THE ROLE OF INTELLECTUAL PROPERTY RIGHTS IN THE DEVELOPMENT OF AUTONOMOUS VEHICLES

ABSTRACT

In today’s world, human creativity, innovations, the development of new ideas, and bringing new concepts to life are central to almost every field. A legal recognition and protection of these developments and creations henceforth become a pressing concern and for the same reason, numerous countries have evolved their own set of rights and regulations referred to as intellectual property rights. These are a set of rights that are given to individuals for protection against any unauthorized use of their intangible ideas or creations that have a utility and a substantial scope. Intellectual property rights play a role in every sector, from the creation of music to literary works to the development of any product or even a logo for a company or any manufacturing unit. One such sector where it plays an important role is the automotive industry. The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, selling, repairing, and modification of motor vehicles[1]. The automotive industry is itself a vast field and one of the important areas of focus of this industry is the development of autonomous vehicles. This article focuses on how IPR laws apply in the development of autonomous vehicles, what role they play, and how they protect the rights concerning such development.

Keywords:

autonomous vehicles, IPR, patent, copyrights, trademarks, trade secrets, innovation, AV space, competitive edge, CIR, research and development etc.

INTRODUCTION

There is nothing wrong in saying that automation is the future of technology having the potential to change human lives drastically. It refers to a wide range of technologies wherein there is no human intervention in the performance of tasks or such intervention is very minimal. Automation technologies mainly function with the help of Artificial Intelligence which enhances its efficiency and reduces human error. In the automotive industry, the kick-start in using such technologies has already begun with the introduction of autonomous vehicles. Autonomous vehicles are cars or other vehicles that are capable of sensing their environment and operating without human involvement. Autonomous cars are responsible for all driving activities, such as perceiving the environment, monitoring important systems, and controlling the vehicle, which includes navigating from origin to destination[2]. There are currently six levels of driving automation ranging from level zero which is fully manual to level five which means fully autonomous. As of 2024, level five has not been achieved yet, but many automotive and technology companies are racing to be the first with a fully autonomous car. Such companies aim to achieve full automation of cars and bring a revolution in the field of the automotive industry. While the race between the companies is speeding up day by day with the coming of new technologies and vehicles in the field, the question of protecting these new technologies against any unauthorized use is also coming to the limelight and this is where the role of IPR law comes in. IPR laws are uniquely tailored to protect the innovations, creative works, and proprietary technologies that are fundamental to autonomous vehicles. They provide specific legal protections that encourage investment in R&D, facilitate market differentiation, and ensure fair competition. While other laws play important roles in regulating business practices, market behavior, and consumer safety, IPR laws provide comprehensive protection against any unauthorized use of technologies or software used in autonomous vehicles.

EVOLUTION OF THE AUTONOMOUS VEHICLES

Autonomous vehicles are the future of the automotive industry having the potential of revolutionizing transportation all around the world. The concept of autonomous vehicles (AVs) was initially explored with basic experiments in automation and robotics. Early research focused on developing the foundational technology for vehicle automation. In the 1970s-1980s, significant milestones were achieved that included the development of early automated driving systems, such as the Stanford Cart, which could navigate simple environments using rudimentary sensors. In the 1990smore sophisticated sensors and computing power led to the development of experimental autonomous vehicles, such as Carnegie Mellon University’s Navlab and the Mercedes-Benz Intelligent Cruise Control system. The past few decades have witnessed a manifold increase in advancements in autonomous vehicles. Companies like Waymo and Tesla are refining fully autonomous vehicles, utilizing a combination of sensors, machine learning, and real-time data processing. A number of start-ups are also emerging around the AVs aiming to manufacture vehicles that incorporate automation technologies like ADAS (Advanced Driver Assistance Systems) to achieve enhanced results thereof. A boom in the industry is henceforth an expected future trend.

ROLE OF IPR

As the evolution and advancements in the field of AVs are taking place, companies and new startups are particularly concerned about the protection of the claims over their new technologies or inventions and against any kind of infringement or unauthorized use. Most of these claims are for intangible creations like new software, AI algorithms, vehicle control systems, sensor technologies, navigation systems, safety mechanisms, etc. The Intellectual Property Rights provide exclusive rights to the creators and inventors over the use of these creations for a considerable period. These rights are designed to encourage innovation and creativity by ensuring that creators and inventors can benefit from their work. IPR encompasses a range of protections, each suited to different types of intellectual property. It includes the protections like patents, copyrights, trade secrets, trademarks, etc. In the case of autonomous vehicles in particular, these protections have far-reaching advantages to the creators of various technologies and systems.

