December 23, 2023

Smart Manufacturing and IoT: IPR Challenges in India’s Digital Transformation

 This article has been compiled by Ranjeet Yadav a first year Law student of Lloyd Law College Greater Noida Uttar Pradesh.

Abstract-    Rapid growth in the manufacturing sector has triggered to explore the potentials of Wireless Sensor Networks (WSN) and Internet of Things (IoT) which paves the way to escalate the efficacy of manufacturing. Industries implemented IoT in various domains starting from purchase of raw materials till customer service and support. IoT is considered as a key technology of the industrial revolution 4.0 and this provides a promising prospect to build influential services and applications for manufacturing. Further, it also provides an interactive relation between smart machines to share the data and information, which is essential for the complex systems to take a decision on the real-time working environment. In this paper, we reviewed the impact of IoT for a sustainable development, especially with regard to the manufacturing dimensions. This will further put forth the current scenario of IoT in manufacturing and this leads the researchers for pioneering their research towards the cyber integrated manufacturing.  

Introduction- From the time of the Industrial Revolution, the manufacturing sector has played a dominant role in the economy of the countries and companies. We are in the new era of modern industrial revolution 4.0 where, the cyber integrated manufacturing is a pressing matter. An IoT enabled smart manufacturing provides an interactive relation between smart machines to share the data and information, which is essential for the complex systems to take a decision on the real-time working environment. In the day today point of view, attaining the growth in the resources and energy effciency is the key strategy to reach the sustainability in manufacturing. Bussiness organizations face many challenges in the recent days due to technological advancement and extreme global competition. In order to overcome these issues, innovation in their product and processes is necessary for entering into the sustainable development in their future. IoT is the technology through which the companies are focusing to enhance their product and process development.

Even though there is a tremendous growth of IoT in various sectors such as health care, managing, smart retail, agriculture, etc., the implementation of IoT in the manufacturing sector is in infancy. The majority of the manufacturing process still depends upon the third industrial revolution which is called the digital revolution where there is an emergence of electronics such as transistor, microprocessor, telecommunication and computers. This revolution led to the development of automation in the production such as programmable logic controllers (PLCs) and robots. These provisions paved the way for more production in industries with less time and economy. But due to high competition and globalization, the industries are looking for the next level of technological advancement. New business models incorporated with IoT enable the organizations to develop innovative products with high productivity. The manufacturing industries are enforced to produce more products by using less raw materials and less energy. The aforesaid survey estimated that smart production line and industries would result in an annual efficiency surge of 3.3 over the next few years resulting in 2.6% annual cost savings. This puts forth the companies to invest in IoT and a recent survey estimated that about 140 billion euro will be endowed by the European companies in renovating the ways they manufacture the products. The well sophisticated IoT network leads to the informed manufacturing in an organization which connects the four basic elements such as products, people, processes and infrastructure. This enhances the entire process of an organization from the supply of raw materials to the customer service. The IoT has many more advantages in the manufacturing sector, such as the empowered connection between manufacturers and machines, smarter business decisions, improved management of the global supply chain.

 Challenges for Smart Manufacturing

IoT leads to the enhancement of the product quality and manufacturing process efficiency, but still there are huge uncertainty issues which the industries face during the implementation. There are three big challenges identified, one is general hesitancy of machine builders and end users to actually contrivance this technology. The second one is the security issues, where the collected information about the industry has to be made as big data and to be shared with the co-partners for making it really a IoT cultured organization. Finally, partnering the other industries, where only a few industries make it possible to bring all the supporting firms into one coherent package. System integration is the biggest challenge to implement IoT and development of a connected manufacturing strategy. Various practical challenges in implementing IoT is listed below.

2.1 Vertical sector specific needs Each vertical sector in manufacturing has different process and need of diverse gateways and platforms to collect the data from various sensors of different sensitivity levels. Connecting all the devices is the major challenge encountered in IoT and this will vary the entire communication protocol and the underlying technologies. Presently the centralized paradigm is used to collect the data from different nodes in the network, but it will be complex to maintain the same strategy in the future, if the devices which are to be connected are in the billions. Also, the maintenance cost of cloud computing will be very high to maintain this vast data. In future a decentralized network will be required to connect the different nodes in the network. Each node will communicate with other node with a unique authentication directly without a broker in-between. This communication technique also has a disadvantage of security issues which can be overcome by the recent technologies such as blockchain.

