Author: Kumari Anushka Srivastava, Lloyd Law College
The swift progression of Artificial Intelligence (AI) has profoundly affected multiple industries, including intellectual property (IP) law. This analysis investigates the obstacles and prospects that AI introduces to conventional IP systems in India, with a focus on copyright, patents, and trademarks. The discussion revolves around the legal consequences of content generated by AI, the issues of authorship and inventorship, and the potential necessity for revamped legal frameworks to accommodate AI’s involvement in creative and inventive activities.
WHAT IS INTELLLECTUAL PROPERTY RIGHTS?
The term “Intellectual Property” can be understood by examining its components: “Intellectual” and “Property.” The word “Intellectual” is not specifically defined in any Indian statute and is generally understood to mean “of or relating to the intellect or the mind.” On the other hand, “Property” is defined in various statutes. The General Clauses Act, 1897, states that “property” includes both movable and immovable property, while the Transfer of Property Act, 1882, defines “property” as any kind of property that may be transferred, except where expressly excluded by the Act or any other applicable law.
TYPES OF IPR
1 PATENT
A patent is a form of intellectual property right which is granted exclusively for an invention whether a product or a process, that introduces a new way of doing something or provides a new technical solution to a problem. The right which excludes others from making, using, selling, an invention for a limited period usually for a given number of years.
There are a few inventions which are not patentable
An invention may satisfy the condition of novelty, inventiveness and usefulness but it may not qualify for a patent under the following situations:
An invention that is frivolous or claims something clearly contrary to well-established natural laws.
An invention the primary or intended use or commercial exploitation of which could be contrary to public order or morality or which causes serious prejudice to human, animal or plant life or health or to the environment;
The mere discovery of a scientific principle, the development of an abstract theory, or the identification of any living or non-living substance found in nature.
The simple discovery of a new form of a known substance, which does not improve its known efficacy, or the mere discovery of a new property or use for an existing substance, or the mere use of a known process, machine, or apparatus, shall not be considered an invention, unless such a process produces a new product or involves the use of at least one new reactant.
a substance obtained by mere admixture resulting only in the aggregation of the properties of the components thereof or a process for producing such substance;
The mere arrangement or re-arrangement or duplication of known devices each functioning independently of one another in a known way;
a method of agriculture or horticulture;
the question which arises here is that who shall be considered the owner in a patent?
As per the patent act, 1970
Section 2(1)(p) —
A “Patentee” refers to the person currently recorded in the register as the grantee or owner of the patent.
So, the patentee = the legal owner of the patent as recorded in the Patent Office register.
Hence we can say that ownership rights will be with the inventor if he has invented the product and applied for patent, or with the employer if the invention was made by the employees and the rights are been transferred to the employer upon a consent between the both(hired to invent doctrine applies in this scenario*), assignees the one who acquire the patent rights, government ownership one made by employee during the employment.
2. COPYRIGHT
Copyright protects the original expression of ideas in works such as literature, art, music, and drama, focusing on the specific way ideas are expressed rather than the ideas themselves. It grants creators exclusive rights to reproduce, distribute, perform, and display their works, while also safeguarding their economic and moral interests. The need for copyright law emerged in the fifteenth century with the invention of the printing press in Europe, which made copying and distributing books much easier. Before that, copying books by hand was time-consuming, so there was little need for legal protection against unauthorized reproduction or sale.
What Copyright Protects
Copyright protects the expression of ideas, not the ideas themselves. It covers:
The specific way an author expresses thoughts, concepts, or information
Original creative choices in arrangement, selection, and presentation
Artistic and literary expression in various forms
What Copyright Does NOT Protect
Ideas, concepts, or facts themselves
Methods, procedures, or systems
Titles, names, or short phrases (generally)
Works not fixed in tangible form
Government works (in many jurisdictions)
Who shall be considered the owner
By default, the author (as defined in Section 2(d)) is the first owner of copyright.
“Author” changes meaning depending on the type of work:
Literary/dramatic work → writer
Musical work → composer
Artistic work → artist
Photograph → photographer
Cinematograph film → producer
Sound recording → producer
There is a flip side to ownership i.e. There are few exceptions where author is not considered the first owner like the Work created by employee during course of employment (contract of service) the employer shall be considered the owner, Photograph, painting, portrait, engraving, or cinematograph film made for valuable consideration at someone’s instance the person who commissioned, Work created under the direction or control of the Government, the public undertaking . The first owner automatically gets exclusive rights including to reproduce the work, publish or perform it, make adaptations to translations, license or assign it to others.
3. TRADEMARKS
A trademark is any word, name, symbol, device, or combination thereof used to identify and distinguish goods or services of one party from those of others in commerce. Trademarks serve as source identifiers, helping consumers recognize and choose products based on their origin and quality expectations. Trademarks protect logos, sounds, words, colours, or symbols used by a company to distinguish its service or product. Trademark examples include the Twitter logo, McDonald’s golden arches, and the font used by Dunkin
Who shall be the owner?
Under the Act, the owner of a trademark is:
The person whose name is entered in the trademark register as the proprietor of the mark.
Section 2(1)(v): “Proprietor” means the person for the time being entered in the register as proprietor of the trademark.
Rights can also exist without registration under “passing off” (common law rights), where the first user in trade is considered the owner for enforcement purposes. The ownership matters because it gives the owner exclusive rights under section 28 to use of trademarks, authorise others and prevent others from using the identical goods or services.
