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International Intellectual Property Society New York
17 May 2018
Take-aways that you can reasonably expect
from this talk
• How to realize your own position in the technical development which
we are going through
• How to not be like one of the many breweries in my Bavarian home-
town that went slowly out of business during the last century
There is no and will be no Artificial Intelligence in Law
„Artificial Intelligence“ is a synonym of „Machine Intelligence“
„Intelligence“ is
• ability to perceive or infer information, and
• to retain it as knowledge to be applied, namely
• towards behaviors within an environment or context, and
• the behavior must be adaptive.
The Wisdom Literature (> 3,000 years old) discerns between
• Knowledge – the facts (Pro 9:10, Pro 18:15)
• Understanding – ability to translate meaning from the facts (Psa 119:130, Pro 3:5-7, 18:2)
• Wisdom – knowing what to do next, given an understanding of the facts and circumstances
(Ecc 8:1)
„Adaptive“ means that There is no
Intelligence without Learning
Learning is:
• Unsupervised Learning,
• Semi-supervised Learning, or
• Supervised Learning
Unsupervised Learning only in very confined environments: chess,
simulations of real systems, etc.
Artificial Intelligence today in the area of law (and medicine and
banking and …) is at most semi-supervised learning.
Engineers call this
„Automation“
What Automation Does:
• IBM Watson helps doctors in diagnosing cancer, 4 times more
accurate than human doctors.
• Facebook now has a pattern recognition software that can recognize
faces better and faster than humans.
IBM Watson is (only) a powerful search engine
Until today, IBM Watson does not pass the Turing Test: to fully behave like a
human.
Example: in 2014, it could not understand the following sentence:
“After the holidays, the scale becomes my enemy”
Defense replied: „But type this sentence into Bing and Google, and also several
references to weight come up on the first page„
Fact: no computer has ever passed the Turing Test.
My prediction is: no computer will ever pass the Turing Test.
The Turing Test sets the Standard for AI in the Legal
Profession
Legal Malpractice = breach of Legal Duty of Care
The injured party must show that
• the attorney's acts were not merely the result of poor strategy,
but that
• they were the result of errors that no reasonably prudent attorney
would make.
The good news: there will always be Lawyers
BUT …
What can be automated will be automated.
In a first step, 80% of the result will be achieved by automating 20% of the
effort.
A good automatic solution will not only have supervised learning but also
provide for semi-supervised learning.
Example: insurance claims (see next slide)
Semi-supervised learning: insurance claims
• Zurich Insurance Group Ltd. has deployed artificial intelligence in deciding
personal injury claims based on medical reports
• processing time is cut from an hour to just seconds: "We recently
introduced AI claims handling ... and saved 40,000 work hours, while
speeding up the claim processing time to five seconds"
• "Accuracy has improved. Because it’s (supervised/semi-supervised)
machine learning, every new claim leads to further development and
improvements"
• Lemonade promises renters and homeowners new insurances in as little as
90 seconds, and payment of claims in three minutes with the help of
artificial intelligence bots
The Automation is and will be big in areas where
liability and/or peace of conscience is not an issue
• let the target of the legal services make the mistake himself: “file your
own trademark application”
• administrative law: EUIPO aims at “60% automation”
• etc.
Where else?
Let’s Do Some History
A typical domestic case in the Old Times
client
employee
domestic
IP office
domestic
law firm
order
action
result
report
report
order
A typical foreign case in the Old Times
client
foreign
associate
law firm
foreign
IP office
domestic
law firm
order
action
result
report
order
report
This has changed
Confront the
Brutal Facts
Jim Collins – Good to Great
Only 13 Years Later!
1986: office computers come in
client
domestic
IP office
domestic
law firm
order
action
result
report
1986: office computers come in
client
domestic
IP office
order
action
result
report
- Copy machines
- Word processors
- Computer
dictation systems
- Time docketing
systems
- Email
- PDF format
- Paperless files
- Internet databases
(prior art, IP
registers, case law)
- Online filing
- Online filing, with
credit card
payments
office computers
domestic
law firm
result: 80% less revenues from
this part of the business
1996: renewal fee providers come in
client
foreign
associate
law firm
foreign
IP office
domestic
law firm
order
action
result
report
order
report
office computers
domestic
IP office
action
result
1996: renewal fee providers come in
client
foreign
associate
law firm
foreign
IP office
domestic
law firm
office computers
domestic
IP office
1996: renewal fee providers come in
client
domestic
IP office
foreign
IP office
foreign
associate
law firm
office computers
domestic
law firm
IP service
provider
1996: renewal fee providers come in
client
domestic
IP office
foreign
IP office
IP service
provider
order
action
result
report
action
result
domestic
law firm foreign
associate
law firm
office computers
result: 80% less revenues from
this part of the business
2010: Freelancers start to work directly for our clients
client
freelancer
IP service
provider
office computers
domestic
IP office
domestic
law firm
2010: Freelancers start to work directly for our clients
client
freelancer
IP service
provider
office computers
domestic
IP office
domestic
law firm
2010: Freelancers start to work directly for our clients
client
freelancer
IP service
provider
office computers
report
order
domestic
IP office
action
result
domestic
law firm
result: 80% less revenues from
this part of the business
2011: boilerplate contract service providers come in
freelancer
IP service
provider
Boilerplate
contract
service
provider
office computers
domestic
law firm
client
2011: boilerplate contract service providers come in
client
freelancer
IP service
provider
Boilerplate
contract
service
provider template
contract
order
office computers
domestic
law firm
Third Party
contract
result: 80% less revenues from
this part of the business
This is today‘s situation
freelancer
IP service
provider
boilerplate
service
provider
office computers
domestic
law firm
The very near future
freelancer
IP service
provider
boilerplate
service
provider
office computers
Wrong reaction:
domestic
law firm
PCT National Phase
initiated via WIPO
Robot Patent Drafting
Robot Translations
prediction: 80% less revenues
from this part of the business
The Hedgehog Concept
What you are
passionate
about
What drives
your
economic
engine
What you
can be best
in the World
at
Right reaction:
specialize
here
Jim Collins – Good to Great
Take-Away: Where is your „Hedgehog“ triangle?
