IP Law
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IP Law in Today’s Hyper-Tech World

Leading business attorneys detail how technology, including AI, are altering intellectual property.

Intellectual property is the fuel that drives business. Ideas, inventions, and new ways of solving problems originate from the human mind and create value potential that savvy businesses harness to earn profits and reinvest in our economy. At the same time, intellectual property law is expanding in a hyper-competitive marketplace, creating a complex world of case laws and narrow definitions.

What is Intellectual Property? 

“Generally speaking, the current categories of intellectual property (IP) include patents, trademarks, copyrights, trade secrets, licensing, and related transactions,” explains Warren K. MacRae, director, intellectual property at Gibbons P.C.

“IP is a product of your intellect. When it comes to a company, we are asking ourselves how we create some level of protection for these ideas of value,” notes Matthew Sklar, a partner with Newark-based law firm McCarter & English, LLP. “The key is establishing boundaries early on to decide what needs protecting and who may be entitled to benefit.”

Gregory S. Gewirtz, partner, LernerDavid LLP, adds, “To protect your trade secrets and avoid contract issues, a company must be precise in detailing the ownership of IP and the people they hire to work on IP issues.

Technology’s Impact

“While the areas contained under the realm of IP law have remained relatively constant over the years, what has changed is new areas of technology that can now be encompassed by IP protections,” notes MacRae. 

In particular, there is the explosion of e-commerce. “E-commerce sites have changed the landscape. You can be sitting at home and selling things to people all over the world,” says Neha Bhalani, partner and practice group leader at CSG Law. “I handle a firm’s foreign trademark practice needs. Its brand names are different outside of the US, because in other countries, the first person to file a trademark is the rights’ owner, even if they’re not using it.”

On a positive note, LernerDavid’s Gewirtz explains how the patent office is working diligently to bring its rules in line with the global marketplace: “Each country has its own patent laws. The US has harmonized its rules with the rest of the world,” he notes.

AI and IP: A Work in Progress

“Things become very complex when you get artificial intelligence (AI) involved,” Sklar says. “The issue with AI is that it is still developing. It’s at the forefront of everybody’s thoughts nowadays. But when it comes to IP, there are some things bubbling up to the surface [in] the copyright space – to a lesser degree – and the patent space, again, as it touches upon the human element. 

“However, when it comes to registered IP protection, AI isn’t off the table as a tool, or at least that’s how it looks like it’s going to pan out. If [the creation is] solely AI, something solely from a non-human element, then you’re probably not going to get protection,” he opines.

“Procedures are being impacted by AI, and everyone is being careful,” says Gewirtz, adding that AI is now being used positively to help support the study and research of patent processes. “AI can plow through large amounts of data. However, attorneys still need to review, cross reference, and add their expertise,” Gewirtz says. 

MacRae anticipates that the question of AI and ownership will create international ramifications. “The development and implications of the use of AI, particularly in the area of patent laws (nationally and internationally), is having dramatic effects especially in areas of patentability determining inventorship,” MacRae says. This could also raise issues in litigation with regard to depositions of “inventors.” 

If nothing else, it begs the question: Did the machine originate the idea, or was it the person prompting the machine?

One universal agreement is that it will take time and a combination of litigation and more precise regulation to sort things out. 

“It could take a decade,” offers CSG’s Bhalani. “Where those lines are drawn and what their boundaries are is something that’s going to develop over time. As a business, if you are going to come up with some text fully generated from AI, are you going to have protection over that? Probably not, or probably not more than a very thin protection.”

Best Practices for Business

IP attorneys all agree that it is best to be prepared and organized with your IP assets. No matter how small or large the company, and no matter what the IP asset is. 

“I am still surprised at how many business owners have not taken steps to protect their brand names, company names or websites,” notes Bhalani.

Preemptive protection works best, according to the professionals. “In the IP world, you’re entitled to injunctive relief, and that is significant,” adds Sklar. “So, if you have a product that is infringing on some type of IP, not just a patent, you can end up with somebody going into court, prevailing, and shutting down a business line or a product line. Now, if you have your own protection, that’s also advantageous, right? Because you can prevent that from happening.”

Having an IP counsel actively involved in your company IP is the best practice in an ever-changing business environment. “Outside counsel is trained to – and has experience in – addressing every issue that could arise with regard to obtaining IP rights and asserting or defending your rights.” concludes Gibbons’ MacRae. 

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