#3dprintconfhk

1. 3D Printing and the Future (or Demise) of Intellectual Property John Hornick
August 2014

2. 2
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

3. Keep in Mind . . .

4. 4
Keep in Mind

Tipping into the mainstream

Everything will change when . . .

Implications

5. Why the Future (or Demise) of IP?

6. 6
Two Reasons

Democratization of manufacturing

7. 7
Some People Don’t 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.”

8. 8
Snapshot of the 3D Printer Players
8
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
8

9. Why 3DP May Change Everything

10. 10
Why It May Change Everything: Micro

One machine, no assembly

Impossible designs, interior structures

Affordable customization
–
Complexity = free
–
Batches of one, on demand

Greener

11. 11
Why It May Change Everything: Macro

Facially inconsistent situations
–
Manufacturing Renaissance

Strong intellectual capital

But high manufacturing costs
–
Repatriation of jobs

No advantage in offshoring

12. 12
Why It May Change Everything: Macro

But
–
Disruption/destruction of traditional models
–
Future sales:

Designs, not products
–
Regional
–
Distributed

How can we have both?

13. 13
Why It May Change Everything: Macro

But
–
Disruption/destruction of traditional models
–
Future sales:

Designs, not products
–
Regional
–
Distributed

How can we have both?

14. 14
Why It May Change Everything: Macro
“Three guys in a garage can suddenly have the manufacturing capability to produce things of immense complexity, which, once upon a time, they couldn’t have dreamed of.”
Prof. Andy Keane
University of Southhampton, UK
2Seas UAV

15. Thought Experiment

16. 16
What Would Happen if?

Anyone could make things
with virtually any functionality
away from control?

17. 17
What Would Happen if?

Anyone could make things
with virtually any functionality
away from control?

Cody Wilson

18. 18
What Would Happen if?

Anyone could make things
with virtually any functionality
away from control?

Effect on:
–
Traditional Business Models?
–
IP?

19. 19
Answer: Paradigm Shift
–
Democratization of manufacturing

No entry barriers

20. 20
Answer: Paradigm Shift
–
Democratization of manufacturing

No entry barriers

Lines will blur

21. 21
Answer: Paradigm Shift
–
Democratization of manufacturing

No entry barriers

Lines will blur

Fundamentally different products

22. 22
Answer: Paradigm Shift
–
Democratization of manufacturing

No entry barriers

Lines will blur

Fundamentally different products

BACK TO making, not buying

23. 23
Answer: Paradigm Shift
–
Democratization of manufacturing

No entry barriers

Lines will blur

Fundamentally different products

BACK TO making, not buying
–
As democratization increases . . .

24. 24
Answer: Paradigm Shift

As democratization increases
–
IP becomes increasingly irrelevant

25. 25
As democratization increases

As democratization increases
–
IP increasingly irrelevant
–
Customization replaces IP

26. 26
As democratization increases

As democratization increases
–
IP increasingly irrelevant
–
Customization replaces IP
–
Trade secrets

27. 27
As democratization increases

As democratization increases
–
IP increasingly irrelevant
–
Customization replaces IP
–
Trade secrets
–
Non-IP-based models

28. IP Disruption Checklist

29. 29
Disruption Checklist

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

30. 30
Disruption Checklist

One more thing:

31. 31
Disruption Checklist

One more thing:
–
Ability to do all of this away from control

At home

Uncontrolled sources

32. 3DP Today

33. 33
3DP Today

Manufacturing: growing rapidly
–
½ of all machines

Hot areas:

34. 34
3DP in Aerospace

Boeing : “This is the ultimate manufacturing method for us”

Airbus: wing brackets
North Western Polytechnical U (China): titanium wing spar

35. 35
3DP in Aerospace
“This is the future of manufacturing”

Acquired 2 AM companies

Parts for 4000 LEAP engines
–
Alabama
–
DMLS titanium powder
–
Weight

36. 36
3DP in Automotive

3 Cool Cars

0 to 60 in 5 days

37. 37
3DP in Healthcare

38. 38
3DP in Healthcare

Facial Reconstruction

39. 39
3DP in Healthcare

Proof of concept customizable artificial heart

40. 40
3DP in Healthcare

Proof of concept customizable artificial heart

41. 41
3DP in Healthcare

Heart sensor/defibrillator membrane
–
Washington U, St. Louis & U of Illinois

Heart by 2023
–
University of Louisville

Aorta Cells
–
Sabanci U, Turkey

42. 42
–
Advanced Systems, Kentucky

43. 43
3DP of Complex Structures

Stratasys and Optomec: first fully 3DP electro- mechanical structure

UTEP: printed electronic structures

44. 44
3DP of Complex Structures

Disney speakers:

Google/3D Systems: ARA

45. 45
3DP of Complex Structures

MIT Center for Bits & Atoms
–
3D Assemblers

Atoms/molecules

Complete functional systems

46. Materials: Golden Age

47. 47
Ordinary Materials

A growing range of printable materials:
–
Plastics
–
Metals
–
Ceramics
–
Food
–
Glass
–
Wood

