Oceania: Intellectual Property

Businesses building AI products on third-party models face a critical intellectual property challenge: determining what parts of their AI systems can actually be protected when competitors have access to the same underlying models. This analysis explores where protectable value sits in AI workflows, from data retrieval and validation processes to system integration and deployment architecture, and why patent strategy must focus on the commercially defensible elements rather than just the AI model itself.

New Zealand patent prosecution has evolved significantly since the Patents Act 2013, developing its own examination culture distinct from Australia. With inventive step now central to examination, fixed divisional deadlines, and compressed prosecution timetables, applicants must make strategic decisions earlier than in other jurisdictions to preserve claim scope and maintain flexibility throughout the patent process.

Australian patent law requires all patents to be novel—meaning the invention must be new when compared with prior art existing before the priority date. A single prior disclosure that lacks novelty can invalidate a patent claim, jeopardizing licensing agreements, freedom-to-operate assessments, and infringement actions.

Adidas has commenced trade mark infringement proceedings in Australia against fashion retailer White Fox over its use of four parallel stripes on clothing. It is the latest dispute to test how far adidas can prevent third parties from using stripe designs which come close to its well-known three-stripe branding.

A licensing agreement lets one business use intellectual property another business owns, without transferring ownership. Companies in the same group in New Zealand often share a brand or a system with nothing in writing. Each company remains a separate legal entity under the Companies Act 1993, regardless of who owns the shares. An undocumented arrangement gives the user no right it can prove and no right it can defend. That gap shows up when a shareholder falls out, an entity sells, or a liquidator arrives.

A service provider who has not assigned their intellectual property still owns it, regardless of what the invoice says. Under the Copyright Act 1968 (Cth), the creator owns copyright by default, and ownership moves only by written assignment. Paying a designer or developer does not transfer ownership on its own. That default gives service providers real leverage where a client refuses to pay. Retention and suspension clauses turn the default into a contractual right to withhold deliverables.

The Australian Recording Industry Association has amended its chart eligibility guidelines to exclude songs predominantly created by generative AI, sparking debate about the intersection of artificial intelligence and copyright law. This decision mirrors broader legal challenges facing courts and regulators worldwide as they grapple with determining when AI-generated or AI-assisted works deserve copyright protection and recognition.

A service provider who has not assigned their intellectual property still owns it, regardless of what the invoice says. Under the Copyright Act 1968 (Cth), the creator owns copyright by default, and ownership moves only by written assignment. Paying a designer or developer does not transfer ownership on its own. That default gives service providers real leverage where a client refuses to pay. Retention and suspension clauses turn the default into a contractual right to withhold deliverables.

The Full Federal Court of Australia has handed down its appeal decision in Aldi Foods Pty Limited v Hampden Holdings I.P. Pty Limited [2026] FCAFC 103 which provides guidance regarding the application of copyright infringement principles to the packaging of look-alike products.

Explore Jones Day's comprehensive video series on navigating complex tax controversies across multiple jurisdictions, featuring expert insights on IRS strategies, economic substance doctrine, and the evolving global tax dispute landscape. Discover practical guidance on managing multijurisdictional tax challenges in Australia, Europe, and beyond, alongside specialized content on cross-border trade secrets and private credit infrastructure funding.

The recent Hugging Face/OpenAI incident reveals critical lessons about AI agent security and confidential information exposure. When AI systems gain access to internal repositories containing source code, patent materials, and trade secrets, businesses face unprecedented risks that require deliberate controls and IP-focused governance before deployment.

Pactitioners must adapt to process changes within IP systems, as well as be mindful of the implications of tech on their practices.