Who Owns The Data From The IoT?

With the internet of things becoming critical to many industries and consumers, questions surrounding data ownership are coming with increasing frequency. The answers aren't obvious.

Many organisations are beginning to convey their IoT data to third parties. Often this is motivated by a desire to monetise the data, sometimes for regulatory reporting reasons. These initiatives are bringing the issues of data ownership and licensing to the fore. Interestingly, there is no set schema for determining how ownership is assigned, much less how IoT data can be licensed properly. Here's an overview.

Data Ownership in the Western World

In essence, the owner of machine-generated data (MGD), which covers virtually all of the IoT, is the entity who holds title to the device that recorded the data. In other words, the entity that owns the IoT device also owns the data produced by that device.

However, it's not always clear that whomever has possession of the device and/or its output data actually "owns" it. When real-world constructs such as lease holdings come into play, it indeed gets complex and even murky.

Clinically speaking, data is owned by the titleholder. In this regard, data title is like a deed to real property. MGD may also contain metadata, which is akin to mineral and water rights.

Further, data may be owned by one party and controlled by another. Possession of data does not necessarily equate to title. Possession is control. Title is ownership. Referred to as usage rights, each time data sets are copied, recopied and transmitted, control of the data follows it. Conversely, transfer of ownership requires a legal mechanism to convey title.  

Legal Issues

It turns out that data by itself is not protectable under the American intellectual property regime; however, data title rights are similar to the rights afforded by a copyright.

Data title includes a bundle of usage rights that allow the titleholder to copy, distribute and create derivative works. Data within a database is like the words and images that compose a copyrighted book. The usage rights and title to the book are separable. The author of the novel retains title to the words and pictures that comprise the novel.

The author also owns the ability to authorise a publisher to publish books and distribute them. However, he or she does not control each reader's usage rights of the content once they are accessed by readers.

Similarly, an entity that holds title to data or a database holds the associated data ownership rights. If the data set is copied and transmitted elsewhere, the author relinquishes the usage rights.

The parties to a data transfer contract matter

There are two major classes of parties in this space. The first category includes corporations, data brokers and marketplaces, which exchange data among themselves. This is not typically exposed to tight government regulation.

The second category is composed of consumers who submit data to a vendor in exchange for a product or service. Agreements in the consumer space may be subject to government oversight. The result is that certain industries such as healthcare must comply with a network of statutes and agency rules.

On the other end of the spectrum is the give-and-take approach. Under this approach, the vendor may collect in-depth data from a sensor platform to optimize the user's experience. Here, the contract allows all data to be exchanged in return for incentives such as a curated service or discount. This approach conveys all data usage rights and data title once the end user opts in.

How data rights are being handled in agriculture

The US agriculture industry has embraced the use of sensors and machine-generated data to maximise production, and is also sophisticated in the way it handles data ownership interests.

The bottom line is that the farmer owns the data produced by his or her sensor platforms. Nevertheless, farm equipment manufacturers have developed a system of agreements with a high level of transparency to enable agricultural MGD to flow freely.

The complex world of vehicle-generated Data      

Automobiles are increasingly equipped with connected technologies and sensors that will create an unprecedented explosion in car-generated data. Stakeholders across several sectors from insurance to telecommunications, high tech and beyond, are poised to integrate these new data streams into their business models.

A unique feature of the automotive data market is the importance of consumer trust and sentiment. Consumers perceive all the data flowing from their car to be theirs. The effect is a strong expectation of receiving something in return.

In response to data-conscious users, automobile manufacturers craft their data exchange provisions that use a give-and-take approach. Similar to agribusiness data exchanges, there is an underlying presumption that the MGD captured after a purchase is owned by the entity who bought the car.

Regulators and industry groups agree that the car owner also owns the MGD. Like an insurance policy, the MGD ownership interests follow the car. This means that non-personal machine-generated data is treated differently from personal data, which follow the automobile's occupants.

Energy and the IoT

Consumer smart-grid device deployment is rising. However, there is a cultural barrier to complete data exchange integration. This is because smart grid devices are connected to the home, and users may be hesitant to attach a device that may provide insight into their energy habits and, by way of inference, their lifestyles. It is no accident that firms have implemented data collection practices that take a tiered approach to obtaining a license to data usage rights and then title to end user MGD. As IoT adoption grows, schemas and policies governing data ownership rights and conveyance may become standardised.

