Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Protecting Artificial Intelligence Inventions: Takeaways from 'IBM v. Zillow' from a Patent Drafting Perspective

By Xuechen (Rebecca) Ding and Aseet Patel
October 01, 2023

This two-part article sheds light on several important aspects of patents on AI technology. In Part One, we provide a general overview of the IBM v. Zillow lawsuit and discusses strategies to diversify patent portfolios to maximize protection on AI-related technology. Part Two will focus on providing insightful tips on claim drafting, informed by the intricacies of claims in IBM's AI patents and advancements in AI technology.

|

Executive Overview

IBM sued Zillow in September 2019, alleging infringement of seven IBM patents directed to artificial intelligence (AI) algorithms for estimating property value. 2:20cv851 (W.D. Wash.) The lawsuit targeted Zillow's Zestimate service, which estimates a house's value using downloaded images of the house and neighborhood. IBM brought the litigation after three years of licensing negotiations broke down between the parties. While the infringement case is still ongoing, the Federal Circuit issued a decision to an intermediate appeal seeking invalidity of several IBM patents. IBM v. Zillow Grp., Inc., 50 F.4th 1371 (Fed. Cir. 2022).

This litigation reveals several takeaways about how to build a robust patent portfolio to protect AI inventions. First, notwithstanding a speedy allowance and persevering invalidity challenges, proving patent infringement on a specific AI algorithm can be onerous, so including additional patent claims targeting ancillary features of an applied AI system can be advantageous. Second, AI patent claims benefit from unique claim drafting techniques, specifically by separating the claimed method steps of training the AI model and those executing the AI model. Third, because the AI industry has a tendency to openly share new ideas, promptly protecting a new AI algorithm in a patent application is important to protect against waiver of patent rights.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
'Huguenot LLC v. Megalith Capital Group Fund I, L.P.': A Tutorial On Contract Liability for Real Estate Purchasers Image

In June 2024, the First Department decided Huguenot LLC v. Megalith Capital Group Fund I, L.P., which resolved a question of liability for a group of condominium apartment buyers and in so doing, touched on a wide range of issues about how contracts can obligate purchasers of real property.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

CoStar Wins Injunction for Breach-of-Contract Damages In CRE Database Access Lawsuit Image

Latham & Watkins helped the largest U.S. commercial real estate research company prevail in a breach-of-contract dispute in District of Columbia federal court.

Fresh Filings Image

Notable recent court filings in entertainment law.

The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies Image

Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.