RIAA Sues AI Music Generating Platforms for Massive Copyright Infringement; EPO publishes annual review 2023; and News Nonprofit brings lawsuit against Open AI and Microsoft for copyright infringement

This week on Other Barks and Bites: WIPO releases study finding that investment in intangible assets is growing rapidly, thanks in part to intellectual property; the Center for Investigative Reporting files copyright lawsuit against OpenAI and Microsoft; and the RIAA files suit against AI music-generating platforms over mass copyright infringement.

Bites

EPO publishes Annual Review 2023, detailing achievements

On Thursday 27 June, the European Patent Office (EPO) published its Annual Review 2023, detailing its achievements in relation to the previous 18-month vision. EPO President António Campinos said: “Together with all our stakeholders, we have made progress towards a more diverse and inclusive patent system that supports inventors worldwide in finding solutions to the pressing challenges facing humanity.” In 2023, the Office received a record 199,275 patent applications, and the calendar year also saw the launch of the Unitary Patent and the Unified Patent Court. The EPO also moved to a new five-year strategic plan, which will run until 2028.

Nonprofit sues OpenAI and Microsoft for copyright infringement

On Thursday, June 27, the nonprofit organization The Center for Investigative Reporting filed a lawsuit accusing Microsoft and OpenAI of copyright infringement. “OpenAI and Microsoft began dusting off our stories to improve the performance of their product, but they never asked for permission or offered compensation, unlike other organizations that license our material,” said Monika Bauerlein, CEO of the Center for Investigative Reporting . “This stowaway behavior is not only unfair, but also a violation of copyright. The work of journalists, at CIR and everywhere else, is valuable, and OpenAI and Microsoft know it.” Lawsuit The Center for Investigative Reporting joins countless news organizations that have sued the creator of ChatGPT, including New York Timesamong others.

Global growth in intangible investments – according to new WIPO data

On Tuesday, June 25, the World Intellectual Property Office (WIPO) released data showing that investment in intangible assets such as brands, designs, data and software has grown three times faster than physical assets over the past 15 years. According to the report, intangible investment ($6.9 trillion) has outpaced tangible investment ($4.7 trillion) in recent years due to its faster growth rate. “This report highlights the leading role that intangible assets, supported by intellectual property (IP), play in the global economy and provides hard data to support evidence-based policymaking for governments around the world striving for innovation-led growth,” said WIPO Director Darrent Tang.

RIAA sues AI-generated music platforms for massive copyright infringement

On Monday, June 24, the Recording Industry Association of America (RIAA) sued two artificial intelligence-based music generation platforms, Suno and Udio, for massive copyright infringement of sound recordings. The RIAA sued on behalf of leading music labels Sony Music, UMG Recordings and Warner Records, among others. “The music community has embraced AI and we are already working with responsible developers to create sustainable AI tools centered on human creativity that put control in the hands of artists and songwriters,” said RIAA President and CEO Mitch Glazier. “But we can only succeed if developers are willing to work with us. “Unlicensed services like Suno and Udio that claim it is ‘honest’ to copy an artist’s life’s work and use it for their own profit without consent or payment are destroying the promise of truly innovative AI for all of us.”

Bark

Country Star Randy Travis Testifies Before Congress, Calls for Better Royalty Payments

On Wednesday, June 26, country music star Randy Travis testified before the House Judiciary Committee’s Subcommittee on Courts, Intellectual Property and the Internet, demanding better royalty payments and copyright protections for musicians. The subcommittee debated legislation that would require radio stations to pay performers royalties similar to those paid to songwriters. Travis has been unable to speak or sing since suffering a stroke in 2013 and testified that his income is based on royalty payments.

CAFC denies attorneys’ fees to U.S. company in patent dispute with German company

On Wednesday, June 26, the United States Court of Appeals for the Federal Circuit (CAFC) denied an award of attorney fees to a U.S. identity card company to defend itself against a patent infringement lawsuit filed by a competing German company. The CAFC affirmed the lower court’s denial of attorney fees to HID Global Corporation, but for different reasons. The court ruled that HID was not a prevailing party and therefore attorney fees were not appropriate.

EPO awards Dame Carol Robinson Lifetime Achievement Award

On Tuesday 25 June, the EPO awarded British chemist Dame Carol Robinson the Lifetime Achievement Award as part of the 2024 European Inventor Award. Robinson received the award for her contributions to blood analysis, drug development and biochemical research. The EPO will celebrate her life’s work on 9 July at the European Inventor Award ceremony in Malta.

The Customs and Tax Department has simplified the process of detaining items that infringe copyright law

On Monday, June 24, U.S. Customs and Border Protection (CBP) and the U.S. Department of the Treasury published a final rule in the Federal Register amending the definition of “pirated articles,” simplifying the process for detaining articles suspected of infringing copyrights, and establishing new regulations in to enforce the DMCA. This rule was first proposed in 2019, and the final rule will be effective on August 23, 2024. CBP received 5 relevant comments on the proposed rule that supported the intent of the rule but requested further clarification.

EUIPO announces voluntary trademark invalidity mediation programme – On Thursday, June 20, the European Union Intellectual Property Office (EUIPO) announced that from July 1, parties involved in trademark invalidation proceedings will be able to request mediation services voluntarily and free of charge through the agency’s EUIPO Mediation Center, which was established in November from last year.

This Week on Wall Street

All 31 banks successfully passed the Federal Reserve’s annual stress test

On Wednesday, June 26, the Federal Reserve Board released the results of its annual bank stress test, which showed that all 31 banks tested are well-prepared to weather a severe recession and continue to meet minimum capital requirements. The results were slightly worse than last year because banks have slightly riskier debt positions, but the banks still have enough capital to absorb potential losses.

McKinsey announces AI expansion

On Tuesday, June 25, consulting firm McKinsey & Company announced a new industry AI suite with over 20 products. The products are developed on McKinsey’s AI platform and are part of the consulting industry’s broader transition to AI. “Extracting value from AI requires multiple skill sets, and at any given time, our customer engagement requires similar tool sets,” says Alexander Sukharevsky, senior partner and global leader of QuantumBlack, McKinsey’s AI division.