No Universal Answer

As evidenced by the preceding, IoT data ownership is a complex issue. As a rule of thumb, whomever holds title to the data producing platform, likely owns the data. 

Different industries and companies take different approaches to regulating the transfer of data control and title. The common denominator is well-crafted contractual language that both protects consumer interests and feeds a growing data ecosystem.

Computerworld:    

The Internet of Things Must Not Be Allowed To Turn Into The Internet of Trouble:

EU General Data Protection: A Milestone Of The Digital Age:

 

 

« Fallout In Russia : One Suspicious Death & Three Cyber Spies Arrested
Fake Microsoft Phishing Scam »

Infosecurity Europe
CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

Resecurity

Resecurity

Resecurity is a cybersecurity company that delivers a unified platform for endpoint protection, risk management, and cyber threat intelligence.

Alvacomm

Alvacomm

Alvacomm offers holistic VIP cybersecurity services, providing comprehensive protection against cyber threats. Our solutions include risk assessment, threat detection, incident response.

IT Governance

IT Governance

IT Governance is a leading global provider of information security solutions. Download our free guide and find out how ISO 27001 can help protect your organisation's information.

Clayden Law

Clayden Law

Clayden Law advise global businesses that buy and sell technology products and services. We are experts in information technology, data privacy and cybersecurity law.

Authentic8

Authentic8

Authentic8 transforms how organizations secure and control the use of the web with Silo, its patented cloud browser.

Encode

Encode

Encode delivers a cutting edge Security Analytics & Response Orchestration platform and best of breed Cyber Security Operations and Services.

Titus

Titus

Titus is a global leader in enterprise-grade data protection solutions.

BCS Financial

BCS Financial

BCS Financial delivers financial and insurance solutions. Specialty risk products include Cyber and Privacy Liability insurance.

Certego

Certego

Certego is a company of the VEM Sistemi Group specialised in providing managed computer security services and to combat Cyber Crime.

Convercent

Convercent

We offer comprehensive and integrated compliance management, reporting, and analytics. A 360-degree view of compliance drives efficiency by aligning initiatives and data into a single dashboard.

CyRise

CyRise

CyRise is a venture accelerator focused squarely on early stage cyber security startups.

National Cyber Security Centre (NCSC) - Ireland

National Cyber Security Centre (NCSC) - Ireland

The National Cyber Security Centre (NCSC) is the operational side of the Department of Communications in regard to network and information security in the Republic of Ireland.

Octane OC

Octane OC

OCTANe is building the SoCal of tomorrow. We drive innovation and growth by connecting people, resources and capital. Our Incubator focus is FinTech, Data Analytics and Cybersecurity.

CybX Security LLC

CybX Security LLC

CybX is the first company of its kind to merge the practice of computer forensics with computer security and information security.

Delfigo Security

Delfigo Security

Delfigo Security, a pioneer in intelligent authentication, provides a strong, multi-factor authentication solution to prevent identity theft and reduce fraud.

TwoThreeFour

TwoThreeFour

ThreeTwoFour provide tailored cyber security solutions, delivered by highly-skilled, experienced consultants who respond to the real needs of you and your business.

6clicks

6clicks

6clicks is an easy way to implement your risk and compliance program or achieve compliance with ISO 27001, SOC 2, PCI-DSS, HIPAA, NIST, FedRAMP and many other standards.

Applied Connective Technologies

Applied Connective Technologies

Applied Connective is one team for all your technology needs, from IT to phones, cyber security to physical security, audio/video and the infrastructure to support it.

TrustMe

TrustMe

TrustMe’s integrated platform for business trust and resilience keeps organizations safe, secure, and trustworthy.

Verastel

Verastel

Specializing in the niche space of proactive cyber-defense, and adaptive resilience, team Verastel is bolstering enterprise digital security like never before.

AppSOC

AppSOC

AppSOC is a leader in Application Security Posture Management (ASPM) and Code-to-Cloud Vulnerability Management.