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Embedded devices - Big opportunities in tiny packages

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Embedded devices - Big opportunities in tiny packages

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Only a decade ago, programming devices like these usually meant working on a very low-level Assembler language, just one mental step removed from the actual hardware and its functions, often fixed and set in stone in ASICs. Technology has evolved by leaps and bounds and made embedded devices more powerful, cheaper, and above all, more versatile. Instead of custom hardware, modern devices tend to use standard components, programmed with Java or C without the need for highly specialized Assembler coding experts. This has opened the floodgates for more innovation, but it has also raised the bar when protection, security, and monetization concepts are concerned.

Any entrepreneur who has invested their time and resources into innovations like these want to know that their IP is protected. Their first concerns are piracy and reverse engineering: Users might buy fakes or forged products by intent or by mistake, eroding considerable business from the original makers and potentially harming their reputation when users inevitably run into trouble with their knock-off products. On top of the threats for the makers themselves, users are at risk as well: Their data, be it sensitive sensor data or valuable production data, needs to be safe from theft, espionage, manipulation, or – currently a hot topic – hijacking.

When it comes to monetizing the resources and IP they have invested into their products, manufacturers generally used to have only one route: Selling the physical devices. In the modern world, business models and monetization options have multiplied: Money can be made by selling additional features and functions ("features-on-demand"). This could be the ability to configure additional axes in an industrial robot: The hardware and software could have the built-in 6-axis controls, but the user would have the opportunity to buy an add-on license to activate additional axes beyond the basic functions if they want to. This makes for leaner logistics, as the manufacturer only needs to sell one type of physical device, and for greater freedom for users to choose which features they actually need.

Another option are time-based licenses, like subscriptions. Users could enter into a leasing contract that allows them to use a device for a defined time with guaranteed updates in that period. The manufacturer benefits from the certainty of regular payments, and the user from lower upfront costs, upgrades to new functions, and permanent state-of-the-art security.

A third monetization option seems synonymous with our times: Apps. OEM or third-party developers can offer additional features in the form of apps that can be bought, licensed, and loaded onto devices. Opening up their ecosystem to third parties in this way can make a manufacturer’s products much more appealing for users and generate additional revenue in the form of licensing fees.

Only a decade ago, programming devices like these usually meant working on a very low-level Assembler language, just one mental step removed from the actual hardware and its functions, often fixed and set in stone in ASICs. Technology has evolved by leaps and bounds and made embedded devices more powerful, cheaper, and above all, more versatile. Instead of custom hardware, modern devices tend to use standard components, programmed with Java or C without the need for highly specialized Assembler coding experts. This has opened the floodgates for more innovation, but it has also raised the bar when protection, security, and monetization concepts are concerned.

Any entrepreneur who has invested their time and resources into innovations like these want to know that their IP is protected. Their first concerns are piracy and reverse engineering: Users might buy fakes or forged products by intent or by mistake, eroding considerable business from the original makers and potentially harming their reputation when users inevitably run into trouble with their knock-off products. On top of the threats for the makers themselves, users are at risk as well: Their data, be it sensitive sensor data or valuable production data, needs to be safe from theft, espionage, manipulation, or – currently a hot topic – hijacking.

When it comes to monetizing the resources and IP they have invested into their products, manufacturers generally used to have only one route: Selling the physical devices. In the modern world, business models and monetization options have multiplied: Money can be made by selling additional features and functions ("features-on-demand"). This could be the ability to configure additional axes in an industrial robot: The hardware and software could have the built-in 6-axis controls, but the user would have the opportunity to buy an add-on license to activate additional axes beyond the basic functions if they want to. This makes for leaner logistics, as the manufacturer only needs to sell one type of physical device, and for greater freedom for users to choose which features they actually need.

Another option are time-based licenses, like subscriptions. Users could enter into a leasing contract that allows them to use a device for a defined time with guaranteed updates in that period. The manufacturer benefits from the certainty of regular payments, and the user from lower upfront costs, upgrades to new functions, and permanent state-of-the-art security.

A third monetization option seems synonymous with our times: Apps. OEM or third-party developers can offer additional features in the form of apps that can be bought, licensed, and loaded onto devices. Opening up their ecosystem to third parties in this way can make a manufacturer’s products much more appealing for users and generate additional revenue in the form of licensing fees.

