The intellectual property protection issue in the additive manufacturing industry

The advancement of additive manufacturing (often referred to as 3D printing) offers businesses and individuals a wide range of opportunities for manufacturing and prototyping. However, companies providing 3D printing services should consider the risks associated with the technology in order to avoid potential problems with customers. In particular, the possibility of data leakage and infringement of customers’ intellectual property rights.

What role 3D printing plays in intellectual property protection

3D printing is actively used in the manufacturing of prototypes, parts, and accessories. However, as these products are often unique and have commercial or personal value, a problem experienced by customers is that the transfer of 3D models or technical documentation for printing can lead to unauthorized data dissemination.

These are valid concerns, because 3D models of products that end up in the hands of third parties or on the Internet may well result in the owner losing their intellectual assets to illegal copying and distribution of their products.

Why it is important to ensure protection of customers’ intellectual property rights

The first reason is that the protection of intellectual property and confidential information is provided by the legislation of Ukraine, including the following regulations:

• The Law of Ukraine “On Copyright and Related Rights” determines that 3D models and drawings developed by the customer can be considered intellectual property and are protected by copyright.
• The Law of Ukraine “On Protection of Information” regulates the data storage and transfer procedure, which is important to ensure confidentiality in the 3D printing process.
• Article 506 of the Civil Code of Ukraine defines the right to intellectual property, and if such data is used in an unauthorized manner, the guilty parties may be held liable.

These laws ensure the protection of customers’ intellectual property and regulate the rights and obligations of the parties involved if data leakage occurs. Thus, by taking care of the customer’s data security, the 3D service provider prevents possible legal issues.

The second reason is financial security. If, by the fault of the additive service provider, 3D models get to third parties who use their design, the customer will lose profits. In this case, they can demand financial compensation from the company.

The third reason is reputation. If the data disclosure or publication becomes known, customers will lose their trust in the 3D service provider and stop ordering from them.

All of the above examples show the serious risks that a company neglecting to protect its customers’ intellectual property rights is exposed to.

What should be stipulated in an NDA agreement

Companies that offer 3D printing services should execute a non-disclosure agreement (NDA) stipulating all aspects of data protection and the parties’ responsibilities. In order to protect your customers’ rights, preserve your reputation, and protect yourself from potential problems arising from legal violations, we recommend including the following clauses in your NDA:

1. Entering into an NDA with each customer. Accompany each order with a non-disclosure agreement that clearly spells out confidentiality obligations.
2. Material and file confidentiality. All 3D models, drawings, photos and other documents provided by the customer shall be used strictly for the fulfillment of a specific order and shall not be passed on to third parties.
3. Copying and storage prohibition. Do not copy files or any other materials. Delete all documents after the fulfillment of the order. Agree this with the customer and require all employees involved in the fulfillment of the order to strictly adhere to this rule.
4. Information use restriction. Do not allow data provided by the customer to be used for advertising or other purposes without their permission. Specify in the agreement that the company undertakes not to publish photos of finished products or printing stages on the website or social networks without the customer’s consent.
5. Data access control. Access to the customer’s information should be provided only to those employees who fulfill the order. Ensure that all employees sign an NDA with the company. Check whether data security measures are in place.
6. Liability for breach of confidentiality. Agree with employees on possible consequences and with customers on compensation in case of data leakage or unauthorized use of information.
7. Using closed servers for data transmission. Use only secure communication channels and servers with multiple levels of access for data transmission and storage.
8. Performance reports. Provide clients with reports that all materials have been removed and no data remains on company devices and servers.

Protecting customers’ intellectual property is a major trust factor in the additive manufacturing industry. Reputable, professional companies understand the importance of confidentiality and are ready to provide all necessary data security guarantees. Entering into NDAs, using secure servers, and complying with legal regulations are the basic steps to create a secure collaborative environment.

By following these rules, companies not only avoid potential conflicts, but also build trust with their customers, something that is especially important in today’s high-tech world.