There’s a groundswell of lawsuits being brought against artificial intelligence companies, accusing platforms such as Meta, OpenAI, and others of using copyright protected works without permission to train their generative AI systems. This “Great Infringement”—currently alleged to involve hundreds of thousands of novels—illustrates the magnitude of this admitted practice by various AI vendors. Apparently, it’s been going on for a while.
Not surprisingly, as monetization of AI and its underlying technology gains ground, the courts are becoming the front line for deciding the legality of the way large language models are trained and the information they are able to access. At the same time, attorneys are left to explain the risks and benefits to their clients who are using these AI models themselves or whose works are being impacted by them.
Mainstream Movement
The lawsuits against AI companies do not represent a fringe movement. It’s quite the contrary. For example, prominent creative figures and artists are among the 8,500 cosigners from The Authors Guild who sent an open letter urging “generative AI companies to cease using their works without proper authorization or compensation.” Similarly, others have barraged AI vendors Stability AI, Midjourney, Microsoft, and others with lawsuits alleging infringement and misuse.
Creators’ Funds
In response, several of the accused companies have pledged to set up “creators’ funds” to compensate those whose works were used to train their AI models. Just how those funds get financed and money distributed equitably has not been decided.
Questions surrounding what constitutes fair use of copyrighted materials, identifying which works may have been used and to what extent, and other issues such as retroactive compensation need to be settled—and that’s not likely to happen any time soon.
Uncharted Territory
As discussed in previous Ludwig APC blogs, AI and its impact on intellectual property is new territory for us all. Just how these pending cases (and those that follow) are decided will set precedent for the United States and the world.
Will new decisions be adjudicated according to old paradigms? After all, IP existed long before AI, and IP has traditionally been well protected from infringement—whether misuse was intended or not. Will those old foundations hold true, or does AI require us to rethink how we move forward?
At the heart of the current situation is the “open source” nature of AI. In its infancy, generative AI began in places like closed Department of Defense labs whose developers had no intention of creating pictures or music. From such humble beginnings, generative AI grew to include open-source research projects designed to create one AI model that could do it all. The need to track whose works were used to train the AI models and compensating them accordingly likely never entered into the equation—or was an afterthought at best.
Now as platforms that were once open source, like Open AI, become privately held companies, questions of IP infringement and remuneration arise. It’s hard not to wonder if where we’ve ended up was the intention all along, with massive research grants building entities that are now proprietary. It’s also hard to imagine that copyrighted material wasn’t used along the way.
Protecting IP
That said, IP owners are right to want compensation for the use of their works by those who have (or stand to) profit from it. What’s becoming increasingly clear, in these times of the “Great Infringement” is that it’s more important than ever before to protect your IP.
That’s where experienced firms like Ludwig APC can be of great value. As experts in copyright matters, IP, and business litigation, we are monitoring these lawsuits and other AI-related developments very closely. Clearly, generative AI is an amazing technology with much promise. At the same time, IP owners need to protect what they’ve worked so hard to create.
Let’s Work Together: Global Experience, Personal Focus
If you have questions about how AI tools and products could affect your business and/or your IP, or whether you should be using them at all, contact us today to arrange a free consultation: (619) 929-0873 | consultation@ludwigiplaw.com.
A surprising number of artificial intelligence (“AI”) competitions are popping up around the globe. Here in the United States, both the Biden Administration and The Pentagon have announced high stakes contests. Corporations like IBM are also throwing their hats into the ring.
The offer of such prizes is sure to stimulate AI research and advancement. It’s like a new, virtual “World’s Fair” climate for technology—an exciting time for individuals, businesses, and even government entities to strike out and explore what they can do with AI.
With various AI tools easily acquired, entrants into these contests are expected to be varied and many. Just as cell phones made every person an aspiring high-end photographer, so too does the ubiquitous nature of AI tools give rise to the potential for innovation and inventorship.
“In what seems like a very short time, virtually all industries have been touched by AI to some degree,” says Eric Ludwig, whose California-based law firm, Ludwig APC, focuses on intellectual property, data privacy, and business litigation around the globe. “Despite its widespread use, though, few, if any, truly understand the implications of working with AI. I liken it to being adrift within a sea of beginners with few experts.”
