Source: https://blog.sigmalawgroup.com/category/uspto/
Timestamp: 2019-04-21 20:23:09+00:00

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April 4, 2019 James M. Smedley, Esq.
In January of 2019, the United States Patent and Trademark Office (USPTO) issued revised guidance relevant to 35 U.S.C. § 101 (Subject Matter Eligibility) rejections. Entitled, 2019 Revised Patent Subject Matter Eligibility Guidance, the document added a new pathway for patent eligibility, whereby a claim that includes a judicial exception is still subject matter eligible under 35. U.S.C. § 101, if the judicial exception, such as an abstract idea, is “integrated into a practical application” of the judicial exception.
A large portion of the legal community felt that the guidance would cut the number of rejections under 35 U.S.C. § 101. The guidance provided much needed clarity on how to present claims in an application to avoid such rejections, which had become commonplace in several art units at the USPTO.
Cleveland Clinic had argued that the courts “failed to give the appropriate deference to subject matter eligibility guidelines published by the PTO.” Relying on Skidmore v. Swift & Co., 323 U.S. 134 (1944), Cleveland Clinic argued that, “Skidmore ‘requires courts to give some deference to informal agency interpretations of ambiguous statutory dictates, with the degree of deference depending on the circumstances.’[iii]”.
So while the USPTO appears to be loosening the reigns on subject matter eligibility, the Federal Circuit does not appear to be following suit. And while the Cleveland Clinic v. True Health case did not specifically address the 2019 Revised Patent Subject Matter Eligibility Guidance, the courts opinion clearly noted that the USPTO’s guidance was not the ultimate arbiter on subject matter eligibility.
Ultimately, from a prosecution perspective, it may be wise to not solely rely on the broader interpretations of subject matter eligibility provided under the latest USPTO guidance, and include at least some claims that would survive more rigorous scrutiny under the tests outlined and applied by the Federal Circuit and the Supreme Court of the United States.
April 2, 2019 April 2, 2019 James M. Smedley, Esq.
If you are a developer, tech startup or otherwise considered trying to protect your amazing new idea or technology based in software, you probably have already looked into patents as a potential way to secure those technologies. (I highlight idea, as we will come back to that very salient point in a minute). Probably one of the first things you run across is everyone talking about Alice!
Who is Alice? When people refer to Alice, they are referring to a Supreme Court decision in the case of Alice Corp. v. CLS Bank International, 573 U.S. __, 134 S. Ct. 2347 (2014). In 2014, this was a landmark ruling that shifted the applicability of 35 U.S.C. § 101 to certain types of inventions. One central component of this shift was related to the patent eligibility of inventions that were based in software (or those that were otherwise based on abstract ideas).
We will not dive too deep in the analysis of Alice in this article for two main reasons: 1) it has been covered ad nauseum elsewhere; and 2) the ruling is over 4 years old and while Alice is still the root to most eligibility analyses, there have been numerous rulings since that have broadened, extended and clarified exactly what is and is not patent eligible subject matter.
Let us be clear, software is patentable, when done correctly. Even things you and I may feel are simple processes are still protectable. For instance, Gaming Arts, LLC. just received a patent for a software based “BINGO GAME WITH BONUS FEATURE” (See US Patent 10,242,531), and Sony Interactive Entertainment jut received a patent for playing a sound effect when a computer detects a user saying a trigger word (See US Patent No. 10,242,674). Both were issued on March 26, 2019.
It is important to note that a utility patent covers the functionality of the software, through defining the software in terms of systems and methods. What patents do not cover is the actual code. Source code is covered largely by copyright, which can protect direct copying of the code, but does not provide protection against those who write their own code to do the same thing. And that is exactly where patents step in.
Now, there is a certain bare minimum that must be reached for a software system and/or method to be patentable. Which brings us back to why I highlighted idea back in the beginning. Ideas are not patentable in and of themselves, as they are abstract and fall squarely into the realm of what is not patent eligible.
If you are forming the next great startup and you want to be the “Uber for X” or the “Instragram for Y”, that is not, in and of itself, going to get you cross the finish line for patent eligibility. Remember, software patents are directed to covering systems and methods. Software almost always is nothing more than a series of steps (i.e., instructions) that drive a computer to take some action (e.g., process data). Some data goes in, software directs the computer as to what to do with that data, and the output is some generally useful result. Whether it is finding the closest Uber, matching you to your next soulmate, adding two numbers together, or calculating the trajectory of a rocket for sending a payload into space, it all boils down to some data going in, being processed, and a result being output.
