MUMBAI SI LI C O N VALLE Y BAN G A LO RE SI N G A P O RE MUMBAI BKC NEW DELHI MUNICH NE W YO RK

CEO Brief

Preparing For
a Driverless Future
Re-Shaping the Transportation Landscape
& Conquering the Sky

September 2018

© Copyright 2018 Nishith Desai Associates www.nishithdesai.com

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape & Conquering the Sky

September 2018

Automotive Practice Group

autopractice@nishithdesai.com

© Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

Contents
1. INTRODUCTION 01

2. EMBRACING THE IDEA 02

3. INDUSTRY LEADERS 03

4. THE FUNCTIONING OF AUTONOMOUS VEHICLES 05

5. TRIPLE BOTTOM LINE 07

I. Economic 07
II. Social 08
III. Environmental 09

6. GLOBAL STATUS OF AUTONOMOUS VEHICLES 10

I. United Kingdom 10
II. United States of America 11
III. Germany 11
IV. Sweden 12
V. France 12
VI. Singapore 13
VII. Japan 13
VIII. India 14
IX. China 15
X. Other Countries 15

7. LEGAL RAMIFICATIONS 17

I. Liability and Insurance 17

II. Standard of performance and care 17
III. Privacy, Data Protection, and Cyber Security 18

8. INDIAN LAWS 20

I. Motor Vehicles Act, 1939. 20

II. Consumer Protection Act, 1986 20
III. Information Technology Act, 2000. 21
IV. Geospatial Information Regulation Bill, 2016 21
V. Personal Data Protection Bill, 2018 21

© Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

9. CHALLENGES TO IMPLEMENTATION 23

I. Socio-economic hurdles 23
II. Local infrastructure 23
III. Perception of Surroundings and Cultural Nuances 24
IV. Legislative & Regulatory Hurdles 24
V. Innovation and the Law 25

10. COMMERCIAL IMPLICATIONS 26

I. Investments 26
II. Tax issues 26

11. FROM DRIVERLESS TO FLYING CARS 28

12. THE ROAD AHEAD 31

13. EPILOGUE-NEED FOR CONVERGENCE OF LAND, AIR AND SEA LAW 32

14. REFERENCES 34

© Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

1. Introduction
“There are always those who argue that government will most likely join unmanned drones and
should stay out of free enterprise entirely, but I think digital surveillance as one of the advances and
most Americans would agree we still need rules controversies that will impact our times.
to keep our air and water clean, and our food and
While some governments have already begun
medicine safe. That’s the general principle here.
taking necessary policy initiatives in anticipation
What’s more, the quickest way to slam the brakes
of the autonomous vehicle, as a plausible mode of
on innovation is for the public to lose confidence in
transport; only time will tell how others are able
the safety of new technologies.”1 – Barack Obama
to prepare themselves, in tackling issues relating
The automotive industry is on the brink of to insurance, liability, cyber security, safety, ethics
a technological revolution and has come a long and performance standards.
way, since Henry Ford debuted his assembly
This paper shall comprehensively analyze the
line. Given the rapid pace of technological
effects of the driverless future, and the economic,
advancement, what the future has in store for
social, environmental and legal ramifications
us is limited only by our imagination. One such
arising thereof. A detailed analysis of publicly
innovation is that of the fully autonomous
available reports, research studies, and media
vehicle, or, in other words, driverless cars. Such
articles as well as opinions of government
a technological innovation promises to be, both
organizations and industry leaders, have been
disruptive and revolutionary, in terms of its
taken into account in this paper.
impact on human autonomy and shaping the
societies of tomorrow. The driverless car

1. Barack Obama, Pittsburgh Post-Gazette, September 19, 2016,

available at : http://www.post-gazette.com/opinion/Op-
Ed/2016/09/19/Barack-Obama-Self-driving-yes-but-also-safe/
stories/201609200027

© Nishith Desai Associates 2018 1

 Provided upon request only

2. Embracing the Idea

The idea of autonomous vehicles first gained failed to distinguish a large white 18
widespread public exposure at GM’s ‘Futurama’2 wheel truck crossing the highway against
exhibit at the 1939 World’s fair, which a bright spring sky.8 These developments have
envisioned “abundant sunshine, fresh air [and] surely caused consumers to second guess the
fine green parkways upon which cars would drive trust being put into the booming autonomous
themselves.”3 Since then, autonomous vehicular vehicular industry. In March 2016, Daimler
technology has gone through a multitude of obtained special permission from the state of
innovations and tests. Visionaries have toyed Baden-Württemberg, Germany for a live test of
and experimented with this idea for decades. three of its self-driving Mercedes-Benz trucks
The “DARPA Grand Challenge” organized that were wirelessly connected to each other.9
by The Defense Advanced Research Projects In September 2016, a driverless bus began
Agency4 was the first major long distance carrying passengers through Lyon, France.10
competition for autonomous vehicles in 2004.5 Similarly, countries across the globe looking
In 2009, Google introduced its driverless cars to prepare in advance and account for the
project under the leadership of Sebastian ever increasing demand and popularity of
Thrum, an alumnus of the Grand Challenge. By driverless technologies, and the resultant
2012, this project had moved on to complex city paradigm shift in the idea of personal mobility,
streets. In December, 2016, Google announced have already begun drafting necessary rules
Waymo, an independent self-driving technology and regulations.11
company, with a focused mission to make it
Regulatory pressures and changes in technology
easy for people and things to move around.6
are shifting the terms of competition faster than
After having driven around 1.3 million miles
it was expected, two years ago. Electric cars and
since it was first introduced, it was in February
autonomy seemed like a distant dream then,
2016 that Google’s self-driving car had caused its
but most car makers are now expecting to sell
first crash in Mountain View, California when
advance autonomous vehicles by 2025. The
it changed lanes and put itself in the path of an
reality of the driverless future and the issues
on-coming bus.7 This was followed by the first
that it is bound to raise, are closer to us now
known death caused by a self-driving car in June
than ever before. Time Magazine in its March
2016, when the car sensors of a Tesla Model S
2016 issue featured the driverless car as its cover
story titled “No traffic. No accidents. No deaths.
2. Futurama was an exhibit/ride at the 1939 New York World’s All you have to do is give up your right to drive.”12
Fair designed by Norman Bel Geddes that presented a
possible model of the world 20 years into the future (1959–
60). Spon-sored by the General Motors Corporation, the
8. Danny Yadron and Dan Tynan, Tesla driver dies in first fatal
installation was characterized by its automated highways
crash while using autopilot mode, 1 July 2016, available at
and vast suburbs.
https://www.theguardian.com/technology/2016/jun/30/tesla-
3. Autonomous Cars through the Ages.” Wired.com. Conde autopilot-death-self-driving-car-elon-musk
Nast Digital. Web. 12 Feb. 2016.
9. Daimler’s self-driving trucks to hit German roads, 21.08.2015,
4. DARPA is an agency of the U.S. Department of Defense and available at http://www.dw.com/en/daimlers-self-driving-
is known as a laboratory and an incubator of innovation trucks- to-hit-german-roads/a-18665100
and provides infrastructural support elements to the
10. David Chazan, World’s first driverless bus service begins
transformative ideas that would be potential new realities
carrying passengers in French city of Lyon, 3 September 2016,
5. In the Grand Challenge, fifteen teams competed but available at http://www.telegraph.co.uk/news/2016/09/03/
none came close to completing the 150 mile course. Two worlds-first-driverless-bus-service-begins-carrying-passengers-i/
more Challenges were also organised in 2005 and 2007
11. Time, ‘NO TRAFFIC. NO ACCIDENTS. NO DEATHS’
respectively, where a great progress was displaye
,March 2016 Issue, available at https://backissues.time.
6. Alex Davies, Google’s Self-Driving Car Company Is Finally com/store- front/2016/no-traffic-no-accidents-no-deaths-/
Here, 13 December 2016, Available at https://www.wired. prodTD20160307. html
com/2016/12/google-self-driving-car-waymo
12. Kaufman, Alexander C. “Elon Musk: We’ll Have Driverless
7. Dave Lee, Google self-driving car hits a bus, 29 February 2016, Cars By 2023.” The Huffington Post. TheHuffingtonPost.com.
available at http://www.bbc.com/news/technology-35692845 Web. 14 Feb. 2016.

2 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

3. Industry Leaders
Tesla’s founder, Elon Musk, in 2016 estimated supplementing the functioning of the driverless
that true autonomous driving would be achieved vehicle. Current Canadian Prime Minister,
in the next 5 to 6 years, by which time one would Justin Trudeau has commended Blackberry’s
be able to get into their car, go to sleep and wake push for software innovation.18 Even companies
up at their respective destinations.13 Sergey Brin like Intel, Microsoft, Nvidia and Baidu have
of Google has made it clear that he intends to made substantial investments in developing
have his driverless cars on the road no later than autonomous vehicular transport systems.19
2018. Audi showcased their A8 limousines with
Honda Motor. Co. has been in talks with Wymo,
autonomous capabilities, at an auto expo in
the autonomous driving unit of Google from
Barcelona in 2017.14
December 2016, to strike a deal that would put
Uber has already stepped up its game in the market Waymo’s self-driving technologies into some of
as its former CEO, Travis Kalanick expected the its cars.20 Both companies are laying emphasis
entire Uber fleet to be driverless by 2030. Trial on research rather than full production of
run of driverless Uber cabs have already begun vehicles at this point. The recent launch by
in Pittsburg, Singapore and San Francisco and are Volkswagen of a service called MOIA, a stand-
already facing regulatory hurdles.15 Apple has alone company under the VW group, to offer
invested $1 Billion in Didi Chuxing Technology Co. electric powered shuttles in cities reflects the
to help in advancing its self-driving technology.16 recent trend of leading automakers to combine
It aims to create an autonomous driving two of the biggest trends in mobility: app based
system through which it will be able to partner ride-hailing and electric vehicles.21 Eventually,
with existing car makers or create its own car it is also looking to be adding a third by using
development project in the future which would autonomous vehicles. Mathias Mueller, Chief
manufacture products which are able to deeply Executive at VW, in a recent statement declared
integrate17 itself, with its iOS devices. that the automaker has been in talks with Uber
regarding a potential cooperation over and
Looking to cash in on the emerging software
above the role of being a mere supplier. VW’s
space relating to driverless cars, Blackberry
rivals include Toyota and General Motors who
announced plans to invest around $76 million
have also acquired stakes in mobility companies.
and establish a hub in Ottawa, Canada under its
QNX platform to develop software which could

13. “Next-gen Audi A8 Drives Better than You.” Motoring.com.au.

2014. Web. 14 Feb. 2016.
14. Martha C. White, Uber Is Testing Driverless Cars in This
West Coast City Now, 22 September, 2006, available at
http://time. com/money/4503263/uber-driverless-cars-san- 18. “33 Corporations working on Autonomous cars”, August 11,
francisco/ 2016 available at https://www.cbinsights.com/blog/autono-
mous-driverless-vehicles-corporations-list/
15. “Apple’s latest $1 Billion bet is on the future of Cars”,
May 14, 2016, available at http://www.wsj.com/articles/ 19. Alex Davies, Google’s Self-Driving Car Company Is Finally
apples-1-billion- didi-investment-revs-up-autonomous-car- Here, 13 December 2016, Available at https://www.wired.
push-1463154162 com/2016/12/google-self-driving-car-waymo
16. https://www.macrumors.com/2015/11/16/tim-cook-no- 20. Peter Campbell, VW enters on-demand ride services with
converged-mac-ipad/ new MOIA brand, 5 December 2016, available at https://www.
ft.com/ content/54d7ced2-ba7b-11e6-8b45-b8b81dd5d080
17. Paul Vieira and David George-Cosh, Blackberry accelerates
push into Tech for self-driving cars, 19th December 2016, 21. VW’s new division takes aim at Uber-style competition, 5
available at http://www.wsj.com/articles/blackberry-picks- December, 2016, available at http://www.reuters.com/article/
ottawa-as-hub- for-self-driving-car-tech-1482159490. volkswagen-strategy-idINKBN13U127

© Nishith Desai Associates 2018 3

 Provided upon request only

Leading auto makers and technology firms future.22 Soon enough, there will be no way
such as Google, Apple and Baidu look to serve of distinguishing technology and software
consumers in the ever increasing vastness of the companies from automobile companies as
digital market place and becoming key players collaborations between the two will blur all
in the driverless space. Intellectual property boundaries between them. The California
and science analysts at Thomson Reuters, after Department of Motor Vehicles recently
conducting a thorough analysis of the patent confirmed that Apple has more than doubled
portfolios of Apple and Tesla, have predicted the number of its self-driving cars. Apple’s fleet
that these two could potentially become very size has steadily risen from 27 cars in January
effective partners in shaping the driverless 2018, to 55 intelligent machines by May 2018. 23

22. IP and Science business of Thomson Reuters, The State of Self-

Driving Automotive Innovation. 2016. Web. 17 Feb. 2016.
23.

4 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

4. The Functioning of Autonomous Vehicles

A vehicle that travels from point A to point iii. Level 2 (Partial Automation): More than
B without any human input for a particular one function is automated at the same
duration of time is classified as an autonomous time such as a combination of adaptive
vehicle. Such vehicles employ sensory, control cruise control and lane centering.
and navigation technologies that respond to the However, the driver must still remain
environment accordingly, thereby eliminating constantly attentive.
the need for human interference.24 A host of
iv. Level 3 (High Automation): The functions
sophisticated, high end technology provides
are sufficiently automated, enabling the
the autonomous vehicle with an elaborate
driver to safely engage in other work or
level of connectivity. The U.S. Department of
activities. The driver is expected to be
Transportation’s National Highway Traffic
available for occasional control, but will
Safety Administration (“NHTSA”) has classified
have comfortable transition time. The
autonomous vehicles as belonging to one of five
Google car is an example.
levels: The Society for Automotive Engineers,
India (“SAE”)25 also has similar classifications v. Level 4 (Full Automation): The car can
for automated vehicles.26 These are as follows; completely drive itself without a human
operator. The vehicle is designed to perform
i. Level 0 (No Automation): The human
all driving functions and monitor roadway
driver is in constant and complete
conditions for an entire trip. Such a design
control of the car.
anticipates that the driver will only have to
ii. Level 1 (Assisted Automation): Only one provide the destination or navigation input,
function can be automated at a time such but is not required to be available for control
as either electronic stability control or at any time during the trip.27
pre-charged brakes, wherein the vehicle
The basic essential features of an autonomous
automatically assists with braking, enabling
vehicle are as follows:
the driver to regain control of the vehicle or
stop faster than it would be possible if the
driver had acted on his own volition. Cruise
control, lane keeping and parking assist are
other such commonplace features found in
autonomous cars of this level.

24. IP and Science business of Thomson Reuters, The State of

Self-Driving Automotive Innovation. 2016. Web. 17 Feb.
2016.
25. SAE International, initially established as the Society of Auto-
motive Engineers, is a U.S.-based, globally active professional
association and standards organization for engineering
professionals in various industries ; SAEINDIA is an affiliate
society of SAE International registered in India as an Indian
nonprofit engineering and scientific society dedicated to the
advancement of mobility industry in India.
26. Mobility Engineering: Automotive, aerospace, off-highway, 27. “U.S. Department of Transportation Releases Policy on
SAE India, Quarterly publication, Volume 3 Issue 1, March Automat- ed Vehicle Development.” U.S. Department of
2016 (Available - http://saeindia.org/uploads/10.MARCH%20 Transportation Releases Policy on Automated Vehicle
2016. pdf). Development. Web. 21 Feb. 2016.

© Nishith Desai Associates 2018 5

 Provided upon request only

Real Time Obstacles

Sensors
Navigation and and Rules and Regulations
Path Determination Processor

Processor’s Decision Vehicle Control Mechanism

ƒ
Acceleration
ƒ
Deceleration
ƒ
Braking
ƒ
Steeering

Autonomous Vehicle

GPS (Global Positioning System) works which the central computers build a real-
alongside on-board cameras and advanced time image of the world, thereby controlling
mapping systems wherein each map is highly and influencing the functions of the car
detailed, down to identifying the height of the accordingly. Learning algorithms fed into the
curbs and the dimensions of the lane. Light central computer enable it to learn from past
Detecting and Ranging (LIDAR) sensors experiences and act accordingly in future.28
bounce pulses of light off the surroundings,
It was in the 1970s that automakers initially
creating a picture of potential hazards and
started turning to electronics for better engine
accurately determining the profile and distance
control. To that was added other computerized
of the surrounding objects. Four radar sensors,
features such as anti-lock functions, brakes
mounted on the front and the back of the
and power steering. Cars these days are already
vehicle, monitor the speed of the objects around
equipped with sensors and cameras aiding
it and help avoid collisions by sending signals
drivers in their decision making while their
to apply brakes or move out of the way, as and
insides are loaded with data-spewing operating
when applicable.
systems. Currently, such automated functions
Cameras provide overlapping images of are controlled by a central unit called the ECU
the surroundings which help detect traffic (engine control unit). The functioning of the
lights, road signs, track other vehicles, cyclists, fully autonomous vehicle promises to elevate
pedestrians and other objects on the road after existing technology to much advanced levels.

