inside3dprinting_johnhornick

3D Printing and the Future (or Demise) of Intellectual Property

John Hornick

September 2013

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First, a Disclaimer

Are these the shadows of the things that Will be, or are they the shadows of things that May be?

Ebenezer Scrooge, to the Third Spirit

Keep in Mind . . .

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Keep in Mind

Tipping into the mainstream Everything will change

When you can make anything

Think about the implications

Why the Future (or Demise) of IP?

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Three Reasons

Democratization of manufacturing Open collaboration movement

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Some People Dont Like IP

There is a persistent widespread belief that intellectual property law (and patents in particular) encourage innovation. This is intuitive, however, the evidence to the contrary is now overwhelming and the unavoidable conclusion is that intellectual property actually stifles innovation.

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The Players

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HIGH-END

PRINTERS

LOW-COST PRINTERS

3D Kits, A1 Technologies, Ac123Dc, Afinia, Airwolf 3D, Asiga, B9Creations, BatBot, Bits from Bytes, Blue Printer, CB-Printer, Code-p, CSP, Cubify, Deezmaker, Essential Dynamics, Eventorbot, EZ 3D printers, Fabbster, Fablicator, Felix Printers, Formlabs, German RepRap Foundation, Hot

Proceed, Hyrel 3D, Intelligent Machine Inc., Invent Apart, iRapid, Leapfrog, Lulzbot, Makemendel, Makergear, MaukCC, Mbot 3D, Mendel

Parts, MendelMax, miniFactory, Mixshop, Multistation, NW RepRap, PP3DP, Printrbot, Rays Opitcs, RepRap France - eMotion Tech, RepRapPro,

ReprapSource, Robo 3D, Robot Factory, Romscraj, Sharebot, Solido, Solidoodle, Sumpod, Tantillus, The Future is 3-D, Tinkerine Studio,

TrinityLabs, Type A Machines, Ultimaker, Ultra-Bot, Weistek, York 3D Printers, Zbot.cc

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Where is the IP in 3D Printing?

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Wheres Waldo?

AM machines driven by

software or firmware CAD/CAM file

fuse, layer on layer extruded material, powder, or sheets heat, chemical, glue, light, electron beam

Post-production work Hybrid machines

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Wheres Waldo?

AM machines driven by

software or firmware CAD file

fuse material layer on layer Extruded material, powder, or sheets Heat, chemical, glue, light, knife, electron beam

Post-production work Hybrid machines

Why 3DP May Change Everything

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Why It May Change Everything: Micro

One machine makes all, no re-tooling or assembly More efficient/impossible designs, interior

structures

Affordable customization Complexity is free

Batches of one, created on demand

Efficient use of raw materials (less waste) Less energy (no shipping)

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Why It May Change Everything: Micro

One machine makes all, no re-tooling or assembly More efficient/impossible designs, interior

structures

Affordable customization Complexity is free

Batches of one, created on demand

Efficient use of raw materials (less waste) Less energy (no shipping)

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Why It May Change Everything: Macro

Facially inconsistent situations Manufacturing Renaissance in countries with

Strong intellectual capital But high manufacturing costs

Repatriation of jobs

No advantage in offshoring

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Why It May Change Everything: Macro

But Disruption/destruction of traditional models:

manufacturing, distribution, shipping, retail

Future sales: Designs, not products

Print at point of assembly/consumption

Just in time Printing in-house, by service bureaus, by you and me

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Why Macro Change Will Disrupt IP

The paradigm shift: Democratization of design

Lower entry barriers Many small businesses Fundamentally different designs Printing away from control

As democratization increases . . .

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Checklist For IP Disruption

Industrial scale Large build platform

Speed or scale

Industrial or Home scale Hybrid materials

Ability to print complex structures

Micro scale printing

Hybrid machines

Innovators, especially . . .