The IPR laws help prevent other companies from copying or reverse engineering AV technologies and ensure that the inventors enjoy a competitive edge in the market. It promotes Research and Development (R&D) in the field and provides inventors and companies with the legal means to protect their investments (knowing that they will have exclusive rights to their innovations)[3]. By securing patents, copyrights, and other forms of IP protection, companies can generate revenue through licensing agreements and royalties, thus funding further innovation. Moreover, IPR laws provide legal mechanisms for enforcing rights and taking action against any kind of infringement. This includes seeking injunctions, damages, and other remedies through the legal system. From promoting joint ventures to collaboration to economic growth, IPR laws certainly play a crucial role in the evolution of autonomous vehicles.

PATENTING AND AUTONOMOUS VEHICLES

A patent is an exclusive right granted to a person who has invented a new and useful article, an improvement of an existing article or a new process of making an article. It consists of an exclusive right to manufacture the new article invented or manufacture an article according to the invented process for a limited time.[4] In the autonomous vehicles space, patenting rights can be claimed over a wide range of technologies and inventions that contribute to these vehicles’ functioning, safety, efficiency, and integration. Such technologies or inventions can include any new development in communication systems, artificial intelligence, machine learning innovations, sensor technologies, etc. However, claiming patents over intangible technologies and computer programs or algorithms used in autonomous vehicles has been crucial before the courts. Patent rights are guided by the Patents Act of 1970. Section 3(k) of the Act states that a mathematical or business method, computer program per se, or algorithm, is not patentable[5]. The Act does not define the term “per se” but is to be interpreted based on dictionary meaning. It has been highlighted in the Computer-Related Inventions (CRI) Guidelines of 2017. As per the general dictionary meaning, “per se” means “by itself”. In other words, a computer program by itself is not patentable.[6]

It doesn’t strictly mean that computer programs or other software programs/ algorithms are not patentable in India. In Ferid Allani v. Union of India & Others, the Delhi High Court has held that,

“…In today’s digital world, when most inventions are based on computer programs, it would be retrograde to argue that all such inventions would not be patentable. Innovation in the field of artificial intelligence, blockchain technologies, and other digital products would be based on computer programs, however, the same would not become non-patentable inventions – simply for that reason…”[7]. The court reiterated the patentability of CRIs if they demonstrate “technical effect or technical contribution” even though they may be based on a computer program by examining the “per se” in the section[8]. The term “technical effect” is not defined in the CRI Guidelines of 2017, however some of the examples cited in the Draft CRI Guidelines of 2013, which include “higher speed, reduced hard-disk access time, more economical use of memory, more efficient database search strategy, more effective data compression techniques, improved use interface, better control of the robotic arm, improved reception/transmission of a radio signal” can be considered to understand the meaning and scope of technical effect. Patenting thus can play a significant role in the protection of new inventions and technologies in AV space if they demonstrate a “technical effect” or “technical contribution”.

It can provide various benefits which can be highlighted as follows:

Encouragement of Innovation:

Patents provide inventors of autonomous vehicles and companies with the exclusive right to their inventions, incentivizing them to invest in research and development[9].

Protection of Intellectual Property:

Patents prevent others from using, making, selling, or importing the patented technology without permission[10]Holding patents also provides companies with a competitive edge in the market by protecting their technological advancements.

Attraction of Investments:

Companies with a robust patent portfolio are often more attractive to investors, as patents can signify valuable intellectual property and technological leadership. Startups and companies in AVs are also able to secure funding based on their patented technologies, facilitating further development and commercialization.

With patenting rights, autonomous vehicles can certainly advance further as it provides the inventors with exclusive rights ensuring security and protection over their inventions in the field. It can protect the inventor’s right over technological innovations like sensors algorithms and machine components that form the core of AVs. Moreover, as the space of autonomous vehicles is widening such rights would ensure stability and fair competition in the market.

COPYRIGHT

Copyrights also known as authors’ rights refer to the rights that creators can have over their literary or artistic works. Copyrights only allow the individual who created the work and the people he or she authorizes to copy it. It protects against the unauthorized use of any work. The works governed under copyright include books, music, paintings, sculptures, films, computer programs, databases, advertisements, maps, and technical drawings[11].

Copyrights and Computer Programs

In India, copyrights are granted under the Copyright Act of 1957. Section 2(o) of the Copyrights Act, 1957 brings a computer program under the ambit of literary works and thus provides it protection under the act. Moreover, Section 2(ffc) of the Copyright Act defines a computer program as, “a set of instructions expressed in words, codes, schemes, or in any other form, including a machine-readable medium, capable of causing a computer to perform a particular task or achieve a specific result[12]”. In the development of autonomous vehicles, various kinds of computer programs and software are used which might include Operating Systems, Simulators, Sensor Data Processing software, etc.

Copyrights protect the software code used in AVs, including the operating systems, machine learning models, and user interfaces. It also covers databases and the large datasets used to train AV systems, ensuring that competitors cannot freely use this valuable resource. While this field is going ahead in the race, the scope for new computer programs and software is very vital, and as such protection of these programs can be sought under the Copyrights Act.