When putting together a patent to protect your invention, your invention must be more fully flushed out than simply stating in conclusory terms what your software will do. The abstract idea alone is not protectable, but the steps you use to get to the solution (i.e., method) may be. Develop the flowcharts for how your great idea gets from problem A, to solution B. The road in between is your patentable method. For some help on this topic, the United States Patent and Trademark Office (USPTO) has provided a useful resource in the form of a Quick Reference Sheet for Identifying Abstract Ideas.
Remember, the more flushed out your idea is, the more it becomes a methodology which may be protected.
The content you put into your disclosure is king when it comes to your patent filing, especially for software related inventions. The basic requirement for a patent application is that the drawings and specification disclose the invention in enough detail that one of ordinary skill in the art would be able to practice the invention without undue experimentation. While that is the bare minimum, remember, if it is in your application, you can use it later during examination to overcome examiner’s arguments related to novelty, obviousness and even indefiniteness. Conversely, if you do not include detailed descriptions of the various aspects of your invention, you cannot later use them in your arguments.
One thing that should be remembered when preparing a patent application for software methods is that even though you may be filing a patent application for your unreleased software product that will be launched soon as an initial version (e.g., v1, beta), there is no need to limit the patent application disclosure to just the features that are in the software now. In fact, there is no requirement to have a working prototype in order to file a patent application on an invention. This is particularly important with software, where you may be going to market with a minimum viable product (MVP), but have a roadmap that goes through several iterations, versions and include numerous improvements and features not present in the MVP.
Since there is no requirement to have a working prototype, and the enablement requirements only require that you be able to describe the invention in enough detail that one or ordinary skill in the art would be able to practice the invention – something probably already at least partially contained in your roadmap – you should consider putting details of all your future concepts, features and improvements in your application. What this does is secure your priority date for all of the future features and improvements you have planned.
This strategy also allows you to use these features and improvements in arguments and amendments during examination. It generally takes 18-24 months to enter substantive examination at the USPTO. By this time, you will have a greater insight as to what features and improvements became a big hit, and those that did not pan out as planned. This allows you to focus the examination of the application on those key features that were later implemented, without the need to file additional patent applications on an ongoing basis.
Further, by disclosing additional features and improvements in the first application, you can later file one or more continuation applications at a later time to secure patents on the individual features and improvements at a later time. Each of these continuation applications get the benefit of the earlier filing date, even though they may be filed years later.
What you disclose in the application is only part of it. How you write the application is critical. The words you use can end up coming back to haunt you, by unnecessarily limiting the breadth and scope of your rights, or otherwise acting as self-sworn statements that you cannot back away from.
For instance, restrictive words, like, “only”, “must”, “always”, and “never” may limit the scope of an invention. If in an application, the disclosure states, “The system always does X before Y”, then you have been committed to a system that either always does X before Y, or never does Y (if you don’t do X, you cannot do Y). These kind of limitations can poke holes in the breadth of an application, particularly when related to software, where there are frequently dozens if not hundreds of other ways to accomplish a task. Think to yourself when drafting or reviewing an application whether the statements you are making are really requirements, or just simply one way you have chosen to implement the solution.
In another example, statements about what have been done in the past or are done in an industry can act as prior art against your invention. This is known as “Applicant Admitted Prior Art” (AAPA) and can be disastrous in certain cases. Commonly found in the background section of a patent, some applicants (or their patent attorneys or agents) may end up making statements that go beyond what actually IS prior art and inadvertently giving up certain rights by making such statements.
Further, even beyond just admissions of prior art, statements in the application about what is well-understood, routine and conventional in the art can come back to haunt inventors and applicants, as this can give grounds to the examiner to provide a subject matter rejection under 35 U.S.C. § 101. Avoid these statements at all cost, as they are generally unnecessary and add little value to the actual disclosure itself.
However, the recent federal circuit opinion in Berkheimer v. HP, Inc., 881 f.3d1360 (Fed Cir. 2018) also confirmed that the concept of applicant admissions in a patent specification works in the opposite direction as well. In Berkheimer v. HP, Inc., and a later USPTO memo regarding implementation of the ruling as it relates to patent examination practice. In this case, the court found that the applicant’s statement that the novel improvements contained in the application were not convention, and represented an improvement over the art, created a factual dispute that would not permit a finding otherwise under a motion for summary judgment. Simply put, feel free to include statements throughout the specification as to how the disclosed software works or functions differently than conventional software, and how it provides improvements over the conventional or routine functionality of other software.
