A few months ago, a thesis student was caught writing an entire dissertation with Artificial Intelligence (AI). The impeccable result attracted scrutiny, leading the student to eventually confess. While the actual draft was entirely generated by AI, the prompt and ideas came from the student. This raised a key question: who was the true author of this thesis? Where do we draw the line between AI and intellectual property and authorship?

AI is having an incredible impact on how we navigate the Internet. One of its most popular contributions in recent years is content generation, with AI-powered image and text generators gaining momentum for their ability to produce “new” content from written prompts and supporting data. 

However, what many overlook is that this content – whether it’s text, images, or answers to questions – is far from being as fresh and original as it seems. The quality of what AI generates depends entirely on the data it’s trained on and the sources it draws from, making the content strong, but not truly original. 

While intellectual property laws have long protected authors and publishers from plagiarism and copyright infringement in the media and business, the regulations surrounding AI and intellectual property remain unclear.  

Consequently, the debate – and lawsuits – over AI and intellectual property is gaining significant attention, with claims that copyrighted material has been unlawfully used to train generative AI models. 

But what does it mean for big companies in highly regulated industries interested in using AI? In a world where intellectual property is far from being regulated, how can they leverage this new technology while safeguarding their proprietary data? 

In this article, we’ll explore the current state of AI and intellectual property protection for businesses and discuss how organizations can leverage AI-powered tools while ensuring the security of their sensitive data and proprietary assets.

‍

What does intellectual property mean?

According to the World Intellectual Property Organization, Intellectual Property (IP) refers to the creations of the mind, such as inventions, literary and artistic works, designs, names, and images used in commerce. 

Under that definition, all content, innovations, and ideas belonging to a company are considered intellectual property.

Intellectual property protection comes in various forms, each designed to safeguard different types of assets and ensure that creators, innovators, and businesses can retain full ownership and control over their work. There are several key ways in which intellectual property is protected, including: 

1. Patents

Patents protect inventions, including new and useful processes, machines, products, or composition of matter. Under patents, inventors get exclusive rights, which prevent others from making, using, or selling the invention without permission for a limited period. 

2. Copyright

Copyright protects original works of authorship, such as literary, artistic, and musical works, including books, films, music, software, and architecture. Copyright grants creators the exclusive rights to control the reproduction, distribution, and adaptation of their work for a specific period of time. 

3. Trademarks

Trademarks protect distinctive signs, including logos, names, symbols, sounds, and even colors that distinguish goods and services from a particular source, allowing businesses to build and protect their brand identity, and setting their products and services apart from competitors. 

4. Industrial designs

This type of protection safeguards the aesthetic aspects of a product. For example, the visual design of an object falls into that category, including the shape and surface of an article, as well as patterns, lines, or color. 

5. Geographical indications

Geographical indications (and appellations of origin) protect signs that identify products as originating from a specific geographic location, where the quality, reputation, or other characteristics of the product are linked to its geographical origin. It prevents the misuse of names related to the regional heritage of a product. For example, Swiss Medical Devices and Biotechnology fall into that category, with the “Swiss Made” label acting like a Geographical Indication certification. 

6. Trade secrets

Finally, the trade secret sub-category of intellectual property safeguards confidential business information, such as formulas, processes, designs, methods, or any proprietary data. With this protection, businesses have the right to their valuable, classified information, which is not available to the general public and can remain secret indefinitely. While there is no formal registration for trade secrets, businesses must take measures to keep their information secret, for example, Google’s search algorithm or Coca-Cola’s formula. 

While the rules governing intellectual property are established, the rise of AI-generated content has reopened a debate fueled by an increasing number of copyright and trade secret infringement claims. 

The truth is that for as long as intellectual property has been regulated, it has faced challenges. One glaring example was the widespread boom of streaming services – iTunes, Spotify, YouTube – which turned the copyright law on its head in an unprecedented way. 

AI is pushing the envelope even further. Even though IP rights organizations say that AI-generated output doesn’t involve enough human activity to provide IP protection, legal disputes are questioning the legitimate ownership and right to distribute AI-powered material. 

In the U.S., recent copyright hearings have focused on the “three C’s” – consent, credit, and compensation – as possible guiding principles for AI training data, aiming to mitigate the “free-for-all” attitude that has overshadowed the exciting rise of AI-generated content. 

Far from seeking to create new roadblocks, regulations for intellectual property and AI intend to strike a balance between innovation and the protection of original creators’ rights, ensuring a more structured and ethical approach to the development of AI. 

‍

Intellectual property and AI: Impact and Risks

For business organizations, the rise of generative AI has heightened concerns about the potential leaks of intellectual property and classified information, contributing to companies’ hesitation to adopt AI as part of their operational tools.

In fact, some companies have banned the use of AI-powered chatbots and generators after an accidental leak of internal source code. In particular, doubts over the use of generative AI in business settings mostly center around: 

1. Data safety

AI content generators make data vulnerable, with the risk of leaking or mishandling sensitive data, as well as the increased threat of exposure or cyberattacks. 

2. Confidentiality breach

A confidentiality breach involves the unauthorized disclosure of confidential information, including sensitive data. If an AI generator is trained on proprietary documents from a business, it could reproduce parts of those documents, exposing trade secrets or revealing strategies or discoveries belonging to a private company. 

3. Lawsuits 

The widespread use of AI-generated content has opened the doors to various legal challenges regarding AI and intellectual property rights. The growing number of lawsuits, including one from the New York Times alleging that articles had been used without permission to train AI models, have made business organizations more cautious when using AI. 

Concern over the safety of AI has given rise to the first regulation drafts around the world, such as the EU AI Act. 

However, the focus on regulation remains uneven across different parts of the world. While some countries have prioritized conversations on AI and intellectual property laws, others have indicated no immediate plans to regulate it. This ongoing tug-of-war highlights a key challenge – intellectual property rights are essentially national issues, yet the race to develop or leverage AI solutions is global. 

Actually, AI can be run anywhere, so long as there’s electricity and Internet access. With the current state of worldwide regulations, AI companies in countries with expensive or impractical data training obligations could face a competitive disadvantage compared to those in less regulated environments. 

‍

How can your business use AI and protect intellectual property?

So the question remains, if your company is interested in leveraging AI, how can you protect your intellectual property but still use AI for Decision Intelligence purposes or to enhance your Business Intelligence? Here are four strategic steps to take to safeguard your company’s intellectual property: 

1. Assess your intellectual property

Conduct regular and thorough audits of your company’s intellectual assets to identify which valuable proprietary material is currently protected or unprotected. Examine if there are any potential infringements of third-party rights and determine the risks of using professional AI assistance.

2. Protect and copyright your proprietary material

Before adopting AI for your business needs, ensure that your company has clear evidence of copyright protection in place. Consult a legal advisor to ensure that your brand ownership is strong enough and has enough evidence to win potential disputes, should