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CEO of Autodesk Carl Bass will speak from personal experience about how to get the young makers in your life empowered to make amazing things and explore the world around them

(Bay Area Maker Faire May 2013)

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One more thing:

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One more thing: Ability to do all of this away

from control

At home

Uncontrolled sources

3DP Today

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3DP Today

Rapid prototyping: about 70% of the market Shortens the development life-cycle

Enables experimentation and innovation

Easy tweaking Perfect for one-offs

Saves cost

Increases confidence in final product

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3DP Today Manufacturing: growing rapidly of all machines sold Hot areas:

Aerospace

Automotive

Healthcare

Fashion

Complex structures

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3DP in Aerospace Boeing

Airbus: wing brackets

North Western Polytechnical U (China): titanium wing spar

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3DP in Aerospace GE:

Acquired 2 AM companies

Parts for 4000 LEAP engines

DMLS titanium powder Fuel nozzle

DMLS Cobalt-chromium powder Rolls Royce

Merlin project

6 engine makers

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3DP in Automotive Ford (and others) BMW 3 Cool Cars

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3DP in Healthcare 3D implants: perfectly match a patients body; better fixation

Walter Reed Army Medical Center: 3DP 60+ titanium cranial plate implants

2011: 3DP jaw implanted in an 83-year old woman

March 2013: 75% of a mans skull replaced with a custom-made implant (Oxford Performance Materials)

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3DP in Healthcare Proof of concept customizable artificial heart

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3DP in Healthcare

Proof of concept customizable artificial heart

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3DP in Healthcare Ears (cosmetic and bionic) Fingers Noses Models Custom hearing aids (95%) Dental (crowns, aligners)

10,000/day

Prosthetics Custom coverings

for artificial limbs

Bladder, liver, kidney Bone/bone cells DNA Custom Drugs Vaccines Facial Reconstruction Joints, discs, bones, spine Stem cells Tissue (ONVO)

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3DP in Fashion (not just shoes)

Dita Von Teese unveiled world's first fully 3DP dress

Designed with Shapeways assembled from 17 pieces, dyed black, lacquered

and adorned with over 13,000 Swarovski crystals to create a sensual flowing form

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3DP of Complex Structures

Stratasys and Optomec: first fully 3DP electro-mechanical structure

Optomec: antenna

Harvard/U of Illinois: microbatteries Disney: interactive toys Princeton U:

bionic ear

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IP Implications

Companies IP Philosophy Protectability IP infringement:

Types

Likelihood

Effectiveness of enforcement

Scale

Risk to IP system: Aerospace/Healthcare vs. Automotive/Fashion

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IP Implications


Types

Likelihood


Scale


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IP Implications

Companies IP Philosophy Protectability: 12,000 PATENT APPLICATIONS IP infringement:

Types

Likelihood


Scale


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IP Implications


Types: PATENT, COPYRIGHT, TRADE SECRET, TM

Likelihood


Scale


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IP Implications


Types

Likelihood


Scale


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IP Implications


Types

Likelihood


Scale


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IP Implications


Types

Likelihood


Scale


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IP Implications


Types

Likelihood


Scale

Risk to IP system: depends on democratization Aerospace/Healthcare vs. Automotive/Fashion

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IP Implications


Types

Likelihood


Scale

Risk to IP system: depends on democratization Aerospace/Healthcare vs. Automotive/Fashion

Materials: Golden Age

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Ordinary Materials

Mostly plastics (ABS, PLA)

A growing range of printable materials:

Metals

Ceramics

Food

Glass

Wood

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Not-So-Ordinary Materials Washington State U: bone-like material (support for

new bone growth)

U of Glasgow: organic compounds and inorganic clusters (customized medicines)

Cambridge U & PARC: thin film transistor

U of Warwick: Carbomorph Conductive plastic

functioning electronic device

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Not-So-Ordinary Materials

Hybrid inks: new combinations of physical, electrical, and mechanical properties

Colloidal: advanced ceramic, metallic, and polymer materials

Fugitive: tissue engineering, self-healing materials

Silver nanoparticle: conductive materials, implantable & wearable electronics (antennas, sensors), transparent conductive devices

