formula 1 racing and ip protection

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FORMULA ONE RACING AND IP PROTECTION

N.Vignesh KumaranPatents & Designs Department, Altacit Global



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

INTRODUCTION

Formula One was first defined in 1946 by the Commission Sportive

Internationale (CSI) of the Federation International Automobile (FIA),

forerunner of FISA, as the premier single seater racing category in worldwide

motorsport to become effective in 1948. When the 500c formula was

internationally recognised as Formula 3 in 1950 it was never titled as

"Formula C" so the three International Formulae were "officially" titled

Formula 1, Formula 2 and Formula 3. The regulations governing the cars are

unique to the championship. The Formula One regulations specify that cars

must be constructed by the racing teams themselves, though the design and

manufacture can be outsourced.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



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PATENTING F 1 RACING

• At the start of the 2014 F1 season some significant changes to the

rules and regulations were introduced, including changes affecting

engines and car designs. Although it has been a successful season

these changes can make it difficult to use patents effectively.

• Formula 1 teams do obtain patents for their technical innovations,

but these are usually for inventions which have relevance in a

commercial context, such as technology with application to

production cars: see McLaren`s patent US 6168545 B1 for geared

automotive differential mechanisms to transfer torque to the

wheels.



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CONT….

• Another example where the innovation would have commercial

application outside of Formula 1 is the telemetry and data innovations

developed by McLaren Applied Technologies. In Formula 1, this

technology has been used in the Standard ECU’s (electronic control

units). McLaren Applied Technologies has broadened the application of

these to diverse settings like children hospitals and London’s Heathrow

Airport. These sorts of commercial applications should foster a greater

attention to patenting.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

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REASONS FOR AVOIDING PATENTS

• Formula 1 typically involves prototype cars, which are not

manufactured for commercial sale, the benefit of patent exclusivity

to provide an advantage in the marketplace is less evident.

• For one, obtaining a patent for an invention takes time, meaning

that the technology would likely become obsolete in the Formula 1

environment by the time that the patent is granted.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

CONT…

• In the context of Formula 1, where races are sometimes won by

milliseconds, every little advantage counts. Therefore, there is a clear

incentive to keeping a new invention “in-house”, rather than disclosing it

to the public. Formula 1 team prefers to rely on what are commonly

called “trade secrets” in order to protect their technical advantages.

• Further controlling people’s access and use of information by

confidentiality agreements, employment contracts, manufacturing or

supply contracts. By using secrecy as a tool to develop cars for the

upcoming season, teams ensure that their ideas protected, and they get

the first mover advantage.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

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TRADE SECRETS

• Trade secrets are essentially of two kinds. On the one hand, trade

secrets may concern inventions or manufacturing processes that do not

meet the patentability criteria and therefore can only be protected as

trade secrets. This would be the case of customer’s lists or

manufacturing processes that are not sufficiently inventive to be

granted a patent. On the other hand, trade secrets may concern

inventions that would fulfil the patentability criteria and could

therefore be protected by patents.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

COPYRIGHT

• Copyright is a form of intellectual property (as patents, trademarks and

trade secrets) right created by the law of a country, that grants the

creator of an original work exclusive rights to its use and distribution,

usually for a limited time, with the intention of enabling the creator to

receive compensation for their intellectual effort.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

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CASE LAW

FORCE INDIA AND AEROLAB

• The case centred around work done on the 2010 Caterham car, which was then known as Team Lotus. The work was undertaken by the wind tunnel company Aerolab, which had previously worked with Force India.

• Aerolab sued Force India for unpaid bills and Force India countersued for "misuse of confidential information relating to the design of a wind tunnel model as well as claims for infringement of copyright".

• Force India have issued a statement saying the judge had found "Team Lotus and Aerolab liable for copyright infringement and using confidential information respectively. Some parts created using Force India confidential information were used on the Team Lotus race cars in the early part of the 2010 season". The judgment has been referred to the sport's ruling body, the FIA, by Force India.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

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WEBSITE

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CASE LAW 2

• Ferrari alleged that former employee Nigel Stepney has passed on

critical technical details to McLaren. A hearing resulted in several

penalties for McLaren for illicitly collecting and holding information

from Ferrari to confer a dishonest and fraudulent sporting advantage.

McLaren was excluded from the constructors’ standings and a record

fine of US100 million was imposed.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

Con

CONCLUSION

Formula one teams should be encouraged more by the Federation

International Automobile (FIA) to develop technologies that are

applicable in production or commercial cars, which can bring many

changes on patenting activities of F1.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

EMAIL

[email protected]

WEBSITE

www.altacit.com

THANK YOU

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