3dprintconfny14

1. 3D Printing and the Future (or Demise) of
Intellectual Property
John Hornick
April 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. Where is the IP in 3D Printing?

10. 10
Where’s Waldo?
 AM machines
– driven by
 Software or firmware
 CAD/CAM file
– fuse, layer on layer
 Extruded material, powder, or sheets
 Heat, chemical, glue, light, knife, electron beam
 Post-production work

11. 11
Where’s 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

12. Why 3DP May Change Everything

13. 13
Why It May Change Everything: Micro
 One machine makes all, no re-tooling or
assembly
 Impossible designs, interior structures
 Affordable customization
– Complexity is free
– Batches of one, on demand
 Greener
– Less raw materials, energy

14. 14
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

15. 15
Why It May Change Everything: Macro
 But
– Disruption/destruction of traditional models
– Future sales:
 Designs, not products
– Regional Manufacturing
 Just in time
– Printing in-house, by service bureaus, by you and me

16. Thought Experiment

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

18. 18
What Would Happen if?
 Anyone could make things
with virtually any functionality
away from control?
 Cody Wilson

19. 19
What Would Happen if?
 Anyone could make things
with virtually any functionality
away from control?
 Effect on:
–Traditional Business Models?
–IP?

20. 20
Answer: Paradigm Shift
–Democratization of
manufacturing
 No entry barriers
 Lines will blur: manufacturer, retailer, user
 Fundamentally different
products
 BACK TO making, not buying
–As democratization increases . . .

21. 21
Answer: Paradigm Shift
 As democratization increases
–IP becomes increasingly
irrelevant

22. 22
As democratization increases
 As democratization increases
–IP increasingly irrelevant
–Customization replaces IP

23. 23
As democratization increases
 As democratization increases
–IP increasingly irrelevant
–Customization replaces IP
–Trade secrets

24. Disruption Checklist

25. 25
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 . . .

26. 26
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)

27. 27
Disruption Checklist
 One more thing:

28. 28
Disruption Checklist
 One more thing:
– Ability to do all of this away
from control
 At home
 Uncontrolled sources

29. 3DP Today

30. 30
3DP Today
 Manufacturing: growing rapidly
– ½ of all machines sold
 Hot areas:
– Aerospace
– Automotive
– Healthcare
– Fashion
– Complex
structures

31. 31
3DP in Aerospace
 Boeing :
“This is the ultimate manufacturing method for us”
 Airbus: wing brackets
 North Western Polytechnical U (China):
titanium wing spar

32. 32
3DP in Aerospace
 GE: “This is the future of manufacturing”
– Acquired 2 AM companies
– Parts for 4000 LEAP engines
 DMLS titanium powder
– Fuel nozzle
 DMLS Cobalt-chromium powder

33. 33
3DP in Automotive
 3 Cool Cars
 0 to 60 in 5 days

34. 34
Two Cool Bikes
 Empire
Cycles/Renishaw
 3DP-F1 Flying Machine

35. 35
One Ugly Kayak

36. 36
3DP in Healthcare
 Ears (cosmetic and bionic)
 Fingers
 Noses
 Models
 Custom hearing aids (95%)
 Dental (crowns, aligners)
– 17 million
 Prosthetics/Exo
 Custom coverings
for artificial limbs
 Bladder, liver, kidney
 Bone/bone cells
 DNA
 Drugs/vaccines
 Eyes
 Facial Reconstruction
 Joints, discs, bones, spine
 Stem cells
 Tissue (ONVO)

37. 37
3DP in Healthcare
 Facial Reconstruction

38. 38
3DP in Healthcare
 Proof of concept customizable artificial heart

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

40. 40
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

41. 41
3DP of Complex Structures
 Stratasys and Optomec: first fully 3DP electro-
mechanical structure
 UTEP: printed
electronic structures

42. 42
3DP of Complex Structures
 FEBID (-100nm)
 Google/3D Systems:
ARA
 CAMTEK: circuit board printer

