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AI-Generated Trademarks: Legal Ownership and Challenges in India

Artificial intelligence has a wide range of effects, including on intellectual property law. At best it leads to revolution, but at least it leads to survival. Concerning AI trademarks, you are faced with difficult and intricate moral and legal dilemmas. The rapidly evolving and fluid legal landscape is turning into a nightmare for legal and business professionals as AI technologies for creating logos and brand names gain even more traction. This blog will address the ownership and legal issues of AI-generated trademarks in India, as well as offer suggestions for possible remedies, an opinion on pertinent legal paths, and a roadmap for the future.

Understanding AI-Generated Trademarks

A trademark is an appellation, sign, or a combination of words used for the identification and differentiation of one product or service from another. Presently, with more advanced AI methodologies, logos, brand names, and even slogans are coming into creation. A trademark could be said to fall under two headings depending on classification according to its generation:

  1. Fully AI-generated while having a name, slogan, and design generated through AI.
  2. An AI-assisted trademark is where logos and brand design are created by using AI technologies under the direction of a human designer.

The pertinent question, therefore, is whether any trademarks generated by AI can ever be registered or owned under Indian law.

Legal Ownership of AI-Generated Trademarks in India

  1. Definition of Ownership Under Indian Trademark Law

The Trademarks Act of 1999 governs trademark laws in India. A trademark is any mark capable of distinguishing the goods or services of one person from those of others. A person may apply to register a trademark in accordance with the provision of the Act. However, the legal definition of that person comprises individuals, companies, partnerships, and other legal entities; AI systems would therefore be essentially excluded. The law simply treats an AI as a non-trademark holder. This raises a big question: Who holds the ownership of trademarks created by the AI?

  1. Ownership by AI Developer or Users of the AI

With legal scholars’ theorizing, the ownership of an AI-generated trademark could be said to lie with:

– The AI-System Developer (that is, the one who programmed the software).

– The one who commands that AI to create it as a trademark.

– The one who commissions branding uses for the trademark.

As per the Indian Law, the application of such a concept is that ownership of trademarks would be awarded to the user or company commissioning AI tool usage as long as it can be shown that a degree of human influence was exercised in the selection, modification, or approval of the mark.

  1. International Perspectives on AI Ownership

International trademark laws have also turned their minds to the issue of trademarks generated by artificial intelligence. For example:

  • Defers to a human application by the USPTO.
  • Human input in creation is required and thus similar to the USPTO by the EUIPO.
  • Declares AI cannot have intellectual property rights, per the UKIPO.

In all probability, India is going to follow suit on similar lines with these jurisdictions regarding the requirement of human applicant trademarks.

Challenges in Registering AI-Generated Trademarks in India

  1. Lack of Explicit Legal Framework

Presently, Indian IP laws do not hold a clear-cut framework concerning trademarking AI-generated materials. Existing trademark laws, on one hand, prima facie recognize the concepts of human invention and ownership, while on the other hand, they leave vague the very questions of registration along with ownership and enforcement of trademarks generated by artificial intelligence. This gap in current law thus raises a few questions:

  • Who owns the rights to trademarks created by AI: the developer of the AI, those using it, or AI itself?
  • Under what consideration should AI-created marks be examined from the standpoint of the first trademark?
  • What other laws could govern the resolution of disputes concerning AI-generated trademarks?

In the absence of an unambiguous law, such an assertion creates a practical difficulty for companies pursuing AI-generated trademark registration with respect to establishing proper ownership and protection under Indian law.

  1. Novelty and Distinctiveness Issues

Under the provisions of the Trade Marks Act of 1999, trademarks in India must be distinctive and unique to enjoy protection. An AI-generated trademark, however, may come close to an already registered trademark due to algorithmic design restrictions. With an AI’s reliance on massive datasets, trademark design could inadvertently distance itself too closely from already registered ones, hence making actual registration less feasible and the new mark vulnerable to a charge of infringement.

  • AI may produce marks that are common due to the retention of existing standards and styles.
  • Chances of unintentional plagiarism are quite high, thus difficult to prove distinctiveness for the AI-generated marks.
  • Owners of AI-generated trademarks will eventually be challenged or sued by current trademark owners.

