AI has transformed innovation, but 2025 brought a hard legal truth: courts and patent offices globally have doubled down, ruling that only humans can be listed as inventors. In this episode, Pankaj Raval and Sahil Chaudry explore what this "human-only" patent rule means for businesses and R&D companies. They break down the "fast fashion for SaaS" concept, explain why AI compliance is now a critical part of due diligence, and provide a clear, actionable checklist for founders to protect their AI-assisted inventions.

Takeaways

• The Law is Clear: Courts worldwide (e.g., Thaler v. Vidal) have affirmed that only natural persons, not AI systems, can be named as inventors on a patent.
• AI Can Assist, Not Invent: A human must guide the process, provide direction, and make judgment calls to be considered the "true inventor" in the eyes of the law.
• This Flips R&D Assumptions: Companies can no longer assume that an AI-designed product is automatically patentable. Without proof of "significant human involvement," the invention may not be protectable.
• The "Fast Fashion for SaaS" Era: Because code is difficult to patent and AI makes copying easy, we are entering an era where SaaS products are copied rapidly, similar to fast fashion.
• 3-Step Founder Checklist: 1) Document the human role in the invention process. 2) List humans, not AI, on the patent application. 3) Update your contracts (like invention assignment agreements) to ensure all AI-assisted inventions belong to the company.
• Copyright Follows Suit: The US Copyright Office has also rejected AI-created works that lack meaningful human input.
• AI Complicates Due Diligence: Investors and buyers will now audit your IP portfolio to determine how much AI was used. If your IP is deemed unprotectable, it will be factored into (and likely lower) your valuation.
• New Motto: "Move fast and break things" is a dangerous motto for IP. The new motto is: "Move fast and break things, but bring your general counsel with you."

Soundbites

• "Courts and patent offices across the globe doubled down saying only humans can be listed as inventors."
• "AI can assist, but it can't invent."
• "If you can't clearly show there was a significant amount of human involvement here, your invention may not be patentable."

Keywords

AI, Intellectual Property, IP Law, Patents, Inventorship, Copyright, Human Authorship, Thaler v. Vidal, USPTO, SaaS, Due Diligence, M&A, Innovation, Carbon Law Group

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Website: carbonlg.com

Connect with Pankaj: https://www.linkedin.com/in/pankaj-raval/

Connect with Sahil: https://www.linkedin.com/in/sahil-chaudry-6047305/

Trademark Watch Service: https://carbonlg.com/introducing-carbon-laws-new-trademark-watch-service/

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