Wearable technology is any technology that is designed to be used while worn and includes smart watches, fitness trackers, wearable cameras, smart fabrics and e-textiles and augmented and virtual reality headsets as well as implantable devices. These technologies are frequently networked, integrating electronics and computer technology such as sensors to collect real time data. This is often sent to apps on the wearer’s smartphones to provide insights into their sleep, health and movement activities as part of a trend known as the ‘quantified self’.
The wearable tech sector is booming and in recent years, has been breaking into fashion, wellness and lifestyle sectors as people seek out devices that enhance their everyday lives. It is providing doctors with greater opportunity to monitor patients; providing athletes greater support and advice to enhance their training and safety; and fashion designers the opportunity to collaborate with technology brands that have never normally graced the runway. It is an exciting, fast moving, forward-thinking sector that is drawing together the use of technology to enhance our everyday activities within stylish products that can be worn and form part of our daily activities.
Embedding wearable technology into a product provides it with a dual purpose and can offer a unique selling point capable of distinguishing the product from its competitors – allowing designers to create personalised and functional products, as well as an opportunity for brands to diversify and collaborate with technology companies, creating opportunities for licensing deals.
The growth and business opportunity of wearable technology
The modern wearable technology sector is growing at a rapid pace as technology becomes ever more embedded in our day-to-day life and activities.
The combined wearable technology market is currently valued at US$128.07 billion in 2023 and is forecast to more than double by 2030 – Coherent Market Insights, ‘Wearable Technology Market Analysis’ (June 2023)
Between 2020 and 2022 the use of internet-connected accessories such as smartwatches, fitness bands and connected clothes or shoes has increased from 17% to 26% amongst people aged 16-74 based in the EU. Similarly, in the UK there has been significant growth in the ownership or access to wearable technology, increasing from 2% of respondents in 2014 to 45% in 2023.
The rate of growth can be explained by several factors, including rising incomes and increased levels of internet connectivity globally and improvements in miniaturisation and battery technology, alongside social changes including a focus on integrating technology into daily health or activity monitoring.
What are some of main legal issues to watch out for?
Much of the analysis of the wearable technology sector has focused on addressing privacy concerns in relation to the personal data generated and collected, how it is stored and processed, security vulnerabilities and compliance with data privacy laws around the world.
1. Collaborations
The expansion of the wearable technology sector into fashion has been driven by collaborations between fashion and technology companies. Luxury fashion and technology do not often collide but fashion is now being seen as the gateway for wearable technology by expanding consumer acceptance and sentiment. The Ray-Ban Meta Smart glasses, first launched in 2021, resulted from a partnership between Ray-Ban fashion brand’s parent company EssilorLuxottica and Meta to create smart sunglasses which include two cameras, speakers, a microphone and a touchpad integrated into their frame. This collaboration drew upon the branding and fashion design expertise of Ray-Ban and the technology and software expertise of Meta. The advantage that brands can leverage from these collaborations is enhanced and more sophisticated data that the devices store, allowing brands to create and target new products.
Collaborations in the wearable technology sector can be more complex for the parties – while both fashion and technology firms will often have extensive experience of joint ventures and collaborations, the underlying IP rights typically being licensed by fashion firms and technology firms can differ as can the expectations in different industries on licensing terms and royalty provisions. Companies need to consider the structure of the arrangement, including the treatment of their existing intellectual property rights, what should happen to IP developed jointly during the collaboration and the approach to exploitation of the rights.
2. Dealing with copycats
A significant issue for trailblazing wearable technology products is protecting against the risk of counterfeit and copycat products. Such products can cause infringement issues for the original creators, decrease their sales and tarnish the brand value of the original products, causing a loss of value across the wearable technology sector. Currently, counterfeit smartwatches and fitness bands are the commonly available copycat products in the market in the wearable technology sector, but as further products enter the mainstream, it will be an issue faced by any brand or manufacturer in this space.
There are a range of strategies companies should take to protect their wearable technology, including considering registered or unregistered design protection to protect the appearance, shape, configuration, patterns and decoration of a product, trade marks to protect the brand name and (in some jurisdictions) the availability of copyright. Brands can also obtain protection for inventive aspects of the products under patent law, or as trade secrets.
3. Sustainability
As the world becomes more focused on sustainability, wearable technology is no exception. Wearables have the potential to have a negative effect on the environment through increased production of electronic components, electronic waste from the disposal of wearable devices and increased energy usage. A particular concern is the growing volume of electronic waste, with 62 million metric tons of electronic waste generation worldwide in 2022.
Sustainability issues are not just limited to electronic devices. It seems likely that the era of the fashion industry self-regulating in relation to sustainability is drawing to a close around the world, with several jurisdictions adopting new sustainability rules that will have significant impacts on wearable technology companies, particularly in the fashion sector. Wearable technology brands and manufacturers should remain attentive to these issues and revamp their business models to align with the changes ahead.
Final thoughts
As with the widespread adoption of any new technology, there may be challenges ahead for both brands and technology companies seeking to collaborate. Businesses need to make an early assessment of whether there is patentable technology, how the collected data will be managed, what other IP protection can be obtained across the relevant jurisdictions for the product itself, and how the product is marketed to consumers – to stay ahead of the competition.
Overall, the future of wearable technology is bright, with endless possibilities for innovation, advancement and collaboration. As technology continues to evolve, we can expect wearables to become even more integrated into our daily lives and transform the way we interact with the world around us.
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Advances in Wearable Tech – for Fashion, Health and Life in 2024