados, sobressai a proteção dos direitos fundamentais e da personalidade, favorecendo a liberdade de expressão, a arte como um todo, beneficiada pelas novas tecnologias, sem prejuízo de apresentar, pontualmente, malefícios ou neutralidades.
Full-text available
ABSTRAK Aspek ekonomi dari kekayaan intelektual kurang dirasakan oleh pemilik industry dalam era digital khususnya start up adalah aspek penambahan modal melalui kepemilikan kekayaan intelektual khususnya paten meskipun dalam beberapa undang-undang kekayaan intelektual seperti undang-undang paten dan undang-undang hak cipta telah dinormakan bahwa kekayaan intelektual dapat dijadikan jaminan fidusia tetapi dalam kenyataannya norma ini sulit diwujudkan dalam praktik, salah satu kendalanya adalah karena belum adanya valuasi (penilaian) terhadap objek dari fidusia dalam hal ini kekayaan intelektual. Metode pendekatan yang digunakan dalam penelitian ini adalah yuridis normatif, dengan spesifikasi penelitian deskriptif analitis. Asas Kepastian Hukum merupakan asas yang dapat mendasari pengaturan valuasi untuk kekayaan intelektual, asas ini sejalan dengan tujuan hukum yaitu kepastian hukum, masyarakat membutuhkan hukum yang pasti dan norma hukum yang harus dapat diterapkan jika fidusia paten sudah dinormakan maka diperlukan aturan valuasi untuk mendukung jaminan fidusia. Dengan adanya kepastian hukum berupa pengaturan valuasi paten diharapkan perusahaan rintisan berbasis teknologi (start-up) dapat meningkatkan perekonomian dan penambahan modal untuk start up bisnis, dengan peningkatan perekonomian start up diharapkan dapat meningkatkankan pula perekonomian Indonesia dalam era industri 4.0. Kata kunci: paten; start up; valuasi. ABSTRACT The economic aspect of intellectual property is less felt by industry owners in the digital era, especially start-ups, is the aspect of increasing capital through intellectual property ownership of several patents even though in some intellectual property laws such as patent law and copyright law it has been normalized that property Intellectuals can be used as fiduciary guarantees, but in reality, it is difficult to be realized in practice, one of the obstacles is that there is no valuation (order) on the object of fiduciary, in this case intellectual property. The approach method used in this research is normative juridical, with descriptive analytical research specifications. The principle of legal certainty is a principle that can underlie the regulation of value for intellectual property, this principle is in line with legal objectives, namely legal certainty, people who need definite law and legal norms that must be enforceable if patent fiduciary has been normalized, valuation rules are needed to support fiduciary guarantees. With legal certainty in the form of value regulation, it is hoped that start-ups can improve the economy and increase capital to start a business, with an increase in the start-ups economy it is hoped that it can also improve the Indonesian economy in the 4.0 industrial. Keywords: paten; start up; valuation.
Intellectual property is one of the main topics of our time.All organizations and companies that work with research and innovation have intellectual property as one of the factors for economic and financial growth. Every day, many governments discover about the benefits of industrial innovation and how patents can defend new technologies. The purpose of this research is to report on intellectual property in Brazil. It is concluded that it is necessary to advance in policies, that Brazilian patents take a long time to be granted. Investments are needed so that companies in Brazil can learn about patent laws and benefit from them.
Full-text available
The article provides an systematic analysis of the development of innovative technologies during the first, second, third and fourth industrial revolutions. The stages of industrialization, from the introduction of mechanical production equipment to digitalization and automation, to "Industry 4.0" with the establishment of links between all stakeholders. The essence of Industry 4.0 (the fourth industrial revolution) is defined. Two views on the influence of intellectual property on the development of industrial revolutions are considered: as those that led to a series of changes in all sectors of the economy and the spread of new patents and designs, and one that points to the shortcomings of patenting as a monopolistic deterrent to development and enforcement industrial revolutions. The conclusion on the influence of intellectual property on the development of industrial revolutions is stated. An analysis of the state and stages, achievements of industrial revolutions in Ukraine is given.
Industry 4.0 is universally referred to as the fourth industrial revolution. It is a current trend of automation and data exchange in manufacturing technologies. The computerisation of manufacturing includes, amongst other, cyber-physical systems, the Internet of Things (IoT), cloud computing and cognitive computing. There are many challenges in the realisation of Industry 4.0. In order to adopt a “smart factory” and improved (software) processes many ethical considerations need to be identified and considered if a company is to obtain an ethical development and deployment of Industry 4.0. The purpose of normative ethics is to scrutinise standards about the rightness and wrongness of actions, the ultimate goal being the identification of the true human good. A rational appeal can be made to normative defensible ethical rules in order to arrive at a judicious, ethically justifiable judgement.
Full-text available
In the Industry 4.0 world that is digitalizing and automating, sustainable business models exist but have not become mainstream. Opportunities for sustainable offerings exist by designing products for longevity, repair and recycling, such that sustainability is not only focusing on being more efficient, but also on using less raw materials and recycling more products. This changes the value proposition, supply chain, relation with the customer and financial justification of a business model. This paper discusses potential sustainable business scenarios, and proposes an agenda for research into how Industry 4.0 can be used to create sustainable business models.
