Global Perspectives and Challenges for the Intellectual Property System A CEIPI-ICTSD publications series Intellectual Property and Digital Trade in the Age of Artificial Intelligence and Big Data Edited by Xavier Seuba, Christophe Geiger and Julien Penin With contributions by Keith E. Maskus, Yann Ménière, Ilja Rudyk, Sean M. O’Connor, Catalina Martínez, Peter Bittner, Alissa Zeller, Reto Hilty, Christophe Geiger, Giancarlo Frosio, Oleksandr Bulayenko, Ryan Abbott, Timo Minssen, Jens Schovsbo, Francesco Lissoni, Gabriele Cristelli, and Claudia Jamin Issue Number 5 June 2018 Global Perspectives and Challenges for the Intellectual Property System A CEIPI-ICTSD publications series Intellectual Property and Digital Trade in the Age of Artificial Intelligence and Big Data Edited by Xavier Seuba, Christophe Geiger and Julien Penin With contributions by Keith E. Maskus, Yann Ménière, Ilja Rudyk, Sean M. O’Connor, Catalina Martínez, Peter Bittner, Alissa Zeller, Reto Hilty, Christophe Geiger, Giancarlo Frosio, Oleksandr Bulayenko, Ryan Abbott, Timo Minssen, Jens Schovsbo, Francesco Lissoni, Gabriele Cristelli, and Claudia Jamin Issue Number 5 Published by International Centre for Trade and Sustainable Development (ICTSD) 7 Chemin de Balexert, 1219 Geneva, Switzerland Tel: +41 22 917 8492 Fax: +41 22 917 8093 [email protected] www.ictsd.org Center for International Intellectual Property Studies (CEIPI) 11 rue du Maréchal Juin - BP 68 - 67046 Strasbourg, France [email protected] www.ceipi.edu Series editors: Christophe Geiger and Xavier Seuba, Center for International Intellectual Property Studies (CEIPI), University of Strasbourg; Pedro Roffe, International Centre for Trade and Sustainable Development (ICTSD), Geneva; and Ahmed Abdel-Latif, International Renewable Energy Agency (IRENA). Intellectual Property and Digital Trade in the Age of Artificial Intelligence and Big Data, Global Perspectives for the Intellectual Property System, CEIPI-ICTSD, Issue Number 5, 2018. The series editors acknowledge the assistance of Ann Bone for her careful copy-editing and Colette Holden for her contribution in the production of this publication. Citation: Xavier Seuba, Christophe Geiger, and Julien Penin (eds), Intellectual Property and Digital Trade in the Age of Artificial Intelligence and Big Data, Global Perspectives for the Intellectual Property System, CEIPI-ICTSD, Issue Number 5, 2018. The views expressed in this publication are the authors’ personal views and do not necessarily reflect the views of any institution they are affiliated with, nor the views of CEIPI, ICTSD, or their respective funding institutions. Copyright © ICTSD and CEIPI, 2018. Readers are encouraged to quote this material for educational and non-profit purposes, provided the source is acknowledged. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Licence. To view a copy of this licence, visit: https://creativecommons.org/licenses/by-nc-nd/4.0/ ISSN 2414-343X CONTENTS Abbreviations 4 Foreword 5 About the Authors 6 Introduction 9 Xavier Seuba, Christophe Geiger, and Julien Penin Part One: From Digital Trade to Commercialisation and Management of Intellectual Property 17 Fostering Innovation in Digital Trade 19 Keith E. Maskus The Fourth Industrial Revolution from the European Patent Office Perspective 29 Yann Ménière and Ilja Rudyk The Promises and Perils of Digital Business Models 39 Sean M. O’Connor Expanding Patents in the Digital World: The Example of Patents in Software 55 Catalina Martínez Intellectual Property Management Challenges Arising from Pervasive Digitalisation: The Effect of the Digital Transformation on Daily Life 67 Peter Bittner Influences of Digital Transformation on Freedom-to-Operate Processes in the Chemical Industry 75 Alissa Zeller Part Two: Regulating and Using Big Data in the Digital World 83 Big Data: Ownership and Use in the Digital Age 85 Reto Hilty Crafting a Text and Data Mining Exception for Machine Learning and Big Data in the Digital Single Market 95 Christophe Geiger, Giancarlo Frosio, and Oleksandr Bulayenko Inventive Machines: Rethinking Invention and Patentability 113 Ryan Abbott Big Data in the Health and Life Sciences: What Are the Challenges for European Competition Law and Where Can They Be Found? 