For startups and innovative companies, securing venture capital (VC) funding is an important step toward scaling operations and bringing products to market. However, investors seek more than just great ideas. They want assurances that their investment is protected from competitors. One of the strongest tools for establishing such protection is a well-structured patent portfolio. Here’s how patents play a crucial role in attracting venture capital.
Read MoreThe Importance of an Intellectual Property (IP) Audit in Mergers, Acquisitions, and Venture Capital Investments
The IP audit is an important aspect of M&A transactions
An IP audit is a systematic review of a company's intellectual property assets, including patents, trademarks, copyrights, and trade secrets. The goal is to evaluate the scope, validity, and enforceability of these assets while identifying any potential risks or gaps in protection.
Read MoreNavigating Patent Challenges for AI Software and Hardware
Patent issues related to AI software and hardware
Artificial Intelligence (AI) is transforming industries at an unprecedented rate, leading to a surge in patent filings for both AI-driven software applications and AI-specific hardware, such as AI chips. However, patenting AI innovations comes with significant legal and technical challenges that differ depending on whether the invention lies in software or hardware. Understanding these differences is crucial for innovators seeking robust intellectual property (IP) protection.
Patenting AI Software: The Challenges of Abstract Ideas
AI software primarily involves algorithms, machine learning models, and data processing techniques that power applications in industries like healthcare, finance, and autonomous systems. However, patenting AI software can be challenging due to subject matter eligibility concerns under 35 U.S.C. §101 in the United States. Courts and the U.S. Patent and Trademark Office (USPTO) often reject AI-related software claims as “abstract ideas” unless they demonstrate a significant technical improvement.
Key Challenges for AI Software Patents:
Subject Matter Eligibility: AI software must be framed as a practical application that improves computing processes, rather than merely reciting an algorithm.
Obviousness Issues (35 U.S.C. §103): Many AI techniques, such as neural networks and deep learning, are considered well-known, making it difficult to prove their novelty and non-obviousness.
Enablement & Written Description (35 U.S.C. §112): AI models are often complex and may require extensive disclosures to satisfy enablement requirements, especially if they rely on large datasets for training.
To enhance patent eligibility, AI software innovations should be claimed in a way that ties the invention to specific improvements in computing technology. For example, instead of claiming a general AI model, a patent application may focus on a unique method for optimizing training efficiency or reducing computational overhead in neural networks.
Patenting AI Hardware: Navigating Semiconductor and Processing Innovations
AI hardware encompasses specialized processors, such as AI chips, designed to accelerate AI computations. Unlike software, AI hardware inventions are generally considered patent-eligible because they involve tangible, physical components. AI chips, such as Graphics Processing Units (GPUs), Tensor Processing Units (TPUs), and neuromorphic processors, present unique opportunities for patent protection.
Key Considerations for AI Hardware Patents:
Patent Eligibility Advantage: AI hardware typically avoids the “abstract idea” hurdle since it involves a physical device, making it easier to secure patent protection.
Overcoming Obviousness: Many AI hardware innovations involve incremental improvements in semiconductor design, which can face §103 rejections. Demonstrating significant performance gains or novel architectures can help overcome these challenges.
Thermal Management and Power Efficiency: Many AI chips focus on energy efficiency and heat dissipation. Innovations in these areas may be strong candidates for patent protection due to their critical role in high-performance AI applications.
Interoperability and Standard-Essential Patents (SEPs): AI chips that integrate with existing computing architectures may be subject to standard-essential patent (SEP) considerations, requiring strategic licensing approaches.
Comparing AI Software and AI Hardware Patents
For AI companies, a balanced patent strategy is essential:
For AI software, focus on demonstrating specific technical improvements in computing operations to navigate §101 issues.
For AI hardware, ensure that patent applications highlight unique circuit designs, power efficiency improvements, or innovative semiconductor structures to establish novelty.
Hybrid AI innovations, where software and hardware function together (e.g., AI accelerators with specialized software frameworks), may benefit from a combination of hardware and method claims to maximize protection.
As AI continues to evolve, securing strong patent protection for both software and hardware will be key to maintaining a competitive edge in the market. By understanding the distinct challenges and opportunities in each domain, innovators can build a robust AI patent portfolio that safeguards their technological advancements.
Design Patents: A Unique Tool for Protecting Innovation
Design patents are an important tool for protection your IP
A design patent protects the ornamental appearance of a functional item. Unlike utility patents, which cover how an invention works or how it is used, design patents focus on how an invention looks. This includes elements like shape, pattern, surface ornamentation, and overall visual impression. For example, a design patent might cover the unique look of a smartphone case, a piece of furniture, or even a distinctive bottle shape.
Read MoreThe Netflix Example: Intellectual Property Innovations in the Film Industry
This blog post takes a closer look at recent U.S. patents showcasing Netflix’s technological advancements, illustrating how IP protection is crucial in shaping the future of entertainment. We’ll also explore Netflix’s branding through its trademark portfolio, which reflects its growth beyond streaming.
Read MoreWhat Makes Up a U.S. Patent Application? A Breakdown of Key Sections
Understanding the key sections of a patent application: from the detailed specification to the claims that define your invention's scope, every part plays a critical role in securing intellectual property rights
Understanding the key sections of a patent application: from the detailed specification to the claims that define your invention's scope, every part plays a critical role in securing intellectual property rights
Read MoreShould You File a Provisional or Non-Provisional Patent Application?
A provisional application provides a cost-effective way to establish an early filing date while allowing the inventor more time to refine their invention and finalize their patent claims.
Read MoreAchieving Semiconductor Innovation: O&L Helps CLIENTS Secure Patents in Advanced Technologies
Our deep understanding of the technical and legal challenges in semiconductor patent prosecution makes it well-equipped to assist other companies in protecting their innovations.
Read MoreO&L Successfully Prosecutes Latest Patents for Honeywell International Inc.
Whether representing multinational corporations like Honeywell or assisting start-ups, the intellectual property law firm Ortiz & Lopez, PLLC brings decades of IP experience in securing patents that safeguard innovations in critical industries.
Read MoreRecent Notable Xerox Patent Issuances
“Xerox’s innovation streak continued with the issuance of U.S. Patent No. 11,984,701 on May 14, 2024. This patent, also filed and prosecuted to issuance by the Ortiz & Lopez firm, covers a sophisticated system for electronically controlling and driving semiconductor lasers, aimed at improving image conversion and quality.”
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