Originally posted to DC Journal at InsideSources. Artificial intelligence is reshaping our lives at breakneck speed. From chatbots to self-driving cars, companies like Microsoft, Google, IBM and OpenAI are racing to define the future. Yet, as AI advances, so does the race to patent every corner of this emerging frontier. The stakes are enormous, and how America handles intellectual property rights could make or break innovation in AI. Unfortunately, the U.S. patent system is rife with inefficiencies threatening to stifle the innovation it’s meant to encourage. Without reform, outdated and inconsistent processes could allow opportunists to gum up the works, leaving innovators tangled in legal disputes instead of building the tools of tomorrow. The result? Higher consumer costs, fewer breakthroughs, and a dangerous edge for global competitors. The U.S. Patent and Trademark Office has taken a step in the right direction by updating its guidance on AI-related patents. The agency’s deliberate approach aims to ensure patents are carefully considered, but even the best intentions can falter under a bloated system. In 2020, the USPTO received 650,000 patent applications — six times the number from 1965. That volume invites mistakes, which bad actors exploit to stifle competition. Almost half of all disputed patents end up being declared invalid. Clearly, the system isn’t working as it should. When disputes arise, they land in one of three venues: the U.S. International Trade Commission (ITC), federal courts, or the Patent Trial and Appeal Board (PTAB). Each venue plays a different role, but the ITC has become a magnet for “patent trolls” — companies that buy up patents not to innovate but to weaponize them against productive businesses. Unlike the PTAB, which uses strict criteria to weed out weak claims, the ITC rarely denies a case. Worse, its decisions often result in exclusion orders — bans on importing products that allegedly infringe patents — even if the claims are dubious. This heavy-handed approach makes it easier for trolls to use litigation as a blunt tool to extort settlements from actual innovators. The PTAB, by contrast, offers a more balanced solution. Its stringent review process focuses on merit, reducing frivolous claims while maintaining an accurate, science-based dispute approach. On average, PTAB cases are less expensive and time-consuming than ITC investigations or federal court battles. Why does this matter for AI? Because innovation thrives on competition and freedom. When innovators face barriers like high litigation costs or the threat of exclusion orders, resources that could go toward research and development instead fund legal defenses. Worse, the uncertainty around patents creates a chilling effect, deterring entrepreneurs from entering the field. In a global economy where nations like China aggressively advance their AI capabilities, America can’t afford to let bureaucratic inefficiencies shackle its innovators. The solution is clear: streamline the patent system to protect property rights while minimizing potential abuse. This means limiting the ITC’s authority to handle patent disputes and bolstering the PTAB’s capacity to review questionable patents. We can reduce unnecessary burdens on businesses and consumers by ensuring disputes are resolved quickly and fairly by promoting competition. AI is too important to let regulatory dysfunction stand in the way. If we want America to remain the global leader in technology, we need to prioritize innovation over litigation. The patent system should be a springboard for progress, not a roadblock. Let’s get government out of the way and let entrepreneurs do what they do best: solve problems, create value, and make the future brighter for everyone.
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Vance Ginn, Ph.D.
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