Permission Or Forgiveness, Ignorance or Wisdom
When adopting new technologies or trends, early adherents typically seek advice after-the-fact. In the world of intellectual property, such an approach can leave individuals and businesses on treacherous legal footing.
Rather than reactive representation responding to cease-and-desist letters or, worse yet, defending or asserting IP rights in court, proactive guidance is recommended.
“With IP, knowing the lay of the land and the way forward has always been a bit of a calculated assessment, and that’s probably even more true in today’s environment,” says Ludwig. “However, ignorance of how AI impacts IP is no defense when things go south. Inventors, artists, creative types, and all IP owners need to look at the possibilities with AI without rose-colored glasses.”
At present, AI is volatile and new. Its landscape is like that of primeval Earth—both alluring and dangerous at the same time. Many may consider dabbling with AI to create IP too risky, while others will find it far too tempting.
While inventors, entrepreneurs, innovators, and businesses may see signs for the “World’s Fair of AI” and all the potential that represents promoted in their news and social feeds, setting sail with no plan is no way forward. Even Christopher Columbus didn’t pursue “The New World” until he had enlisted the help of a reliable guide, Guillermo Herries—and Columbus wasn’t bumping into thousands of other ships leaving Spain at the same time.
“The race to be first with AI is a crowded field,” explains Ludwig. “IP creators and owners would be well-advised not to rush into the unknown blindly.”
With prize purses in the millions and leaps forward in AI abilities taking place daily, it’s more important than ever for those involved in AI or affected by it to keep apprised of what’s going on both technologically and legally.
Let’s Work Together: Global Experience, Personal Focus
If you have questions about how AI tools and products could affect your business or IP rights, give Ludwig APC a call. As experts in copyright matters, IP, and business litigation, the impact of AI on IP and business best practices is a topic we are monitoring closely. Contact us today to arrange a free consultation: (619) 929-0873 | consultation@ludwigiplaw.com.
The indomitable juggernaut of artificial intelligence (“AI”) continues to make a stir in matters of intellectual property and privacy. Of particular note is a recent announcement by Zoom that the company had changed its terms of service and would now be asking users to allow Zoom to access user data, face and facial movements, even private conversations, to train its AI models.
While Zoom has since clarified that it will not “use audio, video, or chat content for training (its AI models) without customer consent,” questions still remain about how Zoom users could be impacted.
Though Zoom and other remote meeting platforms, such as Microsoft Teams, have been around for years, their popularity surged when the COVID pandemic forced numerous individuals and companies to conduct business remotely. Using Zoom or similar platforms is now an ingrained part of the work routine for many—which means saying “no” to Zoom (and others) might not be as easy to do as it first seems.
“Zoom can apparently use customer video calls and chat transcripts to train AI, so long as users consent,” explains Eric Ludwig, whose California-based law firm, Ludwig APC, focuses on intellectual property, data privacy, and business litigation around the globe. “While having the option to consent or not sounds reasonable to most, what happens when your meeting host agrees to share data with Zoom but you don’t want to? Any participants who don’t agree to share their data will need to drop off the call. How realistic is leaving the call for you if you’re required to attend the meeting to do your job? This could put people in a tough position. Many may have legitimate privacy concerns and reasons for not wanting to share their data. Some may just want to remain private for privacy’s sake. That’s still their right.”
The Right to Privacy
A citizen’s “Right to Privacy” was officially recognized by the Supreme Court in Griswold v. Connecticut. In that case, citing the personal protections of the 1st, 3rd, 4th, 5th, and 9th Amendments, the Supreme Court concluded that the U.S. Constitution created a “zone of privacy” inalienable to all citizens.
As a result, most U.S. citizens rightly assume a reasonable expectation of privacy as they go about their business. Those assumptions might be proven wrong, though, especially as technology advances and the use of artificial intelligence tools become more and more widespread.
Old System in A New Age
Some are expressing concern over eroding privacy and the potential for societal harm in the face of new technologies and AI. Recently, OpenAI CEO Sam Altman expressed concerns regarding AI and the possibility it could compromise elections, while several media organizations co-authored an open letter “calling for more transparency and copyright protection in AI.”
“These and similar calls-to-action are timely and important,” says Ludwig. “How legislators and courts respond in the coming months and years to keep up with new AI innovations and the causal business changes associated with them will be telling.”