In tackling these issues, there will be an increased gravity imposed in the registration of trademarks to avoid clashes and ensure continuity with distinctiveness requirements.

  1. Proof of Human Involvement

Trademark law has traditionally viewed human as the rights holders under that law. However, there is a challenge when it comes to proving human involvement for trademarks wholly generated by an AI. Under existing rules, a business must demonstrate active involvement and decision-making in the design process to establish rights over such trademarks.

  • Businesses would have to prove that AI was only used as a tool in a larger creative process rather than the sole creator.
  • Human intervention in the ideation and refinement of the AI-generated trademark may potentially be necessary to confer legal validity.
  • For those trademarks not clearly assigned to a human applicant, the registration path may risk challenges in court that could invalidate any trademark enjoyed by that AI.

To help alleviate the situation, businesses should enhance their claim of ownership by documenting that humans participated in the creation process.

  1. Moral and Ethical Concerns

Conversely, the liability for various frauds may arise from some of these trademark laws bordering on unethical-the recognition of AI-created trademarks not being human:

  • Biases in AI-generated trademarks: The AI processes are mainly fed by data and therefore produce bias, whether consciously or unconsciously, that may render a trademark discriminatory or culturally offensive.
  • Authenticity and Originality Issues Would Arise: AI marks would fall short because, in trademarks considered creatively thought and original under the generally accepted expectation of trademark law, AI would yield foreigners with nothing original or human-like.
  • Legal Recognition of AI Contributions: Such recognition of AI as a creator would hinge on a reappraisal of the concept of ownership doctrine which is still a hot topic in various forums.

These above propositions would suggest that some compromise should be considered whereby AI helps and does not create with full credit going to human beings along the lines of accountability and ethical concerns in the making of trademarks.

  1. Enforceability of AI-Generated Trademarks

Artificial Intelligence trademark holders would face tremendous hurdles in the enforcement of their marks, particularly so in the case of infringement or conflict involving a brand name. If human ownership is unclear or seems not to attend to the lessening of human culpability in such claims, it causes the business concerned to suffer in such proceedings, wherein originality and ownership are considerations right at the heart of trademark enforcement.

  • One unique factor that must be confronted by the opponent is proof of originality, which rather seems at odds with the idea that proof of the originality of a humanly created mark ought to be straightforward.
  • If ownership is uncertain, then that uncertainty could muddy the waters of enforcement against the putative infringer.
  • The trademark versus brand divide could linger long enough in a court setting for an extensive debate regarding attribution and jurisdictional edicts.

The consequent strengthening of the legal regime governing AI might go a long way in assuring enforcement or at least protection from infringement of such trademarks.

  1. AI Bias and Unintentional Infringement

AI systems learn from international datasets and generate outputs by identifying patterns within that data. This very process becomes a source of concern for unintentional infringement in that they could cause trademarks that are so similar to existing brands.

  • The elements of well-known trademarks may be unknowingly replicated by AI-generated marks, which will further engender litigation disputes.
  • Companies can expect opposition proceedings against the registration of the trademark if it resembles an existing mark almost too closely in AI.
  • This means that AI marks are exposed to infringement claims regardless of intent, which itself puts the businesses at risk.

Companies using AI for trademark generation should put in place research mechanisms with a view to eliminating all the chances of AI coming up with marks that would infringe on any existing trademarks.

Possible Solutions and Legal Reforms

  1. Recognition of AI-Generated Works in IP Law

India may consider altering the Trade Marks Act, 1999, to embrace marks created through artificial intelligence. Given the enormous sway that this field casts over branding, the legislation would clarify AI-assisted trademarks from purely AI-created trademarks.

[Image Sources: Shutterstock]

In the case of AI-assisted trademarks, some human involvement exists in the polishing, choice, and final fixing of the trade mark, whereas, in fully AI-generated trademarks, any human intervention in the trade mark generation is of negligible importance. Amendments could clarify any other aspects of legal ownership, liability, and the degree of human intervention for the purposes of upholding any registration.

Human Attribution Model

Thus, an AI-supported hybrid trademark system would incorporate a human element of attribution and accountability. Companies involved in AI-led brand creation would bear liability for whatever constitutes. The businesses would be protected from uncertainties in law by frontier assignment of ownership and liability to individuals or legal entities that operate the AI tool.

