Inside3DPrinting_JohnHornick

3D Printing and the Future (or Demise) of
Intellectual Property
John Hornick
July 2013

2
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

4
Keep in Mind
Tipping into the mainstream
Everything will change
–When you can make
anything
Think about the implications

Why the Future (or Demise) of IP?

6
Three Reasons
 Democratization of manufacturing
 Open collaboration movement

7
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.”

8
The Players
8
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
8

Where is the IP in 3D Printing?

10
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, electron beam
 Post-production work
 Hybrid machines

11
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
 Hybrid machines

13
Why It May Change Everything: Micro
 One machine makes all, no re-tooling or assembly
 More efficient/impossible designs, interior
structures
 Affordable customization
– Complexity is free
– Batches of one, created on demand
 Efficient use of raw materials (less waste)
 Less energy (no shipping)

14
Why It May Change Everything: Micro
 One machine makes all, no re-tooling or assembly
 More efficient/impossible designs, interior
structures
 Affordable customization
– Complexity is free
– Batches of one, created on demand
 Efficient use of raw materials (less waste)
 Less energy (no shipping)

15
Why It May Change Everything: Macro
 Facially inconsistent effects
– Manufacturing Renaissance in countries with
 Strong intellectual capital
 But high manufacturing costs
– Repatriation of jobs
 No advantage in offshoring

16
Why It May Change Everything: Macro
 But
– Disruption/destruction of traditional models:
manufacturing, distribution, shipping, retail
– Future sales:
 Designs, not products
– Print at point of
assembly/consumption
 Just in time
– Printing in-house, by service bureaus, by you and me

17
Why Macro Change Will Disrupt IP
 The paradigm shift:
– Democratization of design
 Lower entry barriers
 Many small businesses
 Fundamentally different designs
 Printing away from control
– As democratization increases . . .

18
Checklist For IP Disruption
 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 . . .

19
 “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)

20
 One more thing:

21
 One more thing:
– Ability to do all of this away
from control
 At home
 Uncontrolled sources

23
3DP Today
 Rapid prototyping: about 70% of the market
– Shortens the development life-cycle
– Enables experimentation and innovation
 Easy tweaking
– Perfect for one-offs
– Saves cost
– Increases confidence in final product

24
3DP Today
 Manufacturing: growing rapidly
 ½ of all machines sold
 Hot areas:
– Aerospace
– Automotive
– Healthcare
– Fashion
– Complex
structures

25
3DP in Aerospace
 Boeing
 Airbus: wing brackets
 North Western Polytechnical U (China):
titanium wing spar

26
3DP in Aerospace
 GE:
– Acquired 2 AM companies
– Parts for 4000 LEAP engines
 DMLS titanium powder
– Fuel nozzle
 DMLS Cobalt-chromium powder
 Rolls Royce
– Merlin project
 6 engine makers

27
3DP in Automotive
 Ford (and others)
 BMW
 3 Cool Cars

28
3DP in Healthcare
 3D implants: perfectly match a patient’s body; better fixation
– Walter Reed Army Medical Center: 3DP 60+ titanium
cranial plate implants
– 2011: 3DP jaw implanted in an 83-year old woman
– March 2013: 75% of a man’s skull replaced with a
custom-made implant (Oxford Performance Materials)

29
3DP in Healthcare
 Proof of concept customizable artificial heart

30
3DP in Healthcare
 Proof of concept customizable artificial heart

31
3DP in Healthcare
 Ears (cosmetic and bionic)
 Fingers
 Noses
 Models
 Custom hearing aids (95%)
 Dental (crowns, aligners)
– 10,000/day
 Prosthetics
 Custom coverings
for artificial limbs
 Bladder, liver, kidney
 Bone/bone cells
 DNA
 Custom Drugs
 Vaccines
 Facial Reconstruction
 Joints, discs, bones, spine
 Stem cells
 Tissue (ONVO)

32
3DP in Fashion (not just shoes)
 Dita Von Teese unveiled world's first fully 3DP
dress
 Designed with Shapeways
 “assembled from 17 pieces, dyed black, lacquered
and adorned with over 13,000 Swarovski crystals to
create a sensual flowing form”

33
3DP of Complex Structures
 Stratasys and Optomec: first fully 3DP electro-
mechanical structure
 Optomec: antenna
 Harvard/U of Illinois: microbatteries
 Disney: interactive toys
 Princeton U:
bionic ear

34
IP Implications
 Companies’ IP Philosophy
 Protectability
 IP infringement:
– Types
– Likelihood
– Effectiveness of enforcement
– Scale
 Risk to IP system:
– Aerospace/Healthcare vs. Automotive/Fashion

35
IP Implications
 Protectability
– Types
– Likelihood
– Scale

36
IP Implications
 Protectability: 12,000 PATENT APPLICATIONS
– Types
– Likelihood
– Scale

37
IP Implications
 Protectability
– Types: PATENT, COPYRIGHT, TRADE SECRET, TM
– Likelihood
– Scale

38
IP Implications
 Protectability
– Types
– Likelihood
– Scale

39
IP Implications
 Protectability
– Types
– Likelihood
– Scale

40
IP Implications
 Protectability
– Types
– Likelihood
– Scale

41
IP Implications
 Protectability
– Types
– Likelihood
– Scale
 Risk to IP system: depends on democratization

42
IP Implications
 Protectability
– Types
– Likelihood
– Scale
 Risk to IP system: depends on democratization

44
Ordinary Materials
 Mostly plastics (ABS,
PLA)
 A growing range of
printable materials:
– Metals
– Ceramics
– Food
– Glass
– Wood

