"IP issues in the drone sector touch on sensitive areas such as security, data privacy, and technological sovereignty."

In the midst of the booming drone industry which is expected to be worth over €10 billion by 2030, Luxembourg has taken a proactive approach to structuring this new field with the creation of the Federation. From regulations and authorizations to the complex issue of data privacy, the drone industry must navigate a multitude of issues. However, as drones are increasingly used in new industries, the federation aims to promote collaboration and growth in the industry while ensuring the safety and protection of all involved.

Leaders League: Tell us how the Luxembourg Federation of Drone Operators came into existence?

Renaud Le Squeren: The Luxembourg Drone Federation was created in March 2022 to provide structure to  the rapidly growing drone industry. The relevant authorities, such as the Directorate of Civil Aviation (Direction de l'Aviation Civile - DAC), regulate drone flights and grant prior authorizations in certain cases. The federation’s members are drone operators working in different sectors of activity, but new industries are likely to use drones in the years to come. The issues surrounding drones are numerous, particularly regarding intellectual property, trademarks, and data protection. Events and meetings are organized to advance the cause of drones in Luxembourg, in collaboration with the Directorate of Civil Aviation. This autonomous federation, affiliated with the Confédération luxembourgeoise du commerce (clc), is also a member of the Joint European Drone Associations (JEDA).

Drones come from China, the United States, etc. This raises sovereignty questions concerning the intellectual property of the drone, as well as that of all embedded software.

What are the intellectual property issues facing the drone industry, and how do they impact technological sovereignty in Europe?

Intellectual property issues in the drone industry are multiple and complex. Firstly, there is the question of drone construction. At present, there are no European drone manufacturers, which means that the drones themselves come from China, the United States, etc. This raises sovereignty questions concerning the intellectual property of the drone, as well as that of all embedded software. Software is essential for drones to fulfill their missions, whether it is taking photos, calculating volumetric masses, transporting goods, or even transporting medicines.  Drone technology is also used by law enforcement and rescue teams for specific missions, which makes intellectual property questions even more important. All these applications and missions require licenses for the material and embedded software in the drones, which raises significant intellectual property issues which are therefore extremely important as they relate to sensitive areas such as security, data confidentiality, and technological sovereignty.

What are the most important intellectual property issues in the drone industry?

Regarding intellectual property in the drone production chain, the issues differ according to the level of intervention. End-users, for example, must sign licenses for all intellectual property, including adhesion contracts for installed software. For them, critical points concern data and privacy management, with different legislative corpus in each European country. Operators must ensure proper management of personal data and privacy. In contrast, drone equipment importers are more sensitive to intellectual property issues, including guarantees, patent and trademark deposit controls, to avoid potential violations of intellectual property by manufacturers and possible ensuing litigation.

Two essential points must be considered for the drone industry. The first is to ensure that drone manufacturers and sellers have the necessary rights to sell their equipment. The second point concerns drone operators, who must manage collected data, respect privacy, and follow civil aviation rules.

Which authorities regulate and validate intellectual property aspects for the drone industry?

In Luxembourg, the Office for Intellectual Property (Office de la propriété intellectuelle - OPI) accompanies businesses in their patent applications and issues related to trademarks. There is also specific legislation on trade secrets, which is little known but powerful and effective. The courts are responsible for monitoring compliance with these regulations. The Directorate of Civil Aviation is responsible for air safety, and the National Commission for Data Protection (Commission Nationale pour la Protection des Données - CNPD) is responsible for aspects related to personal data. The Ministry of Education, Children and Youth is also involved in drone operator training and international recognition of related diplomas.

What IP issues are likely to arise from the exponential growth of the industry?

One of the major upcoming challenges for the drone industry is liability in the event of an accident. As in the aviation and automotive industries, mandatory insurance systems will need to be put in place to determine responsibility quickly and compensate victims. Flight authorization will also need to be regulated to avoid accidents, depending on altitudes and locations flown over.

Interview and Editing by Aude Ghespière