Patentability Assessment Report for AI

Date: 22 April 2024

Prepared by: Manasvi Madhhumohan, Company Secretary

Prepared for: Eon Luxe, Clothing Company

Preliminary Note: This Report and its contents have been collated and prepared by the Comany
Secretary of Eon Luxe Private Limited for the purpose of presentation at the Meeting of the Board
of Directors dated April 24, 2024. The same may contain confidential or proprietary information
and is meant for private circulation to authorised personnel only. Any unauthorised dissemination
and/or misuse of this report or the data presented herein is strictly prohibited.

1. Introduction

This Patentability Assessment Report has been prepared to evaluate the potential patentability of
Eon Luxe's AI Pricing Optimization System. The system is designed to optimize pricing strategies
based on various factors, including demand, competitor analysis, and customer behavior. This
report provides an analysis of relevant patent laws and guidelines to determine the likelihood of
obtaining patent protection for the AI system.

In India, Patents are protected by the Patents Act 1970 and the relevant sections and standards will
be elaborated below.

2. Background

Eon Luxe, founded in 2005 by Deepa Sharma, is an internationally renowned fashion brand
recognized for its commitment to innovation, craftsmanship, and social responsibility. The
company has a strong focus on sustainability, ethical labor practices, and community
empowerment.

Eon Luxe's dedication to sustainability is evident in its efforts to minimize environmental impact
through eco-friendly materials, waste reduction, and carbon emission mitigation. Additionally, the
company upholds ethical labor standards by ensuring fair wages, safe working conditions, and
opportunities for skill development for its employees and partners.

It is a prominent clothing company that is integrating artificial intelligence (AI) technology into
its pricing strategies. The AI Pricing Optimization System is intended to enhance the company's
competitiveness and profitability by dynamically adjusting prices in response to market conditions
and consumer preferences.

3. Patentability Criteria

In order to assess the patentability of Eon Luxe's AI Pricing Optimization System, it is essential to
consider the following criteria:

Novelty: The invention must be novel, meaning it has not been disclosed to the public in any form
prior to the filing date of the patent application. Section 2(i)l of the Indian Patents Act, 1970 defines
novelty as 'new invention' which means "any invention or technology which has not been
anticipated by publication in any document or used in the country or elsewhere in the world before
the date of filing of patent application with complete specification, i.e. the subject matter has not
fallen in public domain or that it does not form part of the state of the art

Inventive Step: The invention must involve an inventive step, meaning it is not obvious to a person
skilled in the relevant field. Section 2 (ja) of the Indian Patentd Act 1970 says that "inventive step"
means a feature of an invention that involves technical advance as compared to the existing
knowledge or having economic significance or both and that makes the invention not obvious to a
person skilled in the art

Industrial Applicability: Section 2 (ac) of the Indian Patents Act 1970 says "capable of industrial
application", in relation to an invention, means that thevinvention is capable of being made or used
in an industry;

4. Patentability Analysis

a. Novelty: Eon Luxe's AI Pricing Optimization System appears to meet the novelty requirement
as it incorporates unique algorithms and methodologies for analyzing market data and adjusting
prices accordingly. The system has not been publicly disclosed prior to the filing date of the patent
application.

b. Inventive Step: The inventive step requirement necessitates that the AI system involve an
inventive leap beyond what is already known in the field. Eon Luxe's system utilizes advanced
machine learning techniques to dynamically optimize pricing strategies based on real-time data
analysis. This level of sophistication and adaptability suggests an inventive step that would not be
obvious to a person skilled in the art.

c. Industrial Applicability: The AI Pricing Optimization System developed by Eon Luxe is

designed for use in the clothing industry to improve pricing strategies and enhance
competitiveness. It is capable of industrial application within this sector, meeting the requirements
for patentability.

5. Conclusion

Based on the analysis conducted, it is reasonable to conclude that Eon Luxe's AI Pricing
Optimization System satisfies the criteria for patentability. The system demonstrates novelty,
inventive step, and industrial applicability, making it a strong candidate for patent protection. It is
recommended that Eon Luxe proceed with the preparation and filing of a patent application for the
AI Pricing Optimization System to secure intellectual property rights and gain a competitive
advantage in the market.

[Signature]

Manasvi Madhumohan
Company Secretary
Eon Luxe