On November 12, 2024, at the Norwegian IP Day, I had the privilege of delivering a keynote speech on the transformative impact of digitization and artificial intelligence (AI) on intellectual property (IP). The event, organized by the Norwegian Patent Office, focused on the theme “IP in transformation through AI,” and my presentation aimed to shed light on the seismic shifts occurring in the IP landscape.

The Rise of Platform-Oriented Companies

One of the most striking developments in the modern economy is the dominance of platform-oriented companies, particularly in the tech sector. This shift is exemplified by the “Magnificent 7” – a group of tech giants that have come to dominate the NASDAQ 100 index. These companies – Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla – now account for over 50% of the NASDAQ 100’s market capitalization. This concentration of value in a handful of companies underscores the transition from traditional pipeline-oriented business models to platform-oriented ones, which leverage network effects and data to create unprecedented value.

The sustainability of these platforms’ market leadership is further evidenced by their substantial investments in research and development (R&D). In 2022, the top 10 companies in the NASDAQ by market capitalization collectively spent a staggering $222 billion on R&D. This level of investment not only fuels innovation but also creates significant barriers to entry for potential competitors.

Accelerating Pace of Innovation and Adoption

The speed at which new technologies and services are adopted has reached unprecedented levels. A prime example of this acceleration is Meta’s newest social media platform, Threads, which attracted 100 million users in less than a week. This feat shattered the previous record of two months held by OpenAI’s ChatGPT. Such rapid adoption rates highlight the dramatic increase in the speed of change in our digital economy and underscore the need for IP strategies that can keep pace with this accelerated innovation cycle.

The Changing Nature of IP Protection

As our economy undergoes this digital transformation, the very nature of what IP protects is evolving. We’re witnessing a shift from patenting specific technical features to protecting broader use cases and digital solutions. This change is particularly evident in industries undergoing digital transformation, such as medical technology.

The Laerdal case study, developed by CEIPI and I3PM and used in IP management training with the European Patent Office (EPO), provides an excellent illustration of this transition. Laerdal Medical, a company known for its medical training equipment, has evolved from focusing on physical components to developing comprehensive digital solutions. Their SimCapture Cloud Platform, for instance, represents a shift towards cloud-based software that minimizes on-site infrastructure and offers subscription-based pricing models. This evolution necessitates a different approach to IP protection, one that encompasses not just physical inventions but also digital processes and user experiences.

AI’s Impact on the Patent Value Chain

Artificial Intelligence is revolutionizing every stage of the patent process, from invention generation to patent drafting and prosecution. In fields such as chemistry, pharmacy, and materials science, AI is being used to accelerate drug discovery and develop new materials with specific properties. For instance, companies like Amgen are leveraging AI-based development in pharmaceuticals, chemistry, and biotechnology to streamline their R&D processes.

In the realm of invention generation, AI tools are being employed to apply principles like TRIZ (Theory of Inventive Problem Solving) to generate novel solutions to technical problems. This approach not only speeds up the ideation process but also has the potential to produce more diverse and innovative ideas.

The New Role of IP Professionals

As AI enhances the efficiency of patent drafting and prosecution, the role of patent attorneys and IP professionals is evolving. There’s a shift towards what I call “New IP Work,” where IP experts are becoming strategic advisors rather than just technical specialists. This transformation requires a new set of skills and a deeper understanding of business strategy and technology trends.

IP professionals are now expected to create IP awareness within their organizations, focusing on timing, visualization, relevance, and appropriate wording to communicate the value of IP effectively. This shift demands a rethinking of both internal and external IP awareness strategies.

From IP Fortresses to Connectivity

The traditional view of IP as a defensive tool to build “fortresses” around a company’s innovations is giving way to a more collaborative approach. In the digital age, IP is increasingly being used to facilitate connectivity and collaboration within business ecosystems. This shift is particularly evident in industries where complex technologies require cooperation between multiple players.

The B-Line Medical acquisition by Laerdal in 2019 is a prime example of this trend. By joining forces, these companies aligned their missions to enhance healthcare quality through innovative digital solutions. This collaborative approach to IP management allows companies to leverage each other’s strengths and create more comprehensive solutions for their customers.

Conclusion: Embracing the IP Revolution

As we navigate this new era of IP in the digital age, it’s clear that the landscape is changing rapidly and profoundly. The objects protected by IP are evolving, the ways in which IP is used are shifting, and the interactions between companies and IP experts are being redefined. To thrive in this new environment, companies and IP professionals must adapt their strategies. This includes developing value-driven IP strategies that align with digital business models, leveraging AI throughout the innovation and patent process, and fostering a culture of IP awareness and collaboration. The IP revolution brought about by digitalization and AI presents both challenges and opportunities. By embracing these changes and developing new approaches to IP management, we can ensure that the IP system continues to foster innovation and drive economic growth in the digital age. As we look to the future, it’s clear that the pace of change will only accelerate. The IP professionals and companies that will succeed are those that can anticipate these changes, adapt quickly, and use IP strategically to create value in an increasingly digital and interconnected world.