4. INDUSTRIAL DESIGNS
Definition (Section 2(d)): A “design” means the features of shape, configuration, pattern, ornament, or composition of lines or colours applied to any article, whether two-dimensional, three-dimensional, or both, by any industrial process, which appeal to the eye and are judged solely by the eye. Industrial designs protect the ornamental or aesthetic aspects of useful articles, covering the visual appearance of products rather than their functional features. This form of intellectual property bridges the gap between purely artistic works (covered by copyright) and functional inventions (covered by patents).
Basic Ownership Principle
Typically, industrial design rights belong to the original creator of a piece of work. The fundamental rule is that the person who creates the design is the initial owner, unless specific circumstances or agreements dictate otherwise. Primary Rule is that independent designers who create designs on their own time and resources own the design rights. Further, If the creator was an employee at the time of creating the architectural design for a home project and the creation was made within the scope of their employment, then its rights belong to the employer. a person or company commissions a design and pays for it (unless there’s a contrary agreement), the commissioner owns it. The assignee becomes the lawful owner after proper registration with the Controller of Designs.
5. GEOGRAPHICAL INDICATIONS
A Geographical Indication means as per (Section 2(1)(e))
“An indication which identifies goods as originating, or manufactured, in a specific territory, region, or locality in India, where a given quality, reputation, or other characteristic of such goods is essentially attributable to its geographical origin.”
Examples can be the banarsi silk or the banarasi paan or the Darjeeling tea or the kanjiwaram silk or the oranges of Nagpur
who shall be the owner?
In India, the ownership of Geographical Indications (GIs) is fundamentally different from other forms of intellectual property like patents, copyrights, or trademarks, because a GI is not “owned” by a single person. Instead, the law recognises “producers” or associations and organisations of producers as the registered proprietors.
Under Section 2(1)(k) read with Section 11 of the Geographical Indications of Goods (Registration and Protection) Act, 1999, any association of persons, producers, or any organisation or authority representing the interests of the producers of the concerned goods can apply for GI registration.
For example, the Tea Board of India is the registered proprietor of “Darjeeling Tea.”
Additionally, under Sections 17 and 18, individual producers within the demarcated geographical region can register as “authorised users,” which grants them the legal right to use the GI on their goods.
AI-GENERATED WORKS: CHALLENGES IN OWNERSHIP
Artificial Intelligence (AI), introduced in 1956 by John McCarthy, refers to machines that perform tasks typically requiring human intelligence, though there is no formal legal definition of AI in India. The current legal framework grants rights and obligations only to humans or recognized entities like corporations, creating challenges when AI autonomously generates novels, music, or inventions. Intellectual Property Rights (IPR) laws, such as the Copyright Act of 1957 and the Patents Act of 1970, require human creativity or an inventive step as the source of originality or invention. However, when an AI system independently produces creative or inventive output through algorithms and data processing, without significant human input beyond programming, it becomes unclear whether such works can be protected under existing laws. This legal gap forces courts to reinterpret authorship and inventorship doctrines, leading to uncertainty, inconsistent rulings, and potential disincentives for AI-driven innovation.
WHOM TO BE HELD LIABLE?
When AI systems are trained on copyrighted datasets like Studio Ghibli films or artworks, they may generate outputs that substantially resemble protected works. Under the Indian Copyright Act, 1957, infringement includes not just exact copying but also substantial similarity. Since AI lacks legal personality, liability falls on humans or legal entities involved. The user—who provides prompts and exploits the content commercially—can be held liable, as can the developer if they knowingly used copyrighted material without a licence. Liability depends on factors like the degree of human involvement, commercial versus personal use, knowledge of infringement risk, and response to notices. A key distinction exists between copying a general style (usually lawful) and replicating specific characters or scenes (unlawful). This approach, based on principles from Rupendra Kashyap and F. Hoffmann-La Roche, balances innovation incentives with creators’ rights by assigning responsibility proportionally between platform providers and end users.
CONCLUSION
The rapid advancement of Artificial Intelligence poses unprecedented challenges to the traditional Intellectual Property Rights (IPR) framework in India. Existing laws governing patents, copyrights, trademarks, industrial designs, and geographical indications are built on the premise of human creativity, authorship, and inventorship. However, when AI autonomously generates creative works or inventions, the conventional doctrines of ownership and liability struggle to provide clear solutions. The absence of legal personality for AI creates ambiguity in determining who holds ownership or responsibility—whether it is the developer, user, employer, or another entity. Additionally, the fine line between lawful inspiration and unlawful replication further complicates the liability issue. To address these challenges, there is a growing need for a well-defined and adaptive legal framework that recognizes AI’s role while preserving incentives for human creativity and innovation. Such reforms would not only clarify ownership and liability in AI-generated works but also encourage responsible development and use of AI technologies, striking a balance between protecting creators’ rights and fostering technological progress.
FAQS
Who is the owner of copyright in India?
By default, the author is the first owner of the copyright. In cases where a work is created under employment or commission, the employer or person who commissioned the work may be the first owner. The Copyright Act, 1957 governs these rules.
Can AI be recognized as the owner or inventor under current Indian IPR laws?
No. Under current Indian law, only natural persons or juridical persons can hold rights. AI lacks legal personality and therefore cannot be recognized as an author, inventor, or owner of intellectual property.
What happens if an AI-generated work closely resembles copyrighted work?
Under the Indian Copyright Act, 1957, infringement occurs if there is substantial similarity. Liability typically falls on the human user who provided prompts and exploited the content, or the developer if they knowingly trained the AI on copyrighted data without permission.
How is liability determined for AI-generated works?
Liability depends on:
The extent of human involvement
Whether the use is commercial or personal
Knowledge of possible infringement
Response to infringement notices
Users, developers, or both can be held liable depending on the circumstances