freelancer
IP service
provider
boilerplate
service
provider
office computers
domestic
law firm
PCT National Phase
initiated via WIPO
Robot Patent Drafting
Robot Translations
or is it elsewhere?
Send Certain Clients
Away
A Culture of Discipline
Jim Collins – Good to Great
Take-away: learn to send clients away that do
not match with your new business focus
Create Your Own
Software
Technology Accelerators
Jim Collins – Good to Great
Exponential Development requires Special Actions
• Don’t try to be ahead of the curve. Jump from the current curve to a
steeper curve
• Example: ice-making, bottling machines and breweries in my home
town in Bavaria
Take-away: learn how to create your own
technology accelerator.
My Own Areas for Automation in IP
• staff training by online courses
• reading texts aloud for proofreading purposes
• collating a backward/forward prior art search result
• arranging appointments with clients and associates
• drafting figure descriptions for patent applications
• assessing absolute and relative grounds for refusing new trademark
applications
• sending out reminders to upcoming deadlines or events and collecting
confirmations of receipt
• screening new clients with a chatbot (for directing them to an appropriate
online course before a first meeting)
Last and most important take away for today
Develop a marketing & sales team in your firm.
Doing all what I have shown you before does not help if nobody knows
that it exists.
This is a lot of work.
If works for me then it may also work for you.
www.IP-Lawyer-Tools.com

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Algorithm Lawyers – How & How Soon?

  • 1. International Intellectual Property Society New York 17 May 2018
  • 2. Take-aways that you can reasonably expect from this talk • How to realize your own position in the technical development which we are going through • How to not be like one of the many breweries in my Bavarian home- town that went slowly out of business during the last century
  • 3. There is no and will be no Artificial Intelligence in Law „Artificial Intelligence“ is a synonym of „Machine Intelligence“ „Intelligence“ is • ability to perceive or infer information, and • to retain it as knowledge to be applied, namely • towards behaviors within an environment or context, and • the behavior must be adaptive. The Wisdom Literature (> 3,000 years old) discerns between • Knowledge – the facts (Pro 9:10, Pro 18:15) • Understanding – ability to translate meaning from the facts (Psa 119:130, Pro 3:5-7, 18:2) • Wisdom – knowing what to do next, given an understanding of the facts and circumstances (Ecc 8:1)
  • 4. „Adaptive“ means that There is no Intelligence without Learning Learning is: • Unsupervised Learning, • Semi-supervised Learning, or • Supervised Learning Unsupervised Learning only in very confined environments: chess, simulations of real systems, etc. Artificial Intelligence today in the area of law (and medicine and banking and …) is at most semi-supervised learning. Engineers call this „Automation“
  • 5. What Automation Does: • IBM Watson helps doctors in diagnosing cancer, 4 times more accurate than human doctors. • Facebook now has a pattern recognition software that can recognize faces better and faster than humans.
  • 6. IBM Watson is (only) a powerful search engine Until today, IBM Watson does not pass the Turing Test: to fully behave like a human. Example: in 2014, it could not understand the following sentence: “After the holidays, the scale becomes my enemy” Defense replied: „But type this sentence into Bing and Google, and also several references to weight come up on the first page„ Fact: no computer has ever passed the Turing Test. My prediction is: no computer will ever pass the Turing Test.
  • 7. The Turing Test sets the Standard for AI in the Legal Profession Legal Malpractice = breach of Legal Duty of Care The injured party must show that • the attorney's acts were not merely the result of poor strategy, but that • they were the result of errors that no reasonably prudent attorney would make.
