Protecting Your Patent: How a Vet-Owned AI Company Safeguarded its IP

(A&R Vets to Ventures features a co-authored article with our friends from Data² - a veteran-owned small business that leverages advanced analytics, data science, machine learning, and AI to enable organizations to harness the full potential of their data. Data² executives are joined by A&R Patent Attorney and U.S. Navy Veteran John Scott.)

By Data² Executives Jon Brewton, CEO; Chris Rohrbach, COO; Eric Costantini, CBO;
and Adams & Reese Patent Counsel John Scott

Military-owned businesses often possess unique technological advantages derived from years of research, development, and practical application. These innovations, ranging from advanced materials to sophisticated software, can be valuable assets in the commercial marketplace. Understandably, effectively protecting these assets is critical to success in any business. But what steps should an entrepreneur take to protect his/her idea, and how does the patent process work?

One veteran-owned company’s journey – combined with a patent attorney’s experience preparing and filing patent applications – provides valuable insight into what veterans should do to safeguard their intellectual property.

What are Patents and How Do They Work?

Patents protect inventions. Each patent generally represents a bargained-for-exchange in which one or more inventors publicly disclose an invention to receive an enforceable right to exclude others from practicing the invention for a limited time. For example, non-inventors may be excluded from manufacturing, using, importing, selling, or offering to sell an invention protected by a patent. As part of that exchange, the invention enters the public domain and becomes available for anyone to use once the patent expires, which is generally 20 years from the date of filing the corresponding application.

Patents are territorial. That is, the right to exclude others from practicing an invention protected by a patent is generally only enforceable within the boundaries of a country or region that sets the legal requirements for obtaining the patent.

Patents are granted by governmental agencies that a country or region tasks with reviewing patent applications for compliance with patentability requirements. In the United States, patents are granted by the United States Patent and Trademark Office (USPTO). Patent owners are responsible for enforcing patent rights – not the governmental agencies that grant patent rights.

Patentability requirements generally include:

• Novelty: An invention must be new;
• Non-obviousness: An invention must not be an obvious improvement over existing technology to someone skilled in the relevant field; and
• Utility: An invention must have practical use.

How Data² Protected its Idea and Launched an AI Business

Data² was founded with the goal to help people make better decisions with their data, by better understanding their data landscape. Our ideas originated near the same time that ChatGPT and today’s GenAI tools were first released. Our mission evolved to create a world where humans and machines make better decisions together, through the application of these tools.

Given our backgrounds in technology, defense and global strategic digital transformation, we sought to find novel and practical applications of GenAI within the domains we understood. For engineers, this meant that there were some challenges to adopting GenAI technology in both high reliability environments/situations and an ever-present obstacle of hallucinations in the systems/returns themselves. For us, close was not good enough, when it came to mission critical decisions, which commonly resulted in life-or-death outcomes.

Current technology limits the amount of transparency and through our platform, reView, we built a system that offers better accuracy and a full chain of auditability, thus improving the trustworthiness in those outputs for the users. Unlike the black box solutions on the market – which don’t allow for an understanding of how the system works to provide answers – the system that we built is agile and flexible in design and deployment, with the explicit intention to give power and utility to the end user.

Additionally, reView is built on a knowledge graph database, which allows us to create a semantically rich data universe to interact with, the critical unlock for GenAI. Having demonstrated the utility of our technology, we were accepted into the Colorado Catalyst Accelerator program, a Government and Defense focused Small Business Accelerator. We met with advisors who recommended that we talk with a patent attorney to protect our IP.

In our initial review with our legal counsel’s AI specialist, it was apparent that we were doing something “unique” and “novel”. Our team, having had experience with patents, created a master document that was edited with our attorney over the course of a couple months until we had our application and supporting documents in a satisfactory position for submission.

In late 2023, we filed for our provisional patent, knowing that the full submission would be completed within a year’s time. Throughout that time, we iterated on the solution and in September 2024, we completed and submitted for three separate patents as it pertains to different parts of the solution. This application was filed with the “fast track” route, which involves a small fee, but results in a significantly faster adjudication, while maintaining its seal of confidentiality to the public. 

How Does “Patent Pending” Work, and What are Key Steps in Patent Protection?

Like Data², it is common for businesses to launch products while patent applications are pending. When a business, or attorney on behalf of that business, files a patent application, their invention gains “patent pending” status. This status indicates that a patent application has been filed, but it doesn't guarantee that a patent will be granted. The “patent pending” designation serves as a warning to potential competitors that the invention is in the process of being protected.

What are the key steps in patent protection? Number one, consult an attorney early in the process. Patents are granted on a “first-to-file” basis. Missteps early on can result in loss of patent rights. The attorney can help with the following steps:

1. Develop a Business Plan: Create a comprehensive business plan outlining the demand for the invention, funding sources, potential customers and target market, competitive landscape, marketing strategy, sales projections, and financial forecasts.
   
   
2. Establish a Legal Structure: Choose an appropriate legal structure for the business, such as a limited liability company (LLC) or corporation.
   
   
3. Conduct a Thorough Prior Art Search: Before filing a patent application, conduct a comprehensive search to ensure the invention is novel and non-obvious. This involves reviewing existing patents, publications, and other relevant documents.  
   
   
4. Document the Invention: Maintain detailed records of the invention's development, including dates, diagrams, and descriptions. Have the necessary documents ready to present to the attorney.
   
   
5. File a Patent Application: Prepare and file a patent application with the appropriate patent office, such as the USPTO.

It is very important that a company only marks a product as “patent pending” if an actual patent application has been filed. Falsely marking a product can result in legal penalties. The “patent pending” designation can add to the perceived value and uniqueness of the product. The “patent pending” status, combined with a product launch, can make a business more attractive to investors, demonstrating both innovation and market viability.

At Data², we intentionally use “patent pending” language in materials with prospective clients and fundraising activities because of those very reasons of credibility and value. While Data² is awaiting patent protection, its reView AI solution is already significantly impacting clients in industries such as the U.S. Government, Energy, Health Care, Logistics, and Law Enforcement.

Conclusion

The key takeaways are clear: early consultation with a patent attorney, meticulous documentation of the invention, and a thorough prior art search are essential steps in protecting valuable intellectual property. By understanding the patent process, veterans can transform their innovations into sustainable business advantages, ensuring their contributions are both recognized and rewarded in the competitive commercial landscape.

We hope the journey that we have shared of veteran-owned company Data² and their unique AI-driven solution, reView, underscores the critical importance of strategic IP protection for innovative military-derived technologies. They have successfully navigated the patent process, securing “patent pending” status. This proactive approach not only safeguards their invention but also enhances their credibility and attractiveness to investors.

About Our Authors

John Scott is a Patent Attorney at Adams & Reese and Counsel in the Houston office. John has more than a decade of experience preparing and prosecuting patent applications for clients ranging from startup ventures to Fortune 50 companies. John is recognized to practice in patent matters before the U.S Patent and Trademark Office, and is also licensed in the states of Georgia, Missouri, Ohio, and Washington. John is a veteran of the U.S. Navy.

Jon Brewton is the CEO of Data². An executive, strategy development advisor, and digital transformation leader. Jon has held many AI and data technology positions around the globe, including in the U.S., Scotland, Nigeria, South Africa, Brazil, UK, Thailand, Angola, and Australia. Jon is a veteran of the U.S. Air Force.

Chris Rohrbach is the Chief Operating Officer of Data². A retired U.S. Naval Officer and a Navy SEAL Leader, Chris spent more than 25 years in leadership and extensive combat tours in Iraq, Afghanistan, and Somalia. The final post in Chris’ naval career was as the Chairman, Joint Military Operations at the U.S. Naval War College.

Eric Costantini is the Chief Business Officer of Data². Eric has experience in cutting-edge analytics products and digital transformation, working across North and South America. Eric holds an MBA from Wayne State University and is a graduate of the esteemed Harvard Business Analytics Program. Eric is a veteran of the U.S. Marines.