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Embedded devices - Big opportunities in tiny packages

  1. 1. Big opportunities in tiny packages Ruediger Kuegler VP Sales & Professional Services Guenther Fischer Senior Consultant, Licensing and Protection Embedded Devices 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 1
  2. 2. Where to find the accompanying audio To access the on-demand replay of this masterclass, please visit www.wibu.com/resources/webinars/2021/embedded-devices/access 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 2
  3. 3. A Look at Embedded Devices 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 3
  4. 4. A Look at Embedded Devices – Samples  PC-based controlling computers for machines (Windows or Linux)  Proprietary Programmable Logic Controllers (PLCs)  PLCs based on Linux ARM or VxWorks  Devices with Windows CE or Windows Embedded  Devices based on VxWorks, QNX, and Android  Devices based on microcontrollers  Devices with proprietary or non-mainstream operating systems  Raspberry Pi and similar devices 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 4
  5. 5. A Look at Embedded Devices – Summary 1  Devices of Any Size  Microcontrollers  Small devices with 8 to 32 Bit CPUs and small RAM capacity (1 to 128 Mbyte)  Industrial PCs (similar to personal computers)  Different Platforms  ARM, x86, x86_64, PPC, MIPS, …  Different Operating Systems  Windows, Linux, Android, VxWorks, QNX, …  Proprietary operating systems or no operating system 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 5
  6. 6. A Look at Embedded Devices – Summary 2  Different Interfaces  Internal and external USB ports  SD cards, microSD cards, CF/CFast cards  USB or SPI Interfaces for ASICs  No external interfaces at all  Different Secure Anchors  TPM chips or other security devices  Hardware properties/serial numbers like GPU-ID  No secure or semi-secure anchor at all 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 6
  7. 7. Protection Against Piracy and Reverse Engineering 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 7
  8. 8. Protection Against Piracy and Reverse Engineering  Encryption of executable code  Binaries (Executables)  Libraries, kernel modules, drivers  Encryption of resources  Bitmaps  Strings  Constants  Encryption of data  Settings and configurations 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 8
  9. 9. Security for Users 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 9
  10. 10. Security for Users  Protection against tampering  Protection of trade secrets  Blueprints, NC files, recipes  In-house, contract manufacturing  Protection against hijacking  Protection against ransomware 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 10
  11. 11. New License Models for Vendors 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 11
  12. 12. New License Models for Vendors  Perpetual licenses  Feature-based licenses  Amount of controlled axes  Additional functionalities  Subscription licenses  Pay-per-Use (per click, per minute, …)  Licensing of data  3D print models, STL files, …  Apps via marketplaces 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 12
  13. 13. CodeMeter Containers 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 13
  14. 14. CodeMeter Containers and Licensing Systems 20.4.2020 © WIBU-SYSTEMS AG 2020 - CodeMeter für Einsteiger 14 CmCloudContainer License container in the WIBU cloud Bound to a user CmDongle License container in a secure hw element Bound to a smart card chip License Server License Server in LAN / WAN CmActLicense License container in an encrypted file Bound to an endpoint
  15. 15. CodeMeter Runtime and Its Variants 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 15
  16. 16. CodeMeter Embedded Cloud Application Personal Computer Industrial PC Embedded System IoT / IIoT Device Mobile Device / Tablet Controller / PLC Micro Controller FPGAs Scalable CodeMeter Variants High Power Small Size CodeMeter Runtime CodeMeter µEmbedded 20.4.2020 © WIBU-SYSTEMS AG 2020 - CodeMeter für Einsteiger 16 CodeMeter Cloud Lite
  17. 17. CodeMeter Variants for Embedded Devices 1  CodeMeter Runtime  Industrial standard hardware (IPC, ARM, …)  Automatic fingerprinting for CmActLicenses  Support for CmDongles, CmActLicenes, CmCloudContainers and network clients  CodeMeter Runtime can be used as a network server  Binary only distribution – Service/Daemon installation required  Footprint in the size of some Mega Bytes 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 17