When it comes to patents on software based systems and methods, Alice’s spectre still haunts us to this day. Examiners are still issuing subject matter eligibility rejections under 35 U.S.C. § 101 on otherwise valid and protectable systems and methods that are based in software. Frequently, these rejections are held up only by loose accusations and conclusory statements about an abstract idea contained in the claims.
However, on January 4, 2019, the USPTO announced the issuance of revised guidance relevant to 35 U.S.C. § 101 (Subject Matter Eligibility) rejections. Entitled, 2019 Revised Patent Subject Matter Eligibility Guidance, the document adds a new pathway for patent eligibility, whereby a claim that includes a judicial exception is still subject matter eligible under 35. U.S.C. § 101, if the judicial exception, such as an abstract idea, is “integrated into a practical application” of the judicial exception.
The board initially identified the claims as being directed to methods of organizing human activity, a category of inventions under 35 U.S.C. § 101 that constitutes an abstract idea, namely fundamental economic practices. The board then reviewed the claims under the revised guidance relevant to 35 U.S.C. § 101 (Subject Matter Eligibility) rejections. Using this guidance, the board determined that the claims were “integrated into a practical application” of the abstract idea, and therefore patent eligible subject matter.
Interestingly enough, the board’s determination that the claims were “integrated into a practical application” was based on use of timers to delay automatically executing market orders (i.e., electronic) to allow “in-crowd” market orders (i.e., from “in the pits”).
March 21, 2019 April 2, 2019 James M. Smedley, Esq.
The examiner had initially determined that the claims were directed to “an abstract idea of trading derivatives in a hybrid exchange system which is a concept within the realm of ‘fundamental economic practices’ because the concept relates to the economy and commerce.” See, Ex parte Smith (2018-00064). The examiner determined that under the Alice test, since this was an abstract idea, and that under the Alice step 2 analysis, the claims were directed at generic computer components and did not impose any meaningful limits on the scope of the claims, the claims were therefore patent ineligible subject matter under 35 U.S.C. § 101.
Interestingly enough, the board’s determination that the claims were “integrated into a practical application” was based primarily on claim elements directed to the use of timers to delay automatically executing market orders (i.e., electronic) to allow “in-crowd” market orders (i.e., from “in the pits”). A majority of the panel of judges for the board did note that that felt these timers were not trivial timers, but it was not a unanimous panel. One judge did dissent, under the idea that these timers, no matter how they were implemented, were not “[T]echnical in nature and do not provide any ‘technical solution to a technical problem’ as contemplated by the Federal Circuit in DDR and Amdocs.” See, Ex parte Smith (2018-00064).
While there have been some interesting developments at the Federal Circuit, which we will post about separately, guidance from the USPTO appears to favor subject matter eligibility for well-tailored claims that involve computer implemented subject matter.
March 13, 2019 March 13, 2019 James M. Smedley, Esq.
In its simplest terms, a patent is a legal construct that grants to inventors the rights to exclusively practice an invention in the United States for a period of time (currently 20 years from the filing date of a patent application). In the United States, patents are to be granted only for inventions which are not only useful, but also novel and non-obvious in light of the prior art.
Novelty and non-obvious of an invention is determined based on prior art. The term “prior art,” as it is used in the United States, refers to any information that is available to the public in any form prior to the filing of a patent application.
Simply put, a prior art search involves searching various publicly available sources to find out whether an invention has been previously described or detailed in other references (i.e., prior art). If an invention has been described in a prior art reference, a later filed patent application would not be granted as being anticipated by the prior art. In short, if there is a publication dated before the filing date of the patent application, and that publication describes all aspects of the invention as claimed, the invention is not novel, and therefore ineligible for patent protection.
The most obvious form of prior art is previously granted patents and published patent applications. But even without a previously filed patent application, an existing product on the market that patent protection was never filed for is also prior art. But this is not where the concept ends. A piece of technology that is centuries old can be prior art. A previously described idea that could not possibly work under the existing technologies of the time can be prior art[i]. Anything can be prior art. The sources of prior art include patents, published patent applications, periodicals, books, and products. However, the most common prior art used by Examiners at the United States Patent and Trademark Office (USPTO), by far, are previously granted patents and patent publications.
Prior art searches take four forms: novelty, validity, clearance and landscape searches.
A novelty search helps an inventor to determine if the invention is novel before the inventor commits the resources necessary to obtain a patent and is done before an inventor files a patent application.
