Patent Licensing for AI Foundation Models
The Shared AI License (SAIL) Foundation is a new initiative through which participating companies grant each other patent licences covering AI foundation models, as well as the software and services that support them. SAIL appears to be the first patent pool for machine learning models trained on extensive data sets, including reasoning models, and it aims to enhance freedom to operate and the transparency of licensing terms. Some have described SAIL as marking the beginning of a standards essential patents market for core AI technology. However, unlike in the telecoms industry, for example, there is no standards body involved in agreeing standards for interoperability. However, standards bodies such as CEN and CENLEC, which are involved in defining standards in AI as part of the implementation of the EU AI Act, do have intellectual property provisions that could lead to standards essential patents in the future.
There are currently nine participating companies, including some of the best-known names in AI. The licence is worldwide, royalty-free, non-exclusive, non-sublicensable, and non-transferable. Membership currently costs US$25,000 per year, although discounts are available for smaller companies.
Participating companies can use and commercialise AI foundation model patents covered by the licence. This reduces legal friction around the further development of these models, ensuring that investment in AI is focused on technical innovation rather than patent disputes. Patents from outside the patent pool, as well as other forms of intellectual property such as copyright, would need to be considered separately.
Transparency is promoted, since the precise terms of the license and the membership cost are published together. These terms and costs are arguably setting a new benchmark for patent licensing in the emerging marketplace for machine learning models trained on broad data at scale.
SAIL may indicate an evolving attitude towards AI intellectual property, allowing greater freedom to access foundation models and innovate in this space. For some, this initiative may not be surprising, as it provides participating companies with more ‘breathing space’ with regard to freedom-to-operate issues in an increasingly congested AI patent landscape. Patent pools already exist for other patent-dense technologies, such as MPEG-2 (the standard for digital video compression).
The SAIL Foundation was launched earlier this month, so only time will tell what effect it will have on the AI patent market. In the meantime, it is still important to carry out due diligence when innovating in AI or using third-party technologies.
The full press release, and the membership agreement, can be accessed here. The material in this article does not constitute legal advice. If you need advice, contact our patent licensing experts.
