Grid computing: the
legal perspective
Davide M. Parrilli, ICRI
Information Technology Law: Advanced Course
17 March 2008
http://www.law.kuleuven.be/icri
Agenda
• What does Grid computing mean?
• What is Grid computing from the
technical and business point of
view?
• To what extent Grid computing will
affect lawyer’s activity in Europe?
Selected issues.
Question…
Did you ever heard
about Grid
computing?
Grid: a definition (I)
Grid in general terms: “a grid is
something which is in a pattern
of straight lines that cross over
each other, forming squares”.
(source: Collins, English Dictionary for Advanced Learners)
Grid: a definition (II)
Graphically….
Grid: a definition (III)
The same idea lays behind the notion
of Grid computing: the key concept
to keep in mind is that Grid, although
in different forms, covers the
spectrum of distributed computing:
in other words resources located in
different places that work together.
Grid: a definition (IV)
Graphically…
Grid: a definition (V)
On a global scale….
Grid: a definition – infrastructure (I)
Three specific definitions of Grid
computing from different perspectives:
1. Technical-oriented definition:
multiple independent computing
clusters which are composed of
resource nodes not located within
a single administrative domain;
Grid: a definition – infrastructure (II)
• Many national Grid infrastructures;
• Examples of international networks:
1. BalticGrid: Baltic countries, Poland,
Sweden, Switzerland;
2. Nordic Data Grid Facility: Denmark,
Finland, Norway, Sweden;
3. NorduGrid: as above;
4. LCG Grid: worldwide;
5. Network.com (Sun Microsystems):
worldwide
Grid: a definition – computing on demand (I)
2. Business-oriented definition:
in distributed computing, the offer of
online computation or storage as
a metered commercial service, or
the provision of SaaS: utility
computing, computing on demand,
or cloud computing;
Grid: a definition – computing on demand (II)
Graphically…
End User
He needs computation
or storage power or the
provision of software
but he does not have
the necessary
resources
Supplier of capability
or SaaS
Grid: a definition – computing on demand (III)
Examples:
• 3tera-AppLogic: provision of SaaS;
• Elasticlive: web hosting capacity;
• Oracle: storage and resource
capacity;
• IBM: storage capacity;
• [Others: see www.gridipedia.eu]
Grid: a definition – virtual supercomputer (I)
3. Academic-oriented definition:
creation of a "virtual
supercomputer" by using spare
computing resources within an
organization or a network of
geographically dispersed
computers.
Grid: a definition – virtual supercomputer (II)
Graphically…
Grid: a definition – virtual supercomputer (III)
An example from the academic domain in the NL:
Grid: a definition – virtual supercomputer (IV)
Examples:
• DAS-3 Grid: NL;
• LCG: CERN and other institutions
worldwide;
• Oxford University’s Centre for
Computational Drug: worldwide,
dispersed network;
• iGrid: India;
• University of Florida Grid.
Grid and business (I)
From the business point of view the definition
no. 2 is the most relevant:
•Provision of resources, capacity, etc. to end
users through a Grid network;
•Provision of applications to end users
through a Grid network.
Grid and business (II)
GRID has shifted
from being seen just
as a way to save
costs towards as a
means to make
money…
In 2011 Grid market will
reach 9.02 billions
Euros
Legal aspects of Grid (I)
Should an ICT lawyer be
concerned wit Grid technology?
Does Grid have any impact from
the legal point of view?
Legal aspects of Grid (II)
In other words…
Is Grid a neutral technology?
Legal aspects of Grid (III)
Grid does matter…
we’ll take into account some specific
fields:
1) Business contracts;
2) Patents;
3)Taxation.
Business contracts (I)
Impact of Grid on ASP:
contract regarding the provision of
computer-based services (software)
to customers over a network
(Internet); the provider can be either
the owner of the software or a
licensee (sub-license).
Business contracts (II)
Definition of the operating
environment: provision regarding
the technical modalities of the
delivery of the software (SaaS).
E.g.: how much capacity will be used
in the Grid network?
Business contracts (III)
Service standard and SLA (service
level agreement): the fact to use a
Grid infrastructure has effects on the
standards of the services provided.
E.g.: can we expect that the client will
require more from the supplier?
Business contracts (IV)
Liability:
what if the Grid infrastructure is not
owned and managed by the software
provider? In B2B (EU) the ASP
should limit as much as possible his
liability
Allocation of the risk between Grid
provider, ASP and end user.
Business contracts (V)
Graphically….
User
ASP
Grid provider
Patents (I)
Patents and Grid: a sensitive
and hot point…
some questions…
Patents (II)
How do we have to consider, to the
ends of patentability, an application
that runs on a Grid network?
On the other side, what is a Grid
network and which is its role?
Patents (III)
Separation between the application
(SaaS) and the Grid infrastructure:
•Grid: medium to deliver the software
(hardware);
• Application: patentable in Europe if it
has a technical character it solves a
technical problem which lies behind the
normal interaction software/hardware.
Patents (IV)
Is a software which enables the Grid
to work or enhances its performance
patentable?
Patents (V)
Here there is a technical
problem that is solved by the
software
Patentability cannot be
excluded
Tax issues (I)
Taxation and Grid in electronic
commerce…one first fundamental
question…
How can we consider the nature of
every server or component involved
in the business?
Tax issues (II)
Principle (OECD Model Convention):
a server is a P.E. of a company
The profits generated by and
through the server are taxable where
the server is located.
Tax issues (III)
But…
What if there are many servers that
work in close cooperation at the same
time and that are located in different
jurisdictions?
And…
How is it possible to allocate the profits
generated by each component?
Tax issues (IV)
The issue is open…no solution
yet, but the increasing
transnational development of
Grid technology will force
policymakers (OECD and EU) to
find solutions.
Conclusions
• Ad hoc clauses in the ICT agreements;
careful assessment of the contractual
liability of the parties involved;
• A software that enables the Grid to work
or enhances its performances is in
principle patentable;
• Need for ICT-oriented solutions in the
field of taxation (many servers, many
jurisdictions).
Thank you for your
attention!
Davide M. Parrilli
Interdisciplinary Centre for Law & ICT - ICRI
K.U.Leuven
Sint-Michielsstraat 6
3000 Leuven
davide.parrilli@law.kuleuven.be
http://www.law.kuleuven.be/icri