Data PrivacyPatent Eligibility of AI in India and its Implications on Data Privacy

INTRODUCTION

With the development of Artificial Intelligence (hereinafter referred to as “AI”) and machine learning, machines are no longer just tools of innovation; they are becoming vital contributors to imagination. AI has the ability to generate novel ideas that are often associated with human ingenuity by understanding complex data and learning from it. An increase in AI inventions has caused a stir in the traditional patentability paradigm.

AI is transforming various industries by enabling machines to perform tasks that typically require human intelligence. This includes areas such as:

• Healthcare: AI tools are used to predict patient outcomes, diagnose diseases, and create customized medical treatments.
• Finance: AI is used in chatbot customer support, algorithmic trading, and fraud detection.
• Manufacturing: AI-driven automation improves industrial processes’ accuracy and efficiency.
• Transportation: Two prominent uses of artificial intelligence are self-driving automobiles and intelligent traffic management systems.
• Education: AI offers smart teaching systems and personalized learning experiences.
• Fintech: The fintech sector has also seen an increase in inventions throughout time, with world “going digital” initiatives making this possible. Additionally, this industry is expected to demonstrate greater innovation in the upcoming years as India continues to align itself with “Digital India”.

UNDERSTANDING AI PATENTIBILITY 

In India, the patent eligibility of any works, including that of AI shall be governed by the Patents Act, 1970. The essential requirements must be satisfied for an invention to be eligible for patent protection: novelty, inventive step, and industrial applicability.

Patent eligibility for AI ideas poses unique challenges due to the difficulty of characterizing AI technologies. Major issues that have been raised for AI inventions are:

• Ambiguity of definition: AI includes a wide range of technologies, such as machine learning, neural networks, and natural language processing. This variety makes it difficult to define AI inventions exactly.
• Rapid technological advancements: AI technology develops rapidly, with continuous advancements in algorithms, processing power, and data availability. This can render patented inventions suddenly obsolete.
• Interdisciplinary Nature: AI inventions usually integrate computer science, mathematics, and domain-specific expertise for example, healthcare or finance. This multidisciplinary character might make it difficult to prepare and examine patent applications.
• Frequent iterations and updates: AI systems are often iterated and updated, with developers enhancing algorithms and models. This iterative development approach might complicate the patenting procedure since each version of the AI system may require distinct review.
• Ownership of AI patents: The Patent Rules, 2003 and the TRIPS agreement require that the inventor be a legal person or a human being. AI is not a legal entity or a human being. Thus, AI is attempting to become an inventor in a patent application.

GUIDELINES FOR AI PATENTS

The Indian Patent Office (hereinafter referred to as “IPO”) has not developed special standards for examining AI-related innovations. These innovations are reviewed in accordance with the computer -Related innovations rules 2017 (hereinafter referred to as “CRI rules”). The key aspects of these guidelines are:

Patentable Subject- Matter: AI-related innovations are evaluated using the subject matter exclusions outlined in Section 3(k) of The Patents Act, 1970, mathematical methods, business methods, computer programmes per se and algorithms are not considered as patentable inventions. In relation to computer programs, the law provides a qualification that what is not patentable is only computer program per se.

Technical Effect: The IPO determines if the AI invention has a tangible technological effect. This might include increases in speed, accuracy, reliability, or other quantitative measures.

Inventive Step: An inventive move increases the status of a competent illustrator. However, when AI’s gain more knowledge and skills in the field, it is uncertain how a human patent examiner would be able to judge the obviousness of an AI innovation.

Technical Advancement: The invention must demonstrate a technical advancement over existing technology. This means it should offer a novel solution that is not obvious to someone skilled in the art.

AI PATENTS AND DATA PRIVACY

The intersection of AI patents and data privacy in India raises several implications:

1. Data Protection Regulations: With the enactment of the Digital Personal Data Protection Act, 2023 (hereinafter referred to as “DPDPA”), AI inventions involving personal data processing must comply with data protection principles, including consent, purpose limitation, data minimization, and security.
2. Anonymization and Pseudonymization: AI inventions that process personal data should incorporate mechanisms for anonymization or pseudonymization to protect individual privacy. This can be a crucial aspect for patented AI of demonstrating compliance with not only patent laws but also the data protection laws in India.
3. Accountability and Transparency: AI patent applications should include details on how data is collected, processed, and protected. This transparency is essential for regulatory compliance and building trust with users.
4. Ethical Considerations: AI inventions must consider ethical implications, particularly regarding bias, fairness, and the impact on individuals’ privacy rights. Ethical AI practices can influence the patentability and acceptance of AI technologies.
5. Cross-Border Data Transfers: If AI inventions involve cross-border data transfers, they must comply with regulations governing international data transfers, ensuring adequate protection of personal data, and the same should also be stated in the patent applications.

AMLEGALS REMARKS

The trend of AI patent filings in India has been steadily increasing in recent years. Due to various reasons to contribute , including technological breakthroughs, rising demand for efficient solutions, support from the Government, and private sector investment.

The healthcare, image processing, transportation, edtech, IoT automation, and finance areas have made particularly significant advances in AI patent filing. The Indian Patent Office’s evaluation of AI-related innovations, in accordance with the Computer Related Inventions criteria, clarifies what should and should not be permitted in terms of mathematical or business techniques, computer programs in general, and algorithms.

The patent eligibility of AI in India requires careful consideration of technical contributions, novelty, and compliance with data privacy regulations. As AI continues to evolve, balancing innovation with data protection will be crucial for ensuring the ethical and responsible development of AI technologies.

– Team AMLEGALS assisted by Ms. Disha Sharma (Intern)

For any queries or feedback, feel free to reach out to mridusha.guha@amlegals.com or liza.vanjani@amlegals.com