28. “How Self-Driving Cars Work: The Nuts and Bolts behind
Google’s Autonomous Car Program.” Make Use Of. Web. 13
Feb. 2016.

6 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

5. Triple Bottom Line

Autonomous vehicular technology aims to bring insuring such as the risk of an algorithm failing
about a paradigm shift in transportation. It will or cyber-attacks relating to driverless cars.
reduce the number of accidents, increase mobility
Another industry to be impacted by
and safety, create a healthier environment,
autonomous vehicular technology would be
reduce congestion, and dramatically improve
the telecommunications sector. There is bound
productivity. This section will evaluate
to be considerable growth in data consumption
autonomous vehicles’ potential against the
as autonomous vehicles will communicate over
triple bottom line framework, an accounting
mobile networks. The Society for Automotive
framework that incorporates three dimensions
Engineering31 (SAE) has brought up important
of performance: social, environmental and
issues of access to telecommunication networks
economic. This differs from traditional reporting
for the functioning of these cars in the case
frameworks as it includes environmental and
of an electrical grid blackout or a weather
social measures that can be difficult to assign
disruption at a busy intersection might have
appropriate means of measurement.29
fatal consequences for autonomous cars.32 This
would require the industry to build higher
I. Economic quality capacity products and services in order
to cash in on the increase in data traffic.33 Park
Insurance companies have provided cover to Associates, an internationally recognized market
drivers in respect of road accidents that are research and consulting company specializing
caused due to human error. Manufacturers and in emerging consumer technology products,
infrastructure providers will now need to be has, through research, had estimated that
the subject of liability, rather than the direct mobile networks such as AT&T and Verizon
consumers (drivers). According to a report by would be making nearly $ 1 billion each year in
KPMG,30 it would lead to a fall in premiums, connected-car revenue by 2018.34
change underwriting models which earlier
With the aim of making its services more
depended on driver behavior and might even
economical, Uber is aiming to replace its fleet
eliminate the need for car insurance for the
with self-driving cars which will lead to
drivers. The insurance sector will have to adapt
a reduction in its pricing as one would be
their business models accordingly. In a recent
paying only for the vehicle and not the driver
study, Deloitte has forecasted approximately
anymore.35 In fact, when Uber was founded,
$ 200 billion in personal car insurance
premiums to hold steady for another seven
to eight years, then slide to about $ 40 billion
in 2040. It however projects that around $ 100 31. “ Driverless Cars Threaten to Crash Insurers’ Earnings”, Leslie
billion of the $ 200 billion could migrate to Scism, Wall Street Journal. Web. 26 June, 2016 (Web Link:
http:// www.wsj.com/articles/driverless-cars-threaten-to-
product liability insurance and coverage bought crash-insur- ers-earnings-1469542958)
by ride sharing cover, as gadget filled cars are 32. SAE International is a global association of more than
more expensive to repair than basic models 128,000 engineers and related technical experts in the
aerospace, automotive and commercial-vehicle industries.
if damaged in a crash. While accident related
SAE International’s core competencies are life-long learning
premiums are bound to come down in the long and voluntary consensus standards development. SAE
term, there will be different risks that need International’s charitable arm is the SAE Foundation, which
supports many programs, including A World In Motion®
and the Collegiate Design Series
33. Id.
29. “The Triple Bottom Line: What Is It and How Does It Work?”
Timothy F. Slaper, Ph.D. http://www.ibrc.indiana.edu/ 34. KPMG LLP, Connected and Autonomous Vehicles – The UK
ibr/2011/ spring/article2.html Opportunity. 2015. Web. 18 Feb. 2016
30. KPMG LLP, Self-Driving Cars: The Next Revolution. 2012. 35. “Uber Will Eventually Replace All Its Drivers with Self-
Web. 15 Feb. 2016 driving Cars.” The Verge. 2014. Web. 21 Feb. 2016.

© Nishith Desai Associates 2018 7

 Provided upon request only

co-founder Travis Kalanick’s goal was not additional jobs as the inter-connected and
just to create a transportation app but to autonomous vehicles open up new markets.39
make car owner- ship obsolete.36 Achieving
that would entail driving down the cost of
Uber’s rides so that they are eventually cheaper
II. Social
than owning a personal car. Currently the cost
The fundamental reason for the autonomous
of ride hailing services such as Uber and Lyft
vehicle having the backing of all major industry
are twice that of using one’s personal
players is that it holds the key to a better and
car. However, these economics are slated
cleaner transportation ecosystem and a better
to dramatically reverse once driverless
human experience.
technologies become commonplace.
Autonomous vehicles aim to achieve reduction
Uber and other taxi-hailing apps have led
in road congestion, improvement in road design
to an explosion of business creation and job
as more cars in seamless coordination with
opportunities, where currently the number of
each other can be added onto the same amount
people opting to become drivers is increasing
of real estate on the road, safer transportation,
by the day. A massive rise in unemployment
and increased mobility. It will also result in
numbers of persons currently working as drivers
a hassle-free travel experience for cyclists and
is bound to occur if by 2030, transportation
pedestrians as well as for the ones travelling in
service providers become driverless. While on
cars.40 It promises to bring about a huge cultural
one hand, a lot of jobs and businesses are bound
change as well to the point that the idea of
to be rendered obsolete, the loss of business in
someone driving themselves would cease to be
some sectors will be counteracted by a host of
the norm. It is also believed that autonomous
other employment and business opportunities
vehicles shall greatly improve the safety of our
in related sectors. According to a survey by the
roads. According to a report by McKinsey, self-
Open Roboethics Initiative (“ORI”),37 there will
driving cars will reduce road accidents by as
be an increase in employment opportunities
much as 90%. Automation will make for safer
mainly in automobile and technology industries.
driving, with savings of up to $190 billion a year,
The ORI is of the opinion that the anticipated mostly from reduced health care costs.41
benefits of the technology may just be big enough
Human error has been one of the biggest
to compensate for the negative impact that it
contributing element to road accidents; drivers
may have on the job market. New kinds of jobs
distracted by their phones, drinking and driving,
in insurance, services and other sectors will be
lack of skill, and road rage to name a few
available; a higher number of auto mechanics
prevalent accident- inducing errors. Driverless
will be required; and as demand grows, more
cars would eliminate the chance of human
autonomous car developers will be required.38
error while driving.
According to a study by KPMG, autonomous
vehicles will create an additional three hundred Automakers are already looking to adopt new
thousand jobs in the UK by 2030. Industries business models of car sharing, rental, or taxi
like telecom, digital, and media will also offer services rather than car ownership or retail. If
cars can be summoned for, whenever required,
ownership of cars may become an idea that
36. Leslie Hook, How driverless cars are set to reinvent and
humanise our streets, 7 december 2016, available at is obsolete. This would also lead to an equal
https://www. ft.com/content/19cd31da-b71d-11e6-ba85-
95d1533d9a62
37. Open Roboethics initiative (ORi) is a roboethics think tank
39. KPMG LLP,. Connected and Autonomous Vehicles – The UK
that aims to foster active discussions of ethical, legal, and
Opportunity. 2015. Web. 18 Feb. 2016.
societal issues of robotics (roboethics). Headquartered in
Vancouver, Canada, ORi is an interdisciplinary, international 40. Atkins Ltd., Connected and Autonomous Vehicles. 2016.
group of people passionate about roboethics in general. Web. 19 Feb. 2016. Introducing the Future of Mobility
38. “Results: Will Autonomous Cars Create More Jobs?” Open 41. “Ten Ways Autonomous Driving Could Redefine the Automo-
Roboethics Initiative. 2014. Web. 16 Feb. 2016. tive World.” McKinsey & Company. Web. 17 Feb. 2016.

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 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

opportunity to all for use and people will not has already begun thinking beyond driverless
have to be dependent on drivers anymore for cars to the flying car. Whether people are
their commute. Even the handicapped and the transported in flying vehicles or driverless cars,
elderly would have equal access and the ability to one immediate impact would be lesser need
get from place to place, making them self-reliant. for parking, thus giving cities a public space
Human productivity is bound to increase by dividend, opening up space for parks, biking
a great measure as people will be able to utilize tracks and other such pro-environmental public
the time that is spent driving on other more amenities. While the positive impacts of the
productive activities. According to a McKinsey driverless future on the environment and the
report, it is saidthat a driverless future will result cities of tomorrow are evident, there are certain
in persons having an extra 50 minutes per day factors which could negate some of the positives.
for work or relaxation and would also provide As driverless cars make commuting cheaper
for billions of extra square feet of parking space, and more comfortable, allowing passengers
partly because of the enhanced parking skills of to work, sleep and entertain themselves while
the Autonomous Vehicles.42 enroute their work place, it will make it easier
for them to live in far flung suburbs, leading
to an expansion of the urban sprawl. This
III. Environmental would increase the average distances traveled
by vehicles. Public transportation might come
The introduction of autonomous vehicles
under threat as cheap driverless alternatives lure
and the consequent availability of a portfolio
passengers away from mass transit. If passengers
of transport options, rather than ownership,
shift from big vehicle transit such as buses to
promises to enhance safety and convenience
driverless ride hailing services, the congestion in
by finding the quickest routes, minimizing
dense cities might be adversely affected.
the extra time taken driving in search of
parking, discarding pointless acceleration and Whether the net effect on the environment is
honking. By eliminating unnecessary driving, negative or positive will depend a lot on the
we can attain a greater degree of fuel efficiency choices that auto makers and policy makers
of up to 50% and reduction in associated make in prioritizing efficiency. Cars could be
carbon emissions by more than 90%.43 Due programmed to choose the most fuel efficient
to reduced road congestion, additional roads route. Rules and regulations could be enacted to
needn’t be constructed which would help penalize cars that drive unoccupied or reward
maintain and free up green spaces. The need those who allow their vehicles to be used for
for traffic lights and street lighting will also be ride sharing.
eliminated. Presently, roadways and supporting
infrastructure are made keeping in mind the
human need for visual input to navigate safely.44
As car ownership drops, one can envisage a total
re-design of cities around people keeping their
interests and comforts in mind, as it ought to be,
and not around cars, as it is in status quo. Uber

42. Matthew Claudel and Carlo Ratti, Full speed ahead: How
the driv- erless car could transform cities, August 2015,
available at http:// www.mckinsey.com/business-functions/
sustainability-and-re- source-productivity/our-insights/full-
speed-ahead-how-the-driv- erless-car-could-transform-cities
43. “Are Self-driving Cars a Good Thing for the Environment?”
Green- Biz. Web. 18 Feb. 2016.
44. KPMG LLP, Self-Driving Cars: The Next Revolution. 2012.
Web. 15 Feb. 2016.

© Nishith Desai Associates 2018 9

 Provided upon request only

6. Global Status of Autonomous Vehicles

Various countries around the world have human society in the 21st century. Various
adopted the Vienna Convention on Road Traffic countries across the world have now begun
1968 (“Convention”)45 which required a driver taking measures to confront the inevitable
to be in control of his/her vehicle at all times. reign of the autonomous vehicle, some of
This prevented Governments from allowing test which are discussed below.
drives on autonomous vehicles or marketing
them for public use up until recently.46 In May
2014, an amendment was made to Article 847 of
I. United Kingdom
the Convention,48 allowing for the car to drive
Heathrow Airport has been using electric
itself as long as the system “can be overridden or
driverless pods since 2011 to shuttle passengers
switched off by the driver”, albeit requiring
to and from the terminal to their cars in the
a driver to be present.49 EU countries are
parking lot. Trials are also to take place where
debating and advocating further amendments
driverless cars resembling the shuttles at
to the Convention to remove the requirement
Heathrow, will be employed at Greenwich,
of a driver to be present at all. This, in part, is
Bristol, Coventry and Milton Keynes. Jaguar
influenced by concerns that US manufactures
Land Rover, as part of a UK Connected
will gain advantages over their EU counterparts,
Intelligent Transport Environment (CITE)
as the US is not party to the Convention and is
initiative, is undertaking a project worth
undeterred by its extensive obligations.50
£5.5 million to create a highly advanced
Nations possessing industries at the cutting environment for testing connected and
edge of such technological innovations, look to autonomous vehicles. The U.K. is also taking
put themselves in the first mover’s advantage a lead in shaping a conducive environment for
in order to capitalize on such a disruptive testing, with four cities allowing public trials.
technological trend that promises to re-shape
Fully autonomous / driverless cars on Britain’s
roads will be possible, after the plans to scrap the
requirement for a safety driver to be in control
45. Vienna Convention on Road Traffic, 1968 is an international
at all times are implemented. The Department
treaty designed to facilitate international road traffic and
to increase road safety by establishing standard traffic rules for Transport announced that guidelines would
among the contracting parties. Amongst other aspects related be introduced to allow autonomous vehicles
to traffic and safety on road, it also laid down guidelines
regarding drivers’ responsibilities. testing without any human driver for the very
46. Convention on Road Traffic Vienna, 8 November first time in the UK, marking a significant
1968, available at https://treaties.un.org/Pages/ milestone in the development of the technology
ViewDetailsIII.aspx?s- rc=TREATY&mtdsg_no=XI-B-
19&chapter=11&Temp=mtds- g3&lang=en and the UK.51 Recently, in March 2018, the
47. Article 8 of the Vienna Convention on Road Traffic, 1968 Law Commission set England and Wales Law
-Drivers (1) Every moving vehicle or combination of vehicles Commission and the Scottish Law Commission
shall have a driver available at http://www.unece.org/
fileadmin/ DAM/trans/conventn/Conv_road_traffic_EN.pdf were tasked with a three-year review of the
48. The Convention covers European countries, Mexico, Chile, laws surrounding driverless cars and to suggest
Bra- zil and Russia, although not the United States, Japan regulatory reform.52
or China. Provided the amendment clears all bureaucratic
hurdles, all 72 countries that are party to the convention
would have to work the new rules into their laws.
49. “Cars Could Drive Themselves Sooner than Expected after
Euro- pean Push.” Reuters. Thomson Reuters, 2014. Web. 21
Feb. 2016. 51. “Driverless cars on UK roads this year after rules relaxed” The
50. “EU countries want legal change for driverless cars – but Times.Web.20 July 2018
they’ll have to wait.” 27th September 2016, available at 52. Government to review driving laws in preparation for
https://www. euractiv.com/section/transport/news/eu- self-driving vehicles, available at: https://www.gov.uk/
countries-want-legal- change-for-driverless-cars-but-theyll- government/news/government-to-review-driving-laws-in-
have-to-wait/. preparation-for-self-driving-vehicles.