Full-text available
Mit dem Zukunftsprojekt „Industrie 4.0“, das ein zentrales Element der Hightech-/Innovations-Strategie der Bundesregierung darstellt, soll die Informatisierung der klassischen Industrien, wie z. B. der Produktionstechnik, vorangetrieben werden. In diesem thematischen Umfeld hat die vom Bundesministerium für Wirtschaft und Energie beauftragte Begleitforschung zum Technologieprogramm Autonomik in der Befassung mit den geförderten FuE-Vorhaben das Handlungsfeld „Zukunft der Arbeit“ als ein wichtiges Querschnittsthema identifiziert. Diese Fragestellungen werden im laufenden Technologieprogramm des BMWi, „Autonomik für Industrie 4.0“, erweitert und auf industrielle Prozesse hin konkretisiert. Zusammen mit dem Vorläuferprogramm „Autonomik – autonome und simulationsbasierte Systeme für den Mittelstand“ versteht sich „Autonomik für Industrie 4.0“ als Wegbereiter der vierten industriellen Revolution und stellt den zentralen Beitrag des Wirtschaftsministeriums zum Zukunftsprojekt Industrie 4.0 der Bundesregierung dar.
Full-text available
As companies participate in this Fourth Industrial Revolution and transform their businesses by “going digital,” how do we protect intellectual property related to the IoT and its accompanying sensor hardware, wireless communications, big data, digital twin, software analytics and cloud computing advances?
Full-text available
A number of manufacturing companies have reported anecdotal evidence describing the benefits of Model-Based Enterprise (MBE). Based on this evidence, major players in industry have embraced a vision to deploy MBE. In our view, the best chance of realizing this vision is the creation of a single "digital thread." Under MBE, there exists a Model-Based Definition (MBD), created by the Engineering function, that downstream functions reuse to complete Model-Based Manufacturing and Model-Based Inspection activities. The ensemble of data that enables the combination of model-based definition, manufacturing, and inspection defines this digital thread. Such a digital thread would enable real-time design and analysis, collaborative process-flow development, automated artifact creation, and full-process traceability in a seamless real-time collaborative development among project participants. This paper documents the strengths and weaknesses in the current, industry strategies for implementing MBE. It also identifies gaps in the transition and/or exchange of data between various manufacturing processes. Lastly, this paper presents measured results from a study of model-based processes compared to drawing-based processes and provides evidence to support the anecdotal evidence and vision made by industry.
Massive quantities of information are required to fuel the innovation process in a knowledge-based economy; a requirement that is in tension with intellectual property (IP) laws. Against this backdrop, leading thinkers in the IP arena explore the ‘access challenge’ of the 21st century, framed as the tension between the interest in the free flow of information and the fragmentation of knowledge resulting from strong IP laws. In some areas this tension seems to resolve in a shift of IP laws in the direction of greater openness, whether due to new business models, improved legal tools or access-friendly interpretations of existing laws. The book’s chapters explore the challenges encountered by this ‘opening’ process from various perspectives, including: • open access to public sector and scientific research data • enhanced use of licensing • reshaping the contours of individual IP laws • inclusion of new stakeholders in the IP debate • challenges to the information flow in the international arena. In identifying some of the core IP-related challenges to the process of adapting to the knowledge needs of the new economy, this book will provide an enlightening read for academics, policymakers and lawyers concerned with IP laws and the flow of knowledge. © The Editors and Contributors Severally 2013. All rights reserved.
This book presents firsthand insights into strategies and approaches for the commercial aerospace supply chain in response to the numerous changes that airlines, aircraft OEMs and their suppliers have experienced over the past few decades. In doing so, it investigates the entire product value chain. Accordingly, the chapters address the challenges of configuration and demand, and highlight the specificities of customization in the aviation industry. They analyze component manufacturing, share valuable insights into assembly and integration activities, and describe aftermarket business models. In order to ensure more varied and balanced coverage, the book includes contributions by researchers, suppliers, and experts and practitioners from consulting companies and the aircraft industry. Taken together, they provide a holistic perspective on the transformation drivers and the innovations that have either been implemented or will be adopted in the near future. The book introduces and describes new concepts and innovations such as 3D printing, E2E demand management, digital production, predictive maintenance and open innovation in general, supplementing them with sample industrial applications from the aviation sector.
Digitization—the continuing convergence of the real and the virtual worlds will be the main driver of innovation and change in all sectors of our economy. The exponentially growing amount of data and the convergence of different affordable technologies that came along with the definite establishment of Information and Communication Technology are transforming all areas of the economy. In Germany, the Internet of Things, Data and Services plays a vital role in mastering the energy transformation, in developing a sustainable mobility and logistics sector, in providing enhanced health care and in securing a competitive position for the leading manufacturing industry. This article discusses the impact, challenges and opportunities of digitization and concludes with examples of recommended policy action. The two key instruments for enhanced value creation in the Age of Industrie 4.0 are platform-based cooperation and a dual innovation strategy.