IP licensing a risk factor for virtual reality, says report
A report released by law firm Perkins Coie has found that one of the biggest legal risks surrounding augmented reality and virtual reality (AR/VR) technologies is IP licensing.
The report, called “2016 Augmented and Virtual Reality Survey Report”, is a survey conducted by Perkins Coie and AR/VR community news website Upload.
It had more than 650 respondents ranging from entrepreneurs to technology investors.
When respondents were asked to select the biggest legal risks in developing AR/VR technology or content, 19% chose technology and IP licensing. This combination is considered a “top-level risk” for technology companies.
A further 15% of respondents found that the legal risks around consumer privacy and data security were found to be a concern in developing AR/VR technology.
Other legal risks to consider in the real and virtual worlds include IP considerations and product liability, the report found.
Also, 25% of respondents said that they found existing laws on matters such as “IP and data privacy to be sufficient”, while a further 27% found that they had difficulty negotiating licensing agreements and IP rights in the AR/VR industry.
Kirk Soderquist, co-chair of Perkins Coie’s interactive entertainment practice, told WIPR: “Technology and IP licensing may be at the top of respondents’ list because it’s difficult and expensive to license the popular game franchises. The games that have worked well on consoles and PC may be difficult, expensive and cumbersome to license for VR.
“I think there is some concern about being able to license necessary technology and IP for the VR space. Because some of the technology and IP is new and unknown, I think there is some concern from respondents that don’t know what they don’t know.”
He said that, for example, companies don’t know what patents might exist that they will need to license.
The percentage could increase “as the industry becomes more mature, more and more technology and protectable IP will be developed, which will need to be licensed (both by companies and to companies), and companies currently focusing on more pressing needs will increasingly focus on technology and IP licensing in and out”, he added.
