How to Navigate AI Interoperability: IP, Standards

Artificial intelligence (AI) has rapidly become the backbone of technological progress, revolutionizing industries and reshaping workflows. However, as AI systems continue to evolve, one crucial issue has emerged at the forefront: interoperability. Simply put, interoperability is the ability of diverse AI systems to interact, share data, and function cohesively. But achieving this seamless connection isn't just a technical challenge - it’s also a battlefield of intellectual property (IP), antitrust law, and international standards.

This article explores the legal and technical dynamics of AI interoperability, diving into landmark cases, global frameworks, and policy trends shaping the future of AI ecosystems. Whether you're a patent attorney, inventor, or IP strategist, understanding these issues is vital for navigating this complex landscape.

What Is AI Interoperability?

At its core, interoperability is the "universal charger" of AI - allowing different systems, platforms, and models to connect and collaborate. But fostering this connectivity isn’t just a matter of good programming. It’s about reconciling competing interests: IP protection, market competition, and global standardization. Whoever controls the standards for interoperability wields significant power over the technology ecosystem, making this a pivotal issue for innovators and regulators alike.

It’s also where law and technology collide: APIs (application programming interfaces), data formats, and software functionalities are often embroiled in legal battles over patents, copyrights, and antitrust violations. In short, interoperability is both a technical necessity and a legal minefield.

Landmark Legal Cases That Shaped Interoperability

1. IBM, Antitrust, and the Birth of Legal Obligations for Interoperability (2011)

In a classic case of ecosystem control, IBM faced antitrust allegations in Europe for locking out third-party maintenance providers from servicing its mainframe systems. As IBM held dominance over mission-critical infrastructure, its refusal to share spare parts and technical documentation was challenged under European antitrust law. The settlement required IBM to provide fair, reasonable, and non-discriminatory (FRAND) access to these resources, setting a precedent for legally mandated interoperability.

Takeaway: Dominant players can't gatekeep access to infrastructure when their systems become industry standards.

2. SAS v. World Programming Ltd. (2012): Where Copyright Ends and Interoperability Begins

In this European Court of Justice case, SAS Institute alleged copyright infringement after World Programming Ltd. created software compatible with the SAS platform by replicating its functionality - but not its source code. The court ruled that software functionality, languages, and data formats cannot be copyrighted. This decision empowered reverse engineers and developers to create interoperable systems without fear of violating copyright.

Takeaway: Ideas and principles behind software, including interoperability tools, are fair game as long as the code itself isn’t copied.

3. Standard-Essential Patents (SEPs) and the EU’s Antitrust Stance (2014)

Samsung and Motorola sought injunctions against their competitors by leveraging patents embedded in global standards like Wi-Fi and 3G. However, under EU law, holders of SEPs are obligated to license their technology on FRAND terms. Both companies were found to have violated this principle when they tried to block products from market access.

Takeaway: Owning patents within a global standard comes with the responsibility to license fairly. Standards cannot be weaponized to stifle competition.

4. Google v. Oracle (2021): APIs and Fair Use in Interoperability

In a landmark decision, the U.S. Supreme Court ruled that Google's use of Java API declarations in its Android platform constituted fair use. The court determined that Google’s actions were transformative, allowing developers to build new programs without simply replicating Oracle’s product, thus promoting innovation.

Takeaway: Copying API headers for interoperability, when done for transformative purposes, supports innovation and is legally defensible.

The Role of Soft Law and Global Standards in Driving Interoperability

Legal cases are just one piece of the puzzle. To navigate the complexities of AI interoperability, nations and organizations around the globe are adopting frameworks, standards, and ethical guidelines that influence how interoperable systems are built and governed.

UNESCO’s Ethical AI Framework (2021)

UNESCO’s global recommendation on ethical AI stressed transparency, fairness, accountability, and interoperability. This non-binding instrument inspired national AI strategies and highlighted the importance of shared infrastructure to ensure that AI serves diverse populations equitably.

IEEE’s Ethically Aligned Design Initiative

This initiative linked AI ethics to design, urging developers to embed principles like fairness, transparency, and interoperability into the architecture of AI systems. It underscored that values must be built into technology from the ground up, not as an afterthought.

The Rise of ISO AI Standards

In 2023, ISO/IEC 42001 became the first global management system standard for AI, offering a governance framework that prioritizes interoperability alongside transparency and accountability. Certification under this standard is now a hallmark of responsible AI practices.

The High-Stakes Global Battle Over Standards

Standards are critical for enabling AI systems to connect across platforms, borders, and industries. However, they also create opportunities for abuse. Stakeholders who control these standards often wield excessive influence, as evidenced by:

1. Qualcomm and the U.S. Antitrust Divide: Qualcomm’s refusal to license SEPs to competitors sparked FTC action. While lower courts initially ruled against Qualcomm, a 2020 appeals decision reversed this, underscoring the U.S.’s limited appetite to tackle SEP disputes under antitrust law.

2. Council of Europe’s AI Treaty: A globally binding treaty under negotiation, this initiative seeks to align AI governance with human rights and interoperability obligations. If adopted, it could establish enforceable rules for cross-border AI systems.

Key Takeaways

• Interoperability Is a Legal Battlefield: It involves a balancing act between IP protection, market competition, and public interest.

• FRAND Licensing Is Non-Negotiable: Companies that pledge fair terms for licensing patents embedded in standards must honor those commitments.

• Copyright Has Limits: APIs and software functionality are not copyright-protected, giving developers some freedom to build compatible systems.

• Standards Require Accountability: SEPs embedded in global standards cannot be weaponized to block market access.

• Soft Law Sets the Tone: Frameworks like UNESCO’s AI ethics recommendations and ISO standards provide guidance that shapes real-world behavior, even without legal enforcement.

• Certifications Matter for Trust: ISO/IEC 42001 certification has become a key indicator of responsible AI governance.

• Global Convergence Is Key: Coordination across borders and regulatory harmonization are essential for scalable, trusted AI ecosystems.

Conclusion

AI interoperability is the cornerstone of a connected, innovative world. Yet, it’s also a legal, technical, and ethical challenge that demands careful navigation. As landmark cases and global frameworks show, achieving true interoperability requires balancing competing interests: fostering innovation, protecting IP, promoting competition, and ensuring public good. For professionals in the intellectual property field, staying ahead of these developments isn’t optional - it’s a necessity.

By learning from pivotal legal cases, aligning with international standards, and anticipating policy trends, IP professionals can contribute to building an AI ecosystem that is not just intelligent but also interconnected, fair, and future-ready. In this rapidly evolving landscape, knowledge is power - and interoperability is the key to unlocking it.

Source: "Plug, Play, or Pay: The Legal Code Behind AI Interoperability" - Intangiblia, YouTube, Aug 4, 2025 - https://www.youtube.com/watch?v=VMaqMFmw-jA

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