Vapor
AI, Big Data and Blockchain are changing the business norms of the world. China is leading in these areas. How does such competitive advantage foster China’s innovation and help to exploit the value of IPs?
China,
like a few other countries worldwide, is experiencing an industrial
revolution driven by Artificial Intelligence (AI) and other emerging and
disruptive technologies, such as Big Data and 5G communication. In
fact, China is now leading in patent applications and thriving in
business innovations out of these emerging technologies. For example,
for innovations relating to applications of AI and Big Data in finance
(“FinTech”), at least three Chinese players (i.e., Pin An, Alibaba, and
Tencent) have gained a strategic position through their patent
portfolios.
The leading innovative companies as measured by invention patents filed in Fintech. (Source: IPRdaily)
IP monetization is benefiting from AI applications
AI
technologies in many aspects could enhance, unlock, exploit, and
facilitate the findings of the inherent values of IPs, and thus
facilitate the underlying transactions for IP commercialization.
For
example, AI, combined with Data Mining technologies, may help to
conduct patent searches more efficiently. Until a few years ago, the
preparation of a citation map for a patent could take weeks. Now, it is
only one-click away. In addition, AI Supervised Learning can assist
professional valuers to determine the value of a patent more objectively
and consistently. These improvements are increasing the confidence of
parties to IP monetization deals and in turn increase deal flows in the
financial system.
About a dozen of startups in China are now
building their business models around such AI applications in patent
search services. Some leading teams have already distinguished
themselves by integrating AI/Big Data valuation modules into their data
bases, while other market players are still using traditional IP search
tools to evaluate IPs.
IP monetization in China is also benefiting from Blockchain
Blockchain
was once a challenged area in China when its application was narrowly
focused on cybercurrency. However, to many people’s surprise, in
October 2019 the top Chinese leaders summoned a high-level conference to
discuss Blockchain’s merits in new technology revolution and industrial
transformation. This new initiative has spurred many startups,
experiments and researches in these areas.
For example, more
and more legal scholars are now studying the Blockchain’s
characteristics of timestamping and resistance to the retroactive
alterations of data and proposing amendments to the relevant regulatory
regimes with these new technology edges.
Working together to mitigate information risks
AI,
Big Data, and Blockchain could also work together to mitigate
information risks in IP monetization deals. For example, AI and Big
Data Technologies can connect information of a patent deposited at
various relevant authorities in different locations. In China, a patent
valuer once needed to check up IP authorities, financial authorities,
and commerce administration authorities to ascertain whether the patent
was subject to any encumbrance of rights. Missing a piece of information
could result in miscalculating the value of the patent; but a
comprehensive due diligence takes significant time and resource. A
valuer, therefore, often needed to balance the risk against the cost
involved.
Now, in China such risk may be mitigated by the
aforementioned patent search service providers who utilize AI and Data
Management technologies to gather information concerning a patent.
Meanwhile,
the Blockchain’s characteristics of timestamping and resistance to
retroactive alterations are expected to reduce ownership disputes
arising from inventorship or chains of titles in transactions.
On
the public side, the Chinese government is regulating the Blockchain’s
underlying technology, i.e., cryptography. State Cryptography
Administration (SCA) has been in operation since 2019, and a dedicated
regulation, i.e., Cryptography Law was promulgated on January 2020. The
foundations of the regulatory framework regarding these emerging
technologies are ready in place.
These ongoing regulatory and
policy developments are cultivating an environment where deal managers
of IP monetization in China can find more tools or services to determine
a more convincing value for the underlying IPs and mitigate
transactions risks. (Dr. Jili Chung is currently working in Greater
China, founding SpringIP Group, dedicated to foster enterprises’
innovation through AI and Big Data tools. Carlo Geremia at Nctm also
has contribution.)
Source:iprdaily.com
Author:Jili Chung
Editor:Vapor