Daaci hails AI patents ruling: ‘Welcome to a whole new era’
Latest News December 6, 2023
A recent ruling in the English High Court could be significant for AI companies – music-tech startups included – who want to patent the technologies that they have developed.
The ruling last month overturned a previous decision by the UK Patent Office. Venture studio Time Machine Capital Squared (TMC2) contested that decision, and explained what the new ruling means in a blog post at the time.
“The change in law means that both the training of artificial neural networks (ANNs) and ANNs themselves are now patentable in the UK,” it claimed, adding that this will in turn make AI companies more appealing to investors.
TMC2 has a portfolio of 12 AI companies, one of which – Emotional Perception AI Ltd – was the filer of the original patent that the UK Patent Office rejected. Another company in that portfolio is AI-music startup Daaci. Music Ally asked its CEO, Rachel Lyske, for her views on what the High Court ruling means for her sector.
“The significance of this can not be understated for innovation in the UK. Put simply, innovators couldn’t patent the training of Artificial Neural Networks (ANNs) before the ruling,” she said.
“Even though there isn’t a line of code in them, they were classed as computer programmes, which use mathematical algorithms that are considered a law of nature and therefore can’t be patented.” The change means that startups can now patent their training mechanisms, as well as their final trained systems. Lyske said this is a big deal for AI music startups among others.
“AI music startups couldn’t patent their innovations before because they were being misinterpreted through a legacy vocabulary and understanding,” she said.
“It has now been officially recognised – we are creating solutions, ideas and innovations for systems that have never been seen before and the old outdated rules and vocabulary from the 70s do not apply.”
“The UK has a world-leading, vibrant music industry where creators are protected, copyright is protected, artists are protected, but inventors haven’t been. Now, with this ruling, inventors are recognised; their IP can now be protected, and quite rightly so.”
Could there be negative consequences? For example, is there a risk that companies will secure patents then sue rivals developing similar technologies? But Lyske thinks that the implications are going to be much more positive.
“I think it will be a blizzard of invention. That’s what patents are for! The whole patent system is there to recognise the work and effort that goes into invention and to protect those who invest resources and effort to stimulate more invention,” she said.
“Inventors go through a filing process to ensure their work is unique so it will mean claims of invention are scrutinised. Inventors claiming they are creating ANNs and doing groundbreaking work in this area will be able to – and even expected to – show patents to prove it, allowing for more transparency across the IP landscape.”
According to Lyske, before the recent ruling, British AI companies could only protect their ideas in the US.
“That meant the UK had a regulatory mechanism which did not protect its own home-grown research and output,” she said.
“If companies don’t wish to take advantage of this groundbreaking ruling, they are welcome to not protect their IP and carry on as usual. For those seeking investment for their ideas, where that investment is based on actual ownership of the IP, this is very welcome.”
Daaci is part of TMC2‘s portfolio of AI companies, but it also shares co-founders (Lyske’s brother Dr Joe Lyske and Philip Walsh) with the parent group. The patent discussed in the ruling was filed by Emotional Perception AI, but had its roots in the same PhD that Daaci’s separate patent is derived from.
“Daaci’s patent – not an ANN – is pending in the UK, as are many others within the TMC2 ecosystem and this change has paved the way for more of TMC2 IP to be protected,” explained Lyske.
“This is all down to an incredibly forward-thinking team at TMC2 who took on ‘the system’ and won, facilitating a positive change to the whole of the UK IP landscape.”