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Internet of Things

As the Internet of Things brings connectivity to virtually everything, it is changing the way we interact and do business. The rapidly expanding quantities and types of data created, and the ways in which they are shared, create a host of business opportunities and legal challenges.

 
 

How
Paul Hastings
can help

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Client successes

Private equity firm GTCR in its acquisition of Sage Payment Solutions, the North American payments business of Sage Group.
CSC, a global leader in next-generation IT services and innovative cloud solutions, on its investment in and strategic collaboration with Virtual Clarity, a provider of ITaaS transformation strategy and leadership.
MSC Software and its majority stockholder Symphony Technology Group on Hexagon AB's agreement to acquire MSC for $834 million.
FairPoint Communications, a leading business and broadband solutions provider, in its $1.5 billion sale to Consolidated Communications.
MSC Software and its majority stockholder Symphony Technology Group on Hexagon AB's agreement to acquire MSC for $834 million.
Samsung Electronics in its $8 billion acquisition of Harman International Industries, Inc., the market leader in connected car solutions.
Goldman Sachs as financial advisor to Hewlett Packard Enterprise in connection with HPE’s $8.8 billion sale of its noncore software assets to London-listed Micro Focus International.
Brocade Communications Systems in its $1.2B acquisition of Ruckus Wireless, a deal structured as an exchange offer that drastically shortens the time required to close a transaction.
Airbnb, Inc. on a variety of financial services and transactional matters related to the expansion and operation of its business in numerous countries.
eBay in one of the most significant patent decisions of the past decade. We advised our client from trial through appeal to the U.S. Supreme Court, and ultimately obtained a unanimous 9-0 ruling in eBay’s favor, changing the standard for injunctive relief in all patent cases.
Samsung in establishing its mobile payment system platform, Samsung Pay, and negotiating payment systems agreements with all the major banks and credit card companies in the United States.
Zynga in the largest trade secret case in the history of social gaming. Our attorneys obtained a preliminary injunction on behalf of Zynga, establishing, for the first time, that social game concepts and specific game mechanics can and do arise to the level of a protectable trade secret.
McKinsey & Co in outsourcing a cloud-based HR system to manage the entire lifecycle of applicants, employees, contractors, and alumni.
Facebook on multiple matters including domestic and international payments advice, as well as assisting with the development and offering of a person-to-person money remittance service through Facebook.
WorldVu Satellites Limited, also known as OneWeb, in a private placement in excess of $500 million to strategic partners including Qualcomm, the Virgin Group, Bharti, Airbus Group, Hughes Network Systems, Intelsat, Totalplay and The Coca-Cola Company, to fund the development of a satellite constellation to provide global access to the Internet.
PayPal on legal, regulatory, and operational issues regarding the establishment of a merchant cash advance program for small business customers based on the sale of future credit-card receivables.

Contacts

Americas

Sherrese Smith
+1 202 551 1965
sherresesmith@paulhastings.com

Asia

Daniel Kim
+82 2 6321 3802
danielkim@paulhastings.com

Europe

Ben Regnard-Weinrabe
+44 020 3023 5185
benregnardweinrabe@paulhastings.com

Flexible Fee Arrangements

At Paul Hastings, we understand that each client’s situation is different, and we are prepared to partner with our clients to meet their objectives throughout every stage of the product life cycle. Our goal is to collaborate with clients to better understand their needs and develop a tailored fee approach that provides clients with the best value and results.

Fixed fee
Clients developing products in the complex and evolving IoT arena face myriad challenges that often require guidance from a multitude of legal specialties to navigate the dizzying array of issues that can arise throughout the product life cycle. The goal of this upfront intervention is to provide legal advice at the earliest stage of development to protect value by minimizing the risk of problems surfacing once the product is commercialized, while at the same time helping to create maximum value. A fixed-fee can be established that provides clients with predictability while at the same time giving them access to an interdisciplinary team of lawyers that can provide legal counsel on an as-needed or routine basis.

Performance-based fee
During any stage of a product’s life cycle, a single issue may arise (eg, financial transaction, legal dispute) that requires the expertise of practitioners with a particular legal specialty. For these types of engagements, a fee schedule can often be established based on results achieved or other performance-based criteria. (see Alternative Fee Arrangements)

For more information, please contact your Paul Hastings lawyer.

Case study

Building the World's Largest Satellite Constellation
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Operations and Infrastructure

Data centers are increasingly challenged by the explosion of data streams generated by the IoT, estimated to include more than 50 billion installed units by 2020. Real-time processing of IoT-enriched data and information will place new demands on the way they organize, structure, process, and secure the data they hold.

Paul Hastings can help:

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Data Centers

A fine-tuned and robust infrastructure is critical to any company's ability to exploit the full potential of the IoT. Our data centers team provides full-cycle advice covering all elements (e.g., real estate, hardware, utilities, user agreements) as our clients address their legal and business needs related to the infrastructure supporting IoT's data revolution.

