Davide M. Parrilli, ICRI
Information Technology Law: Advanced Course
17 March 2008
Grid computing: the Grid computing: the legal perspectivelegal perspective
http://www.law.kuleuven.be/icri
• What does Grid computing mean?• What is Grid computing from the
technical and business point of view?
• To what extent Grid computing will affect lawyer’s activity in Europe?
Selected issues.
Agenda
Question…
Did you ever heard Did you ever heard about Grid about Grid computing?computing?
Grid: a definition (I)
Grid in general terms: “a grid is something which is in a pattern of straight lines that cross over each other, forming squares”.
(source: Collins, English Dictionary for Advanced Learners)
Grid: a definition (II)
Graphically….
Grid: a definition (III)
The same idea lays behind the notion of Grid computingGrid computing: the key concept to keep in mind is that Grid, although
in different forms, covers the spectrum of distributed computingdistributed computing: in other words resources located in different places that work together.
Grid: a definition (IV)
Graphically…
Grid: a definition (V)
On a global scale….
Grid: a definition – infrastructure (I)
Three specific definitions of Grid computing from different perspectives:
1. Technical-oriented definition: multiple independent computing clustersclusters which are composed of
resource nodes not located within a single administrative domain;
Grid: a definition – infrastructure (II)
• Many nationalnational Grid infrastructures;
• Examples of internationalinternational networks:
1. BalticGrid: Baltic countries, Poland, Sweden, Switzerland;
2. Nordic Data Grid Facility: Denmark, Finland, Norway, Sweden;
3. NorduGrid: as above;4. LCG Grid: worldwide; 5. Network.com (Sun Microsystems):
worldwide
Grid: a definition – computing on demand (I)
2. Business-oriented definition: in distributed computing, the offer of
online computation or storage as a metered commercial service, or
the provision of SaaS: utility computing, computing on demand,
or cloud computing;
Grid: a definition – computing on demand (II)
Graphically…
End User
Supplier of capability or SaaS
He needs computation or storage power or the
provision of software but he does not have
the necessary resources
Grid: a definition – computing on demand (III)
Examples:• 3tera-AppLogic: provision of SaaS;• Elasticlive: web hosting capacity;• Oracle: storage and resource
capacity;• IBM: storage capacity;• [Others: see www.gridipedia.eu]
Grid: a definition – virtual supercomputer (I)
3. Academic-oriented definition: creation of a "virtual
supercomputer" by using spare computing resources within an
organization or a network of geographically dispersed
computers.
Grid: a definition – virtual supercomputer (II)
Graphically…
Grid: a definition – virtual supercomputer (III)
An example from the academic domain in the NL:
Grid: a definition – virtual supercomputer (IV)
Examples:• DAS-3 Grid: NL;• LCG: CERN and other institutions
worldwide;• Oxford University’s Centre for
Computational Drug: worldwide, dispersed network;
• iGrid: India;• University of Florida Grid.
Grid and business (I)
From the business point of view the definition From the business point of view the definition no. 2 is the most relevant: no. 2 is the most relevant:
•Provision of resources, capacity, etc. to end Provision of resources, capacity, etc. to end users through a Grid networkusers through a Grid network;;
•Provision of applications to end users Provision of applications to end users through a Grid networkthrough a Grid network..
Grid and business (II)
GRID has shifted from being seen just
as a way to save costs towards as a
means to make money…
In 2011 Grid market will reach 9.02 billions
Euros
Legal aspects of Grid (I)
Should an ICT lawyer be concerned wit Grid technology? Does Grid have any impact from
the legal point of view?
Legal aspects of Grid (II)
In other words…
Is Grid a neutral technology?Is Grid a neutral technology?
Legal aspects of Grid (III)
Grid does matter…we’ll take into account some specific
fields:1) Business contracts;
2) Patents;3)Taxation.
Business contracts (I)
Impact of Grid on ASPASP: contract regarding the provision of
computer-based services (software) to customers over a network
(Internet); the provider can be either the owner of the software or a
licensee (sub-license).
Business contracts (II)
Definition of the operating operating environmentenvironment: provision regarding
the technical modalities of the delivery of the software (SaaS).
E.g.: how much capacity will be used in the Grid network?
Business contracts (III)
Service standard and SLA (service level agreement): the fact to use a
Grid infrastructure has effects on the standards of the services provided.
E.g.: can we expect that the client will require more from the supplier?
Business contracts (IV)
LiabilityLiability: what if the Grid infrastructure is not
owned and managed by the software provider? In B2B (EU) the ASP should limitlimit as much as possible his liability
Allocation of the risk between Grid provider, ASP and end user.
Business contracts (V)
Graphically….
User ASP Grid provider
Patents (I)
Patents and Grid: a sensitive and hot point…
some questions…
Patents (II)
How do we have to consider, to the ends of patentability, an application
that runs on a Grid network?
On the other side, what is a Grid network and which is its role?
Patents (III)
Separation between the application (SaaS) and the Grid infrastructure:
•Grid: medium to deliver the software (hardware);
• Application: patentable in Europe if it has a technical character it solves a technical problem which lies behind the normal interaction software/hardware.
Patents (IV)
Is a software which enables the Grid to work or enhances its performance
patentable?
Patents (V)
Here there is a technical problem that is solved by the
software
Patentability cannot be Patentability cannot be excludedexcluded
Tax issues (I)
TaxationTaxation and GridGrid in electronic commerce…one first fundamental
question…
How can we consider the nature of every server or component involved
in the business?
Tax issues (II)
Principle (OECD Model Convention): a server is a P.E. of a company
The profitsprofits generated by and through the server are taxable where
the server is located.
Tax issues (III)
But…What if there are many servers that
work in close cooperation at the same time and that are located in different
jurisdictions?And…
How is it possible to allocate the profits generated by each component?
Tax issues (IV)
The issue is open…no solution yet, but the increasing
transnational development of Grid technology will force
policymakers (OECD and EU) to find solutions.
Conclusions
• Ad hocAd hoc clauses clauses in the ICT agreements; careful assessment of the contractual
liabilityliability of the parties involved;• A software that enables the Grid to work
or enhances its performances is in principle patentablepatentable;
• Need for ICT-oriented solutions in the field of taxationtaxation (many servers, many
jurisdictions).
Thank you for your attention!
Davide M. ParrilliInterdisciplinary Centre for Law & ICT - ICRI
K.U.LeuvenSint-Michielsstraat 6
3000 Leuven
http://www.law.kuleuven.be/icri