What are the best practices for patenting AI innovations for startups?

1 Why patent AI innovations?

Patenting AI innovations can have several benefits for startups, such as creating a competitive advantage, increasing valuation, attracting funding, and preventing copycats. Patents can also demonstrate your expertise and credibility in the AI domain, and open up opportunities for licensing, collaboration, or acquisition. However, patenting AI innovations also comes with some challenges, such as high costs, long timelines, and uncertain outcomes.

2 What are the patentable criteria for AI innovations?

Not all AI innovations are patentable, and the criteria may vary depending on the jurisdiction and the type of AI application. Generally, patentable AI innovations must meet four criteria: novelty, non-obviousness, usefulness, and technical character. Novelty means that the invention must not be publicly disclosed or known before the filing date. Non-obviousness means that the invention must not be obvious to a person skilled in the art. Usefulness means that the invention must have a practical application and not be abstract or theoretical. Technical character means that the invention must solve a technical problem and not be a mere mathematical algorithm or a business method.

3 How to draft a patent application for AI innovations?

Drafting a patent application for AI innovations requires careful planning and skillful writing, as well as a thorough understanding of the relevant patent laws and guidelines. To ensure success, it is important to define the problem and the solution clearly and concisely, providing sufficient details and examples to support the claims and enablement. Additionally, you should disclose the underlying algorithms, models, data, and parameters that are essential for the invention, explaining how they work and interact. Consider different embodiments, variations, and alternatives of the invention, and claim them broadly and flexibly. Lastly, anticipate potential objections or rejections from patent examiners or competitors, addressing them preemptively or defensively.

4 How to choose the right patent strategy for AI innovations?

Choosing the right patent strategy for AI innovations can be difficult and depends on several factors, such as business goals, the market landscape, budget, and timeline of the startup. Common patent strategies include filing a provisional patent application first and converting it to a non-provisional patent application within a year, filing a PCT (Patent Cooperation Treaty) application to seek patent protection in multiple countries with one application, filing a patent family which consists of related patent applications that share a common priority date and disclose the same invention, and filing a defensive publication which is a public disclosure of the invention that prevents others from patenting it. Filing a provisional patent application can help save costs, secure an early filing date, and buy more time to refine the invention or test the market. A PCT application can reduce complexity, increase flexibility, and extend the deadline for entering national phases. A patent family can protect different aspects, versions or improvements of the invention, and create a stronger patent portfolio. Lastly, filing a defensive publication can deter competitors, avoid litigation, and preserve freedom to operate.

5 How to value patents for AI innovations?

Valuing patents for AI innovations can be a complex and subjective process, as there is no universal method or formula. However, some of the more common approaches to valuing patents include the cost approach, which estimates value based on development, maintenance, and enforcement costs; the market approach, which estimates value based on comparable patents or transactions; and the income approach, which estimates value based on expected future income or cash flow. Qualitative factors, like scope, validity, enforceability, novelty, impact, and relevance of the patent, also play a role in determining its value.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?