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ARTICLE · 19 JANUARY 2018

Monetizing IoT Data Without Driving Away Your Customers

Finnegan, Henderson, Farabow, Garrett & Dunner LLP
Finnegan, Henderson, Farabow, Garrett & Dunner LLP
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Finnegan, Henderson, Farabow, Garrett & Dunner LLP

Finnegan, Henderson, Farabow, Garrett & Dunner LLP

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Apple installs the rock band U2's newest album onto all iPhones for free. Amazon charges customers for Alexa to monitor all conversations in your home.

United StatesMedia, Telecoms, IT, Entertainment
Finnegan, Henderson, Farabow, Garrett & Dunner, LLP
Finnegan, Henderson, Farabow, Garrett & Dunner, LLP
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Apple installs the rock band U2's newest album onto all iPhones for free. Amazon charges customers for Alexa to monitor all conversations in your home. One creates cries of consumer outrage for invasion of privacy; the other receives accolades for being a great new product, quickly appearing in every home. Why such different reactions?

Data generated by IoT devices can be valuable intellectual property (IP) for companies. However, collecting and using this data can expose them to potentially massive negative publicity and lawsuits.

Recent cases highlight three common strategies companies should consider when monetizing consumer data: (1) disclose data collection and usage in the Terms of Service (ToS), (2) adequately protect user data, and (3) promote clear user benefits from the data collected.

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