What is the Internet of Things?

For many of us, understanding advances in technology can feel intimidating. While these new technologies are intended to make business, healthcare, communications and many other aspects of our lives easier, they are sometimes simply too complicated to understand. 

We hear phrases such as, “The blockchain is going to revolutionize how monetary transactions are made by utilizing a decentralized and encrypted means of communication…” and really have no idea what they mean. While it all sounds quite impressive, and like the world is on the verge of some sort of cutting-edge technology that will improve all of our lives, it’s easy to simply sit back and think that it’s not for you. 

However, this mindset, while understandable due the sheer volume and pace of new technology, can actually have negative consequences for your business and personal life. We have compiled a simple and clear overview of how a relatively new type of technology, the Internet of Things (IoT), is rapidly changing our lives. We hope this primer will serve as a useful resource for developing a basic understanding of IoT and show that while this new technology can seem complex, it is well worth the effort it takes to understand. 

The Internet of Things, or IoT for those in the know, simply refers to the increasingly prevalent electronic technology that is becoming part of everyday items, such as watches, home thermostats, health monitoring devices and smart cars. The IoT technology provides these devices with data and other types of real-time information so that the device itself, or person using the device, can modify its behavior. 

IoT, essentially, is meant to enable these various devices to make decisions based on the information they receive. As a simple example, smart cars have begun to utilize IoT technology to provide real-time monitoring of cars’ functions while they are in motion and to help predict when they will require maintenance. 

Another example, this time from the medical field, is the hope that “wearables” such as smartwatches can begin to detect people’s vital signs and monitor their individual health concerns, alerting them before an emergency occurs. 

In short, IoT is simply a way of connecting people, machines, appliances, etc. to other devices in order to optimize decision-making and the rapid processing of information. IoT is especially helpful because it mitigates, and often eliminates, the need for human interaction to send information, process details, and make decisions.

How Do IoT and Law Intersect?

Like most areas of new technology, legal trends and directives as they relate to IoT are less developed than more mature technologies. Because the United States, like most other Western democracies, is a common law jurisdiction, society relies on outcomes of legal cases, which may be guided by administrative policies and legislative action, to determine where the law stands on certain issues. As a result, many legal issues concerning privacy rights, intellectual property, data ownership, scope of usage, and many others force those in the legal community to confront new challenges derived from cutting edge technology.

As legislation and litigation around IoT become further developed, we will get a better sense of how to iron out some of the legal ambiguity relating to this new technology. In the meantime, at Fourscore Business Law, we’re staying up to speed on how the nuances of IoT and the potential legal impacts it will have for our clients. 

For entrepreneurs in the IoT space, there are some important considerations you should take when hiring an attorney to help with your IoT-related  startup. For one, it will be vital to find an attorney who has experience in tech and is an expert in business-based areas of law. While IoT is quite new and unique, it will have a good bit of commonality with other types of technology and business law. 

Make sure your attorney is continually updated on emerging trends both in the news and in the courts regarding issues that may impact IoT. Especially while IoT is in its relative infancy, it is important to partner with an attorney who is  willing to put in  the effort to be as up-to-date as possible with new developments in the field.

IoT in Everyday Life

Utilizing IoT is not just for tech-savvy millennials. Everyone from middle school students to senior citizens can benefit from the remarkable, varied ways IoT is improving our lives.  Here are some obvious, and not-so-obvious ways that IoT is already impacting our lives.

1. IoT tech can enable your smart watch or tablet to receive automatic updates from your bank or other accounts when someone logs in or transfers money from your account. With this information, you will be better prepared to shut down the account in the event of fraud, notify the bank or police, or cancel your credit card before significant damage is done. 

2. IoT can increase your financial security by mitigating your risk profile to protect against fraud or identity theft based on your purchases. By using algorithms to predict where you are likely to shop and what type of purchases you are likely to make, IoT can help alert you and your bank to unauthorized purchases made through one of your accounts. 

3. IoT is revolutionizing the ways we interact with our homes. Many HVAC and thermostat devices are now equipped with sensors that track when you or your family members leave and return home.  Modern motion-detection devices can also automatically turn outdoor lights on, and be paired with lights within your home to switch them on or off, making it appear as if someone is active in the home. This technology can be used to make our homes more energy efficient and also mitigate the likelihood that someone will try to break into your home.

4. IoT also applies to mobile pay, allowing you to receive payments from your customer’s cell phones via dozens of mobile pay systems. For example, in China, one of the most popular ways to pay for everything from fast food to clothing to electronics – and almost any other daily purchase – is through the WeChat mobile app. WeChat connects to a user’s bank account and provides a convenient way for Chinese citizens to pay for things without carrying cash or cards. 

5. The healthcare industry is ripe for disruption, where IoT is revolutionizing the lives of millions of people around the world and how they think about health. The healthcare industry is currently undertaking a shift from historic reactive forms of healthcare to proactive approaches, due in large part to technology. By providing real-time data to doctors, scientists and computer programs, IoT has the potential to help save lives and increase our understanding of illnesses.