INTERNET OF THINGS: EMERGING TECHNOLOGIES AND LIABILITIES
CD: To what extent has the Internet of Things (IoT) pervaded our daily lives in recent years? How would you describe the evolution of this technology and the benefits it offers?
Shankland: The interconnectedness and interaction of devices promotes efficiency and precision and facilitates automation. That is true in industrial settings where the Internet of Things (IoT), alongside artificial intelligence and machine learning, are spurring a so-called fourth industrial revolution. It is also true for consumers. One in six Americans own a smart speaker. Upon waking, a person can make a simple command to the smart speaker and a customised series of events will commence. This may include cranking up the heat, playing the weather forecast, turning on the lights, starting the coffee maker and switching on the television, among other things. The smart home is about more than convenience, though. A person can be alerted of a smoke alarm, break-in or water leak from anywhere – or close the garage door or see and talk to whoever is at the front door. IoT devices remain in early stages, and it is hard to fathom the coming innovations that will surely touch on every aspect of daily life.
CD: How would you characterise the potential risks and concerns associated with the IoT? In the event of a connected device failing and causing harm, where might liability reside?
Shankland: IoT devices are uniquely positioned to gather highly personal, intimate data about consumers, their habits, their relationships and their health. Cell phones alone track locations, store photos and video, monitor health data, connect to bank and credit accounts, transmit written communication, record voices and send all sorts of personal data to the cloud for storage. Smart speakers are always listening. Thermostats know when someone is home. Refrigerators monitor what people eat. Deadbolts can be unlocked from anywhere. What information devices collect and transmit and what companies do with that information, including how they safeguard it and with whom they share it, is bound to lead to extensive litigation. This covers at least three areas. First, data security, such as data breaches. Second, data privacy, including sharing and use of data. Third, device security, where third parties gain unauthorised access to devices. It implicates potential liability for everyone throughout the supply chain, including manufacturers, vendors, cloud storage providers, data analysts, social media platforms and app developers.
Jul-Sep 2020 issue
Shook, Hardy & Bacon