Polyelectrolyte: drug delivery, tissue engineering

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Graphene Flexible

Transparent

Conductive

Harder than diamond

200x stronger than steel

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Chiplets (Xerox PARC) Grain of sand

Containing intelligent data

Microscopic electronic building blocks

Voxels 3D pixels

Any repeatable shape

Multiple materials per voxel

Loaded with active components

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IP Implications


Types: PATENT, COPYRIGHT, TRADE SECRET, TM

Likelihood


Scale

Risk to IP system: LOW

3D Printing Away From Control

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3DP Away from Control CES 2013 Anyone with a digital design:

Bypass traditional supply chain

Self-manufacture

Microsoft Kinect has been adapted for 3D scanning at home Good enough technology Why the experts are wrong

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3D Systems: Targeting Future Innovators

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3DP Away from Control

Makers Open design/mfg community

Collaborative innovation Accelerated innovation

Wikipedia is open/ Encyclopedia Britannica was closed Open 3DP: same potential

Open-source RepRap printer Self-replicating machine

20,000+

Think T3

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IP Implications

Major disruption of business models Infringement risk: HIGH

IP irrelevant (3 Is)

+ Unprotectable substitutes for IPd products

Bigger issue: disruption of markets Eliminates quasi-IP protection of economies of scale

Could reduce need for mass production

Why 3DP Will Rock The IP World

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Scope of the Problem

Cuts across all IP Cuts across ALL technology and products Anyone can:

Recreate an existing product design

Manufacture

Distribute

AFC infringement will proliferate IP becomes less relevant

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Scope of the Away From Control Problem Will AFC 3DP cripple traditional manufacturers?

Think internet piracy in the music and movie industry

Will AFC 3DP crush copyright & design patents? Sculptures are easily duplicated

Toys can be made at home, designs can be shared P2P

Will AFC 3DP overwhelm patent owners? Checklist

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IP Holders v. Makers

IP owners at the barricades/history repeats itself: Music industry fought home taping

Movie industry fought the VCR

Internet decimated music industry

Internet + 3DP = . . . .

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Copyrights Away From Control Most 3D objects not

copyrightable

Infringement of any design as easy as downloading illegal music

Software and CAD files DMCA/DRM??? Scanning At odds with innovation & Makers

you are going to be thrilled with Corynne McSherrys talk on the legal rights of Makers and how to fight the copyright laws that are on the horizon

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Trademarks Away From Control Counterfeiting on steroids Exact copies of objects may bear a third party

trademark Inability to control quality

Traditional manufacturers may try to protect designs as:

Product configurations

Trade dress

Generic products may trump

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Utility Patents Away From Control May stress the patent system as the digital

revolution stressed the copyright system Small to large scale copying/printing of almost anything

will be possible

P2P filing sharing of CAD files

Enforcing patents will be challenging Crowdsourcing prior art

Algorithm Preissuance Submissions

Defendant assistance

3Is

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Design Patents

Design patent renaissance? A long-neglected tool

Automobile manufacturers: parts

Design-arounds may be easy

Same problems as utility patents

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The BIG Picture

Disruptive Game Changers:

Digital Revolution Early Apple ad: create dazzling color displays and

invent your own Pong games

Whats the Internet? Why would I need a Smart Phone?

