Patents on Artificial Intelligence Invention

Artificial Intelligence is rapidly transforming industries worldwide, enhancing efficiency, and creating unprecedented opportunities across healthcare, finance, education, manufacturing, and more. With such innovation comes the need to protect these technological advancements through intellectual property rights, particularly patents. In India, AI patents are an evolving area within the legal framework, marked by unique challenges due to the nature of AI inventions and the current limitations of Indian patent law. 

This article explores the landscape of patents on artificial intelligence in India, highlighting the legal intricacies, challenges, and future directions in patenting AI-based inventions.

Understanding AI and Patent Law in India

AI inventions often rely on complex algorithms, data processing, and machine learning, which are traditionally categorised as “computer-related inventions” (CRIs). India’s patent system, governed by the Indian Patents Act, 1970, has specific exclusions under Section 3(k), which prohibits patents for “mathematical methods, business methods, computer programs per se, and algorithms.” 

This provision creates a barrier to patenting many AI technologies since they often involve computer algorithms and mathematical models. However, the Computer-Related Inventions Guidelines 2017 (CRI Guidelines) provide a framework to assess computer-related inventions, including AI-based inventions, emphasising that innovations demonstrating “technical contribution” and “technical effect” may still qualify for patent protection despite the restrictions of Section 3(k).

To qualify for patentability in India, an AI-based invention must meet the traditional criteria of novelty, inventive step, and industrial applicability. Furthermore, applicants must illustrate that the AI invention yields a “technical effect,” defined as a tangible benefit such as increased speed, efficiency, or resource optimisation.

Evolution of AI Patenting in India

Globally, AI patent filings have surged, reflecting the accelerating pace of AI innovation. In India, while AI patenting is still nascent, it has shown significant growth in recent years. The Indian Patent Office has reported a marked increase in AI-related patents, particularly since 2020, attributed to the advancement in digital technologies and the increased focus on AI-driven solutions across various sectors.

Indian filings have been concentrated in specific AI applications, such as healthcare, image processing, transportation, and edtech. Notably, healthcare-related AI patents, including diagnostic and telemedicine technologies, have surged, especially after the COVID-19 pandemic underscored the importance of remote healthcare solutions. The steady increase in AI patent filings underscores the value Indian innovators place on protecting their AI technologies despite the legal complexities.

The Legal Challenges of AI Patents in India

The patentability of AI inventions in India faces unique legal challenges, primarily due to the nature of AI itself. Key challenges include:

Patentable Subject Matter

Section 3(k) presents a hurdle for AI inventions, as it excludes “mathematical methods, business methods, computer programs per se, and algorithms” from patent protection. AI inventions that are essentially algorithms or models often fall into this excluded category. However, if an invention demonstrates a “technical effect” or “technical contribution,” it may qualify for a patent.

Inventorship and Ownership

Traditional patent law envisions inventors as human creators. However, with AI-generated inventions, the question arises: Can AI be recognised as an inventor? Most countries, including India, currently require a human inventor, which poses challenges when the AI itself contributes significantly to an invention. While other countries, like South Africa, have accepted AI as an inventor, India has not yet adapted its laws to accommodate AI inventorship.

Technical Effect Requirement

The Indian Patent Office emphasises that AI inventions must demonstrate a technical effect, such as improved speed, resource utilisation, or accuracy, to qualify for a patent. Establishing this technical effect is challenging, especially for abstract AI models or data-driven inventions where the technical impact is not immediately tangible.

Defining the Scope of AI Inventions 

AI systems typically involve multiple layers, such as data processing, algorithms, and hardware. Defining the boundaries of AI inventions to ensure they are sufficiently inventive and novel while adhering to Section 3(k) exclusions is another challenge for patent applicants.

Patent Examination Framework 

Unlike the United States Patent and Trademark Office (USPTO) or the European Patent Office (EPO), the Indian Patent Office does not have specific examination guidelines tailored to AI inventions. The Computer-Related Inventions Guidelines provide a basic framework but lack specificity, leading to inconsistent examination standards and potential difficulties in gaining patent protection for AI innovations.