Read those Terms of Service
Many jokes have been made about reading user agreements and terms of service. What exactly are users agreeing to … and does it really matter? After all, if you don’t like a particular term in a user agreement, what can you reasonably do? Is declining “terms of service” realistic? Are you really going to forgo using Microsoft Office or Zoom if you don’t like something in the user agreement?
“To the extent privacy matters to individuals, reading those terms of service is important—especially any updates for services you already use,” says Ludwig. “There’s a good chance that many of the more recent updates pertain to AI, whether it’s something you use in your own business or whether it’s others wanting permission to use your data to train their AI models.”
Let’s Work Together: Global Experience, Personal Focus
If you have questions about how AI tools could affect your privacy, the services you use, the privacy of your employees, and potential risks to you and your business, give Ludwig APC a call. We are experts in privacy matters, IP, and business best practices.
Contact us today to arrange a free consultation at (619) 929-0873 or consultation@ludwigiplaw.com.
As we wake to the dawn of a new age filled with artificial intelligence (“AI”) tools, each day seems to pose new questions and concerns. How daring or cautious should we be when using this game-changing technology?
Whether we know it or not, and without explanation, context, or accuracy, most of us encounter some form of “AI” almost daily via platforms such as YouTube, Twitch, or TikTok. That’s where a new phenomenon is emerging within the streaming and video space. It’s called the “AI Parody” and it’s gaining in popularity.
What Is An AI Parody?
AI Parodies are typically derived from existing intellectual property (“IP”) such as TV shows or movies. It’s this IP that is fed into specific AI tools to create new forms of digital media (the aforementioned AI Parody).
This digital product is then presented on video platforms as parody, citing the fair use exception—and these parodies can be created at rates and volumes far outstripping the capabilities of studios or individuals responsible for the original IP content.
Examples of popular AI Parodies include those derived from shows like Family Guy, Seinfeld, and Spongebob Squarepants, all of which can be found on popular streaming platforms. Those creating the parodies will, if they have not already, eventually earn an income from them through advertising, subscriptions, and increased followings.
Another example of an AI Parody is a 24/7 AI Debate between former President Donald Trump and President Joe Biden. This parody features both men gesturing and speaking with highly accurate AI-generated voices. For a donation, audiences can pose questions and both the AI-created Trump and Biden figures will respond to them real-time. The verbal sparring is really quite a convincing, albeit not flattering, representation of the two men.
What Does the Road Ahead Look Like?
Several of the AI Parody examples mentioned in this blog have “hopped” from platform to platform as the result of infringement claims filed by the IP owners of the original characters or likenesses. While no legal precedent has been set in a courtroom, each platform simply suspended the offending account for failure to comply with their Terms of Service related to copyright infringement.
In the defense of entrepreneurship, I can understand the funny and entertaining prospects of AI Parody ventures. Once created, these parodies can generate significant passive income with little to no intervention from those who created them. Of course, the characters and likenesses inherent to the popularity of these creations are the IP of others. Therein lies the rub.
As AI tools advance, the barrier for creating ever more sophisticated AI parodies becomes ever lower. The way I see it, as long as the social marketplace welcomes these parodies and enough platforms allow them to be streamed, they will continue to be profitable and popular.
How Can IP Creators/Owners Be Proactive?
While we are still in the early stages of determining the legal implications of AI and IP, for IP owners and creators, keeping as up to date as possible about AI advancements is critical. Ignoring the AI revolution will not protect anyone’s IP interests, nor will it make AI go away.
Like it or not, AI may already be seeping into our day-to-day lives whether we know it or not. AI tools are easy to use and easy to access. They’re typically free and cloud-based, so they can be accessed by pretty much anyone.
That said, if you’re about to adventure into the new “AI Dawn” or if you’re fearful of how AI has impacted (or may impact) your existing IP interests, give Ludwig APC a call or contact us by email. As experts in privacy matters, IP, and business litigation, AI is a topic of great interest to us.
Let’s Work Together: Global Experience, Personal Focus
Ludwig APC regularly monitors technology’s impact on IP and business best practices. Contact us today to arrange a free consultation: (619) 929-0873 | consultation@ludwigiplaw.com.
