AI and Intellectual Property: Leading the Next Wave of Innovation and Legal Challenges

Khurana and Khurana, Advocates and IP Attorneys India


Artificial Intelligence is widely seen as a game-changer that is reshaping entire industries and societies in our rapidly evolving modern world of technology. Intellectual property law is one field impacted by AI. This blog post explores how AI is altering intellectual property rights, emphasizing the opportunities for innovation and the legal hurdles. “Lawmakers from different countries are debating concerns about just emerged machine algorithms and creativity revolves around whether copyrighted works can be developed by their computer.”

Moreover, with the growing ability of AI algorithms to produce their own solutions, there will continue to be a significant challenge in persuading systems to adjust their presumed patent laws to reflect more on the flexibility while respecting values like originality, non-obviousness and utility. This may necessitate a careful approach to strike a balance between encouraging innovation and ensuring public interests and a level playing field. The complexity of the issues is such that it is growingly evident that no individual government can solve them alone. Discussions between policymakers, legal professionals, business individuals, and civil society members, in platforms including the World Intellectual Property Organization and the Organization for Economic Co-Operation and Development are attempting to develop shared values and ideals regarding AI and intellectual property regulation.
Given the very dynamic nature of artificial intelligence and intellectual property, a ready-for-the-future approach, which conquers a delicate balance between the requirements of ethical responsibility, competition, and ambition, is required. To use AI as a positive trend that may be embraced by the global community as a whole, while ensuring that intellectual property rights in the digital domain are preserved and respected, cooperation is promoted, innovation is rewarded, and traditional justice-based and inclusive ideals are upheld.


Understanding IP and AI

The relationship between artificial intelligence and intellectual property rights is that AI algorithms, neural networks, and machine learning models have revolutionarily impacted different sectors, including health care, finance, manufacturing, and entertainment. Certainly, the usage of AI technology has produced a considerable number of innovative inventions, creative works, and proprietary algorithms. However, artificial intelligence has raised complicated concerns in terms of authorship, ownership, and other aspects of intellectual property law and regulations. The development of valuable products by AI systems has opened many questions about creatorship, patentability, copyrightability, and secrecy. Currently, AI is expected to continue to revolutionize and enhance sectors’ productivity and our day-to-day lives. Therefore, the integration of AI and intellectual property will alter existing legal frameworks and develop legal policies regarding AI-generated IP ownership, access, and commercialization.


In India, the Union Minister of State for Commerce and Industry, Shri. Som Parkash in a written reply in the Rajya Sabha said that, “Intellectual Property Rights, including Copyright and Related rights, provide exclusive rights to legal persons for a set duration, allowing for protection of work, creation, or innovation. India, a member of major international conventions, grants adequate protection for works created by legal persons through Copyright Law and inventions through the Patent system. There is no need to create a separate category of rights for AI and related innovations in the Indian IPR Regime. The Copyright Act, 1957 grants exclusive economic rights to copyright owners, such as reproduction, translation, and adaptation. However, users of Generative AI must obtain permission to use their works for commercial purposes if not covered under fair dealing exceptions. Intellectual property rights are private, enforced by individual rights holders, and civil and criminal remedies are prescribed against infringement or unauthorized use of works”.1


AI And Patent Law

The first major issue within AI and IP is patent law. Originally, patent frameworks were created to protect human inventions. However, the rise of AI-generated inventions introduces many peculiar dilemmas. For example, figuring out the inventors, non-obviousness standard, and disclosure rules for patenting AI creations.

Even in one of the article of Yale University it was stated that “Artificial intelligence (AI) is bringing about the end of patent law. Even while it might not occur now or tomorrow, the system is starting to deteriorate. AI-powered inventions are now a reality thanks to revolutionary advancements in the field. These days, artificial intelligence (AI) can "invent" not only new materials and machinery but also production methods, prescription medications, and household goods. Artificial objects will soon fill our lives. Humans are no longer the lords of innovation, so to speak; we are no longer at the centre of the creative world


‘Machine learning is the dominant artificial intelligence (AI) technique. It is found in 40% of all AI-related patents studied and the technique grew at an average rate of 28% every year from 2013-2016’.3

Coming to AI right and Patent law in India, The Indian patent system is evolving, notwithstanding the Act's 1970 passage. After the Intellectual Property Appellate Board (IPAB) was disbanded, a significant amount of IP-related cases are now the responsibility of the high courts. The outcome of this has been the development of IN patent jurisprudence, with high courts ruling on numerous important questions concerning Indian patent law. Even while they are changing (and for the better), the Act and case law have not yet taken into account some special problems that are particular to AI inventions. Despite the fact that the ownership of AI-generated technologies has received a lot of attention, there are still several factors that could cause problems and should be taken into India.