The Computer-Related Inventions Guidelines and the Path to AI Patentability in India

The Computer-Related Inventions Guidelines offer an approach to determining patent eligibility for AI-related inventions. Under these guidelines, an invention that combines an algorithm with a novel hardware element or shows a clear technical effect, such as enhanced computational efficiency, may qualify for patent protection.

Key takeaways from the Computer-Related Inventions Guidelines for AI inventions include:

• Technical Contribution: AI inventions must demonstrate a technical contribution beyond mere algorithms. This may involve applying an AI model to a tangible device or system to produce a real-world benefit.
• Focus on Hardware-Software Integration: Inventions that claim AI algorithms in conjunction with specific hardware components may meet the technical contribution requirement, as they demonstrate practical applications beyond abstract algorithms.
• Avoidance of Pure Algorithm Claims: AI patent claims that are purely algorithmic or data-driven without any real-world application are likely to be rejected under Section 3(k). Claims must emphasise how the invention applies to a physical system or process, such as medical imaging or robotic control.

Sectoral Trends in AI Patenting in India

Several industries have emerged as leaders in AI patent filings in India:

1. Healthcare: AI’s role in diagnostics, remote patient monitoring, and robotic-assisted surgeries has seen exponential growth. Patent filings in healthcare AI have surged, driven by innovations in medical imaging, predictive analytics, and AI-powered diagnostic tools. For example, AI-enabled diagnostic tools that enhance disease detection through image processing demonstrate a technical effect, making them more likely to meet patent eligibility requirements.
2. Image Processing and Computer Vision: AI-powered image processing systems, including facial recognition, security screening, and object detection, have witnessed significant patent activity. Given their role in security and public safety, these technologies show clear technical benefits, often aligning with the Computer-Related Inventions Guidelines’ requirements.
3. Transportation and Autonomous Vehicles: AI-driven innovations in autonomous driving, traffic management, and logistics optimisation have garnered substantial patent attention. These technologies not only improve efficiency but also address sustainability goals, aligning with India’s emphasis on cleaner transportation solutions.
4. EdTech: The rise of online education has spurred AI-based innovations in e-learning, including adaptive learning platforms and personalised content delivery. These inventions address real-world educational challenges, increasing their potential for patent eligibility.
5. FinTech and IoT: In the finance sector, algorithmic trading and fraud detection are increasingly powered by AI, with a growing number of patents filed in recent years. IoT-based AI innovations for home automation and smart agriculture have also gained traction, addressing diverse needs in the Indian market.

Comparative Analysis: AI Patents in India vs. Global Standards

India’s approach to AI patents is more restrictive compared to global standards, such as those in the U.S. and E.U. The USPTO and EPO have developed AI-specific guidelines that outline how AI inventions should be evaluated, focusing on the technical character of AI-based inventions and the level of human intervention required. For instance:

• USPTO: AI inventions must demonstrate “practical application” or “specific, substantial, and credible utility,” with human inventors mandatorily designated on patent applications.
• EPO: The EPO allows patent protection for computer-implemented inventions that provide a “further technical effect.” Unlike India, the EPO has detailed examination guidelines that specifically address AI technologies.

In contrast, India’s lack of specific AI examination guidelines leads to inconsistency in patent outcomes. The Computer-Related Inventions Guidelines serve as a basic reference but lack the depth required for effectively examining complex AI inventions.

Conclusion

The journey of patenting AI in India is a testament to the rapid evolution of technology and the challenges of adapting traditional legal frameworks to modern innovations. Despite the legal complexities posed by Section 3(k) and the Computer-Related Inventions Guidelines, India’s AI patent landscape is progressing, with significant growth in patent filings over recent years. AI’s potential to revolutionise industries makes it essential to establish a robust patent framework that balances innovation incentives with regulatory clarity.