A validity search is done after patent issues, the purpose of which is to find prior art that the patent office overlooked. These can be useful for competitors looking to contest the validity of a granted patents.
A clearance search is a search of issued patents to see if a given product or process violates someone else’s existing or pending patent(s).
A landscape search provides a high-level view of the technology space and is normally performed to understand the lay of the land when entering a new technological area, including recent trends in technology, competitors, filing activity, and white-space/adjacent technologies.
Why Is Prior Art Search Important?
Prior art is important because it controls the ability to gain intellectual property (IP) rights over an invention. If the inventor is unable to gain IP rights, the invention may have a decreased market value, as the inventor may be unable to prevent competitors from entering the market, or be forced to obtain licenses from existing IP rights holders.
to cancel a granted patent used against you by detecting new invalidating prior art that has not been considered in the patent grant process, etc.
Does Prior Art Automatically Disqualify?
The invention has been publicly used, demonstrated, or offered up for sale by the inventor over one year prior to a U.S. application filing.
When Does Prior Art Not Count?
There are exceptions to prior art in which it may not count against filing a patent application. Certain experimental public uses might not count as demonstration or revelation. If an invention was secret and remained secret up until being abandoned by the original inventor, it may not apply as prior art. Trade secrets are not usually prior art, provided that employees and others with access to the information are under a non-disclosure obligation. Prior art generally does not include unpublished work or limited conversations.
If someone sues you because they think you infringed on their patent, a prior art search can help. You can conduct a prior art search in order to identify prior art that could be used to invalidate their patent, whether at trial or via an action before the USPTO. If their patent is found invalid, then they do not have grounds to maintain a suit for patent infringement.
What to invest in a prior art search?
The amount of effort spent in performing a prior art search should be proportional to the value of the invention and subsequent patent if the application is pursued to completion. A patent application filed for marketing purposes with no real intention of prosecuting until completion will not require much or any prior art searching. On the other hand, if an invention is the cornerstone of a company’s strategy, or if the field of the invention has a costly barrier to entry, a comprehensive prior art search may be warranted. As always, it should be the business goals that inform the IP strategy and the specific decisions made.
In many cases, it may be advisable for inventors to conduct a prior art search with an eye toward both the technical features of the invention and the legal aspects of patentability, such as novelty and non-obviousness. A patent or patent application is not just a technical paper; it is also a legal document. Therefore, while familiarity with the technology is mandatory for a technical prior art search, a search will yield the most value if one has an understanding of IP law—specifically, patent law as it relates to validity and infringement.
[i] We are aware of a European patent application for a new bicycle that was rejected based on a 19th Century French manuscript that detailed nearly the same bicycle, but it would not work as described at the time, as the materials of the era were too heavy or too brittle to function. The only difference between the old bicycle and the new, was the use of carbon fiber materials, which were light enough and strong enough to make the bicycle work. The examiner submitted that the change of materials was an obvious change, noting the entire structure of the invention was substantially the same otherwise.
February 11, 2019 April 12, 2019 James M. Smedley, Esq.
On January 4, 2019, the USPTO announced the issuance of revised guidance relevant to 35 U.S.C. § 101 (Subject Matter Eligibility) rejections. Entitled, 2019 Revised Patent Subject Matter Eligibility Guidance, the document adds a new pathway for patent eligibility, whereby a claim that includes a judicial exception is still subject matter eligible under 35. U.S.C. § 101, if the judicial exception is “integrated into a practical application” of the judicial exception. The guidance was incorporated into the Federal Register on January 7, 2019, and applies to all USPTO personnel, which includes the examiners that review applications for 35 U.S.C. § 101 concerns, and the administrative judges that oversee appeals and disputes on these issues.
Of considerable note, the new procedure, referred to in the guidance and Federal Register as “revised Step 2A,” changes how Step 2A of the Alice/Mayo test is applied.
The old Step 2A asked whether a claim is directed to a judicial exception. There are three enumerated judicial exceptions: 1) laws of nature; 2) natural phenomena; and 3) abstract ideas. If a claim had no judicial exception, it was patent eligible subject matter. If a claim did have a judicial exception, the analysis would then move to Step 2B for further review.
The revised Step 2A still looks to see if there is a judicial exception in a claim, and if there is no judicial exception, the claim is considered directed to patent eligible subject matter. However, the revised Step 2A differs in that if a judicial exception is identified, the claim is still directed to patent eligible subject matter if the judicial exception is “integrated into a practical application” of the judicial exception. For example, if a patent application with claims directed to a software method which incorporated an abstract idea, so long as that abstract idea is integrated into a practical application of that abstract idea, the claim is directed to patent eligible subject matter and may still be entitled to patenting.