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The BIG Picture

3DP Revolution Same questions

Much speculation

Elements falling into place

Economist 4/12: 3rd industrial revolution

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Checklist for the Revolution/IP Disruption


Speed or scale




Hybrid machines


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Speed or scale




Hybrid machines


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Speed or scale

Industrial or Home scale Hybrid materials Loughborough University HSS



Hybrid machines


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Speed or scale




Hybrid machines


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Speed or scale




Hybrid machines


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Speed or scale




Hybrid machines Vienna Institute of Technology


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Speed or scale




Hybrid machines


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Speed or scale




Hybrid machines

Innovators, especially kids

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One more thing:

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from control

At home


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from control

At home


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3D Printing Revolution

Tipping point 2011: 80K machines Businesses will change, adapt, vanish

Evolve or Die

New businesses will emerge Lines between manufacturer, retailer, and user will

blur

It IS happening quickly

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Big Issues for IP Is the existing IP regime up to the task? How can protection from infringement be balanced with the

ability to innovate?

Will IP survive, or are we headed for a worldwide open technology community?

Is IP fundamentally in conflict with the 3D world?

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Takeaways

Everything will change When you can make anything

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Takeaways

Everything will change When you can make anything

IP, its not dead yet!

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Thank you for your time! [email protected]

www.finnegan.com

Twitter @ JHornick3D1Stop

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Disclaimer These materials are public information and have been prepared solely for educational and entertainment purposes to contribute to the understanding of U.S. intellectual property law. These materials reflect only the personal views of the authors and are not a source of legal advice. It is understood that each case is fact specific, and that the appropriate solution in any case will vary. Therefore, these materials may or may not be relevant to any particular situation. Thus, the authors and Finnegan, Henderson, Farabow, Garrett & Dunner, LLP cannot be bound either philosophically or as representatives of their various present and future clients to the comments expressed in these materials. The presentation of these materials does not establish any form of attorney-client relationship with the authors or Finnegan, Henderson, Farabow, Garrett & Dunner, LLP. While every attempt was made to ensure that these materials are accurate, errors or omissions may be contained therein, for which any liability is disclaimed.

3D Printing and the Future (or Demise) of Intellectual PropertyJohn HornickFirst, a DisclaimerKeep in Mind . . .Keep in MindWhy the Future (or Demise) of IP?Three ReasonsSome People Dont Like IPThe PlayersWhere is the IP in 3D Printing?Wheres Waldo?Wheres Waldo?Why 3DP May Change EverythingWhy It May Change Everything: MicroWhy It May Change Everything: MicroWhy It May Change Everything: MacroWhy It May Change Everything: MacroWhy Macro Change Will Disrupt IPChecklist For IP DisruptionChecklist For IP DisruptionChecklist For IP DisruptionChecklist For IP Disruption3DP Today3DP Today3DP Today3DP in Aerospace3DP in Aerospace3DP in Automotive3DP in Healthcare3DP in Healthcare3DP in Healthcare3DP in Healthcare3DP in Fashion (not just shoes)3DP of Complex StructuresIP ImplicationsIP ImplicationsIP ImplicationsIP ImplicationsIP ImplicationsIP ImplicationsIP ImplicationsIP ImplicationsIP ImplicationsMaterials: Golden AgeOrdinary MaterialsNot-So-Ordinary MaterialsNot-So-Ordinary MaterialsNot-So-Ordinary MaterialsNot-So-Ordinary MaterialsIP Implications3D Printing Away From Control3DP Away from Control3D Systems: Targeting Future Innovators3DP Away from ControlIP ImplicationsWhy 3DP Will Rock The IP WorldScope of the ProblemScope of the Away From Control ProblemIP Holders v. MakersCopyrights Away From ControlTrademarks Away From ControlUtility Patents Away From ControlDesign PatentsThe BIG PictureThe BIG PictureChecklist for the Revolution/IP DisruptionChecklist for the Revolution/IP DisruptionChecklist for the Revolution/IP DisruptionChecklist for the Revolution/IP DisruptionChecklist for the Revolution/IP DisruptionChecklist for the Revolution/IP DisruptionChecklist for the Revolution/IP DisruptionChecklist for the Revolution/IP DisruptionChecklist For IP DisruptionChecklist For IP DisruptionChecklist For IP Disruption3D Printing RevolutionBig Issues for IPTakeawaysTakeawaysSlide Number 80Disclaimer

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