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Growth and Finance

The rapid expansion of universal connectivity will open up infinite opportunities across all industry sectors. Exploring, developing, and financing these growth opportunities at each stage of the product life cycle, including strategic tax considerations, will be a key differentiator for tomorrow's successful businesses.

Paul Hastings can help:

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Finance & Capital Markets

From start-ups to those looking to solidify their roles as market leaders to firms seeking to provide sources of financing, our capital markets and finance lawyers help players in the IoT arena secure capital as they seek to bring innovations to market.

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M&A, IP Licensing

The explosive potential of the IoT has led to a sea of new companies, new strategic partnerships, new acquisitions, and a new focus on the need to protect or access intellectual property. Our global M&A and IP licensing lawyers have a rich history of working with clients to react to, capitalize on, and emerge successful in evolving the scope of their business given new market realities.

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Private Equity

Sponsors looking to expand their portfolio in the IoT sector must evaluate target companies on a full range of criteria unique to these investments. Our lawyers understand IoT issues and the technologies involved, as well as the associated opportunities and risks, taking a holistic approach to due diligence to ensure that all issues are identified and assessed in conjunction with supporting all stages of a private equity transaction.

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Tax Advisory

Taxation of companies operating in the IoT arena and of related intellectual capital is a rapidly changing field with myriad complexity and significant uncertainty. Beyond income taxes, one must consider sales and use taxes, excise taxes, value-added taxes, and transfer pricing issues. In addition, the structure of a company or its agreements may have a significant impact on whether taxes will be imposed on foreign companies’ transactions in the U.S. and U.S. companies doing business abroad. Our lawyers advise on entity structuring, contract drafting, technology transfer agreements, international agreements, and tax disputes.

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Privacy, Cybersecurity, and Regulations

Successful IoT technologies balance convenience with security. Developers of innovative products that enable actions to be triggered by passive monitoring criteria, such as self-driving cars or wearable devices, must ensure privacy and security are built in by design. At the same time, regulators are alert to the potential for the IoT to transgress national and international privacy protections.

Paul Hastings can help:

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Privacy, Cybersecurity, and Regulations

Companies looking to bring their products to IoT markets face a nascent, complex, and somewhat opaque regulatory environment. We guide our clients through the multinational regulatory maze, help clients ensure their compliance with data privacy and security regimes, and effectively address litigation and investigations should they arise. We assist clients in developing approaches to incorporate privacy and security by design, perform privacy and cybersecurity assessments, and develop policies, procedures, and training relating to IoT development, uses, privacy, security and data de-identification.

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Payment Systems

There has been a sharp upswing in the number of major players entering or active in the payments space in the IoT, with a firm eye on security concerns that have hampered development until now. Global payment systems are considered ripe for disruption and there is no shortage of companies aiming for the target.

Paul Hastings can help:

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Payment Systems

The rapidly evolving world of payment systems supports many IoT companies that rely on virtual currency and mobile banking. We regularly represent some of the world's leading payment systems providers as well as companies at the forefront of emerging and novel payment systems and markets on a wide range of transactional and regulatory issues, including product development, consumer compliance, and strategic acquisitions.

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Disruptive Technologies

For today's business, anticipating and preparing for a digitized world has never been more important and the challenge has never been harder. As innovative technologies transform the business landscape across virtually every industry, clear legal advice and sound business judgment are more critical than ever for companies seeking to navigate new paths to growth.

Paul Hasings can help:

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Technology

The transformations brought by the IoT and related technologies are creating game-changing opportunities to innovate for both established industry leaders and start-ups. Whether it's autonomous vehicles, healthcare, the connected home, industrial applications or wearables, our technology lawyers provide strategic counsel on the full array of transactions and disputes involving the IoT for companies across the tech industry, as well as guiding clients from other industries through today's increasingly digitized business landscape.

Click here to learn more about our Technology Credentials

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Intellectual Property and Disputes

The IP underpinning the expansion of the IoT has been part of the tech landscape for a number of years, gaining increasing traction across the industrial and consumer sectors. Protecting that IP remains, as in any area of technology, an ongoing challenge in a field where concerns about data security and privacy are also mounting.

Paul Hastings can help:

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Intellectual Property Protection

The hyper-emergence of connected devices has created a host of issues related to the protection of intellectual property. Our team includes patent attorneys with extensive subject matter knowledge of the relevant technology, seasoned trial attorneys with experience to litigate the most technically and legally complex patent matters, and in-house scientific advisers that provide technical guidance to our teams.

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eMobility and Trade Secrets

Rapid fluidity in employee movement between companies, coupled with the ability to effortlessly transfer large quantities of data, makes it more difficult than ever to safeguard a company's intellectual property and trade secrets. Lawyers in our employee mobility and trade secrets practice help companies identify and protect their most valuable confidential data, and to aggressively prosecute and defend against cases of alleged data theft.

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Disputes

The innovative nature of IoT generates not only unique opportunities, it often leads to complex disputes. Our teams of litigators throughout the globe know the emerging trends in patent law, represent clients facing class actions, litigate antitrust claims arising from new markets, and cover the full range of litigation issues companies operating in the IoT space may encounter.