Embracing the Future: Malta's Vision for AI-Driven Innovation and Intellectual Property Reform

Imagine a Malta where artificial intelligence seamlessly integrates with our daily lives, revolutionizing industries and driving unprecedented economic growth. As the world races towards an AI-powered future, Malta stands at a pivotal crossroads. By embracing the transformative power of AI and updating our intellectual property rights (IPR) laws, we have the unique opportunity to position our nation as a global leader in innovation and technological advancement.

This proposal is not merely about keeping pace with change; it is about pioneering a bold new era of growth and opportunity. By aligning our IPR framework with European Union (EU) regulations and Court of Justice of the European Union (CJEU) rulings, Malta can attract substantial investments and foster advancements in key sectors such as software, fintech, gaming, gambling, and pharmaceuticals.

The Urgency of Now

The rapid advancements in AI and its integration into various industries necessitate immediate action. Our current IPR laws, while robust for traditional intellectual property, fall short in addressing the unique challenges posed by AI-generated works and inventions. To remain competitive and forward-thinking, Malta must modernise its legal framework to cater to AI investments and intellectual property, ensuring we are not left behind in this technological revolution.

Learning from Global Pioneers

Germany, the United Kingdom, and Estonia have each forged paths in addressing AI and IPR, offering valuable lessons. Germany emphasizes significant human intervention in the inventive process, maintaining traditional views of inventorship while protecting AI-related inventions. The UK's flexible approach post-Brexit allows AI-generated outputs to be patented if they meet originality and inventiveness criteria. Estonia, a leader in digital innovation, recognizes AI-generated inventions with substantial human involvement.

These examples show how embracing AI's potential can coexist with maintaining the integrity of the patent system. Malta can adapt and enhance these approaches, tailoring them to our unique context and needs.

Copyright Act (Cap. 415)

First, we need to redefine what constitutes a ‘work’ in the realm of copyright. By introducing the term ‘AI-Created Work,’ we acknowledge the unique nature of creations generated by artificial intelligence. This definition ensures that any work produced with significant human intervention, even if partially or entirely generated by AI, is protected under our laws.

We also propose a crucial change in authorship rules. Traditionally, the creator of a work is its author. However, in the case of AI, the person who manages and controls the AI system at the time of creation should be recognized as the author. This change clarifies ownership and ensures that those who harness AI for creation receive appropriate recognition and protection.

To tackle the digital age challenges, we must also strengthen enforcement mechanisms against unauthorized use of copyrighted material online. This involves setting up a robust system to monitor and address infringements swiftly, safeguarding the rights of creators in the digital realm.

Patents and Designs Act (Cap. 417)

Next, we turn to patents. Introducing the concept of an ‘AI-Invented Invention’ acknowledges inventions generated by AI with significant human supervision. This new category ensures that innovations resulting from AI collaboration receive the same protection as traditionally created inventions.

In terms of inventorship, the person managing and controlling the AI system during the invention process should be recognized as the inventor. This approach maintains the integrity of the patent system while adapting to the realities of AI-driven innovation.

Additionally, extending patent rights to cover digital and AI-generated designs ensures that novel and original creations in the digital space are protected, fostering further innovation in this burgeoning field.

Trademarks Act (Cap. 597)

For trademarks, we propose recognizing ‘AI-Created Trademarks.’ These are trademarks generated by AI systems under significant human direction. This change ensures that businesses leveraging AI for brand creation can protect their trademarks effectively.

We must also ensure that trademarks used in AI-generated content comply with existing laws, maintaining the integrity and fairness of trademark protection in the digital age.

Commercial Code (Chapter 13)

Our commercial code must also evolve to recognize AI-generated work as valid commercial products. By doing so, we acknowledge the economic value of AI creations and provide a clear legal framework for their commercialisation. The rights to these AI-generated works would belong to the creator or owner of the AI system, aligning with our broader intellectual property reforms.

Conclusion

The proposed amendments to Malta’s IPR laws are crucial for embracing the future of AI-driven innovation. By recognizing the role of human agents in AI creations and providing a clear path for their protection and commercialisation, Malta can stay at the forefront of legal developments in the AI era. This initiative will attract investments, foster innovation, and position Malta as a leader in the global AI landscape.

The time to act is now. By modernising our IPR laws, we can ensure that Malta not only adapts to the future but also shapes it, creating a thriving environment for innovation and economic growth.

Article by Dr Ian Gauci

Dr Gauci is the Managing Partner of GTG, a technology-focused corporate and commercial law firm that has been at the forefront of major developments in fintech, cybersecurity, telecommunications, and technology-related legislation.

This article was first published in the Sunday Times of Malta on the 21/07/2024.

Disclaimer: This article is not intended to impart legal advice and readers are asked to seek verification of statements made before acting on them.

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