Artificial intelligence (AI) is no longer just a buzzword. It’s transforming industries and reshaping the way we do business. However, with this technological revolution comes new challenges, particularly in the realm of intellectual property (IP) rights. In this article, we discuss about the impact of AI on IP rights and what Malaysian businesses need to know.
AI Innovations: Patenting the "Unpatentable"?
One of the main questions surrounding AI is how to patent AI innovations. Traditionally, patents are granted to human inventors. But what happens when an AI system creates a new invention? Under current Malaysian law, as stipulated by the Patents Act 1983, only natural persons can be recognised as inventors. This means AI, no matter how brilliant its creation, cannot be named as an inventor on a patent application.
This raises a dilemma: if an invention created by AI cannot be patented, how do businesses protect their innovations? One of the solutions is to ensure that the human developers behind the AI are listed as inventors, attributing the invention to those who programmed the AI. Another strategy is to focus on protecting the algorithms and software that power the AI through trade secrets and copyrights.
AI-Generated Content: Who Owns It?
The rise of AI has also led to the creation of AI-generated content, such as music, artwork, and written material. Here lies another conundrum: who owns the copyright for these creations? Under the Copyright Act 1987, copyright protection is typically granted to works created by human authors. This means that AI-generated content might not enjoy the same legal protection unless a human is involved in the creative process.
For businesses using AI to generate content, the best practice is to involve human oversight in the creation process. This way, the human can claim authorship and secure copyright protection. If AI-generated content is a significant part of your business model, consulting with a lawyer to develop a robust IP strategy is advisable.
AI and Trade Secrets: Protecting Proprietary Information
AI systems often rely on large datasets to function effectively. These datasets can be a goldmine of proprietary information and trade secrets. However, with great value comes great risk. The use of AI increases the potential for unauthorised access and misuse of trade secrets. Malaysian businesses must be vigilant in implementing robust cybersecurity measures to protect their data. Non-disclosure agreements (NDAs) and strict access controls are crucial in safeguarding trade secrets in the AI era.
AI Infringement: A New Frontier in IP Disputes
AI can also be used to infringe upon existing IP rights, either intentionally or unintentionally. For example, an AI system trained on copyrighted material could produce outputs that violate copyright laws. Businesses using AI must ensure that their training datasets do not infringe on third-party IP rights. Due diligence and thorough licensing agreements are essential to avoid potential legal battles.
Practical Tips for Malaysian Businesses
Stay Informed:
AI technology and IP laws are evolving. Keep up to date with the latest developments in both areas to ensure compliance and protection.
Develop a Clear IP Strategy:
Consult with a trademark agent or IP lawyer to create a strategy that addresses both AI innovations and the protection of AI-generated content.
Implement Strong Data Protection Measures:
Use NDAs, encryption, and access controls to safeguard proprietary data and trade secrets.
Conduct Regular IP Audits:
Review your IP assets and ensure they are adequately protected. An IP audit can help identify potential vulnerabilities in your IP strategy.
Conclusion: Navigating the AI-IP Landscape
AI presents exciting opportunities for innovation, but it also introduces complexities in the realm of intellectual property rights. Malaysian businesses must be proactive in understanding these challenges and developing strategies to protect their IP.
Whether it's patenting AI-driven inventions, securing copyright for AI-generated content, or safeguarding trade secrets, having a robust IP strategy in place is essential. Yeong & Associates are here to help you navigate this evolving landscape and protect your business's valuable assets.
Should you have any questions related to the article above, please do not hesitate to contact our managing partner, Eugene Yeong for clarification.