Internet of Everything (IoE)

London

5 November 2015

Roland Mathys, LL.M. (LSE)

Attorney-at-law / Partner

ITechLaw European Conference

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Agenda

1. IoE – What is it?

2. Key features

3. Practical example

4. Key risks and legal challenges

> Data protection and security

> Contract validity

> Liability

5. Conclusions

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> Term introduced by John Chambers (CEO Cisco Systems) at

Consumer Electronics Show (CES) 2014:

“The Internet of Everything is changing everything.”

> IoE = IoT?

> Different term for same concept

> IoE simply marketing language

> IoE IoT

> IoT builds part of, and is included in, IoE

> But what makes the difference (if any)?

IoE

IoE – What is it? (1)

IoE

IoE

IoT IoT

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IoE – What is it? (2)

> Many concepts and terms associated with IoE

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IoE – What is it? (3)

> Conceptual model

(source: ABI Research, 2014)

> Internet of Digital (IoD)

> Digital-first domain

> “Traditional” Internet

> Internet of Things (IoT)

> Physical-first domain

> Requires augmentation/manipulation to

generate digital data

> Internet of Humans (IoH)

> Direct user input

> Indirect/automated user input

IoE = IoD + IoT + IoH!

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Key Features

> Multipoint connection of

> Things

> Data

> Process

> Humans

> New quantitative dimensions

> 36.5 bio. wireless connected “Everythings” by 2020 (ABI Research)

> 5 “Everythings” per human

> Chambers: “$ 19 trillion value (profit) market 2013 - 2022”

> New qualitative dimensions

> “Everythings” become smarter

> Big data analysis, machine learning and artificial intelligence

> Need for human input gradually decreases

Source: CISCO

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Practical Example (1)

> You are attending the ITechLaw European Conference in London. As a

busy lawyer, you will appreciate that all preparations for your trip to,

and stay in, London will be taken care of by your smart environment.

> Your flight to London has been automatically booked based on your

calendar entries and your frequent flyer status of your preferred airline.

LCY has been chosen as destination airport since it is most convenient

to get to the Grange St. Pauls from there and public transport reports

no strikes during that period.

> You have been booked a room in the Grange St. Pauls based on

ITechLaw’s discounted rate. Your are automatically checked in early

based on your passport and credit card information taken from your

mobile device.

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Practical Example (2)

> Your luggage has been packed by your smart suitcase based on the

duration of your trip, the weather forecast taken from your weather app,

and the conference agenda published on ITechLaw’s website. Due to

luggage restrictions (your law firm only pays for economy flights), your

black tie attire for the Gala Dinner will stay at home (although you might

have preferred to leave one of your four suits at home instead).

> The weather conditions are worse than forecasted by your weather

app: It is foggy, rainy and windy. Due to the busy conference agenda,

you won’t have time to buy a raincoat. It will therefore be purchased

automatically from a store similar to your preferred stores back home,

taking sizes from your previous online purchases (but your smart shoes

fail to report that you have added some weight since then).

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Practical Example (3)

> During the conference session on IoT, your smart shirt notices your

body temperature is far above your average values, diagnoses a heavy

flue and automatically arranges an appointment at the closest medical

general practitioner with short term availability after the session.is

finished.

> Your smart watch observes that your heart beat is strikingly irregular,

but – after having consulted your online calendar – concludes this

must be due to nervousness since your speech will commence in 5

minutes.

> You have never been nervous before giving a speech and start feeling

a little bit nervous about the findings of your devices …

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Key Risks and Legal Challenges

> Risks identified by CISCO survey (2014)

> IT security

> Data privacy

> But there are many more

> Contract validity

> Liability

> Regulatory

> Net neutrality

> Standardisation vs vendor lock-in

> …

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Data Protection and Security

> Challenges

> Loads of data (“big data”)

> Sensitive data and data profiles

> Valuable (contextual) data

> Overall access due to multipoint connections

> Data from different sources (humans, sensors, algorithms)

> Data ownership

> Approaches

> Data segregation (“harmless” vs sensitive data)

> Privacy by design/default

> User autonomy

> Data anonymisation

> Data aggregation

> Monitoring and reporting

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Contract Validity

> Capacity to act

> Humans

> Age

> Capacity to judgment:

“A person is capable of judgment if he or she does not lack the capacity to

act rationally by virtue of being under age or because of a mental disability,

mental disorder, intoxication or similar circumstances.”

> Approaches

> Human acting by means of agent

> Agent acting on its own

> Agent acting on human’s behalf

> Contract rescission due to fundamental error

> Error assigned to human

> Error by negligence?

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Liability

> Causes

> Technical failures

> Incomplete, inaccurate or outdated information

> Defective algorithms

> Automated decision making

> Parallelism

> Conflict solution

> Fault

> Liability regardless of fault?

> Whose fault?

> Exclusion or limitation

> Requires contractual setup

> “To the extent permitted by law”

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Conclusions

> IoE > IoT!

> Quantitative

> Qualitiative

> Many legal challenges around IoE

> Some known

> Many new

> Existing approaches to address

IoE challenges

> Applied directly or by analogy

> Work (around) in many cases

> New approaches necessary in order to fully exploit IoE benefits!

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Roland Mathys, LL.M. (LSE)

Attorney-at-law / Partner

roland.mathys@swlegal.ch

Schellenberg Wittmer Ltd / Attorneys at Law

Löwenstrasse 19 / P.O. Box 1876 / 8021 Zurich / Switzerland

T +41 44 215 5252 / F +41 44 215 5200

www.swlegal.ch

Thank you for your attention!

ZURICH / GENEVA / SINGAPORE