Posts Tagged: "Self-Driving Car"

he U.S. Patent and Trademark Office issued a final office action in an ex parte reexamination of a patent owned by Google self-driving car development subsidiary Waymo. As a result of the reexamination, Waymo stands to lose 53 of 56 claims, including all 20 of the patent claims originally issued. The patent in question had been asserted as part of the company’s well-known infringement suit filed against Uber.

Although the amount of the settlement was far less than $2.7 billion in amount sought by Waymo, the settlement apparently did include a payment from Uber of 0.34% of Uber equity—or about $244.8 million in stock based on a $72 billion valuation of Uber… Both sides had a lot riding on the outcome of the trial. In addition to the billions in damages, Waymo was seeking an injunction to prevent Uber from using any technology that may have originated from Waymo, which would have been a huge set back for Uber’s program. Indeed, during his first day of being questioned, the former CEO of Uber, Travis Kalanick, agreed that developing autonomous vehicles amounts to an “existential question” for Uber, and that the market for driverless cars is likely to be “winner-take-all.”

Autonomous, or self-driving, vehicles are coming, even if it’s going to take some time for the technology to become fully operational on U.S. highways. When the technology catches up with the commercial demand, however, there’s little doubt that the market for autonomous vehicles will be huge. News reports from last June indicate that market research firm IHS Automotive published a report forecasting that almost 21 million driverless cars will be driven on roads across the world by the year 2035… Despite forays into the automotive world by Silicon Valley contenders like Tesla, Google’s Waymo and Uber, it seems that the coming generation of American research and development for self-driving cars will be centered in Detroit, long the center of the American automotive world.

The Obama administration is hoping to add some clarity to the regulatory picture by unveiling a new set of guidelines in a 100-page federal automated vehicles policy document. The guidance requires autonomous vehicle developers to provide a safety assessment to the National Highway Traffic Safety Administration (NHTSA) discussing 15 areas of safety evaluation. The guidelines, which have been issued through the U.S. Department of Transportation (DOT), identify 11 areas of safety evaluation related to cross-cutting technologies that apply to all automation functions on a vehicle.

The privacy implications of the driverless car are significant. The data that such a vehicle could collect and the potential uses of that data could be extraordinarily intrusive. Driverless cars could provide both historic and real-time, continuous geolocation data. Companies could utilize this data to determine not only your current location and destination but also every place that you have been. This data could lead to commercially valuable, but extremely sensitive and intimate information about individuals being discovered. Advertisers may be able to discern the purchasing patterns of individuals by tracking what stores they frequent. Insurers may be able to determine what the lifestyle of individuals is like by following their daily activities (e.g., constant trips to the gym) and dining habits (e.g., persistent trips to fast food restaurants).

The patent landscape for self-driving vehicles is also quickly expanding. As of 2013, patent applications related to this technology hit 2,500 per year. That rate is expected to increase. A lot of attention has been paid to the entry of major tech firms, including Google, thanks in part to eyebrow-raising technologies like their patent for an adhesive material for a car’s hood that is designed to “catch” a pedestrian who is inadvertently struck by an autonomous vehicle. But tech companies should expect plenty of competition. Despite reports that Silicon Valley tech giants are entering the autonomous vehicle race and risk upsetting the traditional market, a study from Thomson Reuters Intellectual Property and Science indicates that long-time automakers have taken the lead in autonomous vehicle development in terms of patents and patent applications.