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Lawyers Explore Best Practices for Generative AI and IP Protection

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Updated by Geraint Price
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In Brief

  • There is unclarity for copyright protection in the AI realm.
  • IP lawyers are exploring best practices for copyright protection.
  • Meanwhile, a generative AI startup raised $113 million in funding without a product.
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While generative artificial intelligence (AI) startups are garnering investors’ attention, intellectual property (IP) rights lawyers are exploring best practices for copyright protection.

People are in awe of the powers of generative AI platforms such as ChatGPT, Bard, and Midjourney. However, these tools produce output with the huge existing data fed into the system during training.

Hence, generative AI has sparked a debate on copyright infringement.

Professionals and businesses often use the output from generative AI to generate revenue. But the output is produced from the data used to train the artificial intelligence models, and hence it might violate the original owner’s copyright.

Hence, according to the Financial Times, IP lawyers are closely monitoring the best practices to regulate AI. Data protection and IP lawyer Ceyhun Pehlivan highlighted the issue of unclear copyright protection in the AI realm

He believes “it is very difficult” to answer the questions about the steps generative AI developers or users should take for copyright protection.

Risk-Mitigation Approach While Using Generative AI

Governments are working on AI regulations. For instance, in April, the European Union proposed bills requiring full copyright disclosure from Generative AI tools. And last week, US Senators introduced bills for transparent AI usage.

While governments are figuring out the AI regulations, IP lawyer Jennifer Maisel believes users should take risk-mitigating measures before using the output from generative AI tools. She says:

“Look at your agreement with the software provider to determine what warranties exist about the content that the generative AI was trained upon – and whether it reassures that guardrails are already in place to prevent third-party copyright infringement claims.”

Mistral AI Raises $113M Without a Product

While regulators and lawyers explore the best practices to regulate generative AI, a Paris-based startup, Mistral AI, raised €105 million ($113.7 million) in a seed round, which the Financial Times calls Europe’s largest-ever seed round.

Interestingly, the startup is no more than four weeks old and was founded by former Meta and Google’s DeepMind executives.

Click here for our list of the 18 best AI productivity tools.

Lightspeed Venture Partners, an early investor in Snapchat and Epic Games, led the funding round. It is worth noting that Mistral does not have a product yet, but it plans to launch a generative AI tool next year.

Screenshot from Mistral AI website
Source: Mistral.ai

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Harsh Notariya
Harsh Notariya is an Editorial Standards Lead at BeInCrypto, who also writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created...
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