43. 43
3DP of Complex Structures
 MIT Center for Bits & Atoms
– 3D Assemblers
 Atoms/molecules
placed where needed
 Complete functional systems printed at once
–integrated fixed and moving mechanical
structures and electronics
 Self-assembling

44. 44
IP Implications
 Companies’ IP Philosophy
 Protectability
 IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
 Risk to IP system:

45. 45
IP Implications
 Companies’ IP Philosophy
 Protectability
 IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
 Risk to IP system:

46. 46
IP Implications
 Companies’ IP Philosophy
 Protectability: 13,000 PATENTS/APPLICATIONS
 IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
 Risk to IP system:

47. 47
IP Implications
 Companies’ IP Philosophy
 Protectability
 IP infringement:
– Types: PATENT, COPYRIGHT, TRADE SECRET, TM
– Likelihood
– Effectiveness of enforcement
– Scale
 Risk to IP system:

48. 48
IP Implications
 Companies’ IP Philosophy
 Protectability
 IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
 Risk to IP system:

49. 49
IP Implications
 Companies’ IP Philosophy
 Protectability
 IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
 Risk to IP system:

50. 50
IP Implications
 Companies’ IP Philosophy
 Protectability
 IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
 Risk to IP system:

51. 51
IP Implications
 Companies’ IP Philosophy
 Protectability
 IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
 Risk to IP system: depends on democratization

52. 52
IP Implications
 Companies’ IP Philosophy
 Protectability
 IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
 Risk to IP system: depends on democratization

53. Materials: Golden Age

54. 54
Materials
“Materials are key to the
future success of 3D
printing”
Wohlers

55. 55
Ordinary Materials
 A growing range of
printable materials:
– Plastics
– Metals
– Ceramics
– Food
– Glass
– Wood

56. 56
Star Trek Materials
 Liquid metal
– NC State University
– Flexible, stretchable
– Alloy of gallium and indium
– Liquid at room temperature
– “self-healing”
 mechanically
 electrically

57. 57
Star Trek Materials
 Cambridge U & PARC:
 Thin film transistor
 U of Warwick:
– Carbomorph
 Conductive plastic

58. 58
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
 Graphene 3D Labs/Lomiko Metals

59. 59
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

60. 60
Star Trek Materials
 Bio-composites
– Ames Research Center/NASA
 “Biomaterials out of thin air:
in situ, on-demand
printing of advanced
biocomposites”
– 3D printing cells
 from molecules in surrounding environment
– into useable material

61. 61
Beyond Star Trek: 4D Materials
 University of Pittsburgh, Harvard School of
Engineering, University of Illinois
– U.S. Army grant
 Materials that modify their own
structures at the macro level
– “Rather than construct a static material or one
that simply changes its shape, we’re proposing
the development of adaptive, biomimetic
composites that re-program their shape,
properties or functionality on demand, based
upon external stimuli”

62. 62
IP Implications
 Companies’ IP Philosophy
 Protectability
 IP infringement:
– Types: PATENT, COPYRIGHT, TRADE SECRET, TM
– Likelihood
– Effectiveness of enforcement
– Scale
 Risk to IP system:
– LOW

63. 3D Printing Away From Control

64. 64
3DP Away from Control
 Anyone with a digital design:
– Bypass traditional supply
chain
– Self-manufacture
 Scanning:
– Wildcard
 “Good enough”

65. 65
3DP Away from Control
 Hasbro & 3D Systems
 Digital Dollhouse
 LEGO
 BARBIE
 Complex
Structures???