Benefits of IoT in Smart Manufacturing

  1. Greater Energy Efficiency

Energy plays a significant role in the expenses for manufacturing industries. Industries measure their expenses for energy conception from the bill that is generated. It is very complex or not possible to detect the inefficient power conception from the available data. Nearly 77 % percent of industries retrieve their energy consumption data from their monthly utility bills or energy utilization monitoring facility, where the data available is limited. Implementing IoT can access the data from the device level and it is possible to pinpoint the devices which are under performing. By tracking the power conception of each device separately, managers acquire visibility to benchmark the under, performing devices with the best performing devices. Energy utilization is optimized and much of the.

 Predictive Maintenance

IoT completely eliminates the conventional method of maintenance by mere guessing from the historical data, but instead realizing the maintenance requirement for the device at the exact moment by obtaining the real data. The sensor gives the condition of each component and if it doesn’t need maintenance the replacement is totally eliminated and money and time are saved. These circumstantial perceptions keep the equipment at good running condition and minimize the risk of costly downtime.

  1. IPR in the digital economy

Although technology and digital technology create new challenges for IPR, the underlying IPR frameworks remain the same. There are four main IPR areas:

  • Patents – covering inventions of technical features or processes. They give exclusive rights, for a limited time (under the WTO a minimum of 20 years) for the owner to use or sell their invention.
  • Trade Marks – cover distinctive or unique signs that are used to distinguish goods and services. They can be a word, logo, symbol, design, image, sound, colour or a combination of these. Trademark rights are typically maintained by use and maintenance of the registration.
  • Design – covers the visual and physical appearance of products. Design rights extend beyond the purely utilitarian to cover the aesthetics. Like trademarks, they are maintained by use and registration.
  • Copyright and related rights – which give automatic and exclusive rights to the author, or creator, of original work. Original work can cover writing, music, art, films, broadcasts, sound recordings and databases.

These frameworks cover the range of IPR protection, from pharmaceutical to fashion goods, technology to the arts and everything in between. The frameworks also have a strong international element to them to ensure the protection of rights internationally with the World Intellectual Property Organization (WIPO), World Trade Organization (WTO), the World Customs Organization (WCO), the World Health Organization (WHO), the International Telecommunications Union (ITU), the Group of Twenty Finance Ministers and Central Bank Governors (G-20), the International Criminal Police Organization (INTERPOL), the Asia-Pacific Economic Cooperation (APEC) Forum, and the Organisation for Economic Co-operation and Development (OECD) all active in the area of IPR policy and/or enforcement. For the digital economy the main IPR issues relate to copyright and copyright protection. However, patents and some elements of trademark protection also raise some interesting challenges for policy makers.

  1. Patents

Patents and patent protection are areas of significant focus within the ICT sector. Although patent law applies across all industries, it is particularly important within the technology sector where, not only is significant competitive advantage gained through research and development, but innovation and further market development are gained by leveraging these developments under licence. The latest OECD patent statistics for 2007 show that nearly 40% of all patents globally are technology-related, with 80% of these being specifically ICT-related. A functioning and effective patent environment is therefore critical to ensure a vibrant, innovative, economy by encouraging invention, exploitation and sharing. In the technology sector some companies have evolved business models that are entirely based on inventing new technologies, patenting the invention and then licensing the rights without ever manufacturing goods. Qualcomm, which has a market capitalisation of $96 billion, has a business model founded on creating and licensing IPR. As their corporate profile states, “The goal of their [Qualcomm’s] resulting business model is to rapidly develop innovations and license them as broadly as possible”23. The company’s valuation is the result of an estimated $12 billion investment in research and development since its foundation in 1985. The value of patents was also recently demonstrated when Google agreed to place a ‘stalking horse’ bid for Nortel’s portfolio of patents of $900m only for them to lose to a $4.5bn bid the 6000 patents by a consortium including Apple, RIM, Ericsson, Sony and Microsoft. However, this deal also raised one issue of increasing concern in the area of technology patents, that of patent ‘trolls’24. In commenting on the stalking horse bid Google stated, “The patent system should reward those who create the most useful innovations for society, not those who stake bogus claims or file dubious lawsuits”. It went onto state, “we hope this [Nortel’s] portfolio will not only create a disincentive for others to sue Google, but also help us, our partners and the open, source community”. The Coalition for Patent Fairness25 when commenting on the US 2009 Patent Reform Act stated reform is needed to protect “inventors and innovators from unjustified lawsuits and to allow them to continue to make products and services that will help the US economy grow”26. In May 2011, it was announced, Microsoft had become a member of a crowdsourcing service designed to challenge and invalidate specious software patents and to avoid litigation costs. The nature of the technology sector, which displays rapid innovation and incremental development, is driving a number of challenges. Administratively, the rapid growth in the volume of patent applications is placing administrative pressure on patent offices; more important though, it is resulting in patent ‘thickets’. These occur where interrelated and overlapping patents result in a lack of clarity of who owns the patent and, as a consequence where to go for the licence, which – in turn – potentially inhibits further innovation. A representation of the smartphone ‘thicket’ is shown below. Patent thickets are not new. In the 1850s a patent thicket prevented Singer from launching his innovative new sewing machine27.

