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Intellectual Property and Innovation

Contemporary Developments in the GCC Member States

Editors: Nadia Naim, Alhanoof AlDebasi, David Price

Publisher: Springer Nature Singapore

Book Series : The Political Economy of the Middle East

Part of: Springer Professional "Business + Economics & Engineering + Technology" , Springer Professional "Engineering + Technology" , Springer Professional "Business + Economics"

Table of Contents

About this book

This book examines the notion and understanding of innovation and knowledge societies as they particularly apply to the Gulf states and their broad range of communities. Key to this examination will be the role that intellectual property - its promotion and protection – plays in fostering both innovation and the knowledge society. In brief, innovation, knowledge, society, emerging technology, economic growth and intellectual property are intertwined and inseparable. Unique to the GCC, is the constitutional significance of Islamic Law and the book discusses intellectual property growth in line with economic developments in the region and reflects on Islamic Finance Law.

Frontmatter

Chapter 1. Intellectual Property and Innovation: Opportunities and Challenges in the GCC Member States: A Preliminary Introduction

Abstract

This chapter introduces the chapter contributions that constitute this volume. It firstly provides context for their origins, namely presentations delivered at the Gulf Research Council’s 13th International Meeting Workshop at the University of Cambridge in July 2023. The Workshop theme as enshrined in its title was Innovation and Development of Knowledge Societies – Transformational Impact of IP on Knowledge based Economic Growth with focus on Frontier Technologies, Artificial Intelligence and IP Financing. The chapter provides background on the GCC member States and briefly discusses their endeavours to embark on sweeping reforms to move away from being largely energy resource-based economies towards broader-based economies through diversification. It then explains the three thematic groupings of the contributions.

The first group include the GCC intellectual property/artificial intelligence/economic development interface using sport as the exemplar; the nature of the metaverse in the GCC; and Omani technological advancement and intellectual property rights. The second group turn to artificial intelligence systems and intellectual property financing, audit and valuation under Islamic law principles; intellectual property securitization and marketable securities as Sukuk; and a case study of Malaysian initiatives for the intellectual property sector with Islamic financing products. The third group examine differing aspects of commercialization in an artificial intelligence and intellectual property context, including the GCC economies in a shifting global market; artificial intelligence and intellectual property in the music world; and intellectual property and finance in the cryptocurrency landscape. The final contribution continues on with this future scenario on the intellectual property and artificial intelligence relationship but at the same retains both an Islamic context and a fundamental precept of Shariah as the foundational core of Gulf societies.

The chapter concludes by then offering a brief analysis of each of the following chapters.

David Price

Chapter 2. Intellectual Property, Artificial Intelligence and Economic Development: Sport and the Saudi Arabia Exemplar

Abstract

This chapter explores the role of intellectual property and capital as a catalyst for change with respect to the development of knowledge-based economies and societies driven largely by emerging and new technologies amongst the Gulf Cooperation Council member States. It also reflects a particular focus on an assessment of the opportunity and imperative for the States to embrace new directions in intellectual property in order to contribute to, and capitalise upon, the shift away from hydrocarbon dependencies in favour of developing broader-based economies. It does so by considering three related and mutually supporting ‘pillars’, namely intellectual property, artificial intelligence as representative of the digital environment, and the associated potential for positive contribution to national economic development. It utilises as the vehicle for this analysis a broad-spectrum activity which is deeply embedded in the psyche, history, and custom of all States and their societies, namely sport. While this analysis includes frequent reference to all States with respect to the nature of their perspectives and commitments to promotion of sports activities, it focuses primarily on the experience of Saudi Arabia as arguably the regional exemplar of the utilisation of IP, artificial intelligence and economic development for mutual benefit.

Alhanoof AlDebasi, David Price

Chapter 3. Intellectual Property in the Metaverse and Artificial Intelligence: ChatGPT in the GCC Member States

Abstract

The term metaverse is given to virtual worlds in which users, represented by embodiments or avatars, interrelate intensively in three dimensions, interacting in both societal and commercial activities. It is projected that the metaverse will ultimately be as vast as the physical world, and that this technological sphere will be able to impact people’s lives to an equal extent as the ‘real’ world. To reach its fullest extent, the metaverse will have to consider how to deal with legal matters such as intellectual property, which is a regime which aims primarily to protect the intangible aspects of human creativity. Users in the metaverse must acquire consent from the owners of any intellectual property employed there. The present-day emergence of AI-based software technology,, such as ChatGPT, has been the source of much debate within the world of education because of the manner in which it facilitates the writing of scientific papers that uphold academic honesty. The chapter aims to discuss the regulatory and policy developments, and the legal issues, concerning the metaverse and ChatGPT within the overall framework of intellectual property, addressing its challenges and proposing solutions and recommendations, focusing in particular on the countries of the Gulf Co-operation Council. The analysis serves as an opening move in formulating a solid legal foundation to deal with the metaverse and the increased adoption of ChatGPT. The chapter uses case studies of these countries and, for the sake of comparison, the author’s country of Indonesia, which is also seeking to exploit the large potential of the metaverse in order to promote economic development.