An example can be given of Waymo. Waymo is an autonomous driving technology company. It has developed a suite of proprietary software that powers its autonomous vehicles, including the self-driving car technology stack called “Waymo Driver[13].” Waymo is known for protecting its software and other creations through various means and one of them is copyrights. An example can be sighted of Waymo Driver, the underlying code for the Waymo Driver, its user interfaces, and other software components are protected under copyright law. This copyright to Waymo’s work ensures that Waymo retains exclusive rights to reproduce, distribute, and create derivative works based on its software, preventing unauthorized use or copying by competitors.

TRADEMARKS

Trademarks refer to a visual symbol, a device, or a label applied to articles of commerce to indicate that they are manufactured by a particular person or company[14]. It differentiates the goods so manufactured from other goods of a similar kind. Moreover, trademarks grant limited exclusive rights to the use of the mark in relation to goods. The Trademarks Act of 1999 deals with the conferring of trademarks to companies or individuals.

In the autonomous vehicles market, a trademark can help the innovator or the company create its distinguished brand and build a reputation. Besides it can help them to build consumer trust and maintain their brand identity. Trademarks also give a competitive edge to the makers of autonomous vehicles providing a scope for more developments in the area.

TRADE SECRETS

According to WIPO, “Trade secrets are intellectual property (IP) rights on confidential information which may be sold or licensed.” Hence, trade secrets allow individuals or inventors to retain confidential information about their products. In India, there is no specific law that governs the trade secrets. However, there are various means through which trade secrets can be protected. It includes non-disclosure agreements with employers, contractors, etc.

The Indian Technology Act, of 2000 contains certain articles that can be invoked to avoid any unauthorized use or access of digital information, indirectly supporting trade secrets protection.

Lastly, the courts recognize and enforce trade secret protection based on common law principles of equity, contract law, and tort law[15].

Trade Secrets in AV space can enable inventors to protect their inventions and valuable proprietary information about their vehicles in particular or the algorithms and other technology used in them in general, giving them a unique position in the market.

Henceforth, trade secrets emerge as another important intellectual property right that plays an important role in the development of autonomous vehicles.

SOME IMPORTANT CASE LAWS

Tesla, Inc. v. Alex Khatilov, Case No. 4:21-cv-00528-YGR (N.D. Cal. Jan. 22, 2021).

Tesla filed a lawsuit against a former employee, Alex Khatilov, in the United States District Court for the Northern District of California on January 22, 2021. The case revolves around allegations of trade secret theft and breach of the Non-Disclosure Agreement. Tesla claimed that Khatilov, a software engineer, downloaded thousands of highly confidential files related to the company’s proprietary software code for its WARP Drive system within days of his employment. The lawsuit cites violations under the Defend Trade Secrets Act (DTSA) and the California Uniform Trade Secrets Act (CUTSA). The court granted Tesla’s request for a temporary restraining order (TRO) to prevent Khatilov from using, disclosing, or transferring the stolen trade secrets. This order also required Khatilov to preserve and return all Tesla confidential information in his possession.

This case underscores the importance of protecting trade secrets, particularly for technology companies like Tesla, which rely heavily on proprietary software and technological innovations. It also highlights the critical role of NDAs and other employment agreements in safeguarding intellectual property.

Brighto Auto Industries v. Raj Chawla, 1977 RLR 158

The case of Brighto Auto Industries v. Raj Chawla (1977 RLR 158) is a landmark judgment in Indian intellectual property law, particularly concerning issues of trademark infringement and passing off. In this case, Brighto Auto Industries, a company engaged in the manufacturing and sale of auto parts, held a registered trademark for their products. Raj Chawla, the defendant, was accused of manufacturing and selling auto parts under a name and mark deceptively similar to Brighto Auto Industries. The court examined the visual and phonetic similarity between the plaintiff’s registered trademark and the defendant’s mark. It was determined that the marks were indeed similar enough to confuse the public. The court ruled in favor of Brighto Auto Industries, holding that the defendant had infringed upon the plaintiff’s registered trademark. It granted an injunction restraining the defendant from using the infringing mark. Additionally, the court awarded damages to the plaintiff for the losses suffered due to the defendant’s actions.

