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Safeguarding Your AI-Powered Innovations: A Proactive Approach to Addressing Copyright Risks

Updated: Jan 4

The rapid advancement of artificial intelligence (AI) has led to the development of generative AI tools, transforming the software development landscape. As businesses increasingly rely on these cutting-edge tools to write software code, understanding and managing copyright risks becomes crucial. The use of generative AI raises potential legal concerns, as the outputs generated may inadvertently infringe on the copyrights of the underlying works used to train the AI. This guide aims to provide businesses with a better understanding of the copyright risks associated with using generative AI tools in software development.


Defining Derivative Works


A derivative work is a work that is based on or incorporates one or more pre-existing works. In the context of AI-generated code, a derivative work may occur when the AI system uses copyrighted materials from its training data to create a new work that retains substantial similarities to the original source. A work does not have to be an exact replica to be considered a derivative work; it just needs to contain significant elements from the original copyrighted material.

To illustrate potential copyright infringement in AI-generated code, let's consider a hypothetical scenario: a generative AI tool is trained on a dataset containing copyrighted software code. Suppose the AI system subsequently creates new code that bears striking similarities to the original copyrighted code. In that case, there is a risk that the AI-generated code could be deemed a derivative work, thereby infringing on the original work's copyright.


Another example is using an AI system to generate a new story, article, or novel based on copyrighted works. If the AI-generated content includes key elements, such as characters or themes, from the original copyrighted materials, the new work may be considered a derivative work and infringe on the copyright of the original content.


Mitigating Copyright Risks in AI-Generated Software


One way to address potential copyright risks when using AI-generated software is to secure a license or obtain representations and warranties from the AI tool provider. These assurances should confirm that the source materials used for training the AI system are appropriately licensed and that the license extends to the end users. By ensuring proper licensing agreements are in place, businesses can reduce the likelihood of inadvertently infringing on copyrighted materials when using AI-generated code.


Another proactive measure to mitigate copyright risks in AI-generated software involves running a source code audit program. This process analyzes the code produced by generative AI tools to identify similarities with other code, whether it is open source or proprietary. If the audit reveals any potential issues, businesses can take appropriate action, such as complying with the relevant open-source license or removing the problematic code. Conducting a source code audit can also serve as evidence against a claim of willful infringement in a copyright lawsuit.


Lastly, performing due diligence on AI tool providers and the source materials they use for training their systems is another important step in mitigating copyright risks. This process may involve researching the AI tool provider's background, understanding their data collection and training methods, and verifying the legal status of the training materials. In some cases, AI tools allow users to choose or influence the materials used for training, which can help businesses ensure that they are working with legally compliant data sources.


Existing Legal Framework for AI-Generated Works


The legal landscape surrounding AI-generated works, including software code, is evolving and largely uncharted. Most copyright laws were established before the emergence of AI technologies and primarily address human-created works. As a result, the existing legal framework for AI-generated works may need to be revised or clarified to address the unique challenges and questions that arise from AI-generated content, such as the issue of authorship and ownership.


Some courts and jurisdictions have begun to grapple with these questions, but legal precedents remain limited. The outcome of future cases involving AI-generated works will likely shape the legal landscape and inform best practices for businesses using generative AI tools to create software code.

As AI technologies emerge, copyright laws will be reevaluated and updated to address better the unique challenges posed by AI-generated works. Lawmakers and legal experts may consider new frameworks for determining authorship, ownership, and liability in the context of AI-generated content.


Potential changes in copyright law could include:

  • Extending protection to AI-generated works.

  • Clarifying the legal status of derivative works created with the help of AI tools.

  • Even creating a separate category of protection for AI-generated content.

In the meantime, businesses can take proactive measures to mitigate potential copyright risks when using AI-generated software code, as discussed earlier in this article.


Best Practices for Businesses Using Generative AI Tools


Businesses should develop a comprehensive risk management strategy to minimize the risk of copyright infringement when using generative AI tools. This strategy should outline the processes and procedures for identifying potential copyright risks, taking appropriate steps to mitigate them, and staying informed of any changes in copyright laws that may affect AI-generated works. A well-defined strategy can help businesses effectively navigate the evolving legal landscape and protect their interests in the long term.

Businesses must educate their development teams on the potential copyright risks of AI-generated software code. By ensuring developers know the legal implications of generative AI tools, companies can foster a culture of copyright compliance and reduce the likelihood of infringement. Training sessions, workshops, and regular communication can keep developers informed and engaged in understanding and addressing copyright risks in their work.


Given the complexities and uncertainties surrounding copyright law in the context of AI-generated works, it is wise for businesses to seek expert guidance in intellectual property (IP) law. Engaging with IP lawyers and specialists can help businesses better understand the nuances of copyright law, navigate legal challenges, and ensure compliance with existing and emerging regulations. By leveraging the expertise of IP professionals, businesses can more confidently utilize generative AI tools while minimizing potential legal risks.


The Importance of Addressing Copyright Risks in AI-Generated Code

As generative AI tools continue to gain traction in software development, businesses must prioritize addressing the copyright risks associated with AI-generated code. Failing to manage these risks properly could result in costly legal disputes and damage to a company's reputation. By taking a proactive approach to identifying potential infringements, implementing risk mitigation strategies, and staying informed of changes in copyright law, businesses can harness the full potential of generative AI tools while minimizing legal exposure.


DISCLAIMER: The information provided is not legal, tax, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. The information provided is for general educational purposes only and is not investment advice. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information. A professional should review any action based on the information discussed. The author is not liable for any loss from acting on the information discussed.

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