10 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

II. United States of America driver inside the vehicle.58 Waymo and other
autonomous vehicle companies have initiated
In June 2011, Nevada became the first state testing vehicles without drivers in the state.
in the world to allow autonomous vehicles States of Arizona and Nevada have also allowed
on public roads.53 Nevada law defines an for testing without a safety driver.59
autonomous vehicle as “a motor vehicle that uses
Uber has already begun facing regulatory
artificial intelligence, sensors and global positioning
hurdles as it announced the decision to shut
system coordinates to drive itself without the active
down its self-driving car programme two
intervention of a human operator.” The law also
months after an Uber autonomous car caused
acknowledges that the operator will not need to
a fatal accident in the state of Arizona, USA.60
pay attention while the car is operating itself.54
Post the incident, Uber suspended self-driving
California recently passed regulations allowing
car operations across all US cities where it
the routine use of autonomous cars on public
was active, while the Arizona governor also
roads but has mandated that human operators
suspended the company’s license to test self-
would be required, in case there is a need to take
driving cars.61 It has been reported that Uber
control.55 Twenty-nine states, namely, Alabama,
plans to resume limited testing in other US
Arkansas, California, Colorado, Connecticut,
cities where it had previously operated. In the
Florida, Georgia, Illinois, Indiana, Kentucky,
state of Pittsburgh, Pennsylvania, stringent
Louisiana, Maine, Michigan, Mississippi,
conditions are being laid out under which the
Nebraska, New York, Nevada, North Carolina,
company can resume its operations.
North Dakota, Oregon, Pennsylvania, South
Carolina, Tennessee, Texas, Utah, Virginia,
Vermont, Washington and Wisconsin and III. Germany
Washington D.C. have successfully enacted laws
with respect to autonomous vehicles.56 A section of the A9 Autobahn in Bavaria has
already been designated for automated vehicle
In September 2016, the United States
testing.62 Currently each Federal state can
Department of Transportation unveiled
grant exemptions from the German road traffic
guidelines for the development of autonomous
licensing regulations; allowing the testing of
vehicles calling it “the most comprehensive
automated vehicles, provided that there is a
national, automated vehicle policy that the
driver in the driver’s seat who has full legal
world has ever seen.” The guidelines also set
responsibility for the safe operation of the
performance standards for self-driving cars and
vehicle.63 As already mentioned earlier,
offers guidelines for states on legislations related
Daimler has obtained special permission
to autonomous vehicles.57 On April 2, California
from the state of Baden- Württemberg, Germany
amended its testing rules, thereby allowing for
the use of remote monitoring instead of a safety
58. “Fully Self-Driving Cars Are Really Truly Coming To
California” Wired.Web.20 July 2018
53. “Nevada Passes Law Allowing Self-Driving Cars.” Motor 59. “Waymo applies for no-driver testing in California”
Authori- ty. Web. 16 Feb. 2016. sfchronicle. Web.20July 2018
54. Assembly Bill No. 511–Committee on Transportation for 60. “Uber is facing hurdles about its self-driving car operations in
Neva- d the USA” digiwatch. Web. 23 May 2018 (available: https://dig.
watch/updates/uber-facing-hurdles-about-its-self-driving-car-
55. “Our autonomous future : How driverless cars will be the operations-usa).
first robots we learn to trust”, available at http://www.
techrepublic. com/article/our-autonomous-future-how- 61. Ibid
driverless-cars-will-be- the-first-robots-we-learn-to-trust/ 62. Jon Martindale, Germany creates its driverless car legislation,
56. “AUTONOMOUS VEHICLES | SELF-DRIVING VEHICLES February 6, 2015, available at http://www.telematics.com/
ENACTED LEGISLATION” Available at http://www.ncsl.org/ ger- many-creates-its-driverless-car-legislation/
research/transportation/autonomous-vehicles-self-driving- 63. Department of transport, The Pathway to Driverless Cars
vehicles-enacted-legislation.aspx Sum- mary report and action plan, February 2015, available
57. National Conference of State Legislatures, Self- driving at https:// www.gov.uk/government/uploads/system/
vehicles legislation- http://www.ncsl.org/research/ uploads/attachment_ data/file/401562/pathway-driverless-
transportation/auton- omous-vehicles-legislation.aspx cars-summary.pdf

© Nishith Desai Associates 2018 11

 Provided upon request only

for a live test of its wirelessly connected Gothenburg.69 Gothenburg City Planning
driverless Mercedes-Benz trucks. Volvo also Authority has placed itself as a global pioneer by
had planned on putting 100 autonomous being the first city to examine the interaction
cars on Germany’s streets by 2017.64 between autonomous vehicles and sustainable,
long-term urban planning. The city will explore
In a press release last, Germany declared
the effects and benefits of technology, including,
an action plan formulated by an Ethics
futuristic parking facilities, enhanced road
Commission. An ethical assessment of areas
safety, accessibility, and implications to the use
such as person v. property damage as well as
of public space.70 Driverless buses are also being
non-discriminatory damage was conducted.65
tested in two parts of Gothenburg,as reported
One of the recommendations was that human
by Drive Sweden, which is the government’s
life should always have priority over property
innovative vehicle technology partnership
or animal life.66 Further on, Germany may
which includes Volvo Cars and Volvo Buses,
have created a framework for other countries.
Nobina, RISE and KTH.71
It allows testing with a driver’s hands off the
wheel, but the carmaker is responsible for
accidents if the system fails. V. France
These new ethics rules, along with the
France published its roadmap for automated
abovementioned laws, have the potential of
vehicles as early as in July 2014 indicating pilot
influencing other countries. For instance, the
zones for testing, changes to driver training and
Chinese government is considering German laws
research, and development projects running till
pertaining to the use of self-driving cars, and is
2018, with the authorization of experimental
likely to adopt some parts of the rules to develop
on-road testing of highly automated vehicles.
a comprehensive regulatory frameworks around
In October 2015, at the Intelligent Transport
the operation of autonomous vehicles.67
Systems (“ITS”) World Congress, on receiving
authorization to carry out the testing of
IV. Sweden autonomous vehicles, four self-driving cars
traveled 360 miles between Paris and Bordeaux
Sweden has already permitted testing of highly on open roads in France.72 Navya, a start-up in
automated vehicles on public roads as part of France that makes driverless shuttles, has raised
the Volvo ‘Drive Me’ project, which aims at $34 million to further their production and
making self-driving cars synonymous with innovation at a faster basis.73
safety,68 in restricted areas in and around
The French Government, in pursuance of their
‘New Industrial France’ plan, and along with other
countries such as Italy and Germany had proposed
64. Daniel Johnson, UK to be ‘driverless car world leader’, 05 Dec
2013, available at http://www.telegraph.co.uk/technology/
news/10497814/UK-to-be-driverless-car-world-leader.html
69. “Volvo to unleash self-driving cars on Swedish roads”
65. “Germany to create world’s first highway code for driverless March 1, 2015, available at http://www.autonews.com/
cars”, September 21, 2016, available at https://www. article/20150301/ OEM06/303029948/volvo-to-unleash-self-
newscientist. com/article/mg23130923-200-germany-to- driving-cars-on-swed- ish-roads
create-worlds-first- highway-code-for-driverless-cars/
70. “Gothenburg – the first city to incorporate autonomous
66. “Germany Creates Ethics Rules for Autonomous Vehicles” vehicles into urban planning” Available at https://www.
Available at https://www.roboticsbusinessreview.com/ drivesweden.net/en/news/gothenburg-first-city-incorporate-
unmanned/germany-creates-ethics-rules-autonomous- autonomous-vehicles-urban-planning
vehicles/
71. Id
67. “China may adopt some of Germany’s law on self-driving
cars: expert” Available at : https://www.reuters.com/ 72. “4 Self-driving French Cars Successfully Made a 360-mile Trip
article/us-autos-autonomous-germany-china/china-may- with No Test Driver.” Tech Insider. Web. 20 Feb. 2016.
adopt-some-of-germanys-law-on-self-driving-cars-expert- 73. “France’s navya raises $34M for its self-driving shuttle bus,
idUSKCN1GR2TJ reportedly at $220M valuation”, October 11, 2016 available
68. Driving Change: Volvo’s ‘Drive Me’ Project to Make Self-Driv- at https://techcrunch.com/2016/10/11/frances-navya-raises-
ing Cars Synonymous with Safety, https://blogs.nvidia.com/ 34m- for-its-self-driving-shuttle-bus-reportedly-at-a-220m-
blog/2016/04/06/volvo-safety-self-driving/ valuation/

12 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

and supported the amendment to the Vienna Japanese gardens in the Jurong Lake District and
Convention on Road Traffic, allowing cars to the system featured an online booking system and
drive autonomously on its roads if the driver can vehicle-to-vehicle communications.79 The future
override or switch them off at any time.74 France is arrived in Singapore in August 2016 when a cab
in the process of creating a legislative framework company called Grab started offering commuters
that will permit the testing of autonomous cars driverless cars. These cars are developed by
on public roads by the year 2019. French President a company called autonomy and at the moment
Emmanuel Macron announced that Level 4 run between pre-designated pick up and drop
vehicles which are entirely autonomous, will be off points.80 Recently, it was reported that Port
used on roads in France without a human operator operator PSA Singapore may launch a tender for
behind the wheel, which the current legislation driverless vehicles at the Tuas mega port.81
requires. The government aspires France to be
Further, Singapore has built a dedicated town
at the forefront of autonomous technology in
for self-driving buses, where the secure test park
vehicles. 75 With the legislative framework for
gathers information about autonomous vehicles.
2019 being announced, the scope of geographical
The information provided by companies for
experimentation is likely to be expanded and
driverless buses is helping Singapore build
therefore will be likely to present increasingly
a database of information on the challenges and
varied driving situations which is crucial for the
solutions that would assist the government in
development of this technology.76
introducing the technology safely.82

VI. Singapore VII. Japan

In August 2014, the Land Transport Authority
Japan’s Ministry of Land, Infrastructure,
(LTA) in Singapore announced it was setting up
Transport and Tourism discussed advanced
the Singapore Autonomous Vehicle Initiative
technologies with domestic automakers in June,
(SAVI) with public road testing beginning
2013. The ministry also issued the first license
January 2015.77 In an ongoing effort to help
for automated driving to Nissan in September
Singapore develop innovative transport solutions,
2013. Backed by the government, Japan is
the Singapore-MIT Alliance for Research and
making great progress in this field. Public
Technology (SMART) launched Singapore’s very
testing is expected to begin in March, 2016.83
first locally-developed driverless car designed for
Japan has already evolved as a leader
operations on public roads.78 Further, driverless
of autonomous vehicular technology with
buggies were deployed in the Chinese and
Toyota, Bosch, Nissan, Denso, and Honda being
among the top 20 autonomous innovators.84
74. “France Greenlights driverless car trials on public
roads”, August 5, 2016, available at https://www.rt.com/
79. Michael Fitzgerald, Singapore Wants a Driverless Version of
news/354683-france- driverless-car-trials/
Uber, December 23, 2014, available at https://www.technolo-
75. “France to amend legislation for autonomous vehicle trials” gyreview.com/s/533601/singapore-wants-a-driverless-
3 April 2018. Available at: https://www.autovistagroup.com/ version-of- uber/
news-and-insights/france-amend-legislation-autonomous-
80. “World’s first self-driving Taxis debut in Singapore”, August
vehicle-trials
24, 2016, available at https://www.bloomberg.com/news/arti-
76. “Make self-driving cars pass driving test, agency says” cles/2016-08-25/world-s-first-self-driving-taxis-debut-in-singa- pore
Available at: https://www.connexionfrance.com/French-
81. “Driver less tests on public roads started” Available at: https://
news/Make-self-drivineeg-cars-pass-driving-test-agency-says
www.bloomberg.com/news/terminal/P4DAOI6S9728
77. Leslie Hook, How driverless cars are set to reinvent and
82. “Singapore Built a Dedicated Town for Self-Driving
humanise our streets, 7 december 2016, available at
Buses” Available at https://www.bloomberg.com/news/
https://www. ft.com/content/19cd31da-b71d-11e6-ba85-
features/2018-06-04/singapore-built-a-town-to-test-
95d1533d9a62
autonomous-self-driving-vehicles
78. SMART launches first Singapore-developed driverless car
83. Boyd, John. “Japan’s Plan to Speed Self-Driving Cars.” Web. 16
designed for operations on public roads, available at http://
Feb. 2016
smart. mit.edu/news-a-events/press-room/article/42-smart-
launch-es-first-singapore-developed-driverless-car-designed- 84. IP and Science business of Thomson Reuters, The State of
for-opera- tions-on-public-roads-.html Self-Driving Automotive Innovation. 2016. Web. 17 Feb.2016.

© Nishith Desai Associates 2018 13

 Provided upon request only

Tokyo, the largest metropolitan area in the world, an issue.88 Furthermore, driverless pod cars are
aims to have autonomous vehicle services on set to run on dedicated double-decker roadway
the public roads in time for the 2020 Summer around Amritsar, Punjab, according to Ultra
Olympics and has already begun test runs for Fairwood, a tie-up between a U.K-based and
these vehicles.80 The government will attempt to an Indian company, which is developing the
commercialize this system as early as 2022.85 driverless pods for the city.89
Prime Minister Shinzo Abe’s government has India has been toying with the driverless
allocated about ¥2 billion for the advancement concept by carrying out tests, running
of technologies necessary to achieve this aim. a driverless metro in Delhi and plans to
Furthermore, some of Japan’s top automotive- introduce driverless pods in Gurgaon,
tech houses have begun the task of 3-D mapping Haryana.90 In fact, India is not far behind in
the country’s roadways to get them ready for developing its very own locally manufactured
autonomous vehicles. Their aim is to build driverless car. A research group of 30 from
a multilayered “One Stop” map that features, Indian Institute of Technology in Kharagpur
both static and dynamic information, needed for launched an ambitious start up called AURO
autonomous vehicles to navigate safely. to launch India’s first driverless car. They are
currently working on a ‘driverless shuttle’ to
replace manually driven. Carts and mini-
VIII. India buses in university and company campuses,
large industrial sites, theme parts and gated
Novus Drive, a driverless shuttle, was the first
residential communities. Mahindra Reva,
of its kind to debut in the country,86 and was
an ‘electric car’ subsidiary of the eminent
seen carrying visitors from one dome center to
automaker Mahindra and Mahindra, has
another during its showcase at the Defexpo 2016
submitted proof of concepts for driverless
held in New Delhi.87 The Novus Drive is slated
cars in the UK and Singapore and has already
to re-invent the internal transport system for
begun experiments in its R&D facility in
universities, college campuses, hospitals, senior
Bengaluru.91 It plans on testing these cars on
citizen’s clubs, theme parks and other such
roads abroad, once they have obtained the
institutions where internal commuting poses
requisite permissions. Robert Bosch, the German
electrical and engineering company, considers
India to be a potentially strong market for
autonomous vehicles.92 However, they warn
that given the condition of roads and traffic in
India, the fully autonomous vehicles might
85. “Japan looks to launch driverless car system in Tokyo by
2020: Avialable at: https://www.reuters.com/article/us-japan- come later than in other countries.
economy-strategy/japan-looks-to-launch-driverless-car-
system-in-tokyo-by-2020-idUSKCN1J00VN
86. Novus-Drive is the first driverless shuttle in the country. The
vehicle seats 14 people and can autonomously navigate on its
88. John Greenough, BI Intelligence, 10 million self-driving cars
own with its high fidelity sensors and robust algorithms
will be on the road by 2020, Jul. 29, 2015 available at http://
for path planning and navigation. The vehicle is indigenously
www.businessinsider.com/report-10-million-self-driving-
manufactured. Among other features is its battery run
cars-will-be- on-the-road-by-2020-2015-5-6?IR=T
mechanism i.e. the vehicle is 100% environment friendly
and runs 150 kms per charge. It uses 3d lidars, GPS/INS and 89. Saptarishi Dutta, Driverless Cars to the Golden
stereo vision cameras for its external world perception and is Temple, Jun 10, 2013, available at http://blogs.wsj.com/
controlled with deeply integrated drive by wire system and indiarealtime/2013/06/10/ driverless-cars-to-the-golden-
is environment friendly - THRSL receives huge applause for temple/
Novus-drive, the driverless vehicle, available at http://www.
90. BHOOMIKA, India’s step in TEVs (Technology Enabled
motorindiaonline.in/ applications/hi-tech-demonstrates-
Vehicles, APRIL 22, 2016, available at http://businesswolf.org/
driverless-vehicle-capabili- ty-with-novus-drive/
indi-as-step-tevs-technology-enabled-vehicles/
87. Defexpo India 2016,wasthe ninth in the series of biennial
91. “Mahindra Dabbling in Driverless Cars? - News - NDTV
Land, Naval and Internal Homeland Security Systems
CarAnd- Bike.com.” CarAndBike. Web. 17 Feb. 2016.
Exhibitions. Defexpo India is clearly steering the path of
steady growth and has been receiving overwhelming and 92. “India Will Be a Market for Autonomous Driving: Bosch.”
unprecedented interna- tional response with each edition. Www. autocarpro.in. Web. 15 Feb. 2016.

