What are the AI-related issues in Intellectual property?

What are the AI-related issues in Intellectual property?

The growth of Augmented Reality (AR) and Virtual Reality (VR) technologies is rapidly transforming various aspects of our lives, including learning, living, working, and entertainment. These technologies are gaining significant attention and are expected to bring about substantial changes. As they continue to evolve, they also introduce a range of unique Intellectual Property (IP) challenges for businesses, individuals, brands, courts, and IP practitioners. It is evident that numerous legal issues must be addressed in these domains, with many more yet to be explored.

While AR and VR are sometimes used interchangeably, they present distinct IP concerns. AR augments the real world by overlaying digital features, enriching one’s perception, and enhancing the environment with additional material. These digital features can engage any of the five senses: vision, smell, taste, sound, or touch. On the other hand, VR immerses individuals in a simulated world, creating realistic sensory experiences with visuals, sounds, and other sensations. VR serves as the primary technology for the metaverse.

An illustrative example of AR is the popular game Pokemon Go, which raised concerns regarding public safety as players searched for virtual Pokemon characters while walking and crossing busy streets with their attention focused on their smartphones. AR applications have since expanded across various industries such as healthcare, travel, real estate, education, sports, and entertainment. The potential applications for AR are as limitless as the human imagination.

Considering the rapid innovation and increased commercial utilization of AR technology, numerous potential IP issues arise in this field. This article delves into the IP challenges that have already emerged or are expected to arise in the near future within the realm of AR.

Patent

The AR industry has witnessed the initiation of patent litigation for AR hardware and certain applications or uses of AR. As AR capabilities were primarily limited to gaming and mobile devices in recent years, it was only natural that patent disputes emerged, reflecting the patent wars that have impacted the mobile device market. Notable companies like HTC, Sony, and Nintendo have already faced legal challenges in this regard. Additionally, a category of promising AR applications called ‘virtual try-on,’ which enables customers to use web cameras to preview how clothing, jewelry, and other accessories would look on them before making a purchase, has faced obstacles due to a Patent Enforcement campaign by the Non-Practicing Entity (NPE) Lennon Image Technologies.

In the AR field, we can anticipate a surge in IP disputes involving trademarks, copyrights, public display, and performance. Articulating and defending against infringement allegations in these areas is often more of an art than a science. Subsequent segments of this article will delve into these matters in greater detail.

Copyright

The AR field raises copyright-related concerns regarding the registrability of content. The threshold for original expression necessary to qualify for copyright protection is generally low. However, in the AR domain, some creative content is designed to closely resemble, recreate, or merge with the real physical environment to the point where it becomes indistinguishable from digital content. This brings to mind Judge Gorsuch’s ruling in Meshwerks, Inc. v. Toyota Motor Sales USA, Inc., where it was determined that a 3D digital recreation of an existing Toyota vehicle in a new medium lacked the necessary original expression for copyright protection. Nevertheless, purely artificial worlds can still be eligible for copyright protection, even if they appear realistic.

Instances of potential copyright infringement will be prevalent as AR artists continue to utilize the physical world as their digital canvas. In the current digital era, many AR applications function by identifying a 2D symbol or physical object and animating it in a way that creates the illusion of transformation. The question arises as to whether this process infringes upon the right to create derivative works based on the physical object. In most cases, the answer would be “no” because, despite the perceived modification, the object itself remains unaltered. It is simply an illusion created by overlaying a digital view onto a physical view. However, it is important to note that developing the software necessary to achieve this illusion may involve copying and altering the physical work, potentially leading to copyright infringement in certain situations.

Public Display and Performance

Within the AR field, considerations of public display and performance also come into play. Copyright holders may assert that the depiction of their creative works in AR format, particularly if they appear to be situated in public spaces, amounts to unauthorized public display. Furthermore, numerous AR experiences may involve displaying or performing certain content exclusively in specific geographical locations, even if the content is only visible on the user’s mobile device. This raises the question of whether such displays and performances can genuinely be classified as public in nature.

Trademark

Trademark and unfair competition issues in the AR field present a wide range of challenges. Virtual trademarks, for instance, can appear anywhere in the physical space, superimposed on existing elements, leading to potential “false connections” between the IP owner and the virtual advertiser. This may cause confusion among consumers, questioning whether the physical business endorses or sponsors the virtual advertisement. However, the context in which the ad is displayed can also eliminate any reasonable likelihood of confusion. In current AR applications, users are more likely to be aware of the content provider and understand the reasons behind its display. However, as we move towards more pervasive AR platforms like Facebook, “always on” digital eyewear, or browser-based content, consumer confusion is likely to increase.

Conclusion 

In the near future, AR technology is poised to permeate every facet of our lives, presenting a vast array of ongoing social, legal, and ethical challenges. As the AR ecosystem continues to evolve, we anticipate a significant increase in transactions and legal disputes as numerous companies strive to secure Intellectual Property Rights (IPRs) for their AR applications. This dynamic landscape ensures that the future will be anything but dull, offering exciting possibilities and constant innovation.

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