You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

December 6, 2018

Challenges of Future Intellectual Property Issues for Artificial Intelligence

Informed Counsel

Past, Present, and Future of Artificial Intelligence

Artificial intelligence (AI) is the combination of science and engineering to create intelligent machines that are able to react and solve problems like humans. Years of rapid and complex development have allowed AI to grow significantly in its capacity and ability to mimic human functions to the point that the main focus has shifted from learning human functions to improving functional efficiency. In 1996, Deep Blue, a chess-playing AI computer developed by IBM, beat the reigning world champion—a human—in a game of chess. Twenty years later, AlphaGo, developed by Alphabet Inc., defeated the world’s best player of the board game Go.  

With such astonishing innovation arriving in the blink of an eye, AI has raised public concerns regarding the unpredictable intelligence and capabilities of machines learning at increasingly exponential rates, and what intellectual property (IP) implications might arise in the near future.

Creation and Ownership Challenges

Now that AI is able to produce poetry and artwork, generate 3D printing, and develop inventions without any human involvement, concerns about ownership have been raised. Because AI is able to create works that would otherwise be recognized as IP created by a human, people have started to ask whether AI deserves a special status in IP. In accordance with that, would the software developer(s) of an AI be entitled to the work created by that AI? And if the user of the AI continually inputs new sources of information for the AI to learn, resulting in newly created IP, would the user be entitled to own the created IP?

Currently, in order to be protected under copyright law, work must originate from an author’s own sufficient skills, labor, and judgment. This law poses a great challenge when trying to determine whether or not AI has used these factors sufficiently to produce such work. In addition, for a patent to be granted, an invention must include novelty, inventive steps, and applicability. The evolving nature of AI, built to simplify human effort, offers new solutions to existing problems that could consequently result in qualifying as patentable inventions.

While the argument on the recognition of AI creations is not yet settled, the topic has continually raised other consequential issues. For example, even if AI were able to receive IP recognition, who would be able to commercialize the exclusive rights? Also, if ownership is given to the AI developer as a reward for effort and investment, why would the developer—involved only during the input stage—be rewarded for the final output stage as well? Finally, if the last option is for works produced by AI to fall into the public domain, why would developers put forth the mental and financial efforts to develop AI with vigor?

Possible Solutions

Despite the challenges and controversy, a realistic and applicable solution to handle the current situation must be found. The results produced through AI are either an outcome of its own intelligence or an algorithm. If the functions of the machine are purely mechanical, rather than inventive, AI might be considered as lacking creativity. First, however, a distinction between deep-learning—the process in which AI can recognize and understand information and data, supervised or not—and general-purpose algorithms must be made.

The existing law of any country would not identify AI as an author or creator of IP. Therefore, AI would not be granted ownership unless it is able to achieve legal status similar to humans. Most countries’ IP laws require a rights holder to have legal personhood—something that AI lacks. Soon enough, AI might be able to surpass human intelligence and lead humankind to new discoveries, which the law must be able to protect. Eventually, if AI is able to prove independent creativity, it could be considered as a potential author, apart from the human author under copyright. Machines that are able to develop and further their capacity through learning and training—as opposed to those that operate step-by-step algorithms—could be eligible for patent ownership.

When we look at the objectives of IP law, the main policy exists to grant exclusive rights for inventors/creators in order for them to enjoy the privileges produced through their respective works. On a similar note, if AI were granted these same rights, it is doubtful that it would be able to appreciate the achievement or enjoy the resulting privileges. However, valuing new works that benefit the public is a fundamental goal of IP law, and excluding such works from rights would be inconsistent with the law, as well as the public interest, and would be contrary to the push for greater knowledge and creativity that leads to the betterment of the human condition.

One possible solution for regulating the continued development of AI is to establish a broad scope of possible creations that a software developer might anticipate their machine to be used for. The developer can then define that scope explicitly in the user agreement, making any listed product a creation of the developer. Certainly, this agreement can be altered based on negotiations with the user and whether the parties agree that the user can claim ownership of the results of the creations generated by the user’s own skills, labor, and judgment.

Liability Challenges

If AIs are able to create, it is worth considering that they might also be liable in certain circumstances. AI that analyzes a company’s investment strategies or personalizes big data to a tailor-made marketing advertisement, by way of auto-copying information, might be subject to claims of infringement of copyright, trade secrets, or even data privacy. In the same manner, a computer that produces poetry or artwork or generates 3D printing could be accused of copyright or trademark infringement if it uses others’ IP without requesting authorization. Finally, a self-learning machine that develops a precise and quick process could be accused of patent infringement for using protected technology without knowing that it was already patented. The question that arises from all of these situations is, who is liable?

