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Inside3DPrinting_JohnHornick
1. 3D Printing and the Future (or Demise) of
Intellectual Property
John Hornick
July 2013
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
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
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
8
13. 13
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)
14. 14
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)
15. 15
Why It May Change Everything: Macro
Facially inconsistent effects
– Manufacturing Renaissance in countries with
Strong intellectual capital
But high manufacturing costs
– Repatriation of jobs
No advantage in offshoring
16. 16
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
17. 17
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 . . .
18. 18
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 . . .
19. 19
Checklist For IP Disruption
“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)
23. 23
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
24. 24
3DP Today
Manufacturing: growing rapidly
½ of all machines sold
Hot areas:
– Aerospace
– Automotive
– Healthcare
– Fashion
– Complex
structures
25. 25
3DP in Aerospace
Boeing
Airbus: wing brackets
North Western Polytechnical U (China):
titanium wing spar
26. 26
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
28. 28
3DP in Healthcare
3D implants: perfectly match a patient’s 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 man’s skull replaced with a
custom-made implant (Oxford Performance Materials)
32. 32
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
34. 34
IP Implications
Companies’ IP Philosophy
Protectability
IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
Risk to IP system:
– Aerospace/Healthcare vs. Automotive/Fashion
35. 35
IP Implications
Companies’ IP Philosophy
Protectability
IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
Risk to IP system:
– Aerospace/Healthcare vs. Automotive/Fashion
36. 36
IP Implications
Companies’ IP Philosophy
Protectability: 12,000 PATENT APPLICATIONS
IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
Risk to IP system:
– Aerospace/Healthcare vs. Automotive/Fashion
37. 37
IP Implications
Companies’ IP Philosophy
Protectability
IP infringement:
– Types: PATENT, COPYRIGHT, TRADE SECRET, TM
– Likelihood
– Effectiveness of enforcement
– Scale
Risk to IP system:
– Aerospace/Healthcare vs. Automotive/Fashion
38. 38
IP Implications
Companies’ IP Philosophy
Protectability
IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
Risk to IP system:
– Aerospace/Healthcare vs. Automotive/Fashion
39. 39
IP Implications
Companies’ IP Philosophy
Protectability
IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
Risk to IP system:
– Aerospace/Healthcare vs. Automotive/Fashion
40. 40
IP Implications
Companies’ IP Philosophy
Protectability
IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
Risk to IP system:
– Aerospace/Healthcare vs. Automotive/Fashion
41. 41
IP Implications
Companies’ IP Philosophy
Protectability
IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
Risk to IP system: depends on democratization
– Aerospace/Healthcare vs. Automotive/Fashion
42. 42
IP Implications
Companies’ IP Philosophy
Protectability
IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
Risk to IP system: depends on democratization
– Aerospace/Healthcare vs. Automotive/Fashion
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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: 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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Not-So-Ordinary Materials
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
Companies’ IP Philosophy
Protectability
IP infringement:
– Types: PATENT, COPYRIGHT, TRADE SECRET, TM
– Likelihood
– Effectiveness of enforcement
– Scale
Risk to IP system:
– LOW
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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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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 IP’d products
Bigger issue: disruption of markets
– Eliminates quasi-IP protection of economies of scale
– Could reduce need for mass production
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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???
At odds with innovation & Makers
“you are going to be thrilled with Corynne McSherry’s 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”
What’s 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
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
Checklist for the Revolution/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 . . .
67. 67
Checklist for the Revolution/IP Disruption
Industrial scale
– Large build platform
– Speed or scale
Industrial or Home scale
– Hybrid materials Loughborough University HSS
– Ability to print complex structures
– Micro scale printing
– Hybrid machines
– Innovators, especially . . .
68. 68
Checklist for the Revolution/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 . . .
69. 69
Checklist for the Revolution/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 . . .
70. 70
Checklist for the Revolution/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 Vienna Institute of Technology
– Innovators, especially . . .
71. 71
Checklist for the Revolution/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 . . .
72. 72
Checklist for the Revolution/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 kids
74. 74
Checklist For IP Disruption
One more thing:
– Ability to do all of this away
from control
At home
Uncontrolled sources
75. 75
Checklist For IP Disruption
One more thing:
– Ability to do all of this away
from control
At home
Uncontrolled sources
76. 76
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
77. 77
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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Thank you for your time!
john.hornick@finnegan.com
www.finnegan.com
Twitter @ JHornick3D1Stop
81. 81
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.