Showing posts with label in-house. Show all posts
Showing posts with label in-house. Show all posts

Sunday, December 22, 2024

How AI and Strategic Drafting Can Reshape the Patent Landscape

How AI and Strategic Drafting Can Reshape the Patent Landscape


December 2, 2024 — In reviewing an insightful article by Dr. Ian Schick, I encountered a compelling argument about the transformative potential of artificial intelligence in the patent drafting process. Dr. Schick suggests that AI can streamline labor-intensive tasks—like preparing detailed descriptions and refining drawings—freeing patent professionals to devote their expertise to high-value matters such as claim drafting and inventor interviews. He anticipates that this shift could reduce the total drafting time per application from approximately 20 hours to around 6.7 hours, thereby lowering service fees to one-third of their current level.

While I hesitate to label detailed descriptions and drawings as “low-value,” there is no denying they consume a significant share of the preparation effort. Using AI to automate portions of these steps appears both logical and efficient, ultimately enhancing overall patent quality. Notably, Dr. Schick’s illustrative figures and tables break down the drafting process in a manner that highlights each task’s value—though I would have preferred to see prior art investigation more prominently included, as it is integral to most filings.


Why Detailed Descriptions and Drawings Are Crucial

In practice, the initial specification’s thoroughness often outweighs the importance of the original claim set. Rarely do claims issue without amendment; examiners commonly identify grounds for rejection that lead to strategic adjustments. When amending claims, an applicant must stay within what is explicitly or implicitly disclosed in the filed specification. Therefore, the application’s initial level of detail profoundly influences the ultimate patent scope.

Moreover, companies increasingly recognize the importance of accounting for European patent standards at the outset. Filings tailored to U.S. or Korean rules can falter under Europe’s more exacting scrutiny, where Article 84 objections or issues with non-allowable intermediate generalizations frequently arise. A robust drafting strategy should anticipate these hurdles by integrating European requirements from the beginning.


Drafting Strategies and the Role of AI

From a drafting standpoint, an effective approach is to conceptualize the overall inventive idea through schematic diagrams or “conceptual figures,” and then systematically introduce variations as they become clear in later product-development stages. Highlighting which features are essential, optional, or purely enhancements clarifies the invention’s scope. At the same time, such categorization—if done too rigidly—might inadvertently bolster an examiner’s view that a claimed invention is an obvious combination of known elements. Caution and balanced drafting are therefore prudent.

For patents serving as strategic “offensive weapons,” it is well worth investing time and resources in a detailed specification, high-quality figures, and a thorough review of relevant prior art. Here, AI offers considerable advantages: in my own practice, I have used ChatGPT-4 to review and refine sections of a recently disclosed specification on a paragraph-by-paragraph basis, finding it especially helpful in reducing preparation time without sacrificing quality.


The Cost Equation

It is instructive to consider cost benchmarks. Mid-level associates at major U.S. law firms often command hourly billing rates near $750. Based on international data comparing the United States and Korea, the U.S. purchasing power parity (PPP) is about 1.4 times higher, with average wages (in PPP terms) around 1.75 times higher. By that logic, a mid-level associate in Korea might have a reasonably set billing rate of roughly $429 (KRW 600,000) per hour. At 20 hours of drafting, an application would therefore cost about $8,579 (KRW 12 million). Yet, outside highly specialized areas such as pharmaceuticals, achieving such fee levels in Korea can be challenging.


The Strategic Value of In-House Patent Teams

Ultimately, these considerations highlight the pivotal role of corporate patent counsel. If in-house teams conduct inventor interviews, compile prior art research, and prepare a thorough factual record, outside counsel can operate more efficiently, reducing the need for extensive revisions. This streamlined process not only enables law firms to stay within a constrained budget but also boosts outcomes, giving in-house professionals a tangible incentive to excel.

If organizations recognize that such a collaborative framework yields better patent coverage and strategic positioning—while also controlling costs—then the contributions of in-house patent personnel become even more vital. AI is set to amplify these benefits, allowing companies to meet the demands of a competitive global patent landscape more effectively than ever.

Why AI Can Make Patent Attorneys Twice as Valuable

The Strategic Importance of In-House Counsel and AI Adoption

The Strategic Importance of In-House Counsel and AI Adoption

In light of the turbulent circumstances in Korea, I was initially reluctant to share these observations. However, the insights offered by Daniel Lewis, CEO of LegalOn, are both timely and thought-provoking, warranting broader discussion. Lewis references the renowned “Cravath Scale,” established by Cravath, Swaine & Moore LLP—an elite U.S. law firm that compensates 2024 law school graduates at a base salary of $225,000 while billing clients at rates of $600 to $800 per hour. In contrast, companies that develop in-house legal teams can reportedly reduce these legal expenses by up to 80–90%. This gap stands to widen as external firm rates climb, particularly when paired with advances in AI.

One of the central advantages of in-house counsel is their freedom from the hourly billing model. By leveraging AI solutions, such as for routine contract review, in-house teams can direct more resources toward complex and strategic tasks. This approach not only curbs legal spending but also bolsters a company’s overall legal efficacy—a convincing case for bolstering internal legal capacity with cutting-edge technology.


Beyond Cost Savings: The Role of In-House Patent Teams

This same logic extends to in-house patent counsel, though their scope of responsibilities goes far beyond simple cost-efficiency. Outside attorneys and patent agents often lack a deep familiarity with a company’s technological background or the cumulative industry knowledge critical to building robust patent and IP strategies. In-house patent teams fill this gap by offering technical insights that a person of ordinary skill in the art would naturally consider and by guiding external counsel more effectively.

It is not unusual for outside advisors—due to time constraints or limited sector-specific expertise—to underutilize widely recognized industry standards or technical “common sense” when presenting arguments to examiners, administrative tribunals, or judges. In this context, in-house legal and patent teams serve not merely as a means to reduce expenditures, but as essential assets for fostering institutional knowledge, optimizing legal and patent oversight, and ultimately advancing the company’s broader legal and technological strategies.


Conclusion

While recent events in Korea may have momentarily given pause to sharing these perspectives, it remains abundantly clear that in-house counsel—particularly those augmented by AI—can deliver substantial and far-reaching benefits. From curbing legal costs to nurturing deep sector-specific insights, the presence of an internal legal or patent team is fundamental to executing a forward-looking, cost-effective, and strategically sound legal framework.


Does AI determine the outcome of patent lawsuits? Visualization strategies for patent attorneys (AI가 특허 소송의 승패를 가른다? 변리사를 위한 시각화 전략)

  변리사님, 아직도 특허 도면 수정 때문에 밤새시나요? Patent Attorneys, still pulling all-nighters over drawing modifications? 특허 문서만으로 복잡한 기술을 설명하는 데 한계를 느...