Dina Widyaputri Kariodimedjo

Chapter 4. Development of New Technologies and Intellectual Property Regulations in the Sultanate of Oman

Abstract

This chapter delves into technology’s profound impact on society, focusing on its influence on the economy, culture, and intellectual property (IP). It underscores Oman’s commitment to promoting technological advancement while safeguarding IP rights. The government has rolled out various initiatives to foster innovation and growth, such as establishing research and development centres and facilitating technology transfer from global entities. Within the Ministry of Higher Education, Research, and Innovation, funding research projects and offering grants to start-ups and entrepreneurs play a pivotal role in propelling innovation. Oman has actively encouraged partnerships between academia, industry, and global organizations, with dedicated resources for infrastructure and policies that support innovation. Oman has built science and technology parks and incubators to drive technological progress. It has also made significant strides in creating a robust regulatory framework for IP by actively participating in international agreements and conventions. Enacting IP rights and copyright laws forms the foundation for protecting and enforcing IP rights, fostering an environment conducive to innovation. Oman’s steadfast dedication to upholding IP rights is apparent through its involvement in IP-related events and unwavering efforts to advance technological progress and establish a comprehensive regulatory framework for IP.

Muhanna Hamed Al Zuheimi

Chapter 5. A Framework Proposal for Islamic Finance-Based Intellectual Property Rights Audit Valuation

Abstract

As the space inhabited by AI continues to grow and transcend aspects of intellectual property creation, there could be room for AI-assisted and AI-generated systems to add to the IP audit and due diligence methods, which is the main focus of this chapter. Emerging technologies can assist with both the auditing and valuation systems and can be developed to enhance IP valuation, overcoming buyer and seller disincentives. For the seller, there will be concerns that once core assets are sold, the remaining assets may not be of interest, or if the IP is all sold to another business, what will be left of the company. Alternatively, for the buyer, concerns arise over how sustainable the IP assets are or the reliance on a specialist team as it can be difficult to decide on what the value is without comparable transactions.

Nadia Naim

Chapter 6. Intellectual Property Financing for Innovation: Structuring Intellectual Property Securitization for Issuance of Islamic Financial Instrument “Sukuk”

Abstract

This chapter discusses intellectual property (IP) securitization as one IP financing model to support the development of creativity and productivity in the innovation world. It firstly analyses the prospect of IP securitization as a financial technique to turn the IP asset into marketable securities such as bonds, or Sukuk. As one Islamic financial instrument, its issuance under IP securitization might spark challenges at the doctrinal level in respect of Shariah compliance, at the normative level in respect of the absence of appropriate regulatory frameworks, and at the practical level in respect of the absence of systems and infrastructure. In addition, the intrinsic risks of the IP asset with uncertainty of revenues or royalties, the small applicable market, and IP transferability problems expose the IP securitization challenge.

The chapter examines how it might be possible to structure Sukuk issuance under IP securitization provided it complies with Shariah requirements. It suggests that IP securitization is an attractive financing option to support creative and innovation development as Sukuk have a widespread appeal and marketability, not only in Islamic Jurisdiction, but also in non-Islamic states.

Mas Rahmah

Chapter 7. Tapping Malaysian Intellectual Property Islamic Financing

Abstract

This chapter discusses critical initiatives and infrastructure by the Government of Malaysia to build a resilient IP sector. Recognising the funding gap as a major hindrance to growth, the Government, together with the relevant stakeholders, launched initiatives offering tailored funding/financing to IP-related enterprises. Highlighted schemes include the Intellectual Property Financing Schemes by the Ministry of Science Technology and Innovation (MOSTI) and Malaysia Debt Ventures Berhad (MDV); Intellectual Property Guarantee Scheme by Syarikat Jaminan Pembiayaan Perniagaan under the Minister of Finance; MTDC-pitchIN Equity Crowdfunding (ECF); MyCreative funding; and the Mat Daud Kilau Gold Wafer initiative. These schemes share a common feature: funding innovative start-ups and SMEs in the IP sector. Key enabling infrastructure and tools such as IP valuation, IP assets as collaterals, and the Incentives Coordination and Collaboration Office are also considered. The Malaysian endeavours provide a potential model for other countries, such as the United Arab Emirates, particularly in IP financing, as both countries have sizeable Islamic finance markets and rank in the top 40 of the global IP ranking among Organisation of Islamic Cooperation (OIC) countries. This chapter is timely as the global economy seeks exemplary financing/funding models for the IP industry with adaptations to specific country preferences, needs, and ecosystems.

