by Michele S. Katz, Advitam IP, LLC for The Pharmaceutical Trade Marks Group’s “Law Lore & Practice” publication, May 2025
Artificial intelligence has crept into nearly every sector of the healthcare industry — from diagnostics and clinical decision-making to patient engagement and administrative workflows. In more recent applications, generative AI is being used to streamline brand development, naming strategies and marketing content for pharmaceuticals, medical devices and digital health platforms. While this promises increased efficiency and reduced costs, it also raises critical legal and ethical concerns, particularly in the realm of trade mark law.
Consider the situation where a healthcare startup uses generative AI to create a product name for a new telehealth app or wearable device. The AI may generate a name that is innovative, catchy, and seemingly available. However, without appropriate legal vetting, that name might already be registered as a trade mark in a relevant jurisdiction — or worse, resemble the name of an existing medication, increasing the risk of patient confusion or even medical error.
These concerns mirror those seen in the legal field. In June 2023, a US district court sanctioned two attorneys for filing a legal brief that included six fictitious case citations created by ChatGPT. This incident served as a stark reminder of the dangers of relying on generative AI without proper oversight. If legal professionals are not immune to these risks, neither are healthcare entities navigating complex regulatory and trade mark landscapes.
In healthcare, the stakes are especially high. A misstep in product naming is not just a branding issue — it could lead to regulatory scrutiny, loss of exclusivity, or even patient harm. For example, a name that is too similar to an existing drug may trigger safety concerns, particularly if it leads to confusion in prescribing or dispensing medication. Similarly, a brand that inadvertently infringes on an existing trade mark could result in costly litigation, rebranding, or withdrawal from market launch, all of which can significantly delay time-to-market and erode stakeholder trust.
There are additional complications when generative AI is used without regard for cross-border trade mark protections. A name that clears US trade mark databases may still be problematic in other jurisdictions, where trade mark law differs. AI tools often lack access to comprehensive, jurisdiction-specific trade mark data, making them unreliable as standalone naming resources in a globalized market.
Another issue is the potential for unintentional disclosure of confidential information. If healthcare companies use publicly available AI tools to brainstorm names or conduct preliminary trade mark searches, they may inadvertently expose sensitive information such as pipeline products, therapeutic targets or strategic branding directions. This could result in a loss of regulatory exclusivity or provide competitors with insight into a company’s next move.
In response to these challenges, healthcare companies must develop thoughtful internal policies that regulate the use of generative AI for naming and branding purposes. Legal departments, particularly those with trade mark expertise, should be involved early in the process. Any AI-generated names should be subject to rigorous clearance procedures, including trade mark searches, linguistic reviews, and regulatory assessments, before adoption.
As in the legal profession, there is a growing need for regulatory and ethical standards tailored to the healthcare industry’s use of generative AI. Just as attorneys are being called to disclose their use of AI in court documents and safeguard client confidentiality, healthcare professionals must take similar precautions to ensure AI-generated outputs do not compromise patient safety or brand integrity.
Generative AI can be a valuable tool in healthcare branding, offering speed, creative diversity and cost efficiencies. But its role must be carefully managed. When trade marks are involved, the implications extend far beyond marketing — they affect public trust, legal compliance, and, most importantly, patient safety.
As the healthcare industry continues to embrace AI-driven innovation, trade mark law cannot be left behind. What may appear to be an effective or compelling brand name on its surface may, in fact, carry legal and ethical complications beneath. In a field where miscommunication can have life- threatening consequences, relying on AI without review is not merely imprudent — it is a risk the industry cannot afford to take.
