Preparing Patent Policy for the Internet of Things

You may have seen Cisco's commercial for "The Internet of Everything" and wondered just exactly what they are referencing.  The rapid innovation of machine to machine technologies has opened doors to new markets and business models, paving the way for efficiencies and improvements in our daily lives.  As the market adjusts accordingly to house the new inventions that will fall under the umbrella of what many call "The Internet of Things"(IOT) technologists and policymakers will also need to consider how we handle standards, and how the patent system accommodates these new inventions.  In Europe, some are advocating for "standards essential patents" to help protect innovators paths to the market and to also encourage increased R&D investment.  The 2013 Consumer Electronic Show (CES) shone a bright spotlight on IOT technologies, but the products that are hitting the market today are only the beginning.  As policymakers consider how to reduce the rate of patent infringement and large license agreements, they may lean toward the creation of new standards, in order to define certain technologies as "standards essential."  As such, these technologies would arguably become available to the general public on the same fair, reasonable, and non-discriminatory terms (FRAND).  This pooling together of technologies would in turn, arguably, foster enhanced interoperability among a broad base of manufacturers, and increase consumer take-up of new technologies.  As IOT technologies are rolled out, it will be interesting to keep a close eye on the activity in the patent field.