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Element AI Inc. | Copyright © 2019 | Strictly Conf i dent i al IP Challenges for AI Companies Ottawa March 23, 2019 Misha Benjamin

IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

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Page 1: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Conf i de nt i a l

IP Challenges for AI Companies Ottawa March 23, 2019

Misha Benjamin

Page 2: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential

2

Table

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1.0 Introduction

2.0 AI Patent Activity

3.0 Foundational Patents

4.0 Impact on Canadian AI Companies 5.0 Other EAI Initiatives

of contents

Page 3: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential

3 3

Introduction

Page 4: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential

Introduction

4

Element AI In 2017, jus t s even months after launching, Element AI rais ed a his toric Series A round and has s ince created more than 450 jobs acros s five cities in North America, Europe, and As ia . This explos ive growth has enabled us to turn cutting-edge research into s calable indus try-specific products .

In addition to that product development and deployment, we offer advisory s ervices in AI readines s and governance, research as a s ervice to certa in government agencies and work both internally and with various univers ities on advancing fundamental research. This variety of activities has given us have a wide and deep view on the s ta te of AI markets today.

From our very beginning, we have focused on fos tering deep collaboration with univers ities and governments in order to to fos ter the development of a healthy AI ecosys tem in Canada.

Misha Benjamin Misha Benjamin completed his Civil and Common Law at the Univers ity of Ottawa, and s tarted his career as an articling s tudent and then as sociate in the corporate and commercial group at BLG.

He then moved to Spiegel Sohmer where he specialized in representing emerging tech companies in their commercial and fundrais ing efforts . Realizing that he wanted to work closely with the bus ines s and development teams long-term, he moved to an-house pos ition at Ubisoft Entertainment, where he dealt with a variety of IP and commercial is sues . Since joining Element AI two years ago, he has had to addres s a ll legal aspects of the bus ines s of artificial intelligence, including copyright, open-source, patent, data and commercialization is sues , as well as developing a global IP s trategy.

Page 5: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential

5 5

AI Patent Activity

Page 6: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential 6

AI Patent Activity

Page 7: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential 7

AI Patent Activity

Page 8: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential 8

AI Patent Activity

Page 9: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential 9

AI Patent Activity

Page 10: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential 10

AI Patent Activity

Page 11: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential

11 11

Foundational Patents

Page 12: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential

Foundational Patents

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What they are: Patents on techniques that cons titute the very bas is of artificia l intelligence, such as fundamental techniques on how to create and tra in neural nets Examples :

- Google’s patent WO 2014/105866 A1 (US 2014/0180986) "Sys tem and method for addres s ing overfitting in a neural network"

- Granted by the USPTO on 2016 - Priority date of December 24, 2012 - Prior art includes :

CS181 Lecture 12 - Neural Network Model Selection March 1, 2009

Skeletonization: A technique for trimming the fat from a network via relevance assessment in Advances in Neural Information Processing (1), D.S. Touretzky, Ed. (Denver 1988), pp. 107-115

A Basic Introduction to Feedforward Backpropagation Neural Networks (2009)

Page 13: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential

13 13

Effect on Canadian AI Companies

Page 14: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential

Effect on Canadian AI Companies

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1. Direct Patent Risk:

- PyTorch - IBM - Fees

1. Representation and Warranty Is sues

- Increased Transactional Friction - Lack of Cus tomer Knowledge - Cus tomer Confidence Is sues - Built in Termination - Is sues with Carve-Outs

1. Other Is sues

- GAFA-led patent pools - Competitive Advantage for Patent Holders - Chilling Effects

Page 15: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential

15 15

Other EAI Initiatives

Page 16: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential

Effect on Canadian AI Companies

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1. Research Research Partnership with Singapore Management Univers ity focused on:

- Identifying foundational patents - Mapping out prior art - Identifying commercial precedents

1. Launch of Montreal Data License Framework

Data License Framework for AI data

- Addres ses ambiguities in exis ting data licenses - Can be used for open data as well as private arrangements - Automatic license generator available at https :/ /montrealdatalicense.com/ (alpha s tage)

1. Data Trus t Initia tives

J oint Research Initia tive with Nes ta

- Addres ses is sues of data ownership and competition - Can be used for other as sets , including patents , as well as data - Whitepaper available a t https :/ /hello.elementai.com/rs /024-OAQ-547/ images /Data_Trus ts_EN_201903.pdf

Page 17: IP Challenges for AI Companies · IP Challenges for AI Companies Ottawa March 23, 2019 ... where he dealt with a variety of IP and commercial issues. Since joining Element AI two

Element AI Inc. | Copyright © 2019 | Strictly Confidential

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Questions?