ASEAN: Emerging trends in Southeast Asia’s autonomous vehicle patent landscape

According to data from the World Intellectual Property Organization (WIPO) and the World Bank, there has been unprecedented interest in Southeast Asia as a patent filing destination, and the percentage of applicants filing in member states of ASEAN increases every year. However, the patent landscape for autonomous vehicle (AV) technology in this region remains nascent, as detailed in a report from the TalTech Magazine of European Studies (TJES). This initial stage is mainly due to slow legislative development that has not kept pace with AV technology.

Singapore: an exception in the ASEAN region

Singapore is an exception, with legislative developments encouraging AV technology. The amendment to the Road Traffic Act 1961 in 2017 allowed the testing and use of level 3, 4 or 5 autonomous vehicles. Level 0 refers to “No driving automation” and level 5 refers to “Automation of total driving”. Furthermore, the Patent Acceleration Program introduced by the Intellectual Property Office of Singapore in May 2020 has significantly shortened the process of patent application to grant (from two years to six months). As a result, Singapore leads KPMG’s Autonomous Vehicle Readiness Index report in 2020 in terms of readiness to adopt AV technology. Unsurprisingly, Singapore is the only Southeast Asian country to feature in this report out of 30 countries.

The grim scenario in Myanmar

In stark contrast, Myanmar’s new patent law enacted in 2019 has not yet come into effect. As reported by the International Comparative Legal Guides, the slow progress of the operation of patent law, coupled with political instability, discourages foreign investors in the field of AV technology due to potential challenges in litigation or dispute resolution. disputes.

Patent protection versus market share in major ASEAN markets

There is a clear gap between the patent protection sought and the market share held by AV technology companies in major Southeast Asian markets. He ASEAN Investment Report 2020-2021 highlights that in Thailand, only 7 percent of all patents registered between 2010 and 2019 were related to industry 4.0 technologies.

Threat of litigation and patent trolls in the AV technology space

The Southeast Asia Intellectual Property Rights SME Helpdesk has outlined potential litigation in this area, particularly by non-practicing entities (NPEs) or “patent trolls”. These entities acquire and hoard patents to obtain financial gains in the form of licenses and royalties. Patents related to the subject of communications and computer technology, typical of most AV technology, are especially prone to litigation.

Optimism amid challenges: the promise of 5G technology

Despite the challenges, the ASEAN Investment Report 2020-2021 offers hope, suggesting that the deployment of 5G technology contracts in ASEAN countries can stimulate the entry of AV technology companies into these markets and will accelerate the adoption of 5G-enabled software and intelligence-based technology on board autonomous vehicles .

The volume of patent applications in the AV technology industry is starting to see the participation of technology-based companies, as seen at the 3rd Annual India Electric Vehicle Summit 2023. Tech giants like Alphabet Inc. , Baidu Inc. and LG Corp are aggressively applying. patent applications in this field.

Litigation Collaboration: A Forward-Looking Approach

An autonomous vehicle, from the perspective of patent law, is a vehicle equipped with technological advances that require multiple patents owned by different corporate entities. The ecosystem therefore requires collaboration between the automotive and technology sectors, which could translate into licensing and cross-licensing agreements, rather than protectionist enforcement of patents individually.

The independent patent licensing marketplace, Avanci, exemplifies such collaboration where automakers can access technology patents from companies such as Nokia and Ericsson. This approach avoids litigation and facilitates constructive progress in the AV technology industry.

This article was first published in Asia IP’s IP Analysts column.