Now that a little over a month has passed since the new guidance has gone into effect, we are starting to see some opinions from the Patent Trial and Appeal Board (PTAB). While the PTAB has still issued a greater number of affirmed 101 rejections than reversals since the new guidance, the opinions have been positive with respect to those reversals.
One very telling reversal came on application 14/282,015, for claims directed to a software-based system for vehicles that allows users to provide consent for installing optional software updates that add a feature to a vehicle module or adjust a configuration of an existing feature, and, in lack of receipt of such consent, displaying an icon in a gauge cluster in the vehicle. The examiner had initially rejected the claims under 101 as directed to: i) the abstract idea of updating software; and ii) organizing human activity (i.e., receiving consent to take an action).
Notably, here we have an opinion from the PTAB identifying a quite low bar for application of the “practical application” standard. In this case, the “practical application” seems to be not much more than having a prompt for approval that you would see on any software update (e.g., “accept the new Terms of Service”) and then displaying an icon on a display when there is an update still pending approval.
A method of surfing the Internet comprising: a. selecting information on a web page; b. clicking on the information as it resides on the web page; and c. in response to the clicking, conducting a web search on the information.
[T]he Examiner’s factual findings regarding the underlying abstract idea to overgeneralize the claimed invention under the patent eligibility guidelines at the time of the rejection in the Final Action and Examiner’s Answer and this same overgeneralized abstract idea similarly does not meet the Examiner’s requisite burden for analysis under the 2019 Revised Patent Subject Matter Eligibility Guidance.
Given the simplicity and breadth of the claim, it is likely good news for applicants with inventions in the software space that the PTAB is not outright viewing broad claims as inherently abstract under the new guidance. The opinion does note other likely issues with the application, but it is in the context of the PTAB’s views on 101 with which we are concerned.
It has only been a month since the USPTO issued the latest in subject matter eligibility guidance, and our initial impressions of how the PTAB is using the new guidance is positive and optimistic. Even though a greater percentage of opinions citing the 2019 Revised Patent Subject Matter Eligibility Guidance affirmed the 101 findings of the examiner, the limited numbers are not truly representative of what we expect to see over the long run. Further, a closer look at those affirmed 101 findings leads us to believe that the cases were destined to be maintained, regardless of the updated guidance.
Most notably for us is that the current interpretation of what constitutes when claimed subject matter is “integrated into a practical application” of the judicial exception seems to be initially very favorable for applicants, particularly for those with inventions in the software space.
December 20, 2018 April 12, 2019 James M. Smedley, Esq.
Advancements in Artificial Intelligence (AI) have been occurring at an ever-increasing rate, impacting almost every field of technology, from medical diagnosis and analysis, to driverless cars, to automated securities trading platforms, all the way to home security[i]. The arms of AI can be felt in every industry, in one way or another. Given the speed of advancement and the very nature of AI itself, it is important to consider the complex landscape around how to protect improvements in the AI space.
At first, it is important to note the types of intellectual property (IP) protection that can apply to inventions in the AI space. The definition of IP generally comprises the core four – patents, copyrights, trademarks and trade secrets. In the case of AI, each of these may apply, and each has its own particular usefulness and advantages. Further, each of these types of IP has its own concerns with respect to the timing of obtaining the protection. For this article, we will primarily be focusing on the two areas of protection that generally are of the most concern – patents and copyrights.
AI, in almost all cases, exists as a software component. Depending on what the use case for the AI is, there may also be a hardware component (e.g., vision system, sensors, actuators), but these hardware components are generally peripheral to the core AI, which is software based. While AI inventions based in combined software and hardware solutions or standalone software-based solutions may both be patentable, the analysis for whether an AI based system constitutes patent eligible subject matter does take into consideration what is actually involved.
Where there is a corresponding hardware component in use with the software-based AI component, the subject matter eligibility analysis is usually relatively simple, favoring eligibility over not. For instance, if an AI system is used to automatically control a series of vision systems (e.g., security cameras) and detect intruders, the invention is likely eligible for patent protection from a subject matter perspective, assuming the application is drafted appropriately.
