Legal Dimensions towards the role of Artificial Intelligence and Trademark in Indian Corporate Sectors

Abstract

Introduction: The Trademark Law constitutes as one of the pillars of the Intellectual Property Law as well as the retail industry. Over the years, the trademark law has not only promoted retail growth by promoting several creators to establish their brands efficiently but also assisted consumers in making smarter and informed buying decisions. As decided in the landmark case of Amritdhara Pharmacy v. Satyadev Gupta, reasonable man’s tests and overall impression test of the mark was the key principle while deciding the deceptive marks. However, there is a paradigm shift in the retail industry from seller’s choice, choosing brands from super market, and to rely on the Artificial Intelligence seems to directly impact the very basis of the Trademark Law i.e. human frailty. This can be attributed to the tendency for AI softwares to filter and predict the needs and wants of the ‘human’ consumer. The biggest example of this is the Amazon ‘Alexa’ an artificial intelligence programme meant to assist humans in their everyday menial tasks as well as providing assistance with regards to their shopping experience. The software carefully limits the consumer market into 3 options, which include one Amazon’s choice, one industry leader and finally one based on consumers past purchases and preferences. However, there exists a drawback to this software, as these options overlook consumer emotions and gives more importance to the price and speed of delivery.

It must also be noted that many brands have been neutralising their logos to a more minimal approach taking away visual aesthetics of the brand and simply relying on their established brand image and concept, relying on their consumers to consciously make the choice to purchase from them. This seems to be in line with the decreased interaction of consumers and brands as AI acts as a middleman between them. Does this however, ensure genuine products? Contrary to popular assumption, artificial intelligence is likewise susceptible to manipulation based on the data that is put into its programming, making it a "second degree" infringer. AI is anticipated to make online infringement searches and the creation of take down notifications easier in terms of enforcement. Most of the firms questioned do not view AI as a danger, despite some worries about job security. Additional clauses can be included to address digital trademark infringement through meta-tags, perhaps forbidding junior users from using catchy and recognisable terms even in their meta-tags that control the consumer's search results. There is broad agreement and little doubt that over the next several years, AI will transform trademark prosecution and enforcement.

Objectives: The objective of this research paper is to find out the emergence of the AI and the paradigm shift towards the ‘shopping model ‘where AI scrutinizes consumer behaviour by way of social media searches, past purchases, etc. The second objective is the impact of AI on the trademark law wherein the foundation of Trademark Law which depends on the concept of deceptive similarity and the average consumer confusion wherein they intend to use the same quality and services of the product.

Methods: In this paper we will discuss the current AI trends as it corresponds to the trademark law and retail industry as well as the core issue of the long term impact of AI on how consumers buy products and services and the knock-on impact on trademark law which has been overlooked and a bird’s eye view on the paradigm shift of average consumer’s choice which is the very essence of the trademark law to rely on the brands by Artificial Intelligence. This research paper aims to provide a background regarding intersection of artificial intelligence and trademark in the modern markets by firstly providing an inter-relation between AI and trademark in the e-commerce segment by citing the example of AI powered assistants. Another objective of this research paper was also to study the Dichotomy between Trademark Law and Artificial Intelligence through the medium of analysing consumer behaviour in the market. Additional legal dimension has been given to this paper by citing the Trademarks Acts from various other countries and citing relevant national and international case laws related to the topic.

Results: It must also be noted that many brands have been neutralising their logos to a more minimal approach taking away visual aesthetics of the brand and simply relying on their established brand image and concept, relying on their consumers to consciously make the choice to purchase from them. This seems to be in line with the decreased interaction of consumers and brands as AI acts as a middleman between them. Does this however, ensure genuine products? Contrary to popular assumption, artificial intelligence is likewise susceptible to manipulation based on the data that is put into its programming, making it a "second degree" infringer. AI is anticipated to make online infringement searches and the creation of take down notifications easier in terms of enforcement. Most of the firms questioned do not view AI as a danger, despite some worries about job security. Additional clauses can be included to address digital trademark infringement through meta-tags, perhaps forbidding junior users from using catchy and recognisable terms even in their meta-tags that control the consumer's search results. There is broad agreement and little doubt that over the next several years, AI will transform trademark prosecution and enforcement.

Conclusions: There are several problems at the intersection of trademark and AI because of the change in customer behaviour. The marketing sector, especially e-commerce businesses, heavily relies on AI to sell products to clients, which highlights how important AI is for estimating brand value. Comparative advertising, in which an AI application promotes a brand other than the one the user is looking for to increase the provider's profit margins, is becoming more and more prevalent with the expansion of online purchasing. However, if the consumer experiences initial interest confusion, they can decide to change their ideas and pick the AI provider and competitor instead. It is obvious that the current IP laws need to be changed because they cannot adequately address these problems. Changes to the inclusion of digital trademark rights, such as in the situations of meta-tags and AdWords, may be required to address the current issues. To prevent digital trademark infringement using meta-tags, further restrictions can be added, potentially prohibiting junior users from using catchy and recognisable terms even in their meta-tags, which are what determine the consumer's search results.