In various foreign discussions regarding AI-generated IP, human consideration is almost always an inherent aspect in any building of the case for IP ownership. Hence, all trademark-related AI entities should ensure that a human being or corporate entity is always named as the legal owner of the trademark created.

  1. AI-Specific Guidelines for Trademark Registration

The Indian Trademark Registry may develop special guidelines regarding the registration of trademarks generated by AI. The following points may be considered for guidance:

  • The extent of human interventions required to prove authorship.
  • Acceptable means of proving ownership and the AI’s degree of involvement in the creation process.
  • The requirements for distinctiveness and the validity assessment of trademarks generated by AI.
  • The compliance check to ensure that the marks developed through AI do not infringe upon already-existing marks.

This type of guideline would greatly enhance the area of AI-assisted brand development, providing better transparency and thus minimizing disputes regarding ownership and registration.

  1. Ethical AI Development for Trademarks

AI development or companies must operate under an ethical mindset respecting different cultures and existing IP rights with regard to any AI action in trademark creation. The aforementioned guidelines must prioritize the ethical framework towards the following objectives:

  • To avoid the generation of any AI trademarks that may appear culturally offensive or misleading.
  • To prevent AI models from being biased which, in turn, confer advantage to one cultural or linguistic expression over another.
  • To ensure that AI-generated trademarks would not adversely affect, charge, or otherwise embarrass an existing brand.

Therefore, trademark regulation would be the crucial base upon which the AI industry would construct and also act against any branding that is misleading or culturally inappropriate.

  1. Clear Licensing and Usage Agreements

From the very beginning, businesses wanting to acquire trademarks produced by machines must enter into explicit agreements regarding ownership and use rights. If an AI tool gets involved in the process of creating the trademark, the contract must have clear provisions on all such declarations as:

  • Who owns the AI-generated mark?
  • Who is allowed to use the mark?
  • Clauses for liability and indemnification in case of third-party infringement claims.

Such licensing-type agreements will help eliminate legal disputes and clarify ownership, especially in the case of sundry businesses using third-party AI tools.

  1. Judicial Precedents and Case Law Development

Artisting AI Trademarks is the hottest new thing today, although, it is now left to the courts in India to define the legal meanings of AI-related IP rights. To enable courts to:

  • Establish rules on ownership of AI-created trademarks.
  • Resolve issues regarding the enforceability of trademarks created by machines without human input and predominantly by human input.
  • Resolve disputes as to authorship and liability.

Setting up some of these precedents would lay down the path for future cases, which would serve to sharpen AI-relevant trademark law and create a legal foundation for AI branding.

  1. Public Awareness and Legal Training

Practices in trademarking are changing, and it is now all the more important that practitioners, industries, and policymakers alike follow trends relating to AI. India must initiate the following measures in order to see through the challenges of AI:

  • Training for trademark attorneys about AI-generated IP
  • Workshops with companies that use AI for branding
  • Awareness drives to familiarize stakeholders with AI-assisted trademarks.

With the creation of such an environment that regards the legal and business implications of AI, India would put itself in a good position to factor AI into its trademark law equitably, accountably, and with legal certitude.

The trademarking scenarios in the country, involving AI-generated ones, therefore afford interesting opportunities and legal challenges. The absence of artificially intelligent systems as subjects of existing laws necessitates that some human being must be identified for a claim to ownership. Thus the companies using AI for branding purposes should consider the legal consequences of obtaining trademark rights. The ever-changing nature of the AI system provides for amendment of Indian IP laws to ensure just and equitable considerations regarding enforcement of trademark protection in a digital world. Thus, legal reform and the judicial interpretation of AI development will balance innovation and legal clarity and would lay a future for AI-generated trademarks in India.

Author: Daisy Banakhede, in case of any queries please contact/write back to us via email to [email protected] or at Khurana & Khurana, Advocates and IP Attorney.

References-

https://www.legalserviceindia.com/legal/article-17673-ai-generated-trademarks-innovation-meets-intellectual-property.html

https://ijirl.com/wp-content/uploads/2024/05/EXPLORING-THE-IMPACT-OF-ARTIFICIAL-INTELLIGENCE-ON-TRADE-MARK-AND-COPYRIGHT-CHALLENGES-AND-OPPORTUNITIES.pdf

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