66. Why the Experts Are Wrong

67. 67
Why the Experts Are Wrong
– “Most 3DP sales will be industrial”
– “Most homes will not have 3DP anytime soon”
– “Home 3DP will be unsophisticated”

68. 68
Why the Experts Are Wrong
 Except this one:
– Avi says:
“We live in exponential times”

69. 69
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

70. 70
Why the Experts Are Wrong
 Michigan Tech:
– Save $2K/yr printing 27 things
 Sudan and Uganda

71. 71
Why the Experts Are Wrong

72. 72
Why the Experts Are Wrong
 Metal Printers for the Home
– i-AM (inkjet)
– Vader (inkjet)
– Mini Metal Maker (clay)
 Michigan Tech Metal Printer
– Low Cost
– Open Source

73. 73
Why the Experts Are Wrong
 MARKFORG3D
 Cartesian ARGENTUM
 $5M vs. $400

74. 74
Why the Experts Are Wrong
 Think Outside the Box

75. Why 3DP Will Rock The IP World

76. 76
Rocking the IP World
 Cuts across all IP
 Cuts across ALL technology and
products
 Anyone can:
– Recreate an existing product design
– Manufacture
– Distribute
 Gartner: $100B by 2018

77. 77
Rocking the IP World
Internet + 3DP = . . . .

78. 78
Rocking the IP World
Internet + 3DP =
powerful tool for:
avoiding &
defeating IP

79. 79
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

80. Economic Implications of AWC

81. 81
Short Term
 Branded Products
 Indie Designs
 Parts
 Mass Market Items

82. 82
Longer Term
 5 Is (Eyes) = Major disruption of IP models
– Infringement
– Identification
– Impractical or Impossible
– Irrelevant
 Bigger Issue: Why buy
branded products?
 Biggest issue: Disruption of mass production
– Eliminates quasi-IP protection of economies of scale

83. 83
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?

84. 84
The BIG Picture
 3DP Revolution
– Same questions
– Elements falling
into place
Economist 4/12: “3rd industrial revolution”

85. 85
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 . . .

86. 86
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 . . .

87. 87
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 . . . .

88. 88
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 . . .

89. 89
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 . . .

90. 90
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 . . .

91. 91
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 . . .

92. 92
Disruption Checklist
 Industrial scale
– Large build platform
– Speed or scale
 Industrial or Home scale --2012: 35,500
– Hybrid materials
– Ability to print complex structures
– Micro scale printing
– Hybrid machines
– Innovators, especially kids

93. 93
Disruption Checklist
 One more thing:

94. 94
Disruption Checklist
 One more thing:
– Ability to do all of this away
from control
 At home
 Uncontrolled sources

95. 95
Disruption Checklist
 One more thing:
– Ability to do all of this away
from control
 At home
 Uncontrolled sources

96. Welcome to the Revolution

97. 97
Welcome to the Revolution
 Morris: 3D printing “tsunami” will
overwhelm 3DP supply chain
 Scanning market: $4B+ by 2018
 Gartner: 4 years: top retailers will 3D print custom
orders

98. 98
Welcome to the Revolution
 Wohlers & Markets&Markets:
– 2012: $2.2 B 2020: $8B
– 2015: $4B 2021: 10.8B

99. 99
Welcome to the Revolution
 Allied Market Research:
–2013: $46B
–2021: $175B

100. My Vision

101. 101
My Vision
 Within Control

102. 102
My Vision
 Within Control
– Multi-function
machines
 Any functionality
“We want our machines to
make anything” in 5 years
Epson

103. 103
My Vision
 Within Control
– Multi-function
machines
 Any functionality
– Radically different L&F

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

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

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

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

108. 108
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

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
– iFactory/3D Assembler

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
 Every home

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
 Any functionality

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
 Easy as a breadmaker

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
 Every home
 Any functionality
 Easy as a breadmaker
– IP increasingly
irrelevant

114. 114
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

115. 115
Takeaways
Everything will change
–When you can make anything

116. 116
Takeaways
Everything will change
–When you can make anything
IP, it’s not dead yet!

117. 117
Thank you for your time!
john.hornick@finnegan.com
www.finnegan.com
FOLLOW MY TWEETS: @ JHornick3D1Stop

118. 118
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.