Industry 4.0 Is Happening Now
Industry 4.0 is no longer just a marketing gimmick. As you read this article, objects, computers and humans are connected and communicating.
Those companies that are currently investing in the new technologies are realising the potential of Industry 4.0 not only to improve their product, but also to monetise the use of data at the international level.
The collection, analysis and sharing of data is a core power of Industry 4.0.
Connected machines collect a huge volume of raw data which provides information on performance and maintenance. That data is analysed to identify patterns and issues in a way that it would be impossible for a human to do.
Some examples:
· agricultural machinery can leverage data from soil sensors, GPS and weather channels to enable farmers to better manage seed, fertiliser and pesticides;
· a logistics supply chain is able to react as the data is received: In case of a delay in the transport segment of the chain, the system can immediately adapt production priorities;
· operators of industrial machinery can view real-time performance on dashboards. Rather than quality control based on samples (which only flags up defects after they have happened), the operator can monitor defects and take steps to resolve them immediately.
New critical risks must be evaluated: The legal issues arising in the context of Industry 4.0 projects require support from specialists in different legal areas, including commercial law, data protection, cybersecurity, intellectual property rights, licensing, digital services, employment, antitrust, tax benefits.
? There have been issues with users of agricultural vehicles implementing pirated software that disable emission control features so they can improve horsepower. Some industrial plant operators have learned how to override machine systems to ‘get around’ performance features they don’t know how to manage. This kind of human interference is likely to invalidate contract warranties for the machine and/or the software.
? Some vendor software intentionally prevents the machine/vehicle buyer from undertaking maintenance activity without involving (and paying) the vendor - potentially in violation of antitrust laws.
? Adapting current workforce to new roles and responsibilities could breach their rights under employment law.
? Transborder issues: If the manufacturing plant is in Italy but you store the data in another country, e.g. Singapore, you need to evaluate the impact of both EU and Singaporean laws.
? Industry 4.0 investment in tangible and intangible assets can avail of important tax benefits.
? Machine learning is not infallible and so your company’s liability in case of a malfunction needs to be taken into account.
Industry 4.0 is happening now.
avv. Jane Schorah - Senior Manager Fieldfisher Italy