SCC - IBM Business Consulting Services SCC Alliance The PLM Network for the Automotive Supply Chain

Intellectual Property Protection Risks and protection technology

Klaus Hestert Senior Collaborative Consultant MDTVISION GmbH – an IBM company email: [email protected] Tel.: +49-(0)89-420 47-0 Mobil: +49-(0)151-15 14 67 80 © Supplier Collaboration Center 2006, Köln April 2006

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Four Main SCC Services Areas

OEM Release-Management

Methods und Qualification

Ensures the seamless distribution and usages of new software, methods, standards and documentation releases to the supplier.

Ensures that OEM specific methods are known and understood by the suppliers and offers help for their integration in the supplier specific method & tool context.

Ensures efficient and cost saving roll out and operations of the supplier PLM environment, i.e. CATIA V5, TDM, other Tools etc.

IP (Intellectual Property) Protection Ensures that high value intellectual property is protected and will not re used unauthorized.

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Implementation and Operations

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Damage caused by Intellectual Property Theft Press Statement, 17.May 2005: „Protection of intellectual property is a rapidly increasing challenge for German enterprises. The Management Consulting Company A.T. Kearney estimates the damage, in Germany coming from violation of patent rights and product clones by foreign companies in the past year, in an recent study on 20 to 25 Billion Euro. „

Handelsblatt, 11.12.2005: The EU will fight together with US against proprietary informations thefts. The damage caused by falsified products amounts 360 billion Euro per year, told EU industry commissar Günther Verheugen.

CSI/FBI 2005 Computer Crime and Security Survey: “Theft of proprietary informations rank on no.3 after virus and unauthorized access in the statistics of IT crimes.”

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Plagiarius 2006

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Different Use Cases for Loss of Intellectual Property


Reuse of files and technology by Chinese Suppliers





Quote from the "Market Conduct of German Enterprises in the Context of Industrial Espionage in China,", Diploma thesis 7/2005, T. Beyer: “Strategically operating industrial spies and counterfeiting rings work together, hand in hand, and often their design copies or spare parts are launched on the market before the original. The Asians do have the necessary laws on protecting intellectual property, but in practice, it is relatively difficult to enforce them.“ Quote from the "To manage Complexity, Start with IT,“ DC EDM Forum, Sue Unger "Corporate security trends are shifting, moving from employee attacks to attacks primarily from external sources. Intellectual property theft and plagiarism by suppliers from Asia Pacific is our biggest problem.“


Concept competitions organized by OEM




From "Concept Competition and Know-how Protection in the Automotive and Supplier Industry," TCW Report, Hort Wildemann: ”In the automotive industry, OEMs are increasingly distributing development services provided by supplier A, to supplier B. Thus, suppliers again and again ascertain that OEMs are relaying the supplier's know-how to competitors. Some OEMs make copies of offers/documents and pass them on to other suppliers, without the originator receiving any compensation, neither from the OEM, nor from the competitor.“ From SCC questionnaire: “In one case of concept competition the OEM hand in the patent proposal at german patent office earlier than the developing tier1 supplier.”


Competitors via Accessing OEMs' PDM Systems



Tier1 are browsing through PRISMA, SMARAGD, HyperKVS, Ford-TC etc. on the lookout for old 3D data, to evaluate it in view of similar construction tasks. – access is NOT always denied, nor only replacement formats offered. External employees are working for OEMs at key positions like data quality audits, DMU, data exchange etc

?

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Damage Balance and Risks


The conseqences of victums are tragic e.g.:


In spite of successful concept development no order for production
The next project might take place without you
The next generation of Transrapid technology is developed in China


purely. A plagiarism of VW Jetta (reproduced by Chery in China) bought 60% of their components from Volkswagen suppliers in China.


No or reduced product success because of plagiarism flooding the market (decreasing revenue in after sales)


GM accuses Chery to have copied Design of Daewoo Matiz and Chevrolet


Spark; accusal annulled in November 2005. Landwind sold in Germany in spite of miserable crash tests

with faulty, poor quality product copies


Aircraft industry got in trouble with bogus parts. Over more than 10 years Panaviation sold spare parts with counterfeit papers to different airlines.


