AI & Intellectual Property Rights (IPR)

1. Introduction

Artificial Intelligence (AI) is revolutionizing the field of Intellectual Property Rights (IPR) by automating content creation, patent processing, trademark registration, and copyright enforcement. However, AI’s ability to generate novel inventions, artistic works, and designs has raised significant legal and ethical challenges concerning ownership, patentability, copyright protection, and liability.

Governments and legal scholars are debating whether AI-generated works should be protected under existing IPR laws or if a new legal framework is needed. This discussion is particularly relevant in areas such as AI-generated music, AI-assisted drug discoveries, and automated patent filings.

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2. Key Areas of IPR Affected by AI

AI intersects with various branches of intellectual property law, including:

2.1. AI & Patents

• AI is used in drug discovery, manufacturing, and software development to create new inventions.
• Legal Issue: Can an AI system be recognized as an inventor?

Key Case Law: Thaler v. Commissioner of Patents (Australia, 2021)

• Issue: Whether AI (DABUS) can be named as an inventor in a patent application.
• Ruling: AI cannot be listed as an inventor; only natural persons can hold patents.

Laws Governing Patents & AI in India:

• The Patents Act, 1970 (as amended) – Recognizes only human inventors.
• Indian Patent Office (IPO) Guidelines – No provision for AI-generated inventions.

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2.2. AI & Copyright

• AI can compose music, write books, and create art without human intervention.
• Legal Issue: Who owns the copyright – AI, programmer, or end user?

Key Case Law: Naruto v. Slater (USA, 2018)

• Issue: Whether a non-human entity (a monkey) can hold copyright.
• Ruling: Copyright law applies only to human creators.

Indian Copyright Law & AI

• The Copyright Act, 1957 does not explicitly cover AI-generated works.
• Berne Convention (to which India is a signatory) recognizes human authorship only.

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2.3. AI & Trademarks

• AI assists in trademark registration, monitoring, and infringement detection.
• Legal Issue: Can AI-generated brand names or logos be trademarked?

Example:

• AI-generated logos from tools like DALL-E, Midjourney, or Canva AI raise ownership concerns.
• Indian Trademark Act, 1999 protects only human-created trademarks.

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2.4. AI & Trade Secrets

• AI algorithms used in businesses can be protected as trade secrets under contractual agreements.
• Legal Issue: Can AI-discovered trade secrets be legally protected?

Example:

• Google’s DeepMind AI & Healthcare Data – Questions arose about data ownership & confidentiality.

Indian Legal Framework:

• No specific Trade Secrets Law in India, but protection is available under:
  • Indian Contract Act, 1872 (Confidentiality clauses)
  • Information Technology Act, 2000 (Data protection provisions)

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3. Legal & Ethical Challenges in AI & IPR

3.1. AI as an Inventor or Creator

• Existing IPR laws recognize only human authors/inventors.
• Future Consideration: Should AI be granted co-authorship or co-inventorship rights?

3.2. Ownership & Accountability

• If AI generates an invention, who owns the patent – AI, programmer, or company?
• Legal Uncertainty: Current laws do not provide clarity on AI ownership rights.

3.3. AI & Plagiarism Concerns

• AI-generated content may unintentionally replicate existing works, leading to copyright infringement claims.

3.4. Data Privacy & AI Training Models

• AI models scrape data from public & private sources, raising IP and privacy concerns.
• Example: AI-generated artwork trained on copyrighted images.

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4. International Approaches to AI & IPR

4.1. United States (US Patent & Copyright Laws)

• AI cannot be an inventor or author (USPTO ruling, 2020).
• Case: Thaler v. Vidal (2022, USA) – AI-generated inventions are not patentable.

4.2. European Union (EU AI Act & IP Laws)

• AI is classified as high-risk technology for IP rights enforcement.
• EU Copyright Directive mandates clear authorship requirements.

4.3. India’s Stand on AI & IPR

• The Indian Patent Office & Copyright Office have not granted AI-generated patents or copyrights yet.
• The AI Task Force (NITI Aayog) is working on guidelines for AI & IPR policy.

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5. Case Laws on AI & IPR

5.1. Thaler v. Vidal (USA, 2022)

• Issue: Whether AI (DABUS) can hold a patent.
• Ruling: No, patents require human inventors.

5.2. Naruto v. Slater (USA, 2018)

• Issue: Can a monkey own copyright for a selfie?
• Ruling: No, only humans can hold copyright.

5.3. Google v. Oracle (USA, 2021)

• Issue: AI-generated code copied from Java API – Is it fair use?
• Ruling: Supreme Court ruled in favor of Google, citing fair use doctrine.

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6. Future of AI & IPR Laws

6.1. Recognizing AI as a Legal Entity

• Future laws may classify AI as a “legal person” with limited rights.
• Example: AI may get co-authorship or co-inventorship status.

6.2. Licensing & Royalties for AI-Generated Content

• Laws may introduce royalty-sharing models where AI-created works are licensed to users.

6.3. AI-Specific IP Laws

• Countries may develop separate IPR laws for AI-generated works, similar to data protection laws.

6.4. AI & Blockchain for IP Protection

• AI can be integrated with blockchain for secure & tamper-proof IP registration.

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7. Conclusion

AI is disrupting traditional IP laws by creating works that challenge existing legal frameworks. Courts and legislators worldwide are debating whether AI should be given authorship, inventorship, or ownership rights. While current laws recognize only human creators, future legal reforms may need to accommodate AI’s role in innovation while ensuring accountability, transparency, and ethical AI use.