Big Data in the Automotive

The automotive industry has adopted many new at the center of the Big Data revolution. Connected gather data about driving habits through means such as electrical system sensors, radar , cameras, and monitoring of braking, acceleration and . They also location, and even the music that drivers listen to. Big Data brings with it great promise, but also myriad challenges, including cybersecurity, privacy, contract issues, ambiguities about data and intellectual property, and negative from those concerned about such data collection.

PRACTICE AT A GLANCE

ϳϳ WilmerHale has significant experience working with clients in all sectors and levels of the automotive industry, giving us a deep understanding of the complex relationships among suppliers, OEMs and auto manufacturers. 70% ϳϳ We also understand the special Big Data challenges shared by automotive and the parties with which they partner in the collection, use and sharing of information from connected cars, such as companies, in- data providers and GPS manufacturers. Gartner forecasts that by 2020, 70% of all auto-related INDUSTRY-SPECIFIC ISSUES customer interactions

Internet of Things: Modern cars collect a wide variety of information, be digital. from driving habits to real-time location data. And the services and devices integrated with automobiles also collect information (e.g., GPS, in-dash browsers, sound systems, 20.4 monitoring devices supplied by car insurance companies, etc.). A wide range of laws 18.5 17.5 govern such of Things data.

Data ownership: Many different players in the automotive industry have access to car-related data. Ownership and use of such data (and data derived from it) often is the 8.4 subject of ambiguity and contention, both for companies that supply the data and those that analyze it. Appropriate terms in contracts 2013 2014 2015 2016 and information-use agreements are therefore essential. Growth in the US market with wireless Fairness: The use of Big Data in decisions about which drivers to insure, connected and at what premium prices, raises a range of fairness issues. US Cellular OEM Telematics M2M Connections (in millions)

— 2014 Compass Intelligence

Attorney -SPECIFIC ISSUES continued

KEY POINTS Intellectual property: The automotive industry faces intellectual property questions concerning the patentability of algorithms, methods of analyzing Big As the number of connected Data, and the devices and equipment used for collection and storage of Big Data. vehicles continues to grow, Companies also are seeking to use trade secrets protection to defend their Big Data, solutions will their analytical methods and their derived insights. include: Infotainment: Voice Public relations and privacy: Numerous privacy and consumer protection laws communications, personalized are implicated by the collection, use and sharing of car-related data. And the use of Big music Data also faces public relations challenges because few consumers are eager to have Navigation: Traffic information, their location tracked every minute of the day or their driving habits scrutinized by online route planning insurers and employers. The auto industry has embarked on an industry-wide privacy initiative, but the law and best practices are evolving rapidly. Safety: Cameras and sensors, SOS (eCall), roadside Vendor contracts: Automotive companies often rely on service providers for assistance data analyses. They also partner with other technology companies in the Big Data Cost efficiency: Insurance ecosystem (such as chipmakers and developers of integrated in-car apps). This makes telematics, remote diagnostics, contract terms particularly important to this industry. condition-based

Security: Hackers already have remotely accessed and controlled vehicles that Payment: Electronic toll collection, parking reservation are connected to the Internet. And the data aggregated from connected vehicles is and payment vulnerable to interception and manipulation. Given the potential deadly consequences of a successful hack, data is particularly important in the auto industry.

EXPERIENCE

ϳϳ Advised a major car manufacturer on how to improve an industry-wide self- By 2018, one in five cars regulatory regime developed to address Big Data issues in a comprehensive way on the will be self- that was palatable to the industry, regulators and consumer advocates. aware and able to discern ϳϳ Developed firsthand technical knowledge of the complex microprocessor and share information on technology in today’s automobiles, including the infotainment and navigation their mechanical health, systems integral to connected cars. global position and status ϳϳ Helped create strategies for automotive industry clients with respect to the of their surroundings. collection, use and sharing of data in a manner compliant with applicable laws and emerging best practices.

ϳϳ Advised auto manufacturers on cutting-edge issues related to -to-vehicle “The average car now communication, cybersecurity policy and response, and sensitive data security contains 60 micro- and privacy issues. processors, and more ϳϳ Worked with semiconductor companies to ensure firewall security is in place than 10 million lines of to control the information flow among the car’s devices. software code—more than ϳϳ Represented an automotive in a trade secrets matter involving collision half the lines of code found avoidance and connected car technology. in a Boeing Dreamliner ϳϳ Represented multiple clients in patent infringement cases in the automotive sector. airplane.” — Centre for Automotive Research

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