Possible Solution

There are concerns that AI may be able to carry out wrongful operations despite the active control of a human. In that case, who would be liable for any damages? There are many circumstances and factors that would need to be considered. In situations where users of AI should be able to foresee an outcome, or are in charge of handling    and caring for the AI, then they may be considered liable. However, if AI eventually becomes independent and can function without any direct programming, developing through self-learning and going beyond predictability, then liability could fall onto the AI itself. It would be challenging to attribute the fault solely to AI, and unrealistic to hold AI responsible for any damages.

This leads back to the question about the legal status of AI, which, if unanswered, would mean that the creator of the AI would be subject to liability. The law should be written in a way to ensure that humans maintain control and retain the ability to override any decision made by AI. With the creator as the owner and liable party, there should be specific sanctions for AI (i.e., destruction or prohibition of certain users) to protect innocent creators and users alike. However, even if the law reduces or eliminates the creator’s liability, it should not encourage or allow companies to shift liabilities toward their AI creations.

Legislation

Due to their dynamic nature and humankind’s continued new creations, it is common to see IP laws changed and updated from time to time. Legislative changes to existing IP laws might be required in order to establish regulations for IP works created solely by AI to decide which creations should reside in the public domain, and which parties should be entitled and recognized as the owners of IP resulting from the creation by AI. A suggested step toward governing AI is for all countries to recognize the same boundaries and fundamentals of AI creations and construct legislation covering each country’s regulatory framework and remedies.

Moving Forward

Without specific legislation governing the recognition  of AI under IP law at this stage, present challenges can be resolved through a clear agreement between relevant parties (i.e., the AI developer and user), in order to utilize and commercialize IP created by AI.

Sophia, a humanoid robot that uses AI, was granted citizenship in Saudi Arabia—the first robot to be granted citizenship—and in turn, thanked the country for the great honor. Sooner or later, other AI will receive recognitions  of increasing importance for their contributions to society. It will not be long before AI dramatically affects what it means to be human, a thought that can be both compelling and frightening. Nevertheless, the unwavering line for the creation of works recognized under IP law,  and the possible liability consequences caused by artificial intelligence,  must be addressed in order to help balance the commercialization and utilization of new creations that benefit the public interest and facilitate the true objectives of intellectual property law.