14 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

Earlier in 2016, news reports arose that Dr. within the next decade, fueling a domestic
Roshy John, head of the Robotics and Cognitive semiconductor industry and encouraging
Systems division at Tata Consultancy, has Baidu to create a self-driving platform called
developed his own self driving car by adding Apollo. The search-engine giant announced
the requisite technology to a Tata Nano.93 All the $1.5 billion Apollo Fund to invest in 100
that he requires is permission from the traffic autonomous-driving projects over three years.
police for the test ‘drive’. He is of the opinion TuSimple Inc., a Beijing-based startup developing
that achieving the effectiveness of driverless self- driving trucks, plans to start commercial
car technology in India would be far more operations in Shanghai and Arizona.95
complicated as predicting the motion pattern
The Chinese Government had announced last
of everything on the road in India is not as
year that it wants half of all new vehicles to be
straightforward as one would imagine it to be
equipped with some automation by 2020. The
in a developed nation. Driverless cars may not
nation is putting “everything in place to lead on
seem feasible in Indian cities of today. They
AVs,” the report said. Companies registered in
could however be kept in mind while designing
China and were previously testing self-driving
future smart cities in India and upgrading
cars in enclosed spaces will now be eligible
current cities.
to apply for permission to test their vehicles
Last year, the Union Minister of Road Transport on Beijing’s bustling roads.96 China proposes
and Highways stated that driverless vehicles that provincial authorities manage tests -– an
would not be permitted on Indian roads as they approach federalist North American countries
pose a threat to employment.94 could benefit from. Seventeen U.S. states and
only two Canadian provinces -- Ontario and
Recently, however, there was a proposed
Quebec -- allow road tests.
amendment to the motor vehicles law through
the Motor Vehicles Amendment Bill, 2016
(“MV Bill”) to promote innovation of AV X. Other Countries
technologies. The MV Bill suggests that certain
types of vehicles may be exempt from the In Australia, the transport ministers have
applicability of the provisions of the statute. announced new legislation that will allow
The MV Bill is still pending before the Parliament. automated vehicles to drive on its roads.97
Australia is also setting up a development lab for
connected and autonomous vehicles developed
IX. China in addition to allowing such cars to test them over
the South Australian Roads.98 The United Arab
China in April of 2018 issued draft guidelines
Emirates has also started test runs for driverless
on road testing AVs and is reviewing a final
version. The technology behind self-driving
cars is considered critical to the government’s
plan to elevate the nation’s standing in the
global auto industry. China intends to deploy 30
million vehicles with some degree of autonomy 95. “China issues first licenses to road test driverless vehicles”
Available at : https://www.reuters.com/article/us-china-autos-
selfdriving/china-issues-first-licenses-to-road-test-driverless-
vehicles-idUSKCN1GD5AW

93. Nash David, “Indian techie builds self-driving Tata Nano; 96. “China Is Opening Up City Roads for Driverless Cars”
could retrofit any car in one hour!” Firstpost, 16 March, 2016 Available at: https://www.technologyreview.com/
(Available - http://tech.firstpost.com/news-analysis/indian- the-download/609807/china-is-opening-up-city-roads-for-
te- chie-builds-self-driving-tata-nano-could-retrofit-any-car-in- driverless-cars/
one- hour-301971.html) 97. https://www.ntc.gov.au/about-ntc/news/media-releases/
94. Girish Shahane, What Nitin Gadkari fails to understand transport-ministers-agree-to-drafting-new-australian-driving-
about driverless cars (and other technology), Scroll.in, laws-for-automated-vehicles/
available at: https://scroll.in/article/845025/what-nitin- 98. “RACV calls for reform on driverless cars”, November 2, 2016,
gadkari-fails-to-understand-about-driverless-cars-and-other- available at http://www.3aw.com.au/news/racv-calls-for-law-
technology. re- form-on-driverless-cars-20161101-gsfv6s.html

© Nishith Desai Associates 2018 15

 Provided upon request only

vehicles.99 The Canadian Automated Vehicles with a significant level of funding. In addition to
Centre of Excellence has also released a white it recognizing the loss of jobs due to automation,
paper on preparing for autonomous vehicles even though it will lead to a safer, efficient and
for the government of Canada which lays down environmentally sustainable transportation
on how to smoothen the process of entry of system. It also recommends appointing of
these vehicles in Canada.100 The paper suggests a senior level working group to directly
setting up of the Canadian Autonomous Vehicle coordinate autonomous vehicle activities
Initiative (CAVI) to coordinate the deployment of across all federal departments and agencies.
Autonomous Vehicles in Canada and to promote In Netherlands, driverless buses have begun
R&D and testing to create an efficient ecosystem, their test runs ferrying people on a public road.101

99. “Driverless vehicles test run in Dubai”, April 25,

2016, available at http://www.thenational.ae/uae/
transport/20160425/driver- less-vehicles-test-run-in-dubai
101. “Driverless bus trial in Netherlands is first on Public roads”,
100. “Preparing for Autonomous Vehicles in Canada”, December January 28, 2016, available at https://www.theguardian.com/
16, 2015, available at http://www.cavcoe.com/Downloads/ technology/2016/jan/28/driverless-bus-trial-in-netherlands-
CAVCOE_ AV_White_Paper.pdf will- be-first-on-public-roads

16 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

7. Legal Ramifications
manufacturer, driver or the third party.
I. Liability and Insurance In another accident in Indianapolis in a Tesla
where two people lost their lives. The police
When autonomous vehicles get involved
were investigating if the Autopilot played a role
in accidents, the issue of liability may get
in the accident or not.105 Reports found that
complicated as resolving the question of fault
the driver of the car was drunk and that it was
will indeed require consideration of novel and
unlikely that the autopilot system had been
challenging questions.102 The existing test
turned on.106
determines the driver’s liability and adjudicates
accordingly, but in cases where there is no The issue of liability will be critical in
driver and the car runs entirely with software determining whether any personal cover is
assist, there needs to be different parameters of warranted by the driver.107 It is argued by
consideration. Traditionally, the underwriting some that the manufacturer or seller should
criteria for insurance companies depended on be held liable if the autonomous system failed
the number and kind of accidents an applicant to properly control the vehicle, rendering the
has had, the miles he or she expects to drive, and car in a defective and unreasonably dangerous
the place where the car is to be garaged. While condition.108 In fact, given that autonomous
these criteria would continue to apply, the make, vehicles promise to improve safety standards
model, style and the manufacturer of the car may manifold, one may have to pay a much higher
assume greater importance. In the driverless premium if one chooses to drive cars on their
future, actuaries may have to replace calculations own rather than let the computers take over.
about individuals with issues such as hacking of
cars, analyzing which parts of the country have
better satellite imagery etc. They will also have
II. Standard of performance
to identify the difference in quality of the safety and care
features across driverless cars.
Laws and regulations will have to be enacted
A recent accident wherein an American citizen
accordingly, setting standards of performance for
lost his life when he put his Tesla-S into its
autonomous vehicles to abide by. Everything from
autopilot mode, and the car’s sensors failed
speed, the requirement of a human operator in
to distinguish an 18 wheel truck against
case of emergencies, licensing, roads, permissible
a bright sky has brought attention to the lack of
infrastructure, penalties, and liabilities in case
regulations surrounding autonomous cars.103
of damage to third parties or otherwise, level of
The Tesla car crash highlights the various issues
automation permissible, inter alia, have to be
that remain unresolved.104 The accident has
accounted for in addition to ethical issues.
raised ambiguities regarding ascertainment of
liability and whether it ought to rest on the car

105. “Indianapolis Police are investigating a fatal crash involving

Tesla”, November 4, 2016, available at http://fortune.
102. John Villasenor, Products Liability and Driverless Cars:
com/2016/11/04/ tesla-autopilot-crash-indiana/
Issues and Guiding Principles for Legislation, April 24,
2014, available at http://www.brookings.edu/research/ 106. “Tesla driver in double fatal crash was intoxicated, Indianapolis
papers/2014/04/products-lia- bility-driverless-cars-villasenor police say”, CBS, February 2017, (available: https://www.
cbsnews.com/news/tesla-driver-double-fatal-crash-
103. “Tesla Driver dies in first fatal car crash while using autopilot
intoxicated-indianapolis-police).
mode”, July 1, 2016, available at https://www.theguardian.
com/ technology/2016/jun/30/tesla-autopilot-death-self- 107. Atkins Ltd., Connected and Autonomous Vehicles. 2016.
driving-car- elon-musk Web. 19 Feb. 2016. Introducing the Future of Mobility
104. “Tesla Accident Highlights Issues With Self-Driving Cars 108. “Tesla autopilot crash : Liability, Insurance Issues abound”,
and In- surance”, July 9, 2016, available at http://guardianlv. July 5, 2016, available at https://www.langdonemison.com/
com/2016/07/ tesla-accident-highlights-issues-with-self- firm-news-collection/2016/7/5/tesla-autopilot-crash-liability-
driving-cars-and-insur- ance/ insurance-issues-abound

© Nishith Desai Associates 2018 17

 Provided upon request only

The issue of liability in a situation where there is in the United States addressing automotive
a collision between two driverless cars also needs cybersecurity standards. The “Grow America”
to be determined as it would involve all parties Act in Congress.111 In the United States is
involved in assembling and manufacturing intended to make hacking a vehicle,
the two cars, thereby warranting a long list of a criminal offense. Introduced in July 2015,
plaintiffs and defendants in a potentially ensuing the bill looks to establish minimum security
litigation. After years of research, the technology levels for any vehicle software in contact with
behind driverless cars is fast approaching physical driving controls.
standardization. The laws regulating them
The Bill also requires car manufacturers to
however still have a lot of catching up to do.
establish real time monitoring to detect, report
For example, in case of an impending collision,
and prevent cyber-attacks. NHTSA is already
should the computer in an autonomous car
working on security protocols, trying to ensure
work to save the car occupant or the pedestrian?
that vehicles can send and receive trusted
Questions such as this relating to the ethics and
messages and instructions and has also welcomed
civility around driverless cars remain unresolved
the move of automakers in taking responsibility
and is giving policy makers across the globe a lot
for accidents involving their auto- mobiles. Volvo,
to think about.
Mercedes, and Google have already taken the
onus of the liability for their vehicles.112
III. Privacy, Data Protection, There is immense potential for intrusion into
and Cyber Security the personal lives of people as well. User data
could be utilized by parties to personalize
The safety and security of personal information advertisements displayed in the car, or even to
in autonomous vehicles, interconnected through adjust a vehicle’s route so that it passes retail
a central server, is of utmost importance. With outlets which may match a user’s imputed
no provisions or regulations protecting the data preferences.113 Some experts, like Barrie Kirk,
collected by driverless vehicles, sensor-laden director of the Canadian Automated Vehicles
driverless cars have the potential for serious Centre of Excellence (CAVCOE)114 states that
privacy violations. Primarily, all the information the market for advertising is far greater than
about the occupants can be derived — who they the transportation market and companies like
are, where they’ve been, where they’re going and Google, Apple have the means to harvest this
what their preferences are. Unauthorized parties data and that is the precise reason why they’re
such as hackers and terrorists could illegally investing in these cars so much.115 Furthermore,
access a person’s regular travel route, alter records, user data acquired by insurance and telecom
instigate attacks on the system or invade privacy sectors shall also have to be adequately protected.
by tracking individual vehicles.109
From a hacker’s perspective, as more and more
cars are connecting to the internet, the potential
surface area for a cyber-attack increases 111. A transportation funding bill supported by the Obama
administration
drastically.110 The notion of hacking a car over
112. Risen, Tom. U.S. News. 8 Oct. 2015. How safe is a Self-Driving
the internet seemed like science fiction a few Car?
years ago. Today, it has become a real possibility. 113. “Self-driving Cars: A Spy on Every Street?” World Economic
In July 2015, the first ever bill was introduced Forum. Web. 17 Feb. 2016.
114. CAVCOE provides consulting services, analyses and
recommendations to all stakeholders who are involved in
the deployment of automated vehicles (AVs) and/or who will
109. KPMG LLP,. Self-Driving Cars: The Next Revolution. 2012. be impacted by their arrival. These stakeholders include all
Web. 15 Feb. 2016. levels of government, public sector agencies, private sector
110. Security Nightmare of Driverless Cars, October 25, 2015, companies, and industry associations (www.cavcoe.com )
available at http://www.tripwire.com/state-of-security/ 115. “Driverless Cars : The Unanswered Questions”, October 31,
securi- ty-data-protection/cyber-security/security-nightmare- 2016, available at http://ottawacitizen.com/news/local-news/
of-driver- less-cars/ driver- less-cars-the-unanswered-questions

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 Preparing For a Driverless Future
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The FBI also has serious concerns with To avoid scenarios where hackers may be able
autonomous vehicles as it predicts that to render utter chaos on a six-lane high way
criminals and terrorists could use these as lethal full of autonomous vehicles, the car industry
weapons. It predicts that a scenario is possible will have to come together to create a security
whereby suspects continue shooting at pursuers consortium that will share information about
from getaway cars that are driving themselves potential threats without sharing trade secrets.
in a car-chase. It also fears that criminals In the same manner, other governments too
might override safety features to ignore traffic will have to enact appropriate legislations in
lights and speed limits or that terrorists might order to ensure that user data is not abused in
program explosive-packed cars to become self- any manner. Industry leaders will have to come
driving bombs.116 In case of Automated Cars forward and work together in order to ensure
with no drivers and sharing based cab hailing that the transition into the driverless age is as
services, the privacy and safety of passengers smooth as possible. However, one must also be
could also be compromised whereby there will vary of over-regulation. If the car manufactures
be no human element to protect the passengers must meet different privacy and security
in case of any danger from other co-passengers. standards for each jurisdiction, the heavy
compliance and cost burdens pertaining to the
same might deter the growth of the industry.
Therefore, a uniform global standard concerning
data protection and security for autonomous
vehicles ought to be considered.

116. “FBI warns Driverless cars could be used as lethal weapons”,

July 16, 2014, available at https://www.theguardian.com/
technolo- gy/2014/jul/16/google-fbi-driverless-cars-leathal-
weapons-autonomous

© Nishith Desai Associates 2018 19

 Provided upon request only

8. Indian Laws
In the amended MV Act of 1988, Sections 140
I. Motor Vehicles Act, 1939. to 144 provide for award of compensation
resulting from an accident arising out of the
The Motor Vehicles Act, 1939 (“MV Act”),
use of motor vehicles. The compensation in the
mandates that a motor vehicle may not be driven
abovementioned sections will be based on the
without a driving license.117 Secondly, no person
principle of “No fault”.123 Section 144 of the Act
under the age of 18 is allowed to drive a motor
attaches strict liability to the owner or on their
vehicle. The MV Act places the responsibility
behalf to the insurance company.
on the owner of the vehicle to ensure that the
above mentioned provisions are complied Recently, there was a proposed amendment
with. The question that arises is whether such to the motor vehicles law through the Motor
responsibilities of the ‘owner’ of the vehicle Vehicles Amendment Bill, 2016 (“MV Bill”)
would still exist in the age of autonomous cars. to promote innovation of autonomous
Appropriate amendments would have to be made technologies. The MV Bill proposes a new
to the MV Act allowing for a special sort of license Section 2B, which aims to give flexibility to
for autonomous vehicles or none at all. Given the government to exempt new technologies,
that most of the functions of an autonomous inventions or innovations in the form of
vehicle, if not all, would be controlled by internal mechanically, propelled vehicles from the
processors, the question also arises whether provisions of the MV Act to promote such
people below the age of 18 would be allowed to technologies and innovations.124 However, the
‘operate’ the said vehicle. MV Bill is pending before the Parliament.
Another issue that requires attention pertains
to the requirement of registration of cars as II. Consumer Protection Act,
provided for in the MV Act,118 in the procedure 1986
as provided for in Section 41. Importantly, the
State Government, by virtue of the MV Act
In the case of a driverless car getting into an
currently holds the power to restrict the use
accident, the issue of liability may lead to legal
of vehicles ‘in the interest of public safety’,119
complexities initially. Manufacturers will
as well as ‘make regulations for the driving of
be held to a higher standard of responsibility
motor vehicles’.120 It is therefore a possibility
than they are currently expected to maintain.
that states might differ on the regulations that
Issues pertaining to negligence, manufacturing
govern autonomous cars.
defects, design defects, failure to warn,
The MV Act initially provided for the award of misrepresentation, unfair trade practices, breach
compensation on the principle of “fault” only. of warranty and strict liability will fall under
The Supreme Court in Manushri Raha v. B.L. the Consumer Protection Act, 1986 (“CPA”).
Gupta121 as well as the Law Commission of The CPA also establishes the right to consumer
India had recommended the introduction of education. The consumer will have to be
“no fault” liability which was subsequently not educated accordingly, on how the driverless cars
incorporated.122 operate and how not to panic and take control in

117. Section 3(1) Motor Vehicles Act, 1939 123. Section Motor Vehicles Act Act, 1988 – Liability to pay
compensation in certain cases on the principle of no
118. Section 39 & 40 Motor Vehicles Act, 1939
fault; Section 141 - Provisions as to other right to claim
119. Section 115 Motor Vehicles Act, 1939 compensation for death or permanent disablement; Section
142 - Permanent disablement; Section 143 - Applicability of
120. Section 118 Motor Vehicles Act, 1939
Chapter to certain claims under Act 8 of 1923; Section 144 -
121. 1977 AIR 1158 The provisions of this Chapter shall
122. Section 186 Motor Vehicles Act, 1939 124. Section 2B, Motor Vehicles (Amendment) Bill, 2016.