  18. 18. CodeMeter Variants for Embedded Devices 2  CodeMeter Embedded  Individual hardware designs  Support for CmDongles, CmActLicenes and network clients  Static Library – Source code available  Footprint below 400 Kilo Bytes  CodeMeter µEmbedded  Microcontrollers, CmActLicenses  Static Library – Source code available  Footprint below 70 Kilo Bytes 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 18
  19. 19. CodeMeter Protection Suite 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 19
  20. 20. CodeMeter Protection Suite CodeMeter Protection Suite 2019-05-15 © WIBU-SYSTEMS AG 2019 - The fastest way to protect your know-how 20 Automatic License Checks Encryption of Individual Functions Automatic Protection (IP Protection) Anti-Debug Methods CodeMeter Variant Used Individual License Checks Integrity Protection (Tamper Protection) Native Code CodeMeter Runtime IxProtector AxProtector AxProtector IP Protection IxProtector IP Protection Java .NET CodeMeter Runtime CodeMeter Runtime CodeMeter Embedded AxProtector .NET AxProtector Java AxProtector CmE IxProtector CmE Windows, macOS, Linux Windows, macOS, Linux, Android Android, Linux Java SE, Java EE .NET Framework, .NET Standard AxProtector .NET IP Protection AxProtector Java IP Protection
  21. 21. CodeMeter Protection Suite for Embedded  CodeMeter Runtime  All components available, full functionality  AxProtector, IxProtector, AxProtector .NET, AxProtector Java, and CodeMeter Protection Suite IP Protection  Strong binding between licensing and protection  Support for CmDongles, CmActLicenses, and CmCloudContainers 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 21
  22. 22. CodeMeter Protection Suite for Embedded Devices  CodeMeter Embedded  CodeMeter Protection Suite IP Protection  Separates licensing from protection  Used in combination with CodeMeter API  AxProtector/IxProtector CmE  Support for CmDongles  Strong binding between licensing and protection  CodeMeter µEmbedded  Customized solution: ExProtector 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 22
  23. 23. CodeMeter Core API 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 23
  24. 24. CodeMeter Core API – Overview  Software Protection  Usage of API to implement cryptographic license and tamper checks  Access, Crypt, Release, GetError  License Management  Showing licenses  License updates  Features for the user of the device, provided by vendor  Signatures, symmetric encryption, asymmetric encryption 2019-07-10 CodeMeter - Core Features 24
  25. 25. CodeMeter Core API – Best Practice Protection and Management // Access license CmAccess2(…) // Use license CmCrypt2(…) // Read license properties CmGetInfo(…) // Release license CmRelease(…) // Error handling CmGetLastErrorCode(…) // Create license request CmLtCreateContext(…) // Import license update CmExecuteRemoteUpdate(…) // Retrieving license details CmGetInfo(…) 2019-07-10 CodeMeter - Core Features 25
  26. 26. FAQs and Limitations 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 26
  27. 27. FAQs and Limitations  I have a 8-bit/16-bit controller with 100 kbyte of memory. What can I do?  I need to implement a proprietary license file with a proprietary check. I can use CodeMeter API to create these license files.  How much is runtime behavior affected by protections?  It depends on the usage of CodeMeter Protection Suite or CodeMeter API.  Does it work in a real-time environment?  You need to implement the checks in the none real-time part. You can transfer the result with a status flag to the real-time part. 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 27
  28. 28. CodeMeter License Central 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 28
  29. 29. End User Vendor CodeMeter License Central – Ticketing System 2020-11-04 29 Ticket + Fingerprint 4 License 5 Ticket 2 Purchase Order 1 E-Commerce ERP/CRM Software License Portal Ticket: ABCDE-FGHIJ-KLMNO-PQRST-UVWXY 3 © WIBU-SYSTEMS AG 2020 License Portals - Default and Custom Look
  30. 30. Features for Embedded Devices  Unified solution for CodeMeter Runtime, CodeMeter Embedded, and CodeMeter µEmbedded  Unified solution for all CmContainer types  Integration with SAP and other ERP systems  Creating licenses during production of the embedded devices  File-based (offline) updates  Offline push updates  Context file simulation  Bulk update for multiple devices 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 30
  31. 31. https://www.wibu.com info@wibu.com Europe: +49-721-931720 USA: +1-425-7756900 China: +86-21-55661790 Japan: +81-3-43608205 Thank you very much for your attention 2021-01-20 © WIBU-SYSTEMS AG 2021 Embedded Devices - Big opportunities in tiny packages 31

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