IPWatchdog LIVE Conference Explores Shifting Realities for Patents and AI
IPWatchdog LIVE recently convened, offering insights into the current state of patents, intellectual property, and emerging technologies.
U.S. Patent System Under Scrutiny
A critical theme of the conference was the evolving value and viability of U.S. patents. Gene Quinn, Founder and CEO of IPWatchdog, questioned whether it still makes sense for innovators to pursue U.S. patents given current challenges, including a significant patent application backlog, potential staffing changes at the U.S. Patent and Trademark Office (USPTO), and court decisions affecting patent enforceability.
Quinn highlighted the immense patent backlog, estimating it to be around 1.2 million applications. He expressed concerns that the combination of factors could soon lead to a crisis for the country’s patent system. The implications of CAFC cases concerning prosecution laches and potential changes to the USPTO under current administrations were also key topics.
U.S. Patents Losing Ground in Global Portfolios
A panel discussion explored the changing dynamics of patent dealmaking and licensing. Speakers noted a shift in the role of U.S. patents within global strategies. Louis Carbonneau of Tangible IP stated that U.S. patents are no longer necessarily the basis of a global patent portfolio. “U.S. patents used to be the yardstick; now this has been basically turned on its head,” said Carbonneau. Daniel Papst of Papst Licensing GmbH & Co. affirmed that European patents have become more important to portfolio valuations in recent years.
Carlos Olarte of OlarteMoure in Colombia agreed, reflecting this trend. “The U.S. is still key in a global assertion campaign, but adding other countries is now important.” He emphasized the growing importance of additional patents in other jurisdictions.
Healthcare, Pharma Patents, and the Inflation Reduction Act
A panel considered the impact of the Biden Administration’s Inflation Reduction Act (IRA) on pharmaceutical innovation. Sherry Knowles of Knowles Intellectual Property Law Strategies and Corey Salsberg of Novartis contributed to the discussion. Christine McDaniel of the Mercatus Center served as moderator.
Panelists discussed the complexities of the U.S. healthcare system, particularly the role of pharmacy benefit managers (PBMs) and how they affect drug pricing. While patents are often blamed for high drug prices, the panelists argued that the IRA’s government price controls might ultimately be detrimental to investment in research and development.
Salsberg noted that if Novartis had refused the government’s price for Entresto, the fees incurred would be substantial, potentially doubling the company’s total revenue. The panelists warned of resulting reduced investment in healthcare treatments.
AI Regulation in Flux
The conference concluded with a panel on the regulatory approaches to artificial intelligence (AI) in the EU and the U.S. The European Artificial Intelligence (AI) Act, which came into force in August 2024, was a focal point. The Act includes prohibitions on particular uses of AI, such as facial recognition databases created from untargeted scraping of images, workplace/school emotion recognition, and so-called social scoring systems.
In contrast, the U.S. lacks comprehensive AI legislation, though the USPTO and Copyright Office have issued related guidelines. Nikos Minas of Wesco International noted that guidelines, regulations, and technology are all in a state of constant change. He compared the current climate to the early days of the internet, asserting that as AI becomes more prominent, transparency will become essential. IPWatchdog Founder and CEO Gene Quinn noted that several AI companies seem to be willfully blind about how the technology operates. [Eileen McDermott is the Editor-in-Chief of IPWatchdog.com. Eileen is a veteran IP and legal journalist, and no stranger to the intellectual property world, having held editorial and managerial positions at […see more] Warning & Disclaimer: The pages, articles and comments on IPWatchdog.com do not constitute legal advice, nor do they create any attorney-client relationship. The articles published express the personal opinion and views of the author as of the time of publication and should not be attributed to the author’s employer, clients or the sponsors of IPWatchdog.com.