20 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

case of emergencies. Since driverless technology IV. Geospatial Information

discounts the possibility of human error, the Regulation Bill, 2016
liability would lie either with themanufacturer
or the technology provider, as the case may be,
Driverless cars would require enhanced
for a defect in goods or deficiency in services,
mapping technology and increased investment
respectively. Considering that consumer
in satellite infrastructure in order to ensure
concerns about liability could represent
that such cars are provided a detailed and
a roadblock to acceptance of driverless cars,
highly accurate global positioning system, not
Volvo, Google and Daimler AG’s Mercedes-Benz
only to autonomously and accurately arrive
have all pledged to accept liability in the event
at its destination, but to also circumvent the
that their vehicles were to cause an accident.125
various obstacles en-route. The draft Geospatial
Information Regulation Bill, 2016, introduced
III. Information Technology to regulate the acquisition, dissemination,
Act, 2000. publication and distribution of geospatial
information of India, will bring the driverless
car under its ambit. The Bill is still in the
Privacy and data protection would primarily
discussion stage.
come under the Information Technology Act,
2000 (“IT Act”) and Information Technology
(Reasonable security practices and procedures V. Personal Data Protection
and sensitive personal data or information) Bill, 2018
Rules, 2011. (“IT Rules”) which inter alia, lay
down provisions for the protection of Sensitive
The operation of driverless cars would
Data and Personal Information (“SDPI”).
involve the processing of certain information
Section 66 of the IT Act classifies hacking as the
such as driver details and location history,
situation where someone who, with the intent
which could be classified as ‘personal data’.
to cause wrongful loss or damage, or knowledge
Recently, the Personal Data Protection Bill,
of the same – destroys, deletes or alters any
2018 (“Data Protection Bill”) was released
information in a computer resource, or diminishes
by the Committee of Experts entrusted with
its value, or affects it injuriously. The scope of such
creating a Data Protection Framework for India
provisions will have to be enlarged accordingly
(“Committee”). Under the Data Protection Bill,
to account for scenarios where a hacker may
there is a requirement for a ‘data fiduciary’ to
take over complete control of a vehicle, by
provide prioradequate notice to the person data
hacking into a computer or a central processor
is collected from, including the reasons for data
operating driverless cars and coordinating
collection.
traffic. Laws will also have to incorporate
necessary provisions dealing with protection
and responsible utilization of passenger data,
along with increasing threat of hackers, cyber
espionage and warfare.

125. Mark Harris, Why You Shouldn’t Worry About Liability

for Self-Driving Car Accidents, 12 Oct 2015 available at
http:// spectrum.ieee.org/cars-that-think/transportation/
self-driving/ why-you-shouldnt-worry-about-liability-for-
selfdriving-car-accidents

© Nishith Desai Associates 2018 21

 Provided upon request only

In the context of driverless cars, the car updates etc. especially if additional modes and
manufacturer could be termed to be the ‘data techniques of processing personal data are
fiduciary’ as it determines the purpose of deployed. Additionally, the Data Protection Bill
processing the driver’s personal data. “Personal also mandates that parental consent would be
data” has been defined as “data about or relating required for the processing of personal data of
to a natural person who is directly or indirectly children below the age of eighteen years. The
identifiable, having regard to any characteristic, high age limit imposed by the Data Protections
trait, attribute or any other feature of the identity Bill may pose an obstacle in the seamless
of such natural person, or any combination of such operation of autonomous vehicles by young
features, or any combination of such features with adults may have to seek parental consent,
any other information.” For personal data to be possibly before each ride prior traveling in an
collected, consent would have to be obtained autonomous vehicle by themselves. Therefore,
from the data subject, unless specifically vehicle manufacturers would do well to design
excluded. Identifiers such as the names of autonomous vehicles around the emerging
those operating driverless vehicles, tied to their privacy framework as the recent focus on data
location preferences, could constitute personal privacy, both by the Central Government
data and thereby be subject to consent, notice, and the judiciary has indicated that the Data
data storage, and purpose limitation restrictions Protection Bill will be passed in one form or the
under the Data Protection Bill. other, sooner or later.
In its present form, the Data Protection Bill is While the said Data Protection Bill is yet to be
likely to apply to the operation of driverless cars. tabled in the Parliament, the driverless future
While the intention behind it is virtuous, this ought to be kept in mind, so as to enhance and
may create some practical hurdles to operation not diminish the positive externalities that
of driverless cars as expressed consent may a driverless future promises to have upon
have to be sought prior to making significant society at large.
changes in the features in the form of software

22 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

9. Challenges to Implementation
Infrastructure and legislation will have to keep might take up to 15-20 years in India given the
pace with more developed nations if India is to social mileage attached to the act of driving.
tap into the potential of the driverless future.
Another major concern surrounding the
Standardization of supporting infrastructure,
introduction of driverless cars is its staggering
roads and an improvement in support
impact upon employment. Oxford researchers
technology such as mapping & GPS will have to
Carl Frey and Michael Osborne found in
be fast tracked. Low-tech cars, lack of adequate
2013 that approximately 47% of jobs are
infrastructure for the handicapped, poor road
susceptible to automation. While these
discipline, lack of strict regulations, poor
fears have persisted with the rapid pace of
enforcement of traffic rules, inexperienced and
technological development, they are grounded
first-time drivers are some of the immediate
in the reality that driverless cars would render
issues that come to mind. Such issues are not
millions employed in the vocation of driving,
limited to India. Even Europe is faced with
unemployed. The ripple effect of the driverless
issues such as the complexity of roads, streets,
future shall also be felt by people employed to
tunnels, and societal resistance to the idea.
market, insure and provide ancillary services.
There is also a regulatory lacuna due to the lack
of a pan-European legislation governing the use In a matter involving Uber, the UK Employment
of autonomous cars.126 Similiarly, poor road tribunal while quashing claims made by the
markings and uneven signage on paved roads in company that its drivers were not its employees,
the United States is now forcing automakers to held that the drivers are in fact employed by
develop more sophisticated sensors and maps.127 the company, and therefore have all the rights
Such issues are however more severe in India. given to all employees. The current surge in
Major challenges and possible measures to tackle the number of drivers employed by cab service
them are discussed in further detail below; providers and aggregator services in India’s
metros, could be reversed with driverless cars
offering companies a cheaper and more efficient
I. Socio-economic hurdles alternative to a human driver. India could see
large scale labor disputes that arise under job
With its unique socio-cultural blend, India
terminations. This can be an overwhelming
has always set itself apart from her western
challenge given that India is already reeling
counterparts in the assimilation of technology
under the burden of deploying resources to
into its social and cultural fabric. Its long
counter its immense poverty and illiteracy.
history of distinct financial classes has made
the automobile a symbol of success. The twin
ideas of driving and engaging a chauffeur, are II. Local infrastructure
status enhancing symbols in India. Attaining
the driver’s license has been primarily linked The cars would need to be customized keeping
with the notion of growing up and turning into in mind the nature of Indian roads. Information
adults from adolescents. It has been estimated about speed limits, height and width restrictions,
that a complete transition to driverless cars types of road traversed, common or restricted
use for a particular type of transportation
such as bullock-carts, cyclists, two wheelers,
126. Carl Fenger, International Eye - Driverless Cars: The trucks, animal crossings would have to be fed
View from Europe, Apr/May 2015, available at: http:// into the systems and algorithms accordingly
connectedworld.com/ driverless-cars-the-view-from-europe
tweaked. Potholes, speed breakers, road dividers
127. Alexandria Sage, Where’s the lane? Self-driving cars
confused by shabby U.S. roadways, Mar 31, 2016, available at dangerously placed on highways by the police,
http://www. reuters.com/article/us-autos-autonomous-infra- gravel and tar left by road repair crews, open
structure-in-sig-idUSKCN0WX131

© Nishith Desai Associates 2018 23

 Provided upon request only

drainages, supplemented with uniquely Indian be equipped with extra sensitive sensors. The
traffic obstructions such as cattle or religious cars would also have to discern a variety of life
festivals being celebrated on the roads would forms of different compositions including stray
mean that, driverless cars would have to be animals and people sleeping on the streets in
especially smarter if they are to take over order to detect and avoid such obstacles.
Indian roads. There is already a shortage of
servicing centers even for normal cars in rural
India. Driverless cars are going to face similar
IV. Legislative & Regulatory
issues. Investments in adequate servicing Hurdles
infrastructure will have to accordingly increase.
The Indian government has so far reacted with
Driving conventions like traffic lights and
suspicion and has curtailed new technologies
dedicated lanes could become obsolete.
if their impact is not yet fully understood. This
Transit could develop into a complex web of
can be seen with the banning of the usage
robotic maneuvering that no human brain
of drones for any purpose whatsoever129
can navigate.128 A vast majority of the Indian
and denying permission to google for
population cannot afford an automobile and
using ‘street view’ through which a user can
will have to depend on existing infrastructure
access 360-degree panoramic and street level
for their daily commutes, making the transition
imagery.130 India’s reaction to a driverless future
more difficult.
remains, at this juncture, uncertain. Notably,
security establishments have grown vary of
III. Perception of allowing enhanced levels of image capturing
Surroundings and Cultural ever since the 2008 terrorists attacks revealed
how photographic reconnaissance aided the
Nuances perpetrators of the attack in their mission.
Given India’s cultural diversity, the computer
Given India’s cultural diversity, the computer operating the driverless car will have to adapt to
operating the driverless car will have to adapt to localized graphical representations, informative
localized graphical representations, informative signs, traffic symbols and language barriers.
signs, traffic symbols and language barriers. Further, the issue of a lack of trust could arise
Further, the issue of a lack of trust could arise given the Indian consumer’s long standing habit
given the Indian consumer’s long standing of using landmarks for navigation rather than
habit of using landmarks for navigation rather street names. As discussed earlier, the Geospatial
than street names. GPS mapping would have to Information Regulation, Bill, 2016 prescribes
be made absolutely accurate in order to allow hefty penalties and jail sentences for persons in
the car to effectively perceive its surroundings breach of it. Google’s driverless car for example
and change consumer behavior. Driverless relies on information from GPS satellites. Such
Cars would also need to be able to accurately geospatial information acquired through space
interpret the various hand signals and and aerial platforms would perhaps require the
indications such as flashing of headlights that owner, manufacturer or the passenger of
are a common feature on Indian roads. a driverless car disseminating such information
to obtain a license. The bill does not provide
Auto rickshaws, scooters, mopeds, hand carts,
ox carts, cycle rickshaws, tractors and other such
vehicles of varying shapes and sizes plying on 129. “Now a flying drone can land you in prison”, February
Indian roads would require driverless cars to 15, 2016, available at http://timesofindia.indiatimes.com/
city/jaipur/Now- flying-a-drone-can-land-you-in-prison/
articleshow/50990613.cms
130. “Google Street view denied permission in India : Here’s the
reason why”, June 10, 2016, available at http://indianexpress.
com/article/ technology/tech-news-technology/googles-
128. Supra street-view-turned- down-by-india-2843618/

24 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
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an exact definition with regards to the scope It is always important that legislators
of “dissemination” and what it entails. Given comprehend the purpose and need for
the hefty penalties prescribed, if such a bill is to legislation prior to enacting it,133 possibly
become the law, without adequate clarifications, involving experts in the field for guidance.134
autonomous vehicles may be faced with Several issues may arise out of legislating upon
unnecessary regulatory hurdles which may novel technology at a premature stage.
dissuade investors.
Excessive regulation may create a chilling
effect on the growth of innovation.135 Not only
V. Innovation and the Law does this deter new players from entering the
industry, it also slows down existing players
The law can play a role in eith`er incentivizing from reaching the peak of their capabilities, as
or curbing innovation. Countries have several several of them are embroiled in attempting
different models of dealing with innovation – to comply with the regulatory requirements
while some countries have created a regulatory or challenging the same before the courts.136
grey area, others prefer to regulate innovation Therefore, it is pertinent for legislators to
within the four corners of the existing laws. anticipate the issues that may arise with new
Few regulators have adopted a forward-looking technologies and subsequently legislate upon
approach to regulating driverless cars. For it. As innovation often develops in an unfettered
instance, in the UK, the Law Commission is zone, it is key that legislators resort to regulation
undertaking a three-year review of laws to only where absolutely needed.137 Given the
prepare the legal system for the next generation general parliamentary impasse prevalent in our
of vehicles.131 The idea of a regulatory sandbox nation, one hopes that adequate legislation will
has been introduced in Singapore, where keep pace with the global driverless revolution,
driverless cars can be tested and studied prior to as India looks to become a dominant and
legislating upon it.132 influential world economy in the 21st century.

133. OECD Recommendations and Guidelines on Regulatory

Policy 2012, available at: http://www.oecd.org/gov/
regulatory-policy/49990817.pdf.
134. Gowree Gokhale, Kartik Maheshwari, Can law and policy
promote a culture of innovation?, Times of India, available
at: https://timesofindia.indiatimes.com/trend-tracking/
views-can-law-policy-promote-a-culture-of-innovation/
articleshow/63742743.cms.
131. Automated Vehicles, Law Commission, available at: https://
135. Saahil Dama, Dear Mr Gadkari, Why So Passive Towards
www.lawcom.gov.uk/project/automated-vehicles.
Autonomous Vehicles?, available at: https://www.thequint.com/
132. Singapore moves to facilitate the testing of driverless cars, tech-and-auto/open-letter-to-nitin-gadkari-on-autonomous-
available at: https://www.out-law.com/en/articles/2017/ vehicles-for-india.
february/singapore-moves-to-facilitate-the-testing-
136. See, Satish N. and Ors. v. State of Karnataka, ILR 2017 Kar 735.
of-driverless-cars/; Factsheet: Second Reading of Road
Traffic (Amendment) Bill, Land Transport Authority, 137. Adam Thierer, Ryan Hagemann, Removing Roadblocks to
available at: https://www.lta.gov.sg/apps/news/page. Intelligent Vehicles and Driverless Cars, 5 WAKE FOREST J. L. &
aspx?c=2&id=cb1d0f2e-a254-45e2-acd7-bf96b843b017. POL’Y 339 (2015).

© Nishith Desai Associates 2018 25

 Provided upon request only

10. Commercial Implications

Through the Government’s “Make in India”
I. Investments campaign, India can project itself as a provider
for hardware parts of these driverless cars and
The recent popularity of aggregators of taxi
boost its manufacturing industry. India is already
services and rental car providers indicates a fresh
in a position in terms of existing infrastructure
impetus to investment in the transportation
and legal/business environment to promote
industry. The electric car, aggregator services and
such support-based functionalities, which could
self-driven car industries are interlinked. Existing
have a huge impact on its employment growth
investors have opportunities to profitably exploit
and current investments. This could lead to
synergies between these sectors. The only barrier
increasing investments in software research in
that many of these developments face, is that,
the driverless car space and help India take a
regulations and laws have been slow in keeping
lead in providing the software requirements in
pace with the advances in the sector. It is clear
terms of both cutting edge technologies as well
that the undeniable economic benefits will lead
as constant software support services to what
to a change in the regulatory regime and help
can be estimated to be a massive surge in global
facilitate these developments.138 Moreover, as
demand in the coming years.
discussed in the earlier chapters, this field is
seeing increasing competition and cooperation India could see vast benefits in the form of
between the auto-mobile and the software employment opportunities for its large pool of
industries. This could lead to potential increased educated and technically trained population;
investments in these sectors. as well as see transformative developments in
terms of transport infrastructure, which could
India allows, through the automatic route which
realize large economic benefits arising from the
does not require government approval, Foreign
increase in efficiency. It must however be noted
Direct Investment of 100% in the electronics
that the regulatory regime must change at a pace,
and IT sector. It also provides various financial
that is, comparable to these technologies being
incentives for infrastructure development in
exploited by companies operating in the country.
Special Economic Zones, Software Technology
Parks and Information Technology Investment
Regions.139 The Indian government is also II. Tax issues
promoting R&D in the country by encouraging
establishment of start-ups that focus on Driverless cars are going to cut down
technology and innovation.140 India has government revenues which have traditionally
no dearth of technical experts and software capitalized on human errors, through
engineers and has the potential to be a major collections from DUI’s, towing fees, speeding
provider and center for such software research. tickets etc.141 Autonomous vehicles shall
eradicate such issues emanating from human
Through developing IT Parks and IT investment
flaws. The government may try and realize
regions, India could be an attractive avenue
this lost revenue through equalization tax
for such R&D development in driverless
levies, which already exists in the form of taxes
cars. Currently, the automobile industry
prescribed for a business entity in India which
and Communications sector,
makes payments in excess of Rupees 100,000 to

138. “Car makers need to focus on computers on wheels: Tony

Seba”, November 29, 2016 available at http://www.livemint.
com/Indus- try/SHH15pJpsdrk2MY8seNe8H/Car-makers-
need-to-focus-on- computers-on-wheels-Tony-Seba.html 141. “Autonomous vehicles will have tremendous impacts on
government revenue”, July 7, 2015, available at https://www.
139. http://www.investindia.gov.in/it-and-ites-sector/
brookings.edu/blog/techtank/2015/07/07/autonomous-vehi-
140. Id. cles-will-have-tremendous-impacts-on-government-revenue/