Fiat Chrysler Automobiles US LLC v. Mahindra & Mahindra Ltd. 2019 WL 1413000 (E.D. Mich. Mar. 28, 2019)

The case of Fiat Chrysler Automobiles US LLC v. Mahindra & Mahindra Ltd. involves a dispute over trademark infringement and trade dress concerning the design of the Jeep Wrangler and the Mahindra Thar. The plaintiff, Fiat Chrysler Automobiles US LLC (FCA), is the manufacturer of the Jeep Wrangler, which has distinctive design elements protected under trademark and trade dress laws. The FCA claimed that Mahindra & Mahindra Ltd., an Indian automobile manufacturer produced the Mahindra Thar which was similar in appearance to the Jeep Wrangler causing the trademark and trade dress infringement. The United States International Trade Commission (ITC) issued a preliminary injunction against Mahindra, preventing the importation and sale of the Mahindra Roxor (another vehicle with similar design issues as the Thar) in the United States due to its infringement on the trade dress of the Jeep Wrangler. The ITC found that the Mahindra Roxor’s design was too similar to the Jeep Wrangler’s trade dress, which could likely cause consumer confusion. In 2020, Fiat Chrysler Automobiles (FCA) and Mahindra reached a settlement. Mahindra agreed to make specific design changes to the Roxor to address the trade dress infringement issues and avoid further legal conflicts. The outcome reinforced the protection of distinctive vehicle designs and emphasized the legal consequences for companies that produce designs likely to cause consumer confusion. The settlement and the ITC’s ruling illustrate the importance of respecting intellectual property rights and the potential impact of legal disputes on international trade and product design.

CONCLUSION

IPR plays a very vital role in the development of autonomous vehicles. from patents to copyrights to trade secrets, IPR ensures the protection of the technologies used in AVs against any arbitrary use. it guarantees certain exclusive rights to inventors encouraging them to advance further in the field. besides it ensures stability in the market, providing a competitive edge as it prevents any unauthorized use of any creation and pushes the companies to do better on their own without relying on other creators. IPR also proves to be of great economic value to the individual creators in the AV industry. As the AV field is speeding in advancements, so is the role of Intellectual Property Rights.

REFERENCES

Patent Rights Act, 1970
Priyanka Saraswat, Intellectual properties that drive the driverless cars, blog ipleaders, https://blog.ipleaders.in.
Allison Zweng, Intellectual Property Considerations for Protecting Autonomous Vehicles
Technology, MTLR, https://mttlr.org.com
Lerner, J., The Importance of Patent Scope: An Empirical Analysis. RAND Jr of Eco. 25(2), 319-333 (1994)
Chinthan Japhet, Perzeus Abhas, [The Viewpoint] Software patents: An Indian perspective, Bar and Bench, https://www.barandbench.com/
Fiat Chrysler Automobiles US LLC v. Mahindra & Mahindra Ltd. 2019 WL 1413000 (E.D. Mich. Mar. 28, 2019)
Brighto Auto Industries v. Raj Chawla, 1977 RLR 158
Tesla, Inc. v. Alex Khatilov, Case No. 4:21-cv-00528-YGR (N.D. Cal. Jan. 22, 2021).
Ferid Allani v. Union of India & Others, W.P.(C) 7/2014, W.P.(C) 305/2014 (Delhi High Court, Dec. 12, 2019)

[1]Automotive industry, https://en.wikipedia.org/w/index.php?title=Automotive_industry&oldid=1231549983 (last visited July 7, 2024).

[2]Self-driving car, https://en.wikipedia.org/w/index.php?title=Selfdriving_car&oldid=1236365545 (last visited July 24, 2024).

[3] R&D, Innovation and Patents, WIPO (July 26, 2024,10:30am), https://www.wipo.int/patent-law/en/developments/research.html

[4] P. Narayan, Intellectual Property Law, 11 (Eastern Law House 2011).

[5] Patent Rights Act, 1970, § 3(k), No. 39, Acts of Parliament, 1970 (India).

[6] Chinthan Japhet, Perzeus Abhas, [The Viewpoint] Software patents: An Indian perspective, Bar and Bench (July 26, 2024, 11:15 am), https://www.barandbench.com/

[7] Ferid Allani v. Union of India & Others, W.P.(C) 7/2014, W.P.(C) 305/2014 (Delhi High Court, Dec. 12, 2019)

[8] Priyanka Saraswat, Intellectual properties that drive the driverless cars, blog ipleaders, (July 26, 2024, 11:15 am), https://blog.ipleaders.in.

[9] Petr Hanel & Alain St-Pierre, Effects of R & D Spillovers on the Profitability of Firms, Volume 20 Rev. of Ind.Org., 595-604, (2002).

[10] Scotchmer, S., Standing on the Shoulders of Giants: Cumulative Research and the Patent Law,5(1) Jr. of Eco. Persp’s, 29-41(1991).

[12]Rohit Pradhan, Protection of Computer Program: Copyright or Patent, Lexforti, (July 9, 2024, 9:40 PM), https://lexforti.com/

[13] Mark Harris, Inside Waymo’s Secret World for Training Self-Driving Cars, IEEE Spectrum (July 9, 2024, 9:50 PM), https://spectrum.ieee.org

[14] P. Narayanan, Intellectual Property Law,145 (Eastern Law House 2011)

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