PlugIn Issue #22 - “The sky is the limit?”

The Taylor Wessing e-journal
Issue #22
“The sky is the limit?” -
how the digitalization may change the “sky”
and the “limit” in new businesses

EDITORIAL
Digitalization and IoT also have remarkable impacts on the industries of aerospace, aviation and defense.
The developments and inventions in these industries seem to be stuff for science fiction novels, but looking
at the current – partly already proven – business cases, there might be a very concrete need for a “Legal
Hitchhiker’s Guide to the Galaxy”. In this PlugIn edition our experts provide insights on the legal framework
of space industry and urban air mobility. They take a closer look at IP protection and IT security
requirements that affect the defense industry, as well as drone defense measures, an already entirely
independent niche industry. Another highlight is the Trade Secrets Act and how it is related to IoT sensors
in airplanes and drones.

CONTENT
Timo Stellpflug
Partner, Hamburg
Drone Defense Measures and Their Legal Impact 4
Dr. Janina Pochhammer
Partnerin, Hamburg
Urban Air Mobility – Operation of Air Taxis – Part 1 & 2 5
André Guskow
Associate, Hamburg
Private Space Industry and Its Legal Framework 7
Dr. Christopher Jones
Associate, Hamburg
Defense Industry and the Cloud – Managing IT Security Requirements and Export Control
Challenges
8
Dr. Michael Kieffer
Salary Partner, München
The impact of the new Trade Secrets Act on the use of IoT products 9
Dr. David Klein
Salary Partner, Hamburg
IP Protection and data ownership with consortium members 10
Issue #22
3

Drone Defense Measures and Their Legal Impact
The public more and more embraces the possibilities that result from the use of drones
or unmanned area vehicles (UAV). However, the limit of the use of drones is clearly
privacy. In today’s competitive and internationally networked world, no individual and
especially no company wants their secrets to be spied out. As a consequence, with an
increased use of drones also rises the need for drone defense. Since the interests of
the drone pilot / owner and the defender conflict in these cases, the legality of drone
defense measures is of particular importance.
The Great Variety of Drone Defense Measures
Drone defense divides into two stages. First, the invading drone is identified and
localized; second, the drone can be averted. Measures to identify and localize the
drone do not target the drone as such and therefore classify as non-invasive
measures. Contrarily, measures undertaken to avert the drone aim to impact on the
functioning or substance of the drone and thus classify as invasive measures. The
following (non-exhaustive) list shall provide an overview of the available drone defense
measures…..
Timo Stellpflug
Partner, Hamburg
PROFILE
READ MORE
Issue #22
4

Urban Air Mobility – Operation of Air Taxis – Part 1
It’s not just Dorothee Bär, German Minister of State for Digitisation, who believes in the
future of air taxis. Worldwide numerous start-up companies such as Ehang, Kitty Hawk,
Volocopter or Lilium as well as groups such as Airbus, Uber or Audi are researching on
the development and conception of air taxis for inner-city traffic.
On May 16, 2019, Lilium presented its air taxi prototype. The all-electric powered jet is
supposed have a range of 300 kilometres, which it can cover in 60 minutes without
CO2 emissions. On March 11th, 2019, Airbus presented its CityAirbus. Events like
these show that air taxis are not just a fantasy from the far future.
Manned or unmanned?
There are two scenarios for the market entry of air taxis: either manned, i.e. controlled
by a trained pilot; or unmanned, i.e. remote-controlled or even autonomously flying. As
a matter of course, the legal requirements differ, depending on the stage.
This article focuses on the legal requirements for the operation of manned air taxis….
Dr. Janina Pochhammer
Partnerin, Hamburg
PROFILE
READ MORE
Issue #22
5

Urban Air Mobility – Operation of Air Taxis – Part 2
In Part 1 of “Urban Air Mobility – Operation of Air Taxis” we focused on the legal
requirements for the operation of manned air taxis. In Part 2 we would like to focus on
the legal requirements for the operation of unmanned air taxis.
What’s the legal framework?
As mentioned in Part 1, before September 2018, there was no legal framework for the
operation of air taxis at all. Then EU-regulation 2018/1139 came into force. Apart from
harmonising the legal framework for the operation of drones and setting out a legal
framework for the operation of manned air taxis, the EU-regulation also establishes a
basic legal framework for the operation of unmanned air taxis. Section VII deals
explicitly with unmanned aircrafts.
What are the legal requirements?
According to EU-regulation 2018/1139, the design, production, maintenance as well as
operation of unmanned aircrafts must comply with the “essential requirements” set out
in its Annex IX…
Dr. Janina Pochhammer
Partnerin, Hamburg
PROFILE
READ MORE
Issue #22
6