26 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

a non-resident service provider for services.142 services would be taxable in the form of an
In their current form, Equalization Levies are equalization levy, which will have to be withheld
charged on business-to- business transactions by the resident availing the service or paid by the
wherein services are rendered through digital Foreign Service Provider in the event that it has
economy transactions, which may not be a Permanent Establishment in India. The service
taxable in the traditional ‘brick and mortar’ provider may however, choose between paying
sense of a territorial notion of taxation. The Levy an income tax on the income and subjecting the
has been viewed as a way to tax such services income to the equalization levy.
without breaching International.143 It is fair
Existing tax incentives are provided to Research
to presume that with the advent of driverless
and Development activities undertaken by
cars, services that are rendered digitally may
companies, with most of the expenditure
be subject to such a levy and a similar levy
in this regard being allowed to be written
may be charged on operators, manufacturers
off and further incentives being conditional
and aggregators to recover the lost revenue
on the approval of concerned authorities
opportunities for the government.
in the sector.144 For the promotion of these
Another key area of possible taxation is when technologies and their timely advancement,
software services in the form of updates, tax benefits ought to be provided to incentivize
continuous data streams, geospatial services and start-ups in these sectors. Currently, managers
data management services, offered by service of enterprise investment scheme (EIS) funds,
providers outside India to users of driverless cars which provide investors an incentive to finance
within India. Such services would be paid for at early-stage companies by offering generous
intervals by either the user or the manufacturer of tax breaks, are funding tech start-ups
the car. Under the current tax regime, these specializing in driverless cars.145

142. “Modi Government’s new way to tax Google, Facebook

kicks in from tomorrow”, May 31, 2016, available at http://
economic- times.indiatimes.com/articleshow/52512712.
cms?utm_source=- contentofinterest&utm_ 144. P 14; http://www.ey.com/Publication/vwLUAssets/EY-tax-
medium=text&utm_campaign=cppst incen- tives-in-india/$FILE/EY-tax-incentives-in-india.pdf
143. http://www.ey.com/in/en/services/tax/ey-india-tax-insights- 145. “Investors to get tax break from driverless cars”, available
equalization-levy-indias-action-under-the-beps-agenda-for- at https://www.ft.com/content/6c175508-8b01-11e6-8aa5-
the- digital-economy f79f5696c731

© Nishith Desai Associates 2018 27

 Provided upon request only

11. From Driverless to Flying Cars

For more than a century man has dreamt of Take Off and Landing (VTOL) aircrafts would,
flying cars, the ultimate vehicle to go wherever in addition to serving these needs, would also
and whenever you want to, easily overcoming help decongest the routes and provide a safer
all sorts of barriers. The dream of a flying car has and faster way of travelling.148 It is expected
been around as long as planes and automobiles. that flying cars will enter the consumer market,
The idea featured in the first of many Popular albeit at a high price, by the next decade.149 As
Science covers in 1926 and was even promised with most pioneering technologies, its initial
by Henry Ford as early as in 1940.146 The future prohibitive costs will mean that it will take
wherein driverless automated vehicles flying some time for it to become accessible to the
about is also fast approaching. “Flying cars”, are common man, through economies of scale and
no longer a figment of futuristic romanticism, increased efficiency in production.
but are here and the race to deliver the first ones
While Tesla’s founder, Elon Musk does not find
in the commercial space is heating up.147
the concept of flying cars one that is feasible
It has long been believed that with the and backed by logic, Uber’s Head of product
congestion in our cities and the inability of Jeff Holden announced that the company was
road based infrastructure to keep up, mankind aiming to introduce its network of flying cars or
would have to take to the air to ultimately VTOL vehicles by 2020 in both Texas and Dubai,
address these difficulties. In its white paper, holding a three day “elevate summit”.150
‘Uber Elevate’, Uber points out that Vertical

148. “Fast forwarding to a future of on demand urban air transpor-

tation”, October 27, 2016, available at https://www.uber.com/
elevate.pdf
149. Flying cars just took a big step closer to being legal”, June 20,
2016, available at https://www.washingtonpost.com/news/
theswitch/wp/2016/06/20/flying-cars-just-took-a-big-step-
146. “Inside Uber’s plans to take over the skies with Flying closer-tobeing-legal/
Cars”, October 27, 2016, available at https://www.wired.
150. . The Elevate summit was a three day summit which saw
com/2016/10/ uber-flying-cars-elevate-plan/
around 72 industrialists discussing and speaking about the
147. “Flying Cars Are Here, And The Race To Deliver The First future and the road to implementation of flying cars. The
Ones Just Heated Up” Available at : https://www.forbes. company also released a document which discusses in depth
com/sites/ericmack/2018/03/07/first-flying-car-pal-v-liberty- about urban air transportation. Available at : https://www.
revealed-geneva-motor-show/#40f960e634ae uber.com/elevate.pdf

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 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

Zee.Aero’s patent diagram151

As many as nine companies are reported to be cars of today.155 The Terrafugia Transition is
working on flying cars.152 Slovakian company a prototype automobile aircraft and has been
AeroMobil has already unveiled its latest granted exemptions by the Federal Aviation
prototype of an elongated, road-ready vehicle Administration (FAA) as well as the National
with stow-able wings that can navigate both city Highway Traffic Safety Administration
traffic and the airspace and aims to announce its (NHTSA) of the United States of America on
first flying roadster as early as 2017.153 Google’s aspects of weight and stall-speed limits. The
co-founder, Larry Page has also invested more company hopes that the vehicle would be able
than $100 million in a start-up that is working to transform itself from a luxury sedan to a tilt-
towards the same objective. Some have even rotor style aircraft which could take off and land
opened waiting lists for people to purchase vertically and reach a speed of 200 mph.156
them when they are released.154
At this point there is a future for automated
Terrafugia, led by CEO and co-founder Carl cars which could effectively change the
Dietrich, has been on prototype testing since transportation landscape as we know it. An
2007. The company claims for the flying car to immediate benefit would be the reduction in
be on par with all the other high-end luxury traffic congestion, which costs the U.S. economy
alone, more than $120 billion annually.157 The
concept of flying cars has a wide appeal and
seems like the solution to solve this problem
151. Source: http://www.businessinsider.in/Larry-Page-has-
secretly- spent-100-million-building-flying-cars-here-is-a-
155. Duffer, Robert. “ Terrafugia takes flying cars to new heights.”
patent-diagram- of-one/articleshow/52672211.cms.
Chicagotribune.com N.p,,01 Aug.2015.Web.27. July 2017.
152. “9 Companies building flying cars”, June 14, 2016, available Avail- able at : http://www.chicagotribune.com/classified/
at http://www.nanalyze.com/2016/06/9-companies-building- automotive/ ct-autos-terrafugia-flying-car-20150731-story.
fly- ing-cars/ html
153. “Finally a flying car could go on sale as early as 2017”, 156. Bennett, Jay. “FAA Gives Terrafugia the Go-Ahead.” Popular
March 16, 2015, available at http://www.forbes.com/sites/ Mechanics. N.p., 14 Oct. 2016. Web. 27 July 2017.http://
eric- mack/2015/03/16/finally-a-flying-car-could-go-on-sale- www. popularmechanics.com/flight/a21481/faa-approves-
as-soon- as-2017/#3b927f95219e certification-of-flying-car-prototype/
154. “Flying car expected in market in 2018 as waiting list opens 157. “Is Hollister’s hovering aircraft Google co-founder’s flying
for future travel”, June 8, 2016, available at http://www. car”, October 22, 2016, available at http://www.mercurynews.
mirror. co.uk/tech/flying-car-expected-market-2018-8138590 com/2016/10/22/larry-pages-flying-cars/

© Nishith Desai Associates 2018 29

 Provided upon request only

in the future when even self-driven cars might testing and licensing of self-driving vehicles.159
not have any more space to ply on the saturated A network of small, electric aircrafts that take
roads of the cities of tomorrow. off and land vertically will enable rapid, reliable
transportation between suburbs and cities and,
In its endeavor to become the hub of future
ultimately, within cities. In early 2016, Ehang,a
technologies, the Road and Transport (RTA)
Chinese Tech company, released a driverless
department in Dubai has announced that they
flying car, or a drone which could hold people,
in collaboration with Ehang, will begin test runs
if you will – the first ‘Autonomous Aerial
of the much awaited autonomous aerial vehicle
Vehicle’.160 India isn’t far from seeing its first
which can carry a human. The department
flying car either. PAL-V161 of Europe is soon to
announced that operations for the same would
launch its flying car which it has been working
be launched soon. The Dubai Civil Aviation
on since as early as 2001. Kitty Hawk, is a flying-
Authority worked in parallel to ensure that the
car project funded by Google co-founder Larry
safety requirements were complied with and the
Page launched a model for test flights made
necessary permits for the inspection and trial for
available to aspiring buyers.162 People who
the vehicle were complied with.158 Mr. Mattar
have visibly showcased interest in buying
Al Tayer, the director general and chairman
Flyers were invited at the website to apply for
of the RTA, approved plans to transform 25
an invitation to do so, with no price specified.
percent of all transport journeys in Dubai to
Even the likes of Rolls-Royce, Aston Martin
autonomous vehicles by 2030. To turn this
and Porsche have announced their hybrid-
into reality, the RTA is seeking development of
autonomous vehicles which they hope will soon,
legislation and rules for self-driving transport, as
officially, be flying in the sky.163
well as the supporting infrastructure for

159. Staff, Time Out Dubai. “RTA announces plans for self-driving
and flying cars.” Time Out Dubai. N.p., 11 June 2017. Web. 27
July
160. Lynsey Barber, “The Ehang 184 Jetsons-style drone can
carry people in ambitious plans for driverless flying cars”,
CityAM, January 7, 2016, Available at http://www.cityam.
com/231892/ the-ehang-184-jetsons-style-drone-can-carry-
people-in-ambtious- plans-for-driverless-flying-cars).
161. . Pal –V Europe NV started in 2001 to design a roadable
aircraft by evaluating many potential technologies and
creating numerous concepts in cooperation with well known
research institutes. The most important breakthrough was
the maturing of the DVC tilting technology in 2005. This
brought within reach the reality of a flying car. The said
technology allows for safe driving without compromises
while having a high centre of gravity and a narrow
aerodynamic shape necessary for flying. The first real “flying
car” concept was born.
162. “Flying-car startup backed by Google co-founder offers
test “flightshttps://www.japantimes.co.jp/news/2018/06/07/
business/tech/flying-car-startup-backed-google-founder-
offers-test-flights/#.W1lk89IzbIU
158. . Chris Nelson,Dubai to launch driverless flying cars by 163. The Future Is Almost Here And It’s Full Of Flying
this summer. February 13 2017, Available at https://www. Cars” Available: https://www.forbes.com/sites/
thenational. ae/business/dubai-to-launch-driverless-flying- duncanmadden/2018/04/30/the-future-is-almost-here-and-its-
cars-by-this-summer-1.74746 full-of-flying-cars/#11ddf98b3f88

30 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

12. The Road Ahead

Autonomous vehicles have traversed thousands train pilots.166 This is a safer option as opposed
of kilometers already, albeit in controlled to flying cars with a pilot. The technology allows
environments. Heavy investments are being computers plugged into the data network to
made into this intelligent transport system provide automatic updates on the flight path
by governments and private companies alike. and lets it avoid air traffic and mentions air space
The Boston Consulting Group has predicted restrictions. Computers are made to deal with
13% penetration in the market by 2025 by the such situations and would react better than
autonomous vehicle, representing a market of humans. Reducing the scope of human error
around $42 billion.164 becomes all the more important when in the
air.167 Co-founder of EHang, Derrick Xiong who
The success of the autonomous vehicle and the
collaborated with RTA, Dubai expressed that this
benefits reaped as a consequence thereof is both
method was better as passengers aren’t required
a necessity as well as an eventuality if human
to learn how to fly nor do they need any license.
progress is to be sustained in the 21st century.
All it would take is a press of a button and the
It is a fact that the transition into a driverless
vehicle would vertically take off.168
society is not going to be smooth sailing at all
times. Cultural norms and legislations will have Before this futuristic dream becomes a present-
to keep pace with the rapid advancements in day reality, the laws relating to Air, Road
autonomous vehicular technology. Countries and Water will have to be converged and
and companies will need to anticipate these in synchronized and questions as to who will be
advance and prepare accordingly. liable for damage caused by a malfunctioning
system in a car, both on land or in the air shall
A collaborative approach adopted by automobile
have to be addressed.
and technology companies, along with other
sectors that may look to cash in and supplement Legislations will also have to consider safety
the widespread emergence and usage of this and security of passengers, property and
technology is the need of the hour. At the general public while synchronizing laws
same time, it is crucial that environmental and must address questions as to who would
benefits, improved quality of life and standard inspect these car-planes pre-flight, or how
of living for human society is at the heart would flight patterns be arranged or at what
of the agenda as driverless cars become the height would these cars ‘fly’. The use of
norm. With appropriate localization and Intelligent Transportation Systems, through
better road infrastructure, driverless, or even which components like vehicle, infrastructure,
flying cars should also be hitting Indian roads communication and operational systems of all
in the not so distant future.165 As autonomous modes of travel are synchronized, could have
vehicular technology becomes mainstream, it a transformative effect on the lives of citizens.
promises to hasten the introduction of flying
cars as a flying car would not have to deal with
problems of pedestrians crossing, potholes, or
any other obstacles likely to occur on road.
166. Aube, Tony. “Our self-flying car future.” TechCrunch.
With advancement in autonomous vehicular Tech- Crunch, 23 Dec. 2016. Web. 27 July 2017. Available
technology, it becomes unnecessary to hire or at : https:// techcrunch.com/2016/12/23/our-self-flying-car-
future/
167. Kermeliotis, Teo.” Is the Jetsons’ flying car finally here?”
CNN. Cable News Network,07 Apr.2014.Web.27 July 2017.
164. “BMW Eyes New Business Opportunities with Autonomous Available at http://edition.cnn.com/2014/04/07/tech/are-
Cars.” Reuters India. 2015. Web. 19 Feb. 2016. flying-cars-final- ly-becoming-a-reality/index.html
165. ’Localised’ Driverless Cars May Become Reality for India in 168. Crew, Bec. “Dubai Is Set to Launch The World’s First Hover-
Few Years.” ‘Localised’ Driverless Cars May Become Reality Tax- is Within Months.” ScienceAlert. N.p., n.d. Web. 28 July
for India in Few Years. Web. 17 Feb. 2016. 2017.

