July 25th, 2024

AI and Intellectual Property Infringement

Will AI Put Your Company’s Intellectual Property at Risk?

While artificial intelligence offers a range of benefits, intellectual property infringement is a serious concern that should be addressed before problems arise. At Gross McGinley, LLP, our business law attorneys understand the challenges and risks companies face when it comes to protecting intellectual property. Here, we discuss how we can help clients protect their intellectual property.

Ways Artificial Intelligence Can Affect Intellectual Property

Intellectual Property Infringement

Some generative AI tools, particularly those that generate text or images, can infringe upon existing intellectual property rights. For example, George R.R. Martin, John Grisham, and 15 other authors are suing OpenAI for “systematic theft on a mass scale,” due to concerns about “flagrant and harmful infringements” of their registered copyrights.  

An intellectual property attorney at Gross McGinley can help companies enforce their rights against infringement, misappropriation, or unauthorized use of IP, including cease and desist letters, using alternative dispute resolution methods, or initiating litigation to protect and enforce copyrights, trademarks, and trade secrets.

Internal Threats and Misuse

For companies that house or store their IP on internal systems, employees or contractors with access to those systems pose a serious risk. Ill-intentioned insiders may misuse proprietary algorithms, data, or trade secrets for personal gain or to harm the company. Further, if an adversary were able to gain access to your systems through insiders or cyberattacks, they could replicate your IP for their own use, bypassing the need for costly research and development efforts. It is therefore essential to Implement robust access controls, monitoring systems, and employee training programs in order to help mitigate the risk of insider threats and safeguard your company’s intellectual property assets.

Data Vulnerability and Compliance Issues

Companies often gather and process high volumes of proprietary data, including customer information, trade secrets, and confidential business strategies. Storing and managing this data in digital formats makes it susceptible to cyber threats such as malware, hacking, and data breaches. Without adequate security measures in place, unauthorized parties, using AI algorithms or other methods can gain access to  your sensitive data thus exposing valuable intellectual property to potential theft or misuse.

In addition, if your company has personal data, it’s crucial to ensure that it complies with consumer protection and data privacy laws and regulations. Effective data privacy practices and compliance with applicable regulations are essential for mitigating these risks.

How an Intellectual Property Lawyer Can Help Protect Your Company and its IP

Understanding how artificial intelligence can affect your company is vital. The experienced legal team at Gross McGinley, LLP, can help you take proactive steps to mitigate risk, safeguard your Company and its IP.

Developing Strong IP Protection Strategies

Whether your company is using AI or you’re concerned about external artificial intelligence putting your IP at risk, a business lawyer can work closely with you to develop comprehensive strategies that address the unique challenges posed by AI technologies. This includes identifying and protecting AI-related innovations, such as proprietary algorithms with patents, copyrights, trademarks, and trade secret protections.

IP Due Diligence

A business attorney can also conduct due diligence to assess the intellectual property risks associated with AI technologies in mergers, acquisitions, and investment transactions. Evaluating the ownership, validity, and enforceability of existing patents, copyrights, and trademarks and identifying any potential intellectual property infringement issues can prevent problems before they start.

Staying Current With Developments in the Law

An intellectual property lawyer can help you stay informed about emerging trends, developments, and legal precedents related to AI and intellectual property. This includes monitoring changes in intellectual property law, copyright law, data protection regulations, and industry practices that may impact the protection and enforcement of IP assets.

Drafting and Negotiating Contracts

A business lawyer can draft and negotiate contracts that clearly define the ownership, licensing, and usage rights of intellectual property that could be impacted by AI. This includes agreements with employees, contractors, and third-party vendors involved in the development or deployment of AI technologies.

Education and Training

An IP attorney can help you educate stakeholders, employees, and clients about the importance of intellectual property protection in today’s business environment. This includes raising awareness about the risks and opportunities associated with AI innovation, as well as providing training on IP best practices, compliance requirements, and risk mitigation strategies.

Protect Your IP and Your Business

Although AI can offer extraordinary opportunities and capabilities for businesses, it also presents significant challenges and risks when it comes to intellectual property infringement. An intellectual property lawyer can help prioritize the protection of your IP in the AI-driven era. Protecting your competitive advantage and reputation by safeguarding your intellectual property can support your company’s long-term success in the ever-changing digital landscape.

Contact an Intellectual Property Attorney in Pennsylvania

Our business law team at Gross McGinley, LLP, offers a range of legal services that can protect your company and help it grow. To learn more about how artificial intelligence can affect your business IP, call us at 610-820-5450 or contact us to schedule a consultation with an intellectual property attorney. We provide a wide range of legal services, including criminal defense, family law, business law, litigation, estate planning, business and employment law, real estate, and more.

The content found in this resource is for informational reference use only and is not considered legal advice. Laws at all levels of government change frequently and the information found here may be or become outdated. It is recommended to consult your attorney for the most up-to-date information regarding current laws and legal matters.