Where the AI system solely exists as a software solution, an examiner at the USPTO will likely give the invention more scrutiny under the subject matter eligibility tests. We have written more on the patentability of software-based inventions in a separate article that you can find here. However, while patent applications directed to software only inventions may receive additional scrutiny, true AI inventions likely are sufficient to overcome these rejections. In fact, USPTO Director Andrei Iancu has even discussed the patentability of AI, through discussions of “[H]uman-made algorithms”, during a hearing regarding the oversight of the USPTO in April of 2018. Again, the critical point in securing a patent in a solely software based AI invention is appropriate drafting of the application.
With respect to patenting AI based inventions, particularly as it relates to the software component of the AI, it is important to note that a utility patent covers the functionality of the software, through defining the software in terms of systems and methods. What patents do not cover is the actual code. Source code is covered largely by copyright, which can protect direct copying of the code, but not those who write their own code to perform the same functionality.
In defining what an inventor wants to protect with respect to their software-based AI invention, it is important to look at the invention in terms of a method, or a series of steps. Considering everything a computer does is generally a series of steps involving processing some data, framing the inventive aspects of the software-based AI invention in such a methodological manner is generally straightforward.
What inventors want to avoid is viewing the invention in the abstract, or very high-level depiction. For instance, you cannot get a patent on the idea of “an AI based dating platform”, but you could potentially get a patent on the methods performed by the AI in order to find compatible matches (e.g., based on training models and predictive analytics). So, a focus needs to be on what actual occurs in order to make the invention possible, not solely focusing on a conclusory statement about what problem is being solved.
Another important thing to remember when seeking patent protection for AI inventions, or any invention, is to do so sooner rather than later. There are two main drivers for this. First, the USPTO, and most if not all other national patent offices are “first-to-file” for priority on inventions. What this means is that, even if you get to the market first with your invention, or conceived of the idea before another inventor, if another party’s application gets to the patent office before yours, then the patent rights will be theirs, and you will be prevented from getting a patent on the invention.
The second reason is that your ability to get a patent on an invention, even without worrying about what others are doing, can be jeopardized if you offer for sale or otherwise disclose your invention publicly before filing. The USPTO gives you one year from making a public disclosure of the invention to file your patent application. However, the rest of the world is not so nice, with many jurisdictions making it a bar on patentability if you publicly disclose your invention prior to filing a patent application in at least one jurisdiction first.
With respect to copyrighting all or portions of an invention based in AI, there are certain aspects of these inventions which are protectable and those which are not. Copyrights cover artistic works, which includes everything from literary works, to graphical/visual works (e.g., paintings, movies, photographs), to musical works and even choreographed dances.
When considering copyrighting portions of an AI based invention, the focus is generally on copyrighting the source code. Source code is considered a literary work for the purposes of copyrights, and inventors can receive a federal copyright registration in the uncompiled source code.
What is protected by a copyright registration on source code is the copying of the actual code. It does not prevent others from creating code of their own that performs the same functions. However, it does restrict the copying of subsets of the whole code, such as the copying of a module, or a series of functions.
One issue when considering copyrighting source code is how frequently the source code is updated. Rarely is there a piece of software that is static for very long. Updates in source code, while they may be considered derivative works of the originally copyrighted code, may not be independently covered by the initial registration. Inventors should consider at what point they want to secure additional copyrights on later versions of a software-based invention.
It is important to note that while a copyright registration can be done at any time, as the works form in the author upon creation, statutory damages and attorneys fees are generally only available if the copyright registration is filed within 3-months of publication of the work[ii]. Filing your registration after that point will limit damages to “actual damages” (e.g., lost profit), which can be harder to prove.
Separately, more and more we see the question about whether it is possible to copyright the output of AI. Recently there have been numerous instances of AI generating their own artistic works, such as The Next Rembrandt and Bayou. The law is currently unsettled as to whether these works would be copyrightable. For instance, in April of 2018, the Court of Appeals for the Ninth Circuit held that the Copyright Act only provides standing to humans[iii]. The case, involving copyrights associated with a Monkey Selfie, but the same findings would presumably extend to works authored by AI.
Of course, numerous scholarly and legal minds believe that works would be derivative works of the individuals who wrote the code for the AI, and as such those individuals would be the rightful owners of works generated by the AI. We ultimately will have to wait to see how this plays out in the future.
Overall, it is important to understand and analyze what aspects of an AI based invention can be secured early on in the process. Timing is crucial for both patents and copyrights with respect to being able to secure the rights and receiving the greatest protection available under the laws. This area of technology is moving quickly, so delay and lack of planning can be devastating. Devoting at least some time to do the analysis may help with providing a roadmap for how and when to protect various aspects of your AI based invention so that you reap the greatest rewards possible.

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