Hunton Andrews Kurth LLP
  January 3, 2014 - Virginia

Coverage Risks in the Age of the ‘Internet of Things’
  by Lon Berk and Paul Moura

The “Internet of things” is here. According to Cisco, sometime during 2008, the number of things connected to the Internet exceeded the number of people.  Cows, corn, cars, fish, medical devices, appliances, power meters — practically any item imaginable has been or can be connected. Eventually, we will be able to “sync” an entire home so that its heating system is programmed to adjust to weather patterns and inhabitants’ activities, its dishwasher automatically orders soap refills, its refrigerator is always stocked with milk (or beer), and maybe even its lights blink on and off when important emails are received. 
 
These are just a few examples of what can be done with “the Internet of Things” (“IOT”) — ordinary objects and devices able to process and transmit information based upon their environments that they then communicate to servers running algorithms designed to anticipate and address user needs. Businesses ranging from small startups to long-standing conglomerates are now embedding adaptive “smart” technologies into even mundane products, including window shades, light bulbs and door locks. 
 
While IOT devices create obvious value, they also expand risk. In effect, we are creating an “infrastructure for surveillance,” that constantly generates critical, sometimes exceptionally private, data transmitted for use on servers perhaps thousands of miles away. Although the benefits of this infrastructure are evident, the risks can be hidden within a technological “black box.” The degree to which our well-being depends upon the integrity and security of networks, software and data will increase exponentially. 




Read full article at: http://www.hunton.com/files/Publication/c8832593-f351-4751-bcd7-4a3f841777e5/Presentation/PublicationAttachment/e8228643-7303-4da5-9f58-1a8df3ccff77/Coverage_Risks_in_the_Age_of_the_Internet_of_Things.pdf