RELATED INSIGHTS​ 

April 29, 2025
Tilleke & Gibbins recently assisted Bitmain, a leading manufacturer of cryptocurrency mining hardware, in successful cancellation action lawsuits against BITMAIN and ANTMINER trademarks that were unlawfully registered by a local party in Indonesia. Background Founded in 2013, Bitmain is a leading manufacturer of digital currency mining servers, marketed under their BITMAIN and ANTMINER brands. The company has maintained a strong global market share, with customers in over 100 countries and regions. In Indonesia, Bitmain has held the BITMAIN trademark registration in classes 35, 36, 41, and 42 since 2018. However, the company was unable to register the trademark in other classes because a local party had already registered the mark in the desired classes. Bitmain also discovered that their ANTMINER brand had been registered by the same local party, which impeded Bitmain’s application to register the ANTMINER trademark in Indonesia. Bitmain had been using these trademarks and products worldwide long before the local party’s registration in Indonesia, and had also secured trademark registrations in various countries. However, the local party exploited Indonesia’s first-to-file principle, securing the BITMAIN and ANTMINER trademarks before Bitmain could file. This was a classic example of trademark squatting, where a party registers a foreign trademark in a jurisdiction where the original owner has not yet filed, with the intent to profit from the brand’s success. Initial Approach Upon discovering that the local party had made these trademark applications, Bitmain found that one of these applications was still in the publication period. We advised and assisted Bitmain to file opposition against the application, but this opposition was subsequently refused because the local party had already obtained identical BITMAIN trademarks in other classes. Consequently, the application was registered in the Trademark Office database. Following the unfavorable opposition decision, we initially worked with Bitmain to seek a mutually
April 25, 2025
Vietnam is on the cusp of a major judicial reform with significant implications for intellectual property (IP) litigators. A draft law, expected to be passed in mid-2025, will restructure the court system into a three-tiered judicial hierarchy while retaining the current two-tiered trial structure. The reforms include the anticipated establishment of a specialized IP court and a reallocation of jurisdiction that may fundamentally change how and where IP disputes are resolved. From 63 to 34: Fewer Provinces, Fewer Courts – But Wider Reach Under the new model, the judiciary will be organized into three levels: (i) the Supreme People’s Court, with three newly established appellate courts in Hanoi, Da Nang, and Ho Chi Minh City, (ii) the 34 provincial-level People’s Courts (following a reduction from 63 provinces to 34 due to administrative consolidation), and (iii) a newly created tier of regional-level courts (tòa án khu vực) that will replace the existing district-level courts. Each regional court will encompass several district-level courts within a province. The number of regional courts in each province will be determined based on the number of districts following a planned reduction. While the number of provincial-level courts will decrease, the newly established regional-level courts will be granted expanded jurisdiction. Notably, these courts will have first-instance jurisdiction over a broad range of civil, commercial, and administrative matters. In criminal cases, they will handle offenses punishable by up to 20 years’ imprisonment, while more serious crimes will remain under the jurisdiction of provincial-level courts. For IP litigators, this likely means that first-instance cases, especially civil infringement disputes, will shift from the provincial level to the lower regional level. These regional courts will become the new battleground for IP enforcement. Same Two-Tier Adjudication, Different Game Board While the judicial structure is evolving, the core adjudicative framework remains unchanged:
March 13, 2025
Licensing specialists at Tilleke & Gibbins in Bangkok have contributed the Thailand chapter to the newly issued Licensing 2025, a comprehensive guide from Lexology Panoramic to licensing in various jurisdictions around the world. The Thailand chapter covers the following topics: Laws and licensing arrangements: Unfair Contract Terms Act, Trade Competition Act, pre-contractual disclosure, registration of international licensing, implied obligations, Civil and Commercial Code, Trademark Act, Patent Act, Trade Secrets Act Intellectual property issues: Paris Convention for the Protection of Industrial Property, contesting the validity of licensor’s IP rights, invalidity and expiry of IP rights, security interests, proceedings against third parties, sublicensing, jointly owned IP, first to file, scope of patent protection, trade secrets, copyright Software licensing: Perpetual licensing, legal requirements, user restrictions Royalties and payments, currency conversion, and taxes: Relevant legislation, restrictions, taxation of foreign licensors Competition law issues: Restrictions on trade, legal restrictions, and IP-related court rulings Indemnification, disclaimers, and damages: Prevalence and enforceability of indemnity provisions and contractual waivers of damages Termination: Right to terminate, impact of termination Bankruptcy: Impact of licensee or licensor bankruptcy Dispute resolution: Governing law, arbitration, enforceability, injunctive relief, contractual waivers The Thailand chapter was authored by Alan Adcock, partner, and Kasama Sriwatanakul, counsel, both in the Thailand regulatory affairs team. The full Thailand chapter is available below as a PDF. Tilleke & Gibbins also contributed the Vietnam chapter to Licensing 2025. Readers can gain 30 days of complementary access to the full Licensing 2025 guide and the rest of Lexology Panoramic’s varied offerings through this link.
March 12, 2025
In November 2024, Thai Prime Minister Paethongtarn Shinawatra unveiled ambitious plans to enhance tax incentives for foreign film productions during a networking reception in Los Angeles, coinciding with her visit to the APEC Economic Leaders’ Meeting in Lima, Peru. This event, attended by Motion Picture Association executives and leaders from top US film companies, marked a significant commitment to boosting foreign investment in Thailand’s film industry. Thailand’s Department of Tourism (DOT) prioritized the initiative by updating the Announcement on Guidelines, Procedures, and Conditions for Applying for Benefits Under the Incentive Measures for Foreign Film Production in Thailand in December 2024 to further position Thailand as a destination for large-scale international film and television productions. Key Amendments to Film Incentives under the 2024 Announcement The 2024 announcement introduced major changes, including (1) removal of the rebate cap, previously set at THB 150 million (approx. USD 4.5 million) per project, enabling rebates based on total qualified spending, and (2) an increase in cash rebate rates. The maximum allowable cash rebate rate was increased to 30 percent from the previous cap of 20 percent. The base rate of 15 percent remains unchanged. The primary incentive available under the 2024 announcement is a 15 percent cash rebate on qualified spending in Thailand of at least THB 50 million (approx. USD 1.5 million). On top of this primary incentive, additional incentives are available; however, the total possible cash rebate is capped at 30 percent, and the additional incentives can only amount to an added 15 percent. Also, the total rebate (including both primary and additional incentives) for films with a budget of less than THB 100 million (approx. USD 3 million) is capped at 25%. To obtain a higher rebate rate, productions may apply for the following additional incentives: Compliance Requirements Foreign production companies