In an article published in the previous edition of Inside Cambridge, I asked "What next for AI start-ups and scale-ups in Cambridge?" and outlined some of the issues that arise when varied and sometimes opposing interests must reckon with revolutionary change.
As noted in that article, these issues affect all parts of the innovation life cycle, from the origination of ideas to funding, commercialisation and enforcement of rights. Our latest Fundraising Report provides some great insights into how markets have responded to AI over 2025 and is well worth a read. I was particularly taken with Ashley Williams' comment that investors are backing business that demonstrate "robust compliance and responsible innovation". As parties' obligations and liabilities, and our understanding of them, continue to evolve as they have done over the last year or so, the "Goldilocks zone" that incubates sustainable innovation is more clearly coming into focus.
The next several months will continue that trend in relation to three principal intellectual property rights. In February 2026, the Supreme Court of the United Kingdom issued a seminal decision that has upended decades of patent practice in the UK by holding that an invention directed at artificial neural networks is not, as a matter of law, excluded from patent protection by virtue of being a computer program. Getty Images will appeal the High Court's recent finding (covered here) that the import into the UK of Stability AI's Stable Diffusion is not contrary to UK copyright law, and Stability in turn will seek permission to appeal the High Court's finding that output from its models is a commercial communication by Stability itself, leaving it open to claims of trade mark infringement from rightsholders (including those who have taken advantage of the High Court's ruling to secure new trade mark rights specifically targeted at AI models).
While all disruption can be unsettling, it gives each of us an opportunity to examine fundamental aspects of our businesses and our systems. When we do that, carefully but confidently, we give ourselves the best opportunity to create lasting, meaningful change. Watch this space for more information about decisions that will influence the adoption of AI across all industries and do get in touch with me or your usual Mishcon contact if you would like to discuss any of those decisions.