© Nishith Desai Associates 2018 31

 Provided upon request only

13. Epilogue - Need for Convergence of Land,

Air and Sea Law
safe and rapid transport of goods and persons over
“The law will never make men free; it is men prolonged distances. However, the war had also
who have got to make the law free.” shown the ugly potential of aviation; it became
evident that this new and greatly advanced means
~ Henry David Thoreau
of transport required international attention, a
means of transport faster at the time than the speed
The major principle that has influenced of information and communication.171
international law relating to oceans is that the
A study conducted by a member of the Institute
sea is common to all humankind and open to
of International Air Law at Mcgill University
navigational use by all. The geophysical nature
in 1954- 1955172 discusses various scholarly
of the ocean is such that it resists any claim of
interpretations of international conventions
ownership over it. The first person to come up
relating to air law in the first half of the 20th
with this view was Hugo Grotius, a Dutch Jurist,
century culminating in the Convention on
one of the pioneers of international law, who
International Civil Aviation in Chicago in 1944
in his book titled ‘Mare Liberum’, in 1609,169 set
(known as the Chicago Convention).173 The
up the foundation of the principle of freedom of
study concludes that no such right of innocent
the seas. After centuries of turbulent evolution,
passage had ever been declared to exist in
the principle of the ‘right of innocent passage’
International Air Law. In other words, there is
crystallized with its codification in the United
no right of innocent passage in the air space
Nations Law of the Sea Convention in 1982.170
comparable with the right of innocent passage
This principle entails that on the territorial sea
in the territorial waters of a sovereign states.
of sovereign nations, all foreign ships enjoy the
Any right of innocent passage through the air
right of innocent passage, subject to certain
space of states that is accorded at all is always
restrictions. As long as the passage is innocent,
carefully outlined by a bilateral agreement as per
the coastal state has restricted jurisdiction to
Article 5 of the Chicago Convention of 1944,174
interfere with the passage. The underlying
appropriate only to contracting states, or made
purpose for such a principle was to facilitate
by special agreement between the two states
unhindered expansion of international trade.
concerned. “Air space” was at its most restricted
Similarly, with the invention of the aircraft, the by the time the First World War broke out,
advent of the 20th century saw the introduction and when European states had, by legislation,
of ‘air law’ and the consequent battle between enclosed the air space above their territories.
the proponents of the “freedom of the air” and Article 6 of the Chicago Convention provides
the “sovereignty of the air” theories, with that ‘’no scheduled international air service may be
their respective refinements. The technical
developments in aviation arising out of World
171. The Postal History of the ICAO, The 1919 Paris
War I created a completely new opportunity at the Convention : The Starting Point for the regulation of air
end of the hostilities, especially with regard to the navigation, Available at : https://www.icao.int/secretariat/
PostalHistory/1919_the_ paris_convention.htm
172. Sheila F. Mcbrayne, The Right of Innocent Passage,
International air Law, McGill University, Available at :
169. Mare Liberum (English: The Free Sea or The Freedom of the Seas)
http://lawjournal.mcgill.ca/userfiles/other/3190288-
is a book in Latin on international law written by the Dutch
1.4.Macbrayne.pdf
jurist and philosopher Hugo Grotius, first published in 1609.
In The Free Sea, Grotius formulated the new principle that 173. Convention on International Civil Aviation in Chicago,
the sea was international territory and all nations were free 1944, Available at : https://www.icao.int/publications/
to use it for seafaring trade. Documents/7300_orig.pdf
170. (Available at : http://www.un.org/depts/los/convention_ 174. Available at : https://www.icao.int/publications/
agree- ments/texts/unclos/unclos_e.pdf Documents/7300_orig.pdf

32 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

operated over or into the territory of a contracting State, Earth Summit.176 However, over the years, major
except with the special permission or authorisation United Nations decision making bodies have
of that State, and in accordance with the terms of identified transport and mobility as being central
such permission or authorisation’’. In other words, to sustainable development.
this provision means that the airspace of all
The assessment of the current situation with
contracting States is closed de jure, until States
respect to the development of autonomous
decide to open it de facto.
road traffic systems is increasingly making it
Bilateral air service agreements thus remained clear that passenger and freight traffic must
the traditional and preferred mode for states be viewed in a much more integrated fashion.
to open their airspace to other states, for the Autopilots in aircrafts have long been the norm.
purposes of entering into international air Drones are already being used. The first studies
transport operations and regulating the economic on unmanned maritime transport are under
aspect of these exchanges. This trend that started way. Remote control of trains has been in use
in the USA in 1978 and was gradually introduced for years. The predictability of changes in the
into the European Union thus altering the supply chain and freight transport are however
institutional framework of air operations. so far fairly ambiguous. It is thus essential to
Before 1987, national markets within the EU identify in greater detail the advantages and
were fragmented and bilateral agreements still disadvantages of using automated vehicles
governed the exchange of traffic rights between compared to conventional vehicles as well
EU countries. With the full liberalisation of the as their ‘integratability’ in the existing legal
internal market of the European Union in 1997, framework and international environment. To
any EU carrier can now operate on any EU route, date, the question of what can be transported
including purely domestic routes. The EU and autonomously and what degree of autonomy
the US signed ‘Open Skies’ agreements under would be accepted remains unanswered. The
which airlines in the EU are able to fly to the Secretary General of the United Nations, in
US, from any airport in the EU, irrespective of August 2014,177 established and launched a High
their nationality. These changes to some extent Level Advisory Group on Sustainable Transport,
indicate renouncement of the nationalistic representing all modes of transport including
conceptions that inspired the drafters of the road, rail, aviation, marine, ferry, and urban public
major legal instruments relating to international transport providers, along with Governments and
air law after the Second World War.175 investors, to develop concrete recommendations
for more sustainable transport systems that
As autonomous flying vehicles become
can address rising congestion and pollution
increasingly common as a means of personal
worldwide, particularly in urban areas, and are
transportation as well as in the facilitation of
actionable at global, national, local and sector
transport of goods and services, it becomes
levels. The need of the hour is for governments
increasingly important to encourage international
and international organizations to consider
awareness and the understanding of the potential
a new kind of law wherein the legal issues as
benefits and implications of accession to
well as the ‘right to innocent passage’ concerned
international and regional conventions related
with autonomous transportation through air,
to the facilitation of transport and trade. The role
land and/or sea is unified and synchronized,
of transport for sustainable development was
thereby possibly introducing a new principle
recognized as early as 1992 at the United Nations’
in international law, that of convergence of air,
land and sea laws. Thus adequately preparing
for this new chapter in mobility and reaping the
175. Chrystel Erotokritou, Sovereignty Over Airspace: maximum potential benefits thereof.
Interna- tional Law, Current Challenges, and Future
Developments for GlobalAviation, Available at : http://
www.inquiriesjournal.com/ articles/645/sovereignty-over-
176. Available at : http://www.un.org/geninfo/bp/enviro.html
airspace-international-law-cur- rent-challenges-and-future-
developments-for-global-aviation 177. Available at : http://www.un.org/geninfo/bp/enviro.html

© Nishith Desai Associates 2018 33

 Provided upon request only

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y+on+Automated+Vehicle+Development technology- receives-20-million-boost
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and Bolts Behind Google’s Autonomous Vehicles on UK Roads.” Jaguar Land Rover
Car Program.” MakeUseOf. Web. 13 Feb. to Test Autonomous Vehicles on UK Roads.
2016, available at http://www.makeuseof. Web. 21 Feb. 2016, available at http://www.
com/tag/how-self-driving-cars-work- autocar. co.uk/car-news/industry/jaguar-
the-nuts-and-bolts- behind-googles- land-rover-test- autonomous-vehicles-uk-
autonomous-car-program/ roads

34 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

17. Assembly Bill No. 511–Committee on 25. Driving Change: Volvo’s ‘Drive Me’ Project
Transportation for Nevada, available to Make Self-Driving Cars Synonymous
at http:// www.leg.state.nv.us/ with Safety, available at https://blogs.
Session/76th2011/Bills/AB/ AB511_EN.pdf nvidia.com/ blog/2016/04/06/volvo-safety-
self-driving/
18.“Nevada Passes Law Allowing Self-Driving
Cars.” Motor Authority. Web. 16 Feb. 2016, 26.“UK to be ‘driverless car world leader’”,
available at http://www.motorauthority. Daniel Johnson, 05 Dec 2013, available at
com/news/1062178_nevada-passes-law- http://www. telegraph.co.uk/technology/
allowing-self- driving-cars news/10497814/ UK-to-be-driverless-car-
world-leader.html
19.“California Opens Road to Public Use of
Autonomous Cars.” CIO India. Web. 18 Feb. 27.“SMART launches first Singapore-developed
2016, available at http://www.cio.in/news/ driverless car designed for operations on
california-opens-road-to-public-use-of- public roads”, available at http://smart.mit.
autonomous-cars edu/news- a-events/press-room/article/42-
smart-launches- first-singapore-developed-
20. National Conference of State Legislatures,
driverless-car- designed-for-operations-on-
Self- driving vehicles legislation, available
public-roads-.html
at http://www.ncsl.org/research/
transportation/ autonomous-vehicles- 28.“Singapore Wants a Driverless Version
legislation.aspx of Uber”, Michael Fitzgerald, December
23, 2014, available at https://www.
21.“Cars Could Drive Themselves Sooner than
technologyreview. com/s/533601/
Expected after European Push.” Reuters.
singapore-wants-a-driverless- version-of-
Thomson Reuters, 2014. Web. 21 Feb.
uber/
2016, available at http://www.reuters.com/
article/us-daimler-autonomous-driving- 29. Boyd, John. “Japan’s Plan to Speed Self-
idUSKBN0DZ0UV20140519 Driving Cars.” Web. 16 Feb. 2016, available
at http://spectrum.ieee.org/cars-that-think/
22.“Germany creates its driverless car
transportation/self-driving/japans-plan-to-
legislation”, Jon Martindale, February 6,
speed-selfdriving-cars
2015, available at http://www.telematics.
com/germany-creates-its- driverless-car- 30.“Mahindra Dabbling in Driverless
legislation/ Cars? - News - NDTV CarAndBike.com.”
CarAndBike. Web. 17 Feb. 2016, available
23.“The Pathway to Driverless Cars Summary
at http://www.carandbike. com/news/
report and action plan”, Department
mahindra-dabbling-in-driverless- cars-
of transport, February 2015, available
744762
at https:// www.gov.uk/government/
uploads/system/ uploads/attachment_data/ 31.“THRSL receives huge applause for Novus-
file/401562/pathway- driverless-cars- drive, the driverless vehicle”, available
summary.pdf at http://www. motorindiaonline.in/
applications/hi-tech- demonstrates-
24.“4 Self-driving French Cars Successfully
driverless-vehicle-capability-with- novus-
Made a 360-mile Trip with No Test
drive/
Driver.” Tech Insider. Web. 20 Feb. 2016,
available at http://www.techinsider.io/ 32.“India’s step in TEVs (Technology Enabled
four-self-driving-cars-traveled- 360-miles- Vehicles”, BHOOMIKA, APRIL 22, 2016,
in-france-2015-10 available at http://businesswolf.org/indias-
step- tevs-technology-enabled-vehicles/

© Nishith Desai Associates 2018 35

 Provided upon request only

33. “Products Liability and Driverless 41.“Where’s the lane? Self-driving cars
Cars: Issues and Guiding Principles for confused by shabby U.S. roadways”,
Legislation”, John Villasenor, April 24, Alexandria Sage, March 31, 2016, available
2014, available at http:// www.brookings. at http://www.reuters.com/ article/
edu/research/papers/2014/04/ products- us-autos-autonomous-infrastructure- insig-
liability-driverless-cars-villasenor idUSKCN0WX131
34.“India Will Be a Market for Autonomous 42.“BI Intelligence, 10 million self-driving
Driving: Bosch.” Www.autocarpro.in. cars will be on the road by 2020”, John
Web. 15 Feb. 2016, available at http://www. Greenough , Jul. 29, 2015 available at http://
autocarpro. in/features/india-market- www.businessinsider. com/report-10-
autonomous-driving- bosch-8672 million-self-driving-cars-will-be- on-the-
road-by-2020-2015-5-6?IR=T
35.“No Fault liability”, available at http://www.
ebc-india.com/lawyer/articles/98v6a4.htm 43.”Driverless Cars to the Golden Temple”,
on 30/10/2011 Saptarishi Dutta, Jun 10, 2013,
available at http://blogs.wsj.com/
36.“Cop Pulls over Google Self-driving Car, Finds
indiarealtime/2013/06/10/ driverless-cars-
No Driver to Ticket.” CNN. Cable News
to-the-golden-temple/
Network. Web. 20 Feb. 2016. Available
at http:// edition.cnn.com/2015/11/13/us/ 44.“BMW Eyes New Business Opportunities
google-self- driving-car-pulled-over/ with Autonomous Cars.” Reuters India.
2015. Web. 19 Feb. 2016, available at http://
37.“Why You Shouldn’t Worry About
in.reuters. com/article/autoshow-frankfurt-
Liability for Self-Driving Car Accidents”,
bmwdesign- idINKCN0RG09G20150916
Mark Harris, 12 Oct 2015 available at
http://spectrum.ieee.org/ cars-that-think/ 45.“’Localised’ Driverless Cars May Become
transportation/self-driving/ why-you- Reality for India in Few Years.” ‘Localised’
shouldnt-worry-about-liability-for- Driverless Cars May Become Reality for
selfdriving-car-accidents India in Few Years. Web. 17 Feb. 2016,
available at http://www. business-standard.
38.“Self-driving Cars: A Spy on Every Street?”
com/article/companies/ localised-
World Economic Forum. Web. 17 Feb.
driverless-cars-may-become-reality-for-
2016, available at http://www.weforum.
india-in-few-years-113121000855_1.html
org/agenda/2014/10/ self-driving-cars-
affect-privacy-data/ 46.“Our autonomous future : How driverless
cars will be the first robots we learn
39. Risen, Tom. U.S. News. 8 Oct. 2015. How
to trust”, available at http://www.
Safe is a Self-Driving Car?, available
techrepublic.com/article/our-autonomous-
at http://www. usnews.com/news/
future-how-driverless- cars-will-be-the-first-
articles/2015/10/08/nhtsa-volvo-seek-
robots-we-learn-to-trust/
cybersecurity-privacy-for-driverless- cars
47.“Uber’s first self-driving fleet arrives in
40.“Driverless cars. What’s their future on
Pittsburgh this month”, August 18, 2016,
India’s chaotic roads?”, Vijay Gummadi,
available at http://www.bloomberg.com/
Sep 27, 2015, available at https://
news/ features/2016-08-18/uber-s-first-self-
www.linkedin.com/pulse/ driverless-
driving- fleet-arrives-in-pittsburgh-this-
cars-boon-bane-india-its-future-vijay-
month-is06r7on
gummadi?published=u“International Eye
- Driverless Cars: The View from Europe”, 48.“Germany to create world’s first highway
Carl Fenger, Apr/May 2015, available at: code for driverless cars”, Septemeber
http://connectedworld.com/ driverless-cars- 21, 2016, available at https://www.
the-view-from-europe/ newscientist.com/ article/mg23130923-

36 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

200-germany-to-create- worlds-first- com/2016/07/ tesla-accident-highlights-

highway-code-for-driverless-cars/ issues-with-self- driving-cars-and-
insurance/
49.“World’s first self-driving Taxis debut in
Singapore”, August 24, 2016, available 58.“Tesla autopilot crash : Liability, Insurance
at https:// www.bloomberg.com/news/ Issues abound”, July 5, 2016, available at
articles/2016-08-25/ world-s-first-self- https://www.langdonemison.com/firm-
driving-taxis-debut-in- singapore news- collection/2016/7/5/tesla-autopilot-
crash- liability-insurance-issues-abound
50.“These cities could lead the driverless car
revolution”, October 4, 2016, available at 59.“Driverless Cars : The Unanswered
http:// fortune.com/2016/10/04/driverless- Questions”, October 31, 2016, available at
cars-uber- lyft-google-baidu/ http:// ottawacitizen.com/news/local-news/
driverless- cars-the-unanswered-questions
51.“RACV calls for reform on driverless cars”,
November 2, 2016, available at http:// 60.“FBI warns Driverless cars could be
www.3aw. com.au/news/racv-calls-for-law- used as lethal weapons”, July 16, 2014,
reform-on- driverless-cars-20161101- available at https:// www.theguardian.
gsfv6s.html com/technology/2014/jul/16/ google-
fbi-driverless-cars-leathal-weapons-
52.“Australia in front seat for driverless
autonomous
cars, with development lab and public
test drives”, July 8, 2016, available 61.“Our autonomous future : How driverless
at http://www.news. com.au/ cars will be the first robots we learn
technology/australia-in-front- seat- to trust”, available at http://www.
for-driverless-cars-with-development- techrepublic.com/article/our-autonomous-
lab-and-public-test-drives/news-story/ future-how-driverless- cars-will-be-the-first-
ffcf949cceecd65117193b182380efaa robots-we-learn-to-trust/
53.“Driverless vehicles test run in Dubai”, 62.“When cars fly”, May 2016, available at
April 25, 2016, available at http://www. http://www.theatlantic.com/magazine/
thenational.ae/ uae/transport/20160425/ archive/2016/05/when-cars-fly/476382/
driverless-vehicles-test- run-in-dubai
63.“The future of employment”, September 17,
54.“Preparing for Autonomous Vehicles in 2013, available at http://www.oxfordmartin.
Canada”, December 16, 2015, available ox.ac.uk/downloads/academic/The_Future_
at http://www. cavcoe.com/Downloads/ of_ Employment.pdf
CAVCOE_AV_White_ Paper.pdf
64.“The battle over Uber and Driverless cars
55.“Driverless bus trial in Netherlands is first is really a debate about the future of
on Public roads”, January 28, 2016,available humanity”, October 31, 2016, available
at https://www.theguardian.com/ at https://www.theguardian. com/
technology/2016/jan/28/driverless-bus-trial-in- commentisfree/2016/oct/31/paul-mason-
netherlands-will-be-first-on-public-roads driverless-cars-uber-artificial-intelligence-
unemployment
56.“Tesla Driver dies in first fatal car crash
while using autopilot mode”, July 1, 2016, 65.“Uber loses right to classify UK drivers
available at https://www.theguardian.com/ as self- employed”, October 28, 2016,
technology/2016/jun/30/tesla-autopilot- available at https:// www.theguardian.com/
death- self-driving-car-elon-musk technology/2016/ oct/28/uber-uk-tribunal-
self-employed-status
57.“Tesla Accident Highlights Issues With
Self- Driving Cars and Insurance”, July
9, 2016, available at http://guardianlv.