Noor Suhaida Kasri

Chapter 8. AI Innovation, Intellectual Property Commercialization, and the Rise of the Intellectual Capital Economy: Challenges and Prospects for GCC Economies

Abstract

In the era of the Fourth Industrial Revolution, intellectual capital, which includes intellectual property and other intangible assets, has become a major economic value driver. In its 2020 report on Intangible Asset Market Value Study, Ocean Tomo state that intangible assets now command over 90% of the S&P 500 market value. AI-enabled innovations, in turn, are increasingly taking centre stage when countries strategize in their national innovation strategy. Against this shift in the marketplace, how are the GCC countries positioning their economies in this new global landscape? This chapter addresses the challenges and prospects of driving AI innovation and the commercialization of AI-related intellectual property in the GCC economies and proposes a niche strategy for them. GCC economies face two key challenges: (1) How to accelerate the pace of innovation, especially in AI development, and (2) How to leverage intellectual property as the new value driver through more effective commercialization. The GCC economies need to leverage their unique strengths and opportunities to innovate in niche areas, such as renewable energy, agrotechnology in harsh hot climates, and smart cities. The GCC countries may find useful lessons from smaller but high-value economies like Singapore, which relies solely on people and the creation of intellectual capital to drive commercial value.

Zaid Hamzah

Chapter 9. Distributed Ledger Technology as an Innovative Collective Management Tool for the GCC Music Industry

Abstract

Due to its cultural significance, the Gulf Cooperation Council (GCC) has become an increasingly attractive region for global tourism, finance and investment, archaeology and ethnographic studies, amongst others. However, the GCC musicians’ world impact is still relatively circumspect for a region steeped in tradition and cultural heritage. Collective management organisations play a key role in promoting musicians’ work overseas. Yet, this traditional structure has been criticised for lacking transparency, high transaction costs, and often a failure to successfully identify the creators of musical works. Against the fast development of Web 3.0 and de-centralised financial technology, this chapter explores distributed ledger technology’s potential as an alternative collective management tool for artists to showcase their work, finance local talent, and promote the authentic sounds of the region. Distributed ledger technology is well fitted for music management as it shares decision-making power with creators and musicians alike, thus reducing the inherent cost for these creators in the management and distribution of their ouevre. This chapter takes the position that traditional collective management organisations are well placed to play a pivotal role in facilitating a technological shift to the distributed ledger while simultaneously reducing the risk of fraud, ensuring sustainable development and emphasising fairness and economic parity for musicians. Overall, this chapter provides an exemplar for meaningful engagement with distributed ledger technology across the world. As a resource-rich region with a unique ethnographic musical heritage, the GCC stands at the precipice of this new technological frontier.

Zi Yang, Anthony O’Dwyer

Chapter 10. Synergising IP and Cryptocurrency: A Roadmap for Knowledge-Based Economic Growth

Abstract

This chapter aims to expose the author’s interest in intellectual property challenges for cryptocurrency trading. Cryptocurrency is gaining popularity worldwide, with Bitcoin being the biggest provider. Companies like Nike in the USA, Alibaba Group, Telegram messenger, and Twitter have registered cryptocurrencies. Trust and confidence are crucial aspects requiring further research when trading cryptocurrency. A cryptocurrency mark must meet the fundamental requirements of a trademark to be registered, just like any other mark.

New difficulties arise with cryptocurrencies, with the most crucial requirement being to make sure the cryptocurrency mark differs from the rest. The trademark must be unique and distinct from any other previously registered marks. It is difficult to identify the owners of such technology and currencies to protect them through intellectual property (IP). Fraud often exploits existing or comparable IP and branding to give a coin and artificial intelligence credibility. The cryptocurrency industry offers numerous research opportunities and studies that must be conducted to produce new IP policies to be used worldwide. The relationship between existing financial laws and the IP legal framework for implementing cryptocurrency platforms must be further investigated from several angles.

Shaista Peerzada, Sangeeta Verma

Chapter 11. Liability Gap, Personhood Theories and Effective AI Legal Framework in the GCC Countries: Shariah as the Thread That Binds

Abstract

The GCC countries are embarking on ambitious plans to take full advantage of artificial intelligence (AI) and emerging technologies in transforming their economic industry. Such rapid transformation is predicted to have substantial pitfalls to the GCC countries, one of which involves the use of AI-driven technologies. Given that the deployment of AI necessitates a supportive and comprehensive legal framework, the legal status of AI as an artificial person comes into picture. Where an AI technology is considered as mere tool for human consumption, there is no issue as to whether they should be recognised as separate legal entities accountable to their own rights and responsibilities. Yet, this is where the storm is brewing. With the ability of AI platforms being capable of matching humans with excellence, in addition to the astronomical resources being poured into the development of human-like sentient AI, there is a fresh call for the legal status of AI to be revisited. This chapter begins with an examination of the ontological status of personhood in contemporary discourse. The chapter then moves to explore the discussion on ‘personhood’ within Muslim scholar’s discourse. Core to the issue is in what context would rights and obligations arising from AI activities and transactions be recognised under the Shariah. As Shariah is the golden thread that binds the GCC countries, the articulation of the Shariah perspective would be beneficial to these countries aiming to build their economy based on AI products and services.

Ida Madieha Abdul Ghani Azmi, Mahyuddin Daud

Backmatter

Title: Intellectual Property and Innovation
Editors: Nadia Naim
Alhanoof AlDebasi
David Price
Publisher: Springer Nature Singapore
Electronic ISBN: 978-981-9640-20-1
Print ISBN: 978-981-9640-19-5
DOI: https://doi.org/10.1007/978-981-96-4020-1