AI-powered patent wars: Who owns innovation?

AI is driving a surge in patent filings, intensifying competition over intellectual property rights. As businesses integrate AI into research, automation, and decision-making, they’re strategically securing patents to protect innovations and strengthen their market position. But with this growth comes complexity—overlapping claims, legal disputes, and questions about AI inventorship are reshaping the patent landscape. 

This guest blog post by The Patsnap Team explores the rapid rise of AI-related patent filings, the legal challenges surrounding AI inventorship, and how different global markets are responding to the evolving landscape 

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The rise of AI-related patent filings 
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AI-related patent filings have surged in recent years as companies race to establish ownership over foundational AI technologies. According to the World Intellectual Property Organization study, over 54,000 generative AI-related inventions were filed globally between 2014 and 2023, with more than 25% of these patents published in 2023 alone. This rapid acceleration underscores the growing competitive and legal stakes in AI-driven innovation. This flood of AI patents raises key challenges: 

Overlapping claims 

Many AI patents cover broad concepts rather than specific implementations, leading to disputes over ownership and infringement. For example, in LizardTech, Inc. v. Earth Resource Mapping, Inc., the court invalidated certain patent claims due to inadequate written descriptions, highlighting challenges in patenting broad technological concepts. This case highlights the need for precise patent descriptions. 

 Legal ambiguity 

The rapid advancement of artificial intelligence technologies has outpaced existing patent frameworks, leading to uncertainties in patent eligibility and inventorship. For instance, the USPTO has issued updated guidance to clarify the patent eligibility of AI-related inventions, emphasizing the need for an "inventive concept" to transform abstract ideas into patentable inventions. However, courts are not bound by USPTO guidance, keeping legal ambiguity unresolved. 

Competitive blocking 

Some companies strategically file patents to limit competitors' ability to operate in key AI-driven industries. For example, IBM’s extensive array of patents blocks rivals from filing for similar innovations, thereby maintaining the company’s market dominance. 

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Legal disputes and competitive tensions 
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As AI patents become integral to business strategies, legal conflicts are escalating. Companies are increasingly contesting patent validity, challenging infringement claims, and negotiating cross-licensing agreements to navigate the complex intellectual property landscape. 

One of the most debated legal challenges in this area is the question of AI inventorship. While AI systems are increasingly capable of generating novel solutions, existing patent laws require that an inventor must be a natural person. This has led to significant legal disputes, including the following notable cases: 

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The DABUS case: AI inventorship controversy 

The case of DABUS (Device for the Autonomous Bootstrapping of Unified Sentience), an AI system created by Stephen Thaler, exemplifies this challenge. 

Thaler filed patent applications in multiple jurisdictions, listing DABUS as the inventor for two inventions: a food container based on fractal geometry and a device for attracting enhanced attention. However, courts in several jurisdictions, including the United States, the United Kingdom, and Australia, have ruled against recognizing AI as an inventor. To date, South Africa is the only country to have granted a patent listing DABUS as the inventor, diverging from the global consensus. 

Databricks vs. Ascend IP: allegations of patent misuse 

In Sept. 2024, analytics and AI company Databricks filed a lawsuit against Ascend IP and its founders, accusing them of leveraging fraudulent intellectual property claims to extract settlements from tech companies. Databricks alleged that Ascend IP engaged in deceptive practices by filing frivolous lawsuits and utilizing shell companies to evade accountability. This case underscores the challenges companies face from entities attempting to exploit the patent system for financial gain. 

Nvidia and Microsoft: patent infringement claims by Xockets 

In another Sept. 2024 lawsuit, Xockets, an AI firm, sued Nvidia and Microsoft, alleging that both companies were using its patented technology without proper licensing. The lawsuit claims that Nvidia and Microsoft, leveraging their dominance in AI, are actively devaluing smaller innovators' intellectual property while benefiting from their advancements. Xockets board member Robert Cote described this as part of Big Tech's "predatory infringement playbook," designed to limit competition and suppress fair licensing practices. 

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AI tools in patent analysis and infringement detection 
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AI-powered tools are transforming patent analysis, helping companies identify potential infringement risks, optimize IP strategies, and streamline enforcement. Some notable tools include: 

• Irell & Manella's IP3: A law firm-developed AI platform that enables deep patent analysis, allowing attorneys to process extensive patent databases and generate reports for litigation and IP strategy. 

• WIPO's PATENTSCOPE: A global patent database incorporating AI-powered search and translation tools, helping companies and researchers efficiently navigate complex patent landscapes. 

• GreyB's SLATE: A patent intelligence platform that centralizes patent data, assists in monitoring IP portfolios, and provides AI-driven insights for strategic decision-making. 

By integrating AI into patent analysis, companies can improve efficiency, reduce litigation risks, and stay competitive in rapidly evolving industries. 

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The global race for AI patents 
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Governments worldwide are adopting diverse strategies to regulate AI patents, reflecting their priorities in innovation, competition, and ethics. Some nations are aggressively promoting AI patenting to establish technological leadership, while others are refining legal frameworks to balance innovation with accountability. 

• China leads in AI patent filings, with inventors submitting over 38,000 generative AI (GenAI) patent applications between 2014 and 2023, significantly surpassing other countries. 

• The U.S. is refining its approach to AI-assisted patents. The USPTO's 2024 guidelines clarify that while AI can contribute to inventions, a human must be named as the inventor. 

• Europe is adopting a more cautious regulatory stance, prioritizing transparency and ethical considerations in AI patenting.

These differing approaches create uncertainty for businesses navigating global AI regulations. A patent recognized in one jurisdiction may face challenges elsewhere, making it essential for companies to stay abreast of evolving legal standards.

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The future of AI patents: innovation or gridlock? 

These differing approaches create uncertainty for businesses navigating global AI regulations. A patent recognized in one jurisdiction may face challenges elsewhere, making it essential for companies to stay abreast of evolving legal standards.   

As AI transforms industries, the race to patent its innovations is shaping the future of competition, regulation, and legal precedent. Yet, the rules remain unclear—from the battle over AI inventorship to strategic patent blocking by tech giants. The coming years will determine whether AI patents accelerate progress or stifle it under legal disputes. 

For businesses, navigating this landscape requires more than just filing patents—it demands a strategy: 

• Anticipate regulatory shifts to ensure AI patents hold legal weight across jurisdictions 

• Leverage AI-driven analytics to identify risks, enforce rights, and optimize patent portfolios 

• Secure competitive positioning by protecting innovations without triggering costly disputes 

The companies that adapt fastest—by balancing protection, compliance, and innovation—won’t just survive the AI patent wars. They’ll define the next era of technology. 

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