STUDY ON THE IMPACT OF ARTIFICIAL INTELLIGENCE ON …

1 IMPACT of Technology Deep Dive Report I. STUDY ON THE IMPACT OF ARTIFICIAL . INTELLIGENCE ON THE INFRINGEMENT AND. ENFORCEMENT OF COPYRIGHT AND DESIGNS. March 2018. 26 November 2022. IMPACT of Technology Deep Dive Report I. STUDY ON THE IMPACT OF ARTIFICIAL . INTELLIGENCE ON THE INFRINGEMENT AND. ENFORCEMENT OF COPYRIGHT AND DESIGNS. ISBN 978-92-9156-312-8 doi: TB-01-22-114-EN-N. European Union Intellectual Property Office 2022. Reproduction is authorised provided the source is acknowledged 1. Contents Contents .. 2. Foreword .. 6. Acronyms .. 8. Definitions .. 10. Executive 15. 1 Structure, background, and context of the STUDY .. 24. Structure and content of the STUDY .. 24. Current internet crime and ARTIFICIAL INTELLIGENCE -supported crime threat landscape.

2 25. IP crime among the top 10 priorities in the fight against organised crime 28. The EUIPO's IMPACT of Technology Expert Group .. 29. ARTIFICIAL INTELLIGENCE in the EUIPO's Strategic Plan 2025 .. 33. AI in criminal law and its use by the police and judicial authorities in criminal matters .. 34. 2. Scope and methodology .. 36. Data acquisition methodology .. 38. 3. Introduction to ARTIFICIAL INTELLIGENCE .. 40. What is ARTIFICIAL INTELLIGENCE ? .. 40. The concept of AI .. 40. AI 41. AI 42. The basis of AI technologies: advanced algorithms .. 43. AI subfields .. 44. Machine learning (ML) .. 45. 2. Natural language processing (NLP) .. 50. Computer 52. Computer vision .. 53. AI quantum computing .. 55. Expert systems (ESs).

3 57. Explainable ARTIFICIAL INTELLIGENCE (XAI) .. 59. Social impacts of AI technologies .. 60. The EC's proposal for AI regulation .. 61. 4. A bird's-eye view of AI applied in infringement and enforcement of copyright and design .. 64. AI-supported malware .. 64. AI cloud services .. 67. AI in generative design .. 68. AI in robotics .. 69. Smart devices and AI .. 70. AI-enhanced supply chain .. 71. AI in 3D printing .. 73. AI and Blockchain .. 75. 5. Copyright and design infringement and enforcement scenarios .. 77. Storyline : infringement and enforcement of physical product copyright and designs .. 78. Theft of copyrightable work or design under development .. 79. Design registration fraud .. 82. Mass production of copyright and design-infringing goods.

4 85. Importation of copyright and design-infringing goods .. 86. Physical market sale of copyright and design-infringing products . infringer-controlled shop .. 88. Physical market sale of copyright and design-infringing products third- party-controlled shop .. 89. 3. Trade dress infringement .. 91. Online marketing of copyright and design infringing products infringer- controlled e-shop .. 92. Online marketing of copyright and design-infringing products sales on third-party marketplaces (surface web) .. 94. Online marketing of copyright and design-infringing products . sales on third-party marketplaces (dark web) .. 96. Storyline b infringement and enforcement of copyright and designs of digital content.

5 97. Hacking media accounts .. 98. Computer icon / virtual commody infringement .. 102. Social media offences .. 104. Sales of hacked media accounts on the dark 105. Media sharing platform offences .. 106. Virtual/gaming world offences .. 110. P2P and BitTorrent-like applications .. 111. Livestreaming sports broadcast link aggregator (advertising-based) .. 113. IPTV crime unauthorised access to subscription-based IPTV service .. 114. Training an AI application .. 116. Conclusions .. 117. 124. Annex 1 List of experts and stakeholders involved in the STUDY .. 142. Annex 2 Additional information on AI .. 144. 1 Phases in the history of ARTIFICIAL INTELLIGENCE .. 144. The Birth of AI - the Golden Age (1940-1974).

6 145. The First AI Winter (1974-1980) .. 146. Renewed hope for AI (1980s) .. 147. Second AI Winter (1987-1993) .. 148. AI Booms (late 1990s-ongoing) .. 149. 2 Definitions of AI throughout its history .. 152. 3 Additional technical insights into 154. 4. 4 Overview of AI technologies' IMPACT on the economy and labour market .. 159. IMPACT on the economy .. 159. IMPACT on labour .. 160. 5 Overview of the main AI-affected areas relevant for the STUDY .. 161. IMPACT on crime .. 162. IMPACT on law enforcement and criminal justice .. 164. Ethical, fundamental rights and privacy concerns .. 167. 6 AI Regulation in the European Union .. 168. 5. Foreword Over the past 50 years, the world has witnessed landmark innovations and revolutionary changes that have transformed economies, jobs, and even society itself, fundamentally altering the way we live, work and relate to one another.

7 ARTIFICIAL INTELLIGENCE (AI) and related technologies are among the most important drivers of change, and have an IMPACT on every area of intellectual property rights (IPR). This STUDY has been drawn up as a tool for practitioners, shedding light on how these technologies are used both to safeguard copyright and designs and infringe them. Understanding the implications of these transformations is vital at a time when the Fourth Industrial Revolution (4IR) is transforming virtually every area of the economy and society. We are seeing inventions and breakthroughs in the fields of autonomous transport, biotechnology, the Internet of Things (IoT), smart devices, AI, 3D printing, robotics, and quantum computing .

8 These inventions affect healthcare, transport, agriculture and law enforcement, among other fields, and the pace of global innovation has accelerated greatly during the last decade. According to some estimates, by 2023. there will be some 29 billion connected devices on the planet that use AI technologies, and the underlying algorithms are becoming ever more central. Infringements of IPR through the malicious use of various new technologies, including AI, are on the rise, as reported by Europol's European Cybercrime Centre (EC3), the EU Agency for Cybersecurity (ENISA) and the United Nations. In May 2021, the EU's Council of Ministers named IP crime as one of the top 10 priorities in the fight against organised crime for 2022-2025.

9 This issue will be tackled through the European multi-disciplinary platform against criminal threats (EMPACT). The European Union Intellectual Property Office (EUIPO), via the European Observatory on Infringements of Intellectual Property Rights, will be actively involved in supporting the implementation of this priority under the EMPACT. 6. In this new era, it is critical that we adopt smart' intellectual property strategies, and the EUIPO, working with its network of partners and IP stakeholders, has been developing tools and promoting best practices. This STUDY represents another step on the journey to creating an IP excellence hub in which new technologies and AI work to protect legitimate businesses and citizens.

10 Christian Archambeau Executive Director EUIPO. 7. Acronyms AAAI American Association for the Advancement of ARTIFICIAL INTELLIGENCE ACR Automatic content recognition AGI ARTIFICIAL general INTELLIGENCE AI ARTIFICIAL INTELLIGENCE ARTIFICIAL Linguistic Internet Computer Entity ANI ARTIFICIAL narrow INTELLIGENCE ASI ARTIFICIAL superintelligence ASIMO Advanced Step in Innovative Mobility APT Advanced Persistent Threat BEC Business email compromise CaaS Cybercrime-as-a-Service CAPTCHA Completely Automated Public Turing test to tell Computers and Humans Apart CoE Council of Europe CJEU Court of Justice of the European Union DARPA Defense Advanced Research Projects Agency DDoS Distributed denial of service EC European Commission EG IMPACT of Technology Expert