© 2024 Lloyd & Mousilli. All rights reserved.
Licensed in California, Florida, Louisiana, Massachusetts, New Hampshire, Texas, Washington, the District of Columbia, and before the USPTO.
The AI algorithm’s findings confirmed the general hypothesis that inventors across various technological fields are increasingly filing AI-related patent applications. AI-related patents within the AI-based hardware, vision, machine-learning, natural language processing(NLP), speech, and evolutionary computation fields are increasing, both in number and as a percentage of the total patents filed each year. Additionally, the sophisticated and complex hardware necessary to support the growing integration of AI into these new innovations is directly contributing to the increase of applications for AI hardware patents. According to data presented by AltIndex.com, “back in 2014, there were roughly 30,800 active patent families of the global top 100 owners in the AI tech space. Since then, the total number of active patent families in the AI tech field surged by 940% in the past ten years and hit nearly 320,000.”
AI-related innovation is even being diffused within these large corporations themselves as they are finding more ways to implement AI systems specific to the various product lines, departments, and the many industries with which these corporations engage. Looking at the sheer volume of AI-related patents owned by the top players back in 2020 when the USPTO conducted its study, we see IBM (46,752), Microsoft (22,067) and Google (10,928), at the top, although these numbers have only increased since. This is a clear indication of just how integral and influential these companies view AI technology as being a major factor to their future success. While these larger players are still dominating the AI-related patent space, there is a growing trend of AI-related technology diffusing into small businesses, startups, and even individual inventors. Additional evidence of AI’s significant growth beyond just its initial niche users is the geographical diversity in patent applications. For example, several states in the Midwest have acquired AI-related patents as a part of larger image recognition and data processing technologies created to provide medical care in rural areas. This indicates the shift of accessibility to AI technology that previously saw it limited to geographical areas that were heavy producers of technology, such as Silicon Valley and Austin, Texas.
Previously, AI was seen as accessible only by larger corporations and as exorbitantly expensive, as evidenced by the number of AI-related patents held by the traditional technology giants. This is no longer the case as AI is permeating every industry and facet of business, in that 82% of business leaders have already deployed generative AI or are intending to deploy it within the next year. Small businesses and inventors should be mindful of the changing landscape and reflect on how AI could impact their ideas, inventions, and their industry as a whole. AI typically serves to either advance or enhance technology. Often in order to secure early-stage funding, build a successful product, and eventually exit the startup stage, an innovator would need to produce a good business plan. Within that plan, it would be wise to show a clear understanding and strategy for how any AI-related technology or patents would advance or enhance the businesses’ success. Integrating AI into an invention is one way to ensure that investors know the inventor has considered such alternatives and is planning for the future. Even companies with well-established products that currently do not rely on AI must consider the future impact of AI technology on their products and industry to avoid being left behind.
Inventors are understandably excited about their new invention; they often feel as though they have just created the greatest thing since sliced bread and the world needs to know about this wonderful new invention right away. While their enthusiasm may be warranted, it comes with a great deal of risk. Without the robust protection that a patent offers, or even the protection a patent application offers, the invention maybe in jeopardy of being stolen or declared ineligible for patentability if the inventor fails to file an application in time. The business side of monetizing an invention can often be a tricky aspect of innovation. Businesses and innovators, be advised, always apply for the maximum patent protection that the invention is eligible for at any given time. This means considering alternative embodiments, uses, technologies, and other factors that may affect the invention now or in the future. It is important to file for patent protection prior to commercialization of the invention. The risk of working toward commercialization without a patent can be extremely risky. Furthermore, if a larger company is looking to acquire or contract with a newer startup, they often require the startup to secure all of the appropriate protection for its intellectual property, especially any patentable inventions, prior to any transaction taking place. Startups can streamline any future acquisition or licensing of their products by filing a provisional patent application to ensure protection for each novel component of their product.
Filing a patent application, or in some cases, a series of patent applications, is a highly complex and detailed process that requires attorneys with both a thorough understanding of the technology involved and the legal know-how to ensure the invention is granted the broadest protection available. A patent attorney will often conduct a prior art search (looking for known or potentially conflicting technologies), draft and amend the patent application (ensuring the broadest language and coverage possible for the invention), and lobby on the inventor’s behalf by responding to and working through any issues raised by a patent examiner at the USPTO. Integrating an AI-related technology into a patent application can make the already bizarre claim language even more complicated to navigate and adds an additional wrinkle into the complexity. This is why it is best to seek the help of a seasoned patent attorney that can efficiently and effectively articulate the underlying algorithm and technology in a manner that satisfies the USPTO’s statutory requirements for patentability.
Lloyd & Mousilli boasts a team of experts in the area of AI-related patents. Let us employ our extensive experience helping early-stage innovators to receive the fullest patent protection over the novel idea at the earliest date to ensure priority. We have overseen patent strategies for consumer products at some of the largest technology companies and want to share this experience with you. The different teams at our firm, led by seasoned attorneys, work in synergy to help businesses seamlessly weave their patents throughout their broader business strategy. We will ensure that any equity agreements, assignment rights, employment agreements, non-disclosures and all other relevant documents accurately reflect the scope and rights regarding your innovations. Our goal at Lloyd & Mousilli is to help clients accomplish their long-term goals by working closely with them at each stage and tailoring our advice in accordance with the client’s aspirations and needs.
If you are in need of legal assistance, reach out and consult with the Lloyd & Mousilli startup legal team or set-up a free consultation through our website for questions about AI-related patents or any of your patent needs.