45
Not-So-Ordinary Materials
 Washington State U: bone-like material (support for
new bone growth)
 U of Glasgow: organic compounds and inorganic
clusters (customized medicines)
 Cambridge U: thin film transistor
 U of Warwick: Carbomorph
– Conductive plastic
– “functioning electronic device”

46
 Hybrid inks: new combinations of physical,
electrical, and mechanical properties
– Colloidal: advanced ceramic, metallic, and polymer
materials
– Fugitive: tissue engineering, self-healing materials
– Silver nanoparticle: conductive materials, implantable
& wearable electronics (antennas, sensors), transparent
conductive devices
– Polyelectrolyte: drug delivery, tissue engineering

47
 Graphene
– Flexible
– Transparent
– Conductive
– Harder than diamond
– Stronger than steel

48
 Chiplets (Xerox PARC)
– Grain of sand
– Containing intelligent data
– Microscopic electronic building blocks
 Voxels
– 3D pixels
– Any repeatable shape
– Multiple materials per voxel
– Loaded with active components

49
IP Implications
 Protectability
– Types: PATENT, COPYRIGHT, TRADE SECRET, TM
– Likelihood
– Scale
– LOW

51
3DP Away from Control
 CES 2013
 Anyone with a digital design:
– Bypass traditional supply chain
– Self-manufacture
 Microsoft Kinect has been adapted for 3D scanning at home
 “Good enough” technology
 Why the experts are wrong

52
3D Systems: Targeting Future Innovators

53
3DP Away from Control
 Makers
– Open design/mfg community
– Collaborative innovation
 Accelerated innovation
– Wikipedia is open/ Encyclopedia Britannica was closed
 Open 3DP: same potential
 Open-source “RepRap” printer
– Self-replicating machine
– 20,000+
– Think “T3”

54
IP Implications
 Major disruption of business models
– Infringement risk: HIGH
– IP irrelevant (3 Is)
– + Unprotectable substitutes for IP’d products
 Bigger issue: disruption of markets
– Eliminates quasi-IP protection of economies of scale
– Could reduce need for mass production

Why 3DP Will Rock The IP World

56
Scope of the Problem
 Cuts across all IP
 Cuts across ALL technology and products
 Anyone can:
– Recreate an existing product design
– Manufacture
– Distribute
 AFC infringement will proliferate
 IP becomes less relevant

57
Scope of the Away From Control Problem
 Will AFC 3DP cripple traditional manufacturers?
– Think internet piracy in the music and movie
industry
 Will AFC 3DP crush copyright & design patents?
– Sculptures are easily duplicated
– Toys can be made at home, designs can be shared P2P
 Will AFC 3DP overwhelm patent owners?
– Checklist

58
IP Holders v. Makers
 IP owners at the barricades/history repeats itself:
– Music industry fought home taping
– Movie industry fought the VCR
– Internet decimated
music industry
 Internet + 3DP = . . . .

59
Copyrights Away From Control
 Most 3D objects not
copyrightable
 Infringement of any design
as easy as downloading
illegal music
 Software and CAD files
 DMCA
 DRM???
 At odds with innovation & Makers
“you are going to be thrilled with Corynne McSherry’s talk on
the legal rights of Makers and how to fight the copyright laws
that are on the horizon”

60
Trademarks Away From Control
 Counterfeiting on steroids
 Exact copies of objects may bear a third party
trademark
– Inability to control quality
 Traditional manufacturers may try to protect
designs as:
– Product configurations
– Trade dress
 Generic products may trump

61
Utility Patents Away From Control
 May stress the patent system as the digital
revolution stressed the copyright system
– Small to large scale copying/printing of almost anything
will be possible
– P2P filing sharing of CAD files
 Enforcing patents will be challenging
– Crowdsourcing prior art
 Algorithm
– Preissuance Submissions
– Defendant assistance
– 3Is

62
Design Patents
 Design patent renaissance?
– A long-neglected tool
– Automobile manufacturers: parts
– Design-arounds may be easy
 Same problems as utility patents

63
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?

64
The BIG Picture
 3DP Revolution
– Same questions
– Much speculation
– Elements falling
into place
Economist 4/12: “3rd industrial revolution”

65
Checklist for the Revolution/IP Disruption
– Speed or scale
– Hybrid machines

66
– Speed or scale
– Hybrid machines

67
– Speed or scale
– Hybrid materials Loughborough University HSS
– Hybrid machines

68
– Speed or scale
– Hybrid machines

69
– Speed or scale
– Hybrid machines

70
– Speed or scale
– Hybrid machines Vienna Institute of Technology

71
– Speed or scale
– Hybrid machines

72
– Speed or scale
– Hybrid machines
– Innovators, especially kids

73
 One more thing:

74
 One more thing:
from control
 At home

75
 One more thing:
from control
 At home

76
3D Printing Revolution
 Tipping point
 2011: 80K machines
 Businesses will change, adapt, vanish
– Evolve or Die
 New businesses will emerge
 Lines between manufacturer, retailer, and user will
blur
 It IS happening quickly

77
Big Issues for IP
 Is the existing IP regime up to the task?
 How can protection from infringement be balanced with the
ability to innovate?
 Will IP survive, or are we headed for a worldwide open
technology community?
 Is IP fundamentally in conflict with the 3D world?

78
Takeaways
–When you can make anything

79
Takeaways
–When you can make anything
IP, it’s not dead yet!

80
Thank you for your time!
john.hornick@finnegan.com
www.finnegan.com
Twitter @ JHornick3D1Stop

81
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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