What product managers should know about patents, trade secrets, and copyright

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TLDR

In this episode, I’m joined by David Carstens, a seasoned IP attorney and founding partner at Carstens, Allen & Gourley, who brings over 30 years of legal and technical experience in intellectual property (IP) strategy. Our conversation dives into the importance of IP management for product managers, how to build an IP strategy, when to consider patents versus trade secrets, the complexities of software and AI-generated content, and the rapid pace of change in the IP landscape. The episode is a must-listen for any product manager navigating decisions around invention protection, copyright, and the evolving influence of artificial intelligence.

Introduction

If you’ve ever wondered whether to patent that new feature, worried about AI training data copyright issues, or struggled to justify IP investment to leadership, you’re not alone. We’re exploring intellectual property strategy for product managers—and what it means to get it right and how expensive it can be when you get it wrong. Most product managers don’t receive training on IP strategy, yet the decisions you make daily have massive IP implications.

Our guest is David Carstens, who has a unique combination of technical depth and legal expertise. He’s a founding partner at Carstens, Allen & Gourley. He has dual engineering degrees, an MBA, and over 30 years experience protecting IP for companies building software, medical devices, and telecommunications products. He’s also an entrepreneur who founded multiple companies including a nationally chartered bank and an innovation platform, plus he’s been teaching IP law at SMU for three decades. David is currently investing in and speaking about the Fifth Industrial Revolution, making him well positioned to help us also understand how AI is reshaping IP strategy. 

Summary of Concepts Discussed for Product Managers

IP Strategy Framework:
David mentions that there isn’t a “one-size-fits-all” framework for IP strategy; it starts with assessing a company’s current position, identifying valuable innovations, evaluating what can realistically be protected, and aligning actions with budget constraints. Key steps include identifying strong value propositions, checking for existing patents or IP conflicts, and sometimes considering licensing or redesign if a competitor already owns relevant patents.

Timing and Collaboration:
Product managers should start thinking about IP early—preferably well before product launch or tooling investment. Collaborating with an IP attorney and creating a culture that values teamwork and knowledge sharing can help spot and protect innovations more effectively.

Patents, Trade Secrets, and Value:
Patents offer competitive advantages by providing pricing freedom, can act as bargaining assets, and are vital for companies seeking investment. Trade secrets, by contrast, are about keeping valuable information confidential (e.g., formulas or processes not disclosed publicly), but are only effective if the information can’t be easily reverse-engineered from the product.

Software & AI Challenges:
The fast pace of software development often complicates patent decisions. Patentability is more likely when software enables a genuinely novel technical process rather than automating routine tasks. For AI-generated content, copyright ownership is still unsettled; it usually depends on the degree of human contribution to the creative process. Legal systems are racing to catch up as AI shakes up traditional definitions of authorship and originality.

The Fifth Industrial Revolution and Legal Evolution:
David argues we’re entering a new industrial age defined by AI, blockchain, quantum computing, and advanced materials. The IP legal framework, largely unchanged for centuries, is struggling to keep pace with these rapid innovations, making adaptability and ongoing awareness essential for product managers.

Useful Link

• Learn more about Carstens, Allen & Gourley Intellectual Property Law Firm

Innovation Quote

“Pressure is a privilege.” – Billie Jean King

Application Questions

1. At what point in your product development process do you typically involve IP considerations, and how might earlier engagement affect outcomes?
2. How do you differentiate between an innovation worth patenting versus keeping as a trade secret in your product or technology stack?
3. What internal processes or culture shifts could help your team better identify and protect intellectual property?
4. How does the uncertainty around AI-generated content and copyright influence your use of AI tools in product development?
5. What steps can you take to ensure your IP strategy remains effective as emerging tech (AI, blockchain, etc.) rapidly changes the innovation landscape?

Bio

David Carstens distinguishes himself not only through his comprehensive knowledge of legal protection of Intellectual Property (IP) but also through his innovative approaches to IP strategy and valuation. With an educational foundation that is as diverse as it is solid—holding bachelor’s degrees in both Electrical and Mechanical Engineering from the University of Texas at Dallas and Texas A&M University, respectively, a J.D. and an MBA from Southern Methodist University, along with completing the General Management Program at the Wharton School at the University of Pennsylvania —David offers a distinctively strategic perspective in this specialized legal domain. 

His multifaceted expertise demonstrates his capacity to transcend traditional legal strategies, offering his clients not just defense, but a competitive advantage in various industries including technology, medical devices, cosmetics, and telecommunications. 

David is a founding partner of Carstens, Allen & Gourley and has been a pivotal figure on multiple boards. His ability to navigate the complexities of IP law, combined with his technical and business acumen, places him at the forefront of the field.

Thanks!

Thank you for taking the journey to product mastery and learning with me from the successes and failures of product innovators, managers, and developers. If you enjoyed the discussion, help out a fellow product manager by sharing it using the social media buttons you see below.

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