  • 8. The good news: there will always be Lawyers BUT … What can be automated will be automated. In a first step, 80% of the result will be achieved by automating 20% of the effort. A good automatic solution will not only have supervised learning but also provide for semi-supervised learning. Example: insurance claims (see next slide)
  • 9. Semi-supervised learning: insurance claims • Zurich Insurance Group Ltd. has deployed artificial intelligence in deciding personal injury claims based on medical reports • processing time is cut from an hour to just seconds: "We recently introduced AI claims handling ... and saved 40,000 work hours, while speeding up the claim processing time to five seconds" • "Accuracy has improved. Because it’s (supervised/semi-supervised) machine learning, every new claim leads to further development and improvements" • Lemonade promises renters and homeowners new insurances in as little as 90 seconds, and payment of claims in three minutes with the help of artificial intelligence bots
  • 10. The Automation is and will be big in areas where liability and/or peace of conscience is not an issue • let the target of the legal services make the mistake himself: “file your own trademark application” • administrative law: EUIPO aims at “60% automation” • etc. Where else?
  • 11. Let’s Do Some History
  • 12. A typical domestic case in the Old Times client employee domestic IP office domestic law firm order action result report report order
  • 13. A typical foreign case in the Old Times client foreign associate law firm foreign IP office domestic law firm order action result report order report
  • 14. This has changed Confront the Brutal Facts Jim Collins – Good to Great
  • 15. Only 13 Years Later!
  • 16. 1986: office computers come in client domestic IP office domestic law firm order action result report
  • 17. 1986: office computers come in client domestic IP office order action result report - Copy machines - Word processors - Computer dictation systems - Time docketing systems - Email - PDF format - Paperless files - Internet databases (prior art, IP registers, case law) - Online filing - Online filing, with credit card payments office computers domestic law firm result: 80% less revenues from this part of the business
  • 18. 1996: renewal fee providers come in client foreign associate law firm foreign IP office domestic law firm order action result report order report office computers domestic IP office action result
  • 19. 1996: renewal fee providers come in client foreign associate law firm foreign IP office domestic law firm office computers domestic IP office
  • 20. 1996: renewal fee providers come in client domestic IP office foreign IP office foreign associate law firm office computers domestic law firm IP service provider
  • 21. 1996: renewal fee providers come in client domestic IP office foreign IP office IP service provider order action result report action result domestic law firm foreign associate law firm office computers result: 80% less revenues from this part of the business
  • 22. 2010: Freelancers start to work directly for our clients client freelancer IP service provider office computers domestic IP office domestic law firm
  • 23. 2010: Freelancers start to work directly for our clients client freelancer IP service provider office computers domestic IP office domestic law firm
  • 24. 2010: Freelancers start to work directly for our clients client freelancer IP service provider office computers report order domestic IP office action result domestic law firm result: 80% less revenues from this part of the business
  • 25. 2011: boilerplate contract service providers come in freelancer IP service provider Boilerplate contract service provider office computers domestic law firm client
  • 26. 2011: boilerplate contract service providers come in client freelancer IP service provider Boilerplate contract service provider template contract order office computers domestic law firm Third Party contract result: 80% less revenues from this part of the business
  • 27. This is today‘s situation freelancer IP service provider boilerplate service provider office computers domestic law firm
  • 28. The very near future freelancer IP service provider boilerplate service provider office computers Wrong reaction: domestic law firm PCT National Phase initiated via WIPO Robot Patent Drafting Robot Translations prediction: 80% less revenues from this part of the business
  • 29. The Hedgehog Concept What you are passionate about What drives your economic engine What you can be best in the World at Right reaction: specialize here Jim Collins – Good to Great
  • 30. Take-Away: Where is your „Hedgehog“ triangle? freelancer IP service provider boilerplate service provider office computers domestic law firm PCT National Phase initiated via WIPO Robot Patent Drafting Robot Translations or is it elsewhere?
  • 31. Send Certain Clients Away A Culture of Discipline Jim Collins – Good to Great
  • 32. Take-away: learn to send clients away that do not match with your new business focus
  • 33. Create Your Own Software Technology Accelerators Jim Collins – Good to Great
  • 34. Exponential Development requires Special Actions • Don’t try to be ahead of the curve. Jump from the current curve to a steeper curve • Example: ice-making, bottling machines and breweries in my home town in Bavaria
  • 35. Take-away: learn how to create your own technology accelerator.
  • 36. My Own Areas for Automation in IP • staff training by online courses • reading texts aloud for proofreading purposes • collating a backward/forward prior art search result • arranging appointments with clients and associates • drafting figure descriptions for patent applications • assessing absolute and relative grounds for refusing new trademark applications • sending out reminders to upcoming deadlines or events and collecting confirmations of receipt • screening new clients with a chatbot (for directing them to an appropriate online course before a first meeting)
  • 37. Last and most important take away for today Develop a marketing & sales team in your firm. Doing all what I have shown you before does not help if nobody knows that it exists.
  • 38. This is a lot of work. If works for me then it may also work for you.