Total Risk = opportunity x imminent damage

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Image damages because of customer irritation caused by trouble

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Example of deeply integrated Knowledge in a Process Chain Last und Load andEigengewicht weight Shell geometry Hüllgeometrie

Velocity/ Geschwindigkeiten / Beschleunigungen acceleration

Parameters Tables, Lists Formulas Rules Checks Materials Features PowerCopy, UDF Document Template Optimizations

Kinematische Kinematic Simulation Simulation with: mit: DMU Kinematics Simulator

Result : Ergebnis: Optimized Optimale materialWandstärke thickness Of theder reinforcement Versteifung der Schwinge In the wing in Abhängigkeit Dependingvon on Stability Festigkeit and und Load Last

FEM Analysis Analyse der of Schwinge Wing with:mit: Generative Structural Analysis (GSA) Iterationsprozess zwischen PEO und GSA über Spannungssensor (Maximalspannung)

Optimierung mit: Product Engineering Optimizer (PEO)

Strukturoptimierung Structure optimization

FEM preparation Aufbereitung

Part Wing

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3 3 3 3 3 3 3 3 3 3

Stress Belastung (statisch (static and und dynamic) dynamisch)

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The PLM Network for the Automotive Supply Chain

Different technolgies for protecting intellectual property

Password protected files

Access rights/User authentification

Model access only through collaborate application

DRM with neutral format

DRM with feature access in native application


Feature Elimination

Exact result geometry only

Shrinkwrap

Tesselated geometry

falsified data


Flattened structures

Eliminating skeletons







Eliminating configuration information




Eliminating Assemby constraints

Eliminating simulation information

Protected document

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Structure filtering Filtering geometry

Access-control

Original

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The DRM Service Solution in native application


Advantages:


Access is controlled by owner for complete



Policy server, stores user rights and communicates them to CAD users

lifecycle Only encoded data storage Full control of all CV5 copy and converting functions


Attention:


Additional effort for controlling
Digital, but no intellectual copy protection
Loss of productivity when crossing

Existing, unprotected customer repository of CAD files

Packager encrypts CAD files according to user policies

Selected encrypted CAD files

CAD user workstation, asks for permission when working with encrypted CAD files

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borderline to outbound suppliers

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Constraints for selecting the right Protection Technology

Contract for Data Quality

Status of collaboration
Working as satellite office
Detailing as an engineering provider
Providing manufactured Protection areas by parts


Purpose for delivered data
frequency of data exchange
Agreed parametrical degree

each component


Using intelligent powercopies
Strict following of company rules and numbering

Theft risk by each component
Measured by development costs
Measured by after sales revenue

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CAD Methodology


e.g. model history, manufacturing know how, design shape, physical properties

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Automatic IPP Process and SCC Services IPP Assessment

Engineering Process IPP Rule Definition

IPP

IPP Business Prop.

IPP Process

IP Structure definition classification

Risk Analysis, Management sensitiveness, IPP roadmap,

Structure Classification, ProcessAnalysis, choice of IPP protectors, access right concept, future process map

IPP Pilot Für jedes Strukturelement das mit dem IP-Attribut „Schutzbereich“ als „Fertigungswissen“ klassifiziert ist, lösche alle 3D-Amerkungen und lösche alle Maßtoleanzen und lösche alle Form- und Lagetoleanzen und lösche alle Materialinformationen und ersetzte alle Powercopies durch black box UDFs, außer das IP-Attribut „Eigentümer“ entspricht dem DX-Ziel.

Prototype, Proof of Concept, Test for Acceptance

IPP System Proposal Clarify concept with process owner, Process Implementation, IPP Rule Definition, Use Cases,

Knowl. elimination

converting

x

DRM

IPP Roll Out Programming, Test, Documentation, Training Implementation,

DX

IPP Operating Encyption as ASP, Maintenance, Knowledge Elimination Ondemand, Monitoring

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IPP Execution

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Fragen?

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Vielen Dank!