After a period of claim and counterclaim the patent owners agreed to settle through a patent pool. Today, patent pools, technology standards and cross-licencing agreements are all attempts to navigate through the complexity of the patent jungle. This is not always successful and the technology sector has become increasing litigious. Although litigation is not in itself an issue, it becomes a problem if this stifles innovation or acts as a barrier to new market entrants. ITU-T, in conjunction with the International Standards Organisation (ISO) and the International Electrotechnical Commission (IEC) have been active in developing common patent policies. These policies have been designed to ensure that patents used in technology standards encourage patent holders to share their intellectual property in the knowledge that their interests are protected by mitigating against some of the potential issues related to technology patents. Patents are critical to support new innovation and growth. Most stakeholders see the international patent registration, licensing and enforcement systems as effective. There are concerns that the exploitation of the system by a few patent trolls for financial gain (unrelated to creating and exploiting innovation) is adding unnecessary cost, and risk, to innovators.

 

2.Trademarks

Trademark protection is not significantly impacted by the digital economy. Naturally new channels of distribution and marketing are opened up and there is a wider geographic scope for trademark use. This is true for legitimate and counterfeit use of trademarks but the fundamental issues and challenges of trademark protection remain the same. Closely related to trademark protection is the effective management of a domain name registry. Having an effective dispute resolution mechanism in place to recover domain names is an area of increasing concern. The .com domain is globally the most popular with over 80 million registrations, while the Chinese is second with 13 million names. However, the volume of national domain names is growing as a consequence of congestion in the .com domain. In 2010, trademark holders filed 2,696 cyber- squatting cases covering 4,370 domain names from 57 countries with the WIPO Arbitration and Mediation Centre, an increase of 28% over the 2009 level and 16% over the previous record year, 2008. Since 1999, 20,000 cases covering 35,000 domain names have been raised with 91% demonstrating evidence of cybersquatting.  As the domain is the critical access point for brands to market and to sell their services globally, the ability to protect domain names and, where appropriate, recover them is an increasingly important aspect of IPR in the digital economy.

  1. Copyright

The nature of the digital economy and the nature of digital content create new challenges for the creative industries, law enforcement and regulators. The OECD 2009 report on digital piracy28 highlighted the differences between digital and physical goods:

  • The marginal cost of reproduction: Digital goods have an almost zero cost of reproduction. This, along with the fact that the quality of the copy is almost identical to the original and that copying is easy, are key features of digital products. Barriers to entry for digital piracy are low.
  • Digital Delivery: Digital delivery is easy. There is limited storage cost, limited transport cost (if any) and little risk of the goods being intercepted like traditional counterfeit goods. Delivery via the internet or through local networks is easy and provides significant flexibility in the way the goods are delivered.
  • Market Scope: Goods can be delivered instantaneously almost anywhere in the world. Traditional barriers do not constrain the distribution of digital goods, they are solely constrained by the network availability and the capacity of the user’s hardware to store the material.
  • Hardware Dependence: The availability of hardware is a key difference from most physical goods. There is no hardware necessary to use a counterfeit handbag! With much greater prevalence of broadband devices and network capacity increasing globally, hardware availability will become less of a barrier for legitimate and illegitimate distribution of digital content.
  • Life Span: The OECD highlights that consumer tastes for digital products appear to be shorter than for physical goods. However, once created digitisation extends the lifespan of digital products and extends their durability. Digital markets offer significant potential to the creative industries. The very nature of digital products that makes them targets for piracy also creates opportunities for rights holders to exploit the value of their rights more widely, at lower cost and at greater scale. It is unquestionable that digital markets have been hugely disruptive to existing business models, but it remains open to question as to whether, in the long run, legal business models will be able to compete with illegal ones, ultimately to the benefit of the creative industry.
  • Core industries, which exist to create copyright materials,
  • Dependent industries, which manufacture equipment that facilitate copyright activity,
  • Partial industries, which don’t create copyright but are dependent on copyright and
  • Support industries, which distribute copyright materials. The original intention of copyright was to encourage the development of new creative work. It was a system put in place to stimulate incentives for artistic production. Copyright is still a critical foundation for the core copyright, creative industries, and it is these industries that are most impacted by copyright infringement, in particular commercial scale piracy, with counterfeiting having a greater impact on the partial copyright industries. Frontier Economics estimated the total value of all counterfeiting and piracy globally was between $455bn and $650bn in 2008, with digitally pirated goods estimated to be about ten per cent of the total value. In the digital economy, copyright continues to perform the critical function of encouraging new works but also has a wider impact, playing a significant role in fostering innovation; the impact of copyright is therefore now much wider than the creative industry alone. Digital technologies, the companies that exploit them, and the business models they facilitate are all potentially impacted by copyright.

 

Conclusion – 

IoT is broadly accepted as a new technology that plays a significant role in the enhancement of the manufacturing industry. It can integrate the entire components of manufacturing sectors including sensor, processing unit, communication devices and actuation gadgets. This highly integrated smart cyber – physical systems opens the door to create a new business and market opportunities in manufacturing and paves the way for the new industrial revolution 4.0. It brings a huge opportunity in the manufacturing sector in achieving better system performance in globalized and distributed environments. The various advances

in manufacturing industry due to the implementation of IoT and their challenges are emphasized as follows:

  1. IoT enables the sustainable development in various sectors in industries such as reducing product miles, extending the life of machinery and equipment, preserving energy and water and enhancement of the supply chain.
  2. The decentralized paradigm network is required to connect all the devices with unique authentication for each node without a broker in-between.
  3. Multiple defensive layer, 2FA, encrypted communication, digital signature is few techniques to keep the data safe and secure.
  4. IoT completely eliminates the conventional method of maintenance by mere guessing from the historical data, but instead retrieving real-time data to realize the maintenance needs at an exact moment.
  5. IoT can help in quality improvement of product which leads to achieve reduced waste, lower costs, increased customer satisfaction and higher sales. Also, IoT can reduce the downtime cost significantly. Moreover, the implementation of IoT in manufacturing is in the primary stage and a high research activity is in demand to enable the IoT technologies for secure, reliable operations.

RESOURCES- 

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[05-12-2023 15:16] Ranjeet Yadav: 3.https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.researchgate.net/publication/370299738_INTELLECTUAL_PROPERTY_RIGHTS_IN_THE_AGE_OF_SOCIAL_MEDIA_CHALLENGES_AND_STRATEGIES_FOR_INDIA&ved=2ahUKEwiatYKC8feCAxVn4jgGHXYCARkQFnoECCkQAQ&usg=AOvVaw0cMksq-g3ZDA3WXoPpK1mb

 

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7.https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://smallenterpriseindia.com/2023/05/30/the-role-of-digital-transformation-and-innovation-in-enhancing-the-ease-of-doing-business-in-india/&ved=2ahUKEwi5283pgfiCAxWlzzgGHXJHAKwQFnoECCkQAQ&usg=AOvVaw2y6qAvuRdnyBtefHcTWdy3

 

8.https://www.googleadservices.com/pagead/aclk?sa=L&ai=DChcSEwib7tXpgfiCAxXJOIMDHdFnDlAYABAAGgJzZg&ase=2&gclid=Cj0KCQiAsburBhCIARIsAExmsu6OhiqvQ9K9WpgeyeYenQsPujC-6S9afEfZUQyj2E9m49mJhWrUgqp0aAuASEALw_wcB&sph&ohost=www.google.com&cid=CAESwwHg9mW-0NZqi3eRN-X8-

 

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