AI and the IP Conundrum

Generative AI tools like ChatGPT and Midjourney have democratized content creation but created a minefield for intellectual property (IP) rights.

Copyrightability of AI Output

Courts worldwide are grappling with the question: Can AI-generated works be copyrighted? The prevailing view in the US is that human authorship is required. Businesses must maintain clear records of human contribution to their AI-assisted workflows to claim protection.

Infringement Risks

Using AI tools trained on copyrighted data carries the risk of inadvertent infringement. Companies need clear policies on which AI tools are permissible for commercial use and should seek indemnification clauses in enterprise agreements.

Trade Secret Protection

Inputting proprietary code or confidential data into public AI models can destroy trade secret protection. We advise clients to implement "walled garden" AI instances to ensure sensitive data remains secure.