Inside3DPrinting_johnhornick

3D Printing and the Future (or Demise) of Intellectual Property

John Hornick

April 2014

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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

Keep in Mind . . .

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Keep in Mind

Tipping into the mainstream

Everything will change when . . .

Implications

Why the Future (or Demise) of IP?

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Two Reasons

Democratization of manufacturing

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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.”

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Snapshot of the 3D Printer Players

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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

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Where is the IP in 3D Printing?

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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

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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

Why 3DP May Change Everything

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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

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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

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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

Thought Experiment

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What Would Happen if?

Anyone could make things

with virtually any functionality

away from control?

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away from control?

Cody Wilson

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away from control?

Effect on:

– Traditional Business Models?

– IP?

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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 . . .

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Answer: Paradigm Shift

As democratization increases

–IP becomes increasingly irrelevant

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–IP increasingly irrelevant

–Customization replaces IP

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–IP increasingly irrelevant

–Customization replaces IP

–Trade secrets

Disruption Checklist

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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 . . .

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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)

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One more thing:

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One more thing:

– Ability to do all of this away from control

At home

Uncontrolled sources

3DP Today

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3DP Today Manufacturing: growing rapidly

– ½ of all machines sold

Hot areas: – Aerospace

– Automotive

– Healthcare

– Fashion

– Complex structures

http://cdn.3dprintingindustry.com/wp-content/uploads/2013/01/c919-3d-printed-part-central-wing-flange.jpg-copy.jpg

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3DP in Aerospace Boeing :

“This is the ultimate manufacturing method for us”

Airbus: wing brackets

North Western Polytechnical U (China): titanium wing spar

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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

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3DP in Automotive

3 Cool Cars

0 to 60 in 5 days

http://1.bp.blogspot.com/-OHq3ydXJdDE/TgphEI2EyeI/AAAAAAAEoJo/xfGZYlD0zUo/s1600/XC2V.jpg

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Two Cool Bikes

Empire Cycles/Renishaw

3DP-F1 Flying Machine

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One Ugly Kayak

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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)

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3DP in Healthcare

Facial Reconstruction

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3DP in Healthcare Proof of concept customizable artificial heart

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3DP in Healthcare

Proof of concept customizable artificial heart

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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

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3DP of Complex Structures Stratasys and Optomec: first fully 3DP electro-

mechanical structure

UTEP: printed electronic structures

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3DP of Complex Structures

FEBID (-100nm)

Google/3D Systems: ARA

CAMTEK: circuit board printer

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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

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IP Implications

Companies’ IP Philosophy

Protectability

IP infringement: – Types

– Likelihood

– Effectiveness of enforcement

– Scale

Risk to IP system:

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IP Implications


Protectability


– Likelihood


– Scale

Risk to IP system:

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IP Implications


Protectability: 13,000 PATENTS/APPLICATIONS


– Likelihood


– Scale

Risk to IP system:

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IP Implications


Protectability

IP infringement: – Types: PATENT, COPYRIGHT, TRADE SECRET, TM

– Likelihood


– Scale

Risk to IP system:

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IP Implications


Protectability


– Likelihood


– Scale

Risk to IP system:

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IP Implications


Protectability


– Likelihood


– Scale

Risk to IP system:

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IP Implications


Protectability


– Likelihood


– Scale

Risk to IP system:

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IP Implications


Protectability


– Likelihood


– Scale

Risk to IP system: depends on democratization

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IP Implications


Protectability


– Likelihood


– Scale

Risk to IP system: depends on democratization

Materials: Golden Age

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Materials

“Materials are key to the future success of 3D printing”

Wohlers

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Ordinary Materials

A growing range of printable materials:

– Plastics

– Metals

– Ceramics

– Food

– Glass

– Wood

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Star Trek Materials

Liquid metal

– NC State University

– Flexible, stretchable

– Alloy of gallium and indium

– Liquid at room temperature

– “self-healing”

mechanically

electrically

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Star Trek Materials Cambridge U & PARC:

Thin film transistor

U of Warwick:

– Carbomorph

Conductive plastic

http://cdn.3dprintingindustry.com/wp-content/uploads/2012/12/game_13.jpg

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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

http://cdn.3dprintingindustry.com/wp-content/uploads/2013/04/balancing-act_1.jpg

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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

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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

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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”

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IP Implications


Protectability

IP infringement: – Types: PATENT, COPYRIGHT, TRADE SECRET, TM

– Likelihood


– Scale

Risk to IP system:

– LOW

3D Printing Away From Control

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3DP Away from Control

Anyone with a digital design: – Bypass traditional supply

chain

– Self-manufacture

Scanning: – Wildcard

“Good enough”

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3DP Away from Control

Hasbro & 3D Systems

Digital Dollhouse

LEGO

BARBIE

Complex Structures???

Why the Experts Are Wrong

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– “Most 3DP sales will be industrial”

– “Most homes will not have 3DP anytime soon”

– “Home 3DP will be unsophisticated”

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Except this one:

– Avi says:

“We live in exponential times”

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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

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Michigan Tech: – Save $2K/yr printing 27 things

Sudan and Uganda

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Metal Printers for the Home – i-AM (inkjet)

– Vader (inkjet)

– Mini Metal Maker (clay)

Michigan Tech Metal Printer – Low Cost

– Open Source

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MARKFORG3D

Cartesian ARGENTUM

$5M vs. $400

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Think Outside the Box

Why 3DP Will Rock The IP World

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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

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Internet + 3DP = . . . .

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Internet + 3DP = powerful tool for:

avoiding & defeating IP

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“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

Economic Implications of AWC

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Short Term

Branded Products

Indie Designs

Parts

Mass Market Items

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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

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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?

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The BIG Picture

3DP Revolution

– Same questions

– Elements falling into place

Economist 4/12: “3rd industrial revolution”

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– Speed or scale




– Hybrid machines


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– Speed or scale




– Hybrid machines


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– Speed or scale

Industrial or Home scale – Hybrid materials Loughborough U FACTUM HSS



– Hybrid machines

– Innovators, especially . . . .

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– Speed or scale




– Hybrid machines


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– Speed or scale




– Hybrid machines


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– Speed or scale




– Hybrid machines


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– Speed or scale




– Hybrid machines


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– Speed or scale

Industrial or Home scale --2012: 35,500 – Hybrid materials



– Hybrid machines

– Innovators, especially kids

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One more thing:

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One more thing:


At home


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One more thing:


At home


Welcome to the Revolution

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Morris: 3D printing “tsunami” will overwhelm 3DP supply chain

Scanning market: $4B+ by 2018

Gartner: 4 years: top retailers will 3D print custom orders

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Wohlers & Markets&Markets:

– 2012: $2.2 B 2020: $8B

– 2015: $4B 2021: 10.8B

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Allied Market Research:

–2013: $46B

–2021: $175B

My Vision

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My Vision

Within Control

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My Vision

Within Control – Multi-function

machines Any functionality

“We want our machines to make anything” in 5 years

Epson

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My Vision



– Radically different L&F

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My Vision




– Complement SM

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My Vision




– Complement SM

– Every classroom

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My Vision




– Complement SM

– Every classroom

– Flourishing economies

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My Vision




– Complement SM

– Every classroom


Away from Control

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My Vision




– Complement SM

– Every classroom


Away from Control – Any design, any time

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My Vision




– Complement SM

– Every classroom



– iFactory/3D Assembler

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My Vision




– Complement SM

– Every classroom



– iFactory/3D Assembler Every home

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My Vision




– Complement SM

– Every classroom




Any functionality

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My Vision




– Complement SM

– Every classroom




Any functionality

Easy as a breadmaker

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My Vision




– Complement SM

– Every classroom



– iFactory Every home

Any functionality

Easy as a breadmaker

– IP increasingly irrelevant

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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

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Takeaways

Everything will change

–When you can make anything

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Takeaways

Everything will change

–When you can make anything

IP, it’s not dead yet!

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Thank you for your time! [email protected]

www.finnegan.com

FOLLOW MY TWEETS: @ JHornick3D1Stop

http://www.finnegan.com/

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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.

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