A clear and effective distribution agreement is essential for managing opportunities and risks in AI business. Contracts should outline exactly what each party is responsible for, safeguard intellectual property, enforce regulatory compliance, and detail how to handle various scenarios that might arise. I’ll be summarizing some common risks encountered in AI distribution agreements, along with practical advice for mitigating them.
From infringement suits over unlicensed training data to liability for AI outputs that mimic real-world brands or creators, generative AI companies face a host of legal and commercial perils. The rapid growth of AI capabilities amplifies these risks for AI developers: the more advanced the system, the more likely it produces outputs so realistic that they could infringe copyright, violate trademarks, or replicate an individual’s style. At the same time, businesses navigating these issues must also address ethical concerns and reputational fallout, especially if outputs contain biased or harmful material.
Generative AI technologies—large language models, image-generators, automated composition tools—are transforming how content is made and consumed. From literature and art to software and product design, AI systems can produce outputs of startling complexity and creativity, prompting a reexamination of existing intellectual property (IP) frameworks. I’ll offer a foundational overview of the core legal principles at stake, the novel questions AI raises in this series. For now, an overview for AI technologies and IP rights will be presented.
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