121 Timo Minssen and Jens Schovsbo Mobility of Research: Patent Data and Inventor Information 131 Francesco Lissoni and Gabriele Cristelli Managing Big Data in the Digital Age: An Industry Perspective 149 Claudia Jamin 4 Intellectual Property and Digital Trade in the Age of Artificial Intelligence and Big Data Abbreviations 3D three-dimensional 4IR fourth industrial revolution 5G fifth-generation AI artificial intelligence BETA Bureau of Theoretical and Applied Economics CAFC Court of Appeals for the Federal Circuit CEIPI Center for International Intellectual Property Studies CII computer-implemented invention CJEU Court of Justice of the European Union CPS cyber-physical system CPU central processing unit DOS disk operating system DRM digital rights management DSM digital single market EPC European Patent Convention EPO European Patent Office EU European Union EULA end-user licence agreement FTO freedom to operate G20 Group of 20 (advanced and emerging economies) GDP gross domestic product GDPR General Data Protection Regulation GUI graphical user interface I3PM International Institute for Intellectual Property Management ICT information and communications technology ICTSD International Centre for Trade and Sustainable Development IP intellectual property IPC international patent classification IPR intellectual property right IT information technology LOT License on Transfer OECD Organisation for Economic Co-operation and Development OSS open source software PATSTAT Worldwide Patent Statistical Database PCT Patent Cooperation Treaty R&D research and development RAM random active memory SaaS software as a service TDM text and data mining TFEU Treaty on the Functioning of the European Union TRIPS Trade-Related Aspects of Intellectual Property Rights USPTO United States Patent and Trademark Office WIPO World Intellectual Property Organization Global Perspectives and Challenges for the Intellectual Property System 5 Foreword The Center for International Intellectual Property Studies (CEIPI) and the International Centre for Trade and Sustainable Development (ICTSD) are pleased to present the fifth issue of the publication series on Global Perspectives and Challenges for the Intellectual Property System. This issue continues to develop what the publication series intends to provide: high-quality academic and policy-oriented papers dealing with topics that are of global importance because of their normative pre-eminence, economic relevance, and socioeconomic impact. CEIPI and ICTSD decided to launch this common project convinced by the synergies existing between both organisations. We share a common interest in intellectual property (IP) as a tool for innovation, development, and the pursuit of broader societal interests, being profoundly engaged in knowledgeable and informed reflection and international debates touching upon how intellectual property can fulfil these important goals. This series of papers aims, therefore, at provoking consideration of contemporary issues thanks to the collaboration of recognised scholars and experts, giving voice to them, enriching the academic debate, and feeding policymakers with high-quality materials. The series wishes to reach a broader audience, ranging from academics to public officials, including civil society, experts, business advisers, and the broad membership of the IP community. We also have in mind the actual implementation of IP—how IP works in practice—without losing sight of public policy objectives, including its intersection with innovation, creativity, and sustainable development goals. We sincerely hope you will find this fifth issue of the series, dealing with IP and digital trade in the age of artificial intelligence and big data, a useful contribution to a better understanding of the legal complexities and social and economic opportunities arising from technologies that lay the groundwork or foundation for a new industrial revolution. Christophe Geiger Ricardo Meléndez-Ortiz Director General and Director of the Research Chief Executive, International Centre for Trade Department of the Center for International and Sustainable Development (ICTSD) Intellectual Property Studies at the University of Strasbourg (CEIPI) 6 Intellectual Property and Digital Trade in the Age of Artificial Intelligence and Big Data About the Authors Ryan Abbott is Professor of Law and Health Sciences at the University of Surrey School of Law, and Adjunct Assistant Professor at the David Geffen School of Medicine at University of California, Los Angeles. Peter Bittner is a European patent attorney and President of the International Institute for Intellectual Property Management. Oleksandr Bulayenko is a researcher and PhD candidate at the Center for International Intellectual Property Studies, University of Strasbourg. Gabriele Cristelli is a PhD candidate at the College of Management of Technology and Chair of Economics and Management of Innovation. Giancarlo Frosio is Senior Lecturer and Researcher at the Center for International Intellectual Property Studies, University of Strasbourg. Christophe Geiger is Professor of Law, Director-General, and Director of the Research Department at the Center for International Intellectual Property Studies, University