48. 48
Star Trek Materials

Liquid metal
–
NC State University
–
Flexible, stretchable
–
Liquid at room temperature
–
Self-healing

U of Warwick:
–
Carbomorph

Conductive plastic

49. 49
Star Trek Materials

Graphene
–
Flexible
–
Transparent
–
Conductive
–
Harder than diamond
–
200x stronger than steel steel

Graphene Flagship
–
€1 billion European Commission Initiative
–
75 institutions and partners, 17 European countries

Kibaran/3D Group/3D Graphtech Industries

50. 50
Star Trek Materials

Chiplets (Xerox PARC)
–
Grain of sand
–
Containing intelligent data
–
Microscopic electronic building blocks

Self-forming Metal
–
Tsinghua University
–
Chinese Academy of Sciences

51. Why 3DP Will Rock The IP World

52. 52
Rocking the IP World

Companies’ IP Philosophy

Protectability

IP infringement:
–
Types
–
Likelihood
–
Effectiveness of enforcement
–
Scale

Risk to IP system:

53. 53
Rocking the IP World

Companies’ IP Philosophy

Protectability

IP infringement:
–
Types
–
Likelihood
–
Effectiveness of enforcement
–
Scale

Risk to IP system:

54. 54
Rocking the IP World

Companies’ IP Philosophy

Protectability: 13,000 PATENTS/APPLICATIONS

IP infringement:
–
Types
–
Likelihood
–
Effectiveness of enforcement
–
Scale

Risk to IP system:

55. 55
Rocking the IP World

Companies’ IP Philosophy

Protectability

IP infringement:
–
Types: PATENT, COPYRIGHT, TRADE SECRET, TM
–
Likelihood
–
Effectiveness of enforcement
–
Scale

Risk to IP system:

56. 56
Rocking the IP World

Companies’ IP Philosophy

Protectability

IP infringement:
–
Types
–
Likelihood
–
Effectiveness of enforcement
–
Scale

Risk to IP system:

57. 57
Rocking the IP World

Companies’ IP Philosophy

Protectability

IP infringement:
–
Types
–
Likelihood
–
Effectiveness of enforcement
–
Scale

Risk to IP system:

58. 58
Rocking the IP World

Companies’ IP Philosophy

Protectability

IP infringement:
–
Types
–
Likelihood
–
Effectiveness of enforcement
–
Scale

Risk to IP system:

59. 59
Rocking the IP World

Companies’ IP Philosophy

Protectability

IP infringement:
–
Types
–
Likelihood
–
Effectiveness of enforcement
–
Scale

Risk to IP system: depends on democratization

60. 60
Rocking the IP World

Cuts across all IP

Cuts across ALL technology and products

Gartner: $100B by 2018

Internet + 3DP = . . . .

61. 61
Rocking the IP World

Internet + 3DP =
powerful tool for:
avoiding & defeating IP

62. 62
Rocking the IP World

“There is no reason for patent and trademark law to repeat the mistakes of copyright, but there is every reason to think that these mistakes will be repeated” Desai & Magliocca

63. IP Disruption Checklist: Where Are We Now?

64. 64
Disruption Checklist

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 . . .

65. 65
Disruption Checklist

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 . . .

66. 66
Disruption Checklist

Industrial scale
–
Large build platform
–
Speed or scale

Industrial or Home scale
–
Hybrid materials Loughborough U FACTUM HSS
–
Ability to print complex structures
–
Micro scale printing
–
Hybrid machines
–
Innovators, especially . . . .

67. 67
Disruption Checklist

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 . . .

68. 68
Disruption Checklist

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 . . .

69. 69
Disruption Checklist

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 . . .
Focused Electron Beam Induced Deposition

70. 70
Disruption Checklist

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 . . .

71. 71
Disruption Checklist

Industrial scale
–
Large build platform
–
Speed or scale

Industrial or Home scale --2013: 72,500
–
Hybrid materials
–
Ability to print complex structures
–
Micro scale printing
–
Hybrid machines
–
Innovators, especially kids

72. 72
Disruption Checklist

One more thing:

73. 73
Disruption Checklist

One more thing:
–
Ability to do all of this away from control

At home

Uncontrolled sources

74. 74
Disruption Checklist

One more thing:
–
Ability to do all of this away from control

At home

Uncontrolled sources

75. What Will Happen Next?

76. 76
Short Term

Branded Products

Mass Production

77. 77
Longer Term

IP models suffer the 5 Is (Eyes)
–
Infringement

78. 78
Longer Term

IP models suffer the 5 Is (Eyes)
–
Infringement
–
Identification

79. 79
Longer Term

IP models suffer the 5 Is (Eyes)
–
Infringement
–
Identification
–
Impractical or Impossible

80. 80
Longer Term

IP models suffer the 5 Is (Eyes)
–
Infringement
–
Identification
–
Impractical or Impossible
–
Irrelevant

81. 81
Away from Control

82. 82
Away from Control

83. 83
Away from Control

84. 84
Longer Term

IP models suffer the 5 Is (Eyes)
–
Infringement
–
Identification
–
Impractical or Impossible
–
Irrelevant

Bigger Issue: Why buy branded products?