Private Space Industry and Its Legal Framework
In 2019, the first privately funded Israeli rocket “Beresheet” was launched to further
explore the moon. Up until 2025, SpaceX, a U.S. company specialized in design,
manufacture and launches of advanced rockets and spacecraft, intends to bring almost
12.000 new satellites into space to improve global internet coverage. Big private space
projects like these and a large amount of natural resources are all indicators to expect
an increasing private involvement in the space industry.
The Influence of Digitalization on Private Space Industry
Digitalization has a major impact regarding this future development. The space industry
is a high-tech sector. Investments are highly expensive. In 2001, the first space tourist,
U.S. millionaire Dennis Tito, was charged US$ 20 million to fly to the International
Space Station. There is no doubt that within this price segment only few people will get
involved. Further, the successful exploration of space requires a certain lifetime of
machinery and reliable security and construction standards. To comply with these
criteria is particularly challenging in technical terms.
Digitalization has helped to improve every one of these possible impediments for
private companies….
André Guskow
Partner, Hamburg
PROFILE
READ MORE
Issue #22
7

Defense Industry and the Cloud – Managing IT Security
Requirements and Export Control Challenges
Companies in the defense industry face several export control regulations. Certain data
and information fall under these regulations as well. Storing and processing data in the
cloud poses export control challenges that require particular IT security measures.
1. The Cloud Brings Many Benefits to the Defense Industry
Digitalization is making steady progress in the defense industry. Electronic data
transfers to and from online services are a key component of every company’s
business operations. Data flows both within a company and externally to customers,
suppliers, interested parties and public authorities.
Due to the sensitivity of the sector, the defense industry is rather reluctant to adopt
cloud technology. However, the use of modern technologies is essential for the
digitization process. Many standard software products that were traditionally offline
desktop software have now implemented cloud elements, if not completely switched to
cloud services. Universally used software, such as Microsoft Office, are now available
as a cloud based service (Office 365). Manufacturers even deeply integrate cloud
elements in modern operating systems, such as Windows 10. Cloud technology can
hardly be avoided, at the very latest, when collaborating with external companies
requires usage of commercially available cloud tools….
Dr. Christopher Jones
Associate, Hamburg
PROFILE
READ MORE
Issue #22
8

The impact of the new Trade Secrets Act on the use of
IoT products
Airplanes and drones are well equipped with IoT sensors. Such digital and connected
commodities provide operators with better products and added value. For example, the
transmission of performance and maintenance data helps to improve the efficiency of
aircraft plants. However, it must be taken into account that data is collected which
allows detailed knowledge of the operator’s company and business operations. They
provide an insight into the operational business and therefore affect its interest in
protecting its trade secrets.
Under previous law, trade secrets used to be protected per se if the information was in
any way related to the company and the company wanted to keep it secret. Since 26
April 2019, when the German Trade Secrets Act (GeschGehG) came into force (and in
principle already since June 2018 with direct application of the Trade Secrecy
Directive), this is no longer sufficient. Now a compliance system is required which also
brings new challenges for the aviation industry.
In detail…
Dr. Michael Kieffer
Salary Partner, München
PROFILE
READ MORE
Issue #22
9

IP Protection and data ownership with consortium
members
Large, complex projects are usually not performed by a single company, but from a
consortium, a time limited joint venture of two or more independently acting companies.
Consortia have the flexibility of highly specialized companies but at the same time also
the resources to fulfill e.g. large-scale public contracts. Joint forces are common in
particular in innovative, large projects in the defense industry that requires special
knowledge but with a broad industry focus.
However, such collaborations have some challenges on the legal side, in particular with
projects that are more sophisticated. When complex Intellectual Property (IP) is a key
or if data is processed on a large scale and provides valuable insights to its owners,
the consortia approach requires some mandatory legal work in advance.
IP ownership and licensing in collaboration scenarios
During the project, the consortium members will develop new technologies, create
sketches and probably even lunch a product under a joint brand. All these activities will
produce IP, whether the consortium members will jointly file for patents, create
copyright protected material or register trademarks (so-called foreground IP).
Nevertheless, either party of the consortium might play a different part in contribution to
the development of specific IP. Because of such unstructured contributions…..
Dr. David Klein
Salary Partner, Hamburg
PROFILE
READ MORE
Issue #22
10

ISSUES
#22 Aerospace #21 Competition #20 AutoTech #19 Commercial
#18 Digitising Disputes #17 Laws of AI #16 Recap 2018 #15 Finance
#14 IoT Licence #13 Maritime Industry #12 Asia 4.0 #11 InsurTech
#10 Venture Capital #09 Energy #08 Text
#07 Work 4.0
Issue #22
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