Overall, obtaining patents for AI inventions involves unique challenges, many of which lie in the determination of inventorship, assessment of non-obviousness, and requirements for disclosures. At the same time, the strategies to address these concerns could involve establishing collaborative inventorship, differentiating human creativity from machine-generated ideas by highlighting the technical aspects in the application, and developing a closer interaction with patent offices and enhancing portfolio management. These solutions directed toward addressing the challenges of AI-based patenting allow maintaining a balance between legal clarity, continued innovation, and protection of one’s intellectual property.

AI And Copyright Law

One aspect of copyright which has been called into serious question by the imposition of AI in content generation is the underlying questions of ownership and authorship. As AI systems produce content such as art and music, it is not obvious who operations the exclusive rights to these creative expressions under copyright laws -: as current copyright laws were generated for a copyright of human creators, there is a level of discomfort whenever trying to describe an AI as an operator or, even, a creator. to put it another way, the current justification of creativity in a digital time is a hindrance because, as a straight result of that, it is ruining the existence of creators so clearly recording copyright control through AI.

Copyright protection is more complicated for collaborative creative works created by humans and machines. As per the Copyright Office, “if a human creatively arranges or selects AI-generated material or substantially modifies it in a creative way, then the protection provided will only extend to the human-composed parts of the material. However, the more complicated question of copyright protection for collectively made works by humans and machines is expressly unclear, and all registration applications are required to have all joint authors included.

Generative AI exposes creators to another form of copyright infringement anyways, based on the nature of the output. When the AI output resembles pre-existing works on the internet, the creators may be thought to have garnered the idea from the generator training data. It is true that some humans select or arrange input materials generated by the AI creatively, or alter the AI output such that copyright may incur protection, making the copyright focus to be determined by the input modification of the output. The more complex situation arises


nevertheless, is when humans create works with the assistance of the AI. Joint authors, including potentially the AI, must be named for registration in applications. It can be difficult to distinguish whether the generative AI resulting is a derivative work or infringes on the previous rights of another author.4

When it comes to navigating copyright laws with AI-generated content and figuring out novel ways of addressing the concerns surrounding ownership and authority, it is clear that the constraints will inevitably have to be based on the need to protect creators’ rights, innovative practices, and the flexibility of legislation concerning the continually developing digital art domain.

AI With Trade Secret And Data Protection

Effectively managing trade secrets and data protection in AI is critical to maintaining a competitive edge and ensuring compliance to privacy regulations. Trade secrets, which include proprietary algorithms and training data sets, can be protected through confidentiality agreements, internal security measures, and employee training. Reverse engineering, employee mobility, and data breach remain major challenges in safeguarding trade secrets. Data protection can be achieved by preserving personal and sensitive information through anonymity, and compliance with regulations such as GDPR and CCPA while minimizing the amount of data collected. Innovation versus privacy, regulatory complexities, and data breach are critical challenges in data protection. Businesses that implement effective mechanisms can protect their AI products and maintain trust among consumers and other stakeholders in a data-centered world.


AI is reshaping industries and the realms of innovation, thereby calling for the evolution of existing intellectual property regulations. Patenting AI inventions, copyrighting AI-generated works, and managing trade secrets and data rights are challenging riddles that should be solved through novel approaches. Moreover, it is a task for all the stakeholders to develop frameworks that are the most conducive to both the protection of IP rights and the development of technology – and these stakeholders include business, lawyers, policy-makers and ethicists. Redefining ownership- Helping determine ownership and inventor-ship in AI-related patents, redefining the interpretation of copyright laws to incorporate AI-generated works, and devising comprehensive country-level strategies to protect business trade secrets and data are all critical steps in this process. By developing this kind of discussion and shared consensus amongst all stakeholders, we can shape a legal environment that encourages as much responsible AI innovation as feasible. These and other necessary modifications will assure intellectual property laws preach the technology they are meant to promote enabling for sustainable outcomes and social evolution in the digital period.




Khurana and Khurana, Advocates and IP Attorneys

About the Firm

Khurana and Khurana, Advocates and IP Attorneys

AddressD-45, UPSIDC, Site IV, Kasna Road, Greater Noida - 201308, National Capital Region, India
Tel91-120-313 2513, 91-120-350 5740
Contact PersonTarun Khurana

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