85. 85
Longer Term

IP models suffer the 5 Is (Eyes)
–
Infringement
–
Identification
–
Impractical or Impossible
–
Irrelevant

Bigger Issue: Why buy branded products?

Biggest issue:
–
Effect on mass production

86. Why the Experts Are Wrong

87. 87
Why the Experts Are Wrong
–
“Most 3DP sales will be industrial”
–
“Most homes will not have 3DP anytime soon”
–
“Home 3DP will be unsophisticated”

88. 88
Why the Experts Are Wrong

Except this one:
–
Avi says:
“We live in exponential times”

89. 89
Why the Experts Are Wrong

And this one:
“I think every home within 10 years, probably less than that, will have its own 3D printer, just as many homes now have a 2D or laser printer”
Andy Bird, Chairman, Disney International

90. 90
Why the Experts Are Wrong

91. 91
Why the Experts Are Wrong

Metal Printers for the Home
–
i-AM (inkjet)
–
Vader (inkjet)
–
Mini Metal Maker (clay)
–
FABtotum

92. 92

93. 93
Why the Experts Are Wrong

MARKFORG3D
Cartesian ARGENTUM
$5M vs. $400

94. 94
Why the Experts Are Wrong
MINK PRINTEER
Disney:

95. 95
Why the Experts Are Wrong

Think Outside the Box

96. 96
Why the Experts Are Wrong

97. Welcome to the Revolution

98. 98
Welcome to the Revolution

Disruptive Game Changers:
–
Digital Revolution

Early Apple ad: “create dazzling color displays” and “invent your own Pong games”

What’s the Internet?

Why would I need a Smart Phone?

99. 99
Welcome to the Revolution

Wohlers & Markets&Markets:
–
2012: $2.2 B / 28.6% 2020: $8B
–
2014: 34.9% 2021: 10.8B
–
2015: $4B

100. 100
Welcome to the Revolution

Allied Market Research:
–
2013: $46B
–
2021: $175B

101. My Vision

102. 102
My Vision

Within Control

103. 103
My Vision

Within Control
–
Multi-function machines

Any functionality
“We want our machines to make anything” in 5 years
Epson

104. 104
My Vision

Within Control
–
Multi-function machines

Any functionality
–
Radically different L&F

105. 105
My Vision

Within Control
–
Multi-function machines

Any functionality
–
Radically different L&F
–
Complement SM

106. 106
My Vision

Within Control
–
Multi-function machines

Any functionality
–
Radically different L&F
–
Complement SM
–
Every classroom

107. 107
My Vision

Within Control
–
Multi-function machines

Any functionality
–
Radically different L&F
–
Complement SM
–
Every classroom
–
Flourishing economies

108. 108
My Vision

Within Control
–
Multi-function machines

Any functionality
–
Radically different L&F
–
Complement SM
–
Every classroom
–
Flourishing economies

Away from Control

109. 109
My Vision

Within Control
–
Multi-function machines

Any functionality
–
Radically different L&F
–
Complement SM
–
Every classroom
–
Flourishing economies

Away from Control
–
Any design, any time

110. 110
My Vision

Within Control
–
Multi-function machines

Any functionality
–
Radically different L&F
–
Complement SM
–
Every classroom
–
Flourishing economies

Away from Control
–
Any design, any time
–
iFactory/3D Assembler

111. 111
My Vision

Within Control
–
Multi-function machines

Any functionality
–
Radically different L&F
–
Complement SM
–
Every classroom
–
Flourishing economies

Away from Control
–
Any design, any time
–
iFactory/3D Assembler

Every home

112. 112
My Vision

Within Control
–
Multi-function machines

Any functionality
–
Radically different L&F
–
Complement SM
–
Every classroom
–
Flourishing economies

Away from Control
–
Any design, any time
–
iFactory/3D Assembler

Every home

Any functionality

113. 113
My Vision

Within Control
–
Multi-function machines

Any functionality
–
Radically different L&F
–
Complement SM
–
Every classroom
–
Flourishing economies

Away from Control
–
Any design, any time
–
iFactory/3D Assembler

Every home

Any functionality

Easy as a breadmaker

114. 114
My Vision

Within Control
–
Multi-function machines

Any functionality
–
Radically different L&F
–
Complement SM
–
Every classroom
–
Flourishing economies

Away from Control
–
Any design, any time
–
iFactory

Every home

Any functionality

Easy as a breadmaker
–
IP increasingly irrelevant

115. 115
When?
“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten”
Bill Gates

116. 116
Will we be Ready?

117. 117
Will we be Ready?
“a substantial portion of manufacturers may be caught off- guard by the rapid changes underway”

118. 118
Takeaways

Everything will change
–
When you can make anything

119. 119
Takeaways

Everything will change
–
When you can make anything

IP, it’s not dead yet!

120. 120
Thank you for your time!
john.hornick@finnegan.com
www.finnegan.com
FOLLOW MY TWEETS: @ JHornick3D1Stop

121. 121
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.