© Nishith Desai Associates 2018 37

 Provided upon request only

66.“Now a flying drone can land you in prison”, 75.“FAA light sport aircraft waiver clears way
February 15, 2016, available at http:// for transition flying car”, June 23, 2016,
timesofindia.indiatimes.com/city/jaipur/ available at http://aviationweek.com/
Now-flying-a-drone-can-land-you-in- technology/faa-light-sport-aircraft-waiver-
prison/ articleshow/50990613.cms clears-way-transition- flying-car
67.“Google Street view denied permission in 76.“Flying car expected in market in 2018
India : Here’s the reason why”, June 10, as waiting list opens for future travel”,
2016, available at http://indianexpress.com/ June 8, 2016, available at http://www.
article/technology/ tech-news-technology/ mirror.co.uk/tech/ flying-car-expected-
googles-street-view- turned-down-by- market-2018-8138590
india-2843618/
77. Lynsey Barber, “The Ehang 184 Jetsons-
68.“Autonomous vehicles will have style drone can carry people in ambtious
tremendous impacts on government plans for driverless flying cars”, CityAM,
revenue”, July 7, 2015 available at January 7, 2016, Available at http://www.
https://www.brookings.edu/blog/ cityam.com/231892/ the-ehang-184-jetsons-
techtank/2015/07/07/autonomous-vehicles- style-drone-can-carry- people-in-ambtious-
will-have-tremendous-impacts-on- plans-for-driverless-flying- cars.
government- revenue/
78.“Fast forwarding to a future of on demand
69.“Modi Government’s new way to tax Google, urban air transportation”, October 27, 2016,
Facebook kicks in from tomorrow”, May available at https://www.uber.com/elevate.
31, 2016, available at http://economictimes. pdf
indiatimes.com/articleshow/52512712.
79.“Flying cars just took a big step closer to
cms?utm_source=contentofinterest&utm_
being legal”, June 20, 2016, available at
medium=text&utm_campaign=cppst
https:// www.washingtonpost.com/news/
70.“Investors to get tax break from driverless the-switch/ wp/2016/06/20/flying-cars-just-
cars”, available at https://www.ft.com/ took-a-big-step- closer-to-being-legal/
content/6c175508-8b01-11e6-8aa5-
80.“Climate and Energy impacts of Automated
f79f5696c731
Vehicles”, June, 2014, available at https://
71.“Is Hollister’s hovering aircraft Googleco- www. arb.ca.gov/research/sustainable/
founder’s flying car”, October 22, 2016, automated_ vehicles_climate_july2014_
available at http://www.mercurynews. final1.pdf
com/2016/10/22/larry-pages-flying-cars/
81.“Apple’s latest $1 Billion bet is on the future
72.“Inside Uber’s plans to take over the of Cars”, May 14, 2016, available at http://
skies with Flying Cars”, October 27, www.wsj. com/articles/apples-1-billion-
2016, available at https://www.wired. didi-investment- revs-up-autonomous-car-
com/2016/10/uber-flying- cars-elevate-plan/ push-1463154162
73.“Finally a flying car could go on sale 82.“Uber Starts self-driving car pickups
as early as 2017”, March 16, 2015, in Pittsburgh”, September 14, 2016,
available at http:// www.forbes.com/ available at https://techcrunch.
sites/ericmack/2015/03/16/finally-a- com/2016/09/14/1386711/
flying-car-could-go-on-sale-as-soon-as-
83.“German Government drafts autonomous
2017/#3b927f95219e
driving law”, available at https://global.
74.“9 Companies building flying cars”, June handelsblatt.com/breaking/exclusive-
14, 2016, available at http://www.nanalyze. german- government-drafts-autonomous-
com/2016/06/9-companies-building-flying- driving-law
cars/

38 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

84.“Singapore’s self-driving taxi has crashed”, 90.“Indianapolis Police are investigating a fatal
October 20, 2016, available at http://www. crash involving Tesla”, November 4, 2016,
businessinsider.com/singapores-self- available at http://fortune.com/2016/11/04/
driving- taxi-has-crashed-2016-10?IR=T tesla- autopilot-crash-indiana/
85.“Car makers need to focus on computers on 91. Danny Yadron and Dan Tynan, Tesla
wheels: Tony Seba”, November 29, 2016 driver dies in first fatal crash while using
available at http://www.livemint.com/ autopilot mode, 1 July 2016, available
Industry/ SHH15pJpsdrk2MY8seNe8H/ at https://www.theguardian. com/
Car-makers-need- to-focus-on-computers- technology/2016/jun/30/tesla-autopilot-
on-wheels-Tony-Seba. html death-self-driving-car-elon-musk
86.“33 Corporations working on Autonomous 92. Alex Davies, Google’s Self-Driving Car
cars”, August 11, 2016 available at https:// Company Is Finally Here, 13 December
www. cbinsights.com/blog/autonomous- 2016, Available at https://www.wired.
driverless- vehicles-corporations-list/ com/2016/12/google-self- driving-car-waymo
87.“Volvo to unleash self-driving cars 93. David Chazan, World’s first driverless
on Swedish roads” March 1, 2015, bus service begins carrying passengers
available at http:// www.autonews.com/ in French city of Lyon, 3 September 2016,
article/20150301/ OEM06/303029948/ available at http://www.telegraph.co.uk/
volvo-to-unleash-self- driving-cars-on- news/2016/09/03/ worlds-first-driverless-
swedish-roads bus-service-begins- carrying-passengers-i/
88.“France’s navya raises $34M for its self- 94.“EU countries want legal change for
driving shuttle bus, reportedly at $220M driverless cars – but they’ll have to wait.”
valuation”, October 11, 2016 available 27th September 2016, available at https://
at https://techcrunch. com/2016/10/11/ www.euractiv.com/ section/transport/
frances-navya-raises-34m-for-its-self- news/eu-countries-want- legal-change-for-
driving-shuttle-bus-reportedly-at-a- driverless-cars-but-theyll-have- to-wait/.
220m-valuation/.
95. Leslie Hook, How driverless cars are set
89.“France Greenlights driverless car trials on to reinvent and humanise our streets, 7
public roads”, August 5, 2016, available at december 2016, available at https://www.
https://www.rt.com/news/354683-france- ft.com/content/19cd31da-b71d-11e6-ba85-
driverless-car-trials/ 95d1533d9a62

© Nishith Desai Associates 2018 39

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

About NDA
At Nishith Desai Associates, we have earned the reputation of being Asia’s most Innovative Law Firm
– and the go-to specialists for companies around the world, looking to conduct businesses in India
and for Indian companies considering business expansion abroad. In fact, we have conceptualized
and created a state-of-the-art Blue Sky Thinking and Research Campus, Imaginarium Aligunjan, an
international institution dedicated to designing a premeditated future with an embedded strategic
foresight capability.
We are a research and strategy driven international firm with offices in Mumbai, Palo Alto
(Silicon Valley), Bangalore, Singapore, New Delhi, Munich, and New York. Our team comprises
of specialists who provide strategic advice on legal, regulatory, and tax related matters in an
integrated manner basis key insights carefully culled from the allied industries.
As an active participant in shaping India’s regulatory environment, we at NDA, have the expertise and
more importantly – the VISION – to navigate its complexities. Our ongoing endeavors in conducting
and facilitating original research in emerging areas of law has helped us develop unparalleled
proficiency to anticipate legal obstacles, mitigate potential risks and identify new opportunities
for our clients on a global scale. Simply put, for conglomerates looking to conduct business in the
subcontinent, NDA takes the uncertainty out of new frontiers.
As a firm of doyens, we pride ourselves in working with select clients within select verticals on
complex matters. Our forte lies in providing innovative and strategic advice in futuristic areas of
law such as those relating to Blockchain and virtual currencies, Internet of Things (IOT), Aviation,
Artificial Intelligence, Privatization of Outer Space, Drones, Robotics, Virtual Reality, Ed-Tech, Med-
Tech & Medical Devices and Nanotechnology with our key clientele comprising of marquee Fortune
500 corporations.
The firm has been consistently ranked as one of the Most Innovative Law Firms, across the globe. In
fact, NDA has been the proud recipient of the Financial Times – RSG award 4 times in a row, (2014-
2017) as the Most Innovative Indian Law Firm.
We are a trust based, non-hierarchical, democratic organization that leverages research and knowledge
to deliver extraordinary value to our clients. Datum, our unique employer proposition has been
developed into a global case study, aptly titled ‘Management by Trust in a Democratic Enterprise,’
published by John Wiley & Sons, USA.
A brief chronicle our firm’s global acclaim for its achievements and prowess through the years -

ƒAsiaLaw 2019: Ranked ‘Outstanding’ for Technology, Labour & Employment, Private Equity,
Regulatory and Tax

ƒRSG-Financial Times: India’s Most Innovative Law Firm (2014-2017)

ƒMerger Market 2018: Fastest growing M&A Law Firm
ƒIFLR 1000 (International Financial Review - a Euromoney Publication): Tier 1 for TMT,
Private Equity

ƒIFLR: Indian Firm of the Year (2010-2013)

ƒLegal 500 2018: Tier 1 for Disputes, International Taxation, Investment Funds, Labour &
Employment, TMT

ƒLegal 500 (2011, 2012, 2013, 2014): No. 1 for International Tax, Investment Funds and TMT

© Nishith Desai Associates 2018 41

 Provided upon request only

ƒChambers and Partners Asia Pacific (2017 – 2018): Tier 1 for Labour & Employment, Tax, TMT
ƒIDEX Legal Awards 2015: Nishith Desai Associates won the “M&A Deal of the year”, “Best Dispute
Management lawyer”, “Best Use of Innovation and Technology in a law firm” and “Best Dispute
Management Firm”

42 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

Please see the last page of this paper for the most recent research papers by our experts.

Disclaimer
This report is a copy right of Nishith Desai Associates. No reader should act on the basis of any state-
ment contained herein without seeking professional advice. The authors and the firm expressly dis-
claim all and any liabilitytoanypersonwhohasreadthisreport,or otherwise, in respect of anything, and
of consequences of anything done, or omitted to be done by any such person in reliance upon the
contents of this report.

Contact
For any help or assistance please email us on ndaconnect@nishithdesai.com
or visit us at www.nishithdesai.com

© Nishith Desai Associates 2018 43

 Provided upon request only

The following research papers and much more are available on our Knowledge Site: www.nishithdesai.com

Fund Formation: Social Impact The Curious Case

Attracting Global Investing in India MUMBA I SI L IC O N VALLE Y BAN G ALORE SI N G AP ORE MU MBAI BKC NEW DELHI M U NIC H N E W YO RK

of the Indian
Investors Gaming Laws
The Curious Case
of the Indian
Gambling Laws
Legal Issues Demysitified

February 2018

March 2018 © Copyright 2018 Nishith Desai Associates www.nishithdesai.com

July 2018 February 2018

Corporate Social Incorporation of Outbound

Responsibility & Company LLP in Acquisitions by
MU M BA I SI LI C O N VALLE Y BAN G A LO RE SI N G A P O RE M UMBAI BKC NEW DELHI M UN I C H N E W YO RK

Corporate Social
Social Business India India-Inc
Responsibility & Social
Business Models in India Models in India
A Legal & Tax Perspective

March 2018

September 2014
© Copyright 2018 Nishith Desai Associates www.nishithdesai.com

March 2018 April 2017

Internet of Things Doing Business in Private Equity

India and Private Debt
Investments in
India

September 2018
January 2017 March 2018

NDA Insights
TITLE TYPE DATE
Blackstone’s Boldest Bet in India M&A Lab January 2017
Foreign Investment Into Indian Special Situation Assets M&A Lab November 2016
Recent Learnings from Deal Making in India M&A Lab June 2016
ING Vysya - Kotak Bank : Rising M&As in Banking Sector M&A Lab January 2016
Cairn – Vedanta : ‘Fair’ or Socializing Vedanta’s Debt? M&A Lab January 2016
Reliance – Pipavav : Anil Ambani scoops Pipavav Defence M&A Lab January 2016
Sun Pharma – Ranbaxy: A Panacea for Ranbaxy’s ills? M&A Lab January 2015
Reliance – Network18: Reliance tunes into Network18! M&A Lab January 2015
Thomas Cook – Sterling Holiday: Let’s Holiday Together! M&A Lab January 2015
Jet Etihad Jet Gets a Co-Pilot M&A Lab May 2014
Apollo’s Bumpy Ride in Pursuit of Cooper M&A Lab May 2014
Diageo-USL- ‘King of Good Times; Hands over Crown Jewel to Diageo M&A Lab May 2014
Copyright Amendment Bill 2012 receives Indian Parliament’s assent IP Lab September 2013
Public M&A’s in India: Takeover Code Dissected M&A Lab August 2013
File Foreign Application Prosecution History With Indian Patent
IP Lab April 2013
Office
Warburg - Future Capital - Deal Dissected M&A Lab January 2013
Real Financing - Onshore and Offshore Debt Funding Realty in India Realty Check May 2012

44 © Nishith Desai Associates 2018

 Preparing For a Driverless Future
Re-Shaping the Transportation Landscape to Conquering the Sky

Research @ NDA
Research is the DNA of NDA. In early 1980s, our firm emerged from an extensive, and then pioneering, research
by Nishith M. Desai on the taxation of cross-border transactions. The research book written by him provided the
foundation for our international tax practice. Since then, we have relied upon research to be the cornerstone of our
practice development. Today, research is fully ingrained in the firm’s culture.
Our dedication to research has been instrumental in creating thought leadership in various areas of law and
public policy. Through research, we develop intellectual capital and leverage it actively for both our clients and
the development of our associates. We use research to discover new thinking, approaches, skills and reflections
on jurisprudence, and ultimately deliver superior value to our clients. Over time, we have embedded a culture
and built processes of learning through research that give us a robust edge in providing best quality advices and
services to our clients, to our fraternity and to the community at large.
Every member of the firm is required to participate in research activities. The seeds of research are typically
sown in hour-long continuing education sessions conducted every day as the first thing in the morning. Free
interactions in these sessions help associates identify new legal, regulatory, technological and business trends
that require intellectual investigation from the legal and tax perspectives. Then, one or few associates take up
an emerging trend or issue under the guidance of seniors and put it through our “Anticipate-Prepare-Deliver”
research model.
As the first step, they would conduct a capsule research, which involves a quick analysis of readily available
secondary data. Often such basic research provides valuable insights and creates broader understanding of the
issue for the involved associates, who in turn would disseminate it to other associates through tacit and explicit
knowledge exchange processes. For us, knowledge sharing is as important an attribute as knowledge acquisition.
When the issue requires further investigation, we develop an extensive research paper. Often we collect our own
primary data when we feel the issue demands going deep to the root or when we find gaps in secondary data. In
some cases, we have even taken up multi-year research projects to investigate every aspect of the topic and build
unparallel mastery. Our TMT practice, IP practice, Pharma & Healthcare/Med-Tech and Medical Device, practice
and energy sector practice have emerged from such projects. Research in essence graduates to Knowledge, and
finally to Intellectual Property.
Over the years, we have produced some outstanding research papers, articles, webinars and talks. Almost on daily
basis, we analyze and offer our perspective on latest legal developments through our regular “Hotlines”, which go
out to our clients and fraternity. These Hotlines provide immediate awareness and quick reference, and have been
eagerly received. We also provide expanded commentary on issues through detailed articles for publication in
newspapers and periodicals for dissemination to wider audience. Our Lab Reports dissect and analyze a published,
distinctive legal transaction using multiple lenses and offer various perspectives, including some even overlooked
by the executors of the transaction. We regularly write extensive research articles and disseminate them through
our website. Our research has also contributed to public policy discourse, helped state and central governments
in drafting statutes, and provided regulators with much needed comparative research for rule making. Our
discourses on Taxation of eCommerce, Arbitration, and Direct Tax Code have been widely acknowledged.
Although we invest heavily in terms of time and expenses in our research activities, we are happy to provide
unlimited access to our research to our clients and the community for greater good.
As we continue to grow through our research-based approach, we now have established an exclusive four-acre,
state-of-the-art research center, just a 45-minute ferry ride from Mumbai but in the middle of verdant hills of
reclusive Alibaug-Raigadh district. Imaginarium AliGunjan is a platform for creative thinking; an apolitical eco-
system that connects multi-disciplinary threads of ideas, innovation and imagination. Designed to inspire ‘blue
sky’ thinking, research, exploration and synthesis, reflections and communication, it aims to bring in wholeness
– that leads to answers to the biggest challenges of our time and beyond. It seeks to be a bridge that connects the
futuristic advancements of diverse disciplines. It offers a space, both virtually and literally, for integration and
synthesis of knowhow and innovation from various streams and serves as a dais to internationally renowned
professionals to share their expertise and experience with our associates and select clients.

We would love to hear your suggestions on our research reports. Please feel free to contact us at
research@nishithdesai.com

© Nishith Desai Associates 2018

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