Lawyer Monthly - March 2024

Recently, Samsung Electronics Co. Ltd failed to win an early exit from an upcoming patent infringement trial over virtual assistantenabled smartphones and earphones that respond to spoken commands, according to a Texas federal court order. What’s the future of intellectual property in the era of AI? When it comes to AI, I think it is very difficult to predict. We already have some early rulings that AI cannot be considered an “author” for a copyright or an “inventor” of a patent. The vast potential for AI will create many challenges, and, as we have seen with the Internet and other forms of emergent technology, the law tends to lag significantly. For IP owners, protecting intellectual property is essential. What does an effective IP strategy consist of? An effective IP strategy is similar to building a castle in the Middle Ages where different forms of IP are deployed to keep competitors out of the castle (moat, drawbridge, castle wall, tower, etc.). As an exclusionary right, IP is an extremely effective tool to grab and maintain market share by staking out exclusivity. For example, a start-up business entering the market with a valuable solution to a difficult problem will likely be wiped out by better-funded competitors unless it can obtain the protective power of IP. The same start-up that has obtained patent protection on the key features to its solution will have a 20-year, limited monopoly on those features. This provides it with options – maintain a monopoly on that feature in the market, license its patent to others to generate revenue, sell the patent, or place the patent on its balance sheet to increase its value later when it’s acquired. In my article, Importance of Intellectual Property Rights: Increasing Market Share Through Stopping Knockoffs and Infringements, I provide a step-by-step strategy for deploying IP rights. When it comes to AI, I think it is very difficult to predict. WWW.LAWYER-MONTHLY.COM 47 Darin M. Klemchuk Tel: 214.367.6000 | Fax: 214.367.6001 Email: darin.klemchuk@klemchuk.com www.klemchuk.com

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