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ARTICLE · 13 OCTOBER 2026

Protecting The AI Systems Competitors Can Actually Copy

Spruson & Ferguson Lawyers
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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.

AustraliaIntellectual Property
Sudhanshu Ayyagari
Sudhanshu Ayyagari
Paul Massey
Paul Massey
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Many businesses are building valuable AI products on models they do not own, which raises a critical IP question: if a competitor can access the same model, what part of the system can the business actually protect?

We provide two useful downloads for innovators using AI systems below – an IP Health Checklist as well as a guide to patenting AI and machine learning inventions in Australia.

As AI becomes embedded in more products, platforms and processes, businesses are increasingly asking how to protect the value created around these systems.

In many cases, the protectable value may not sit in the model itself. It may sit in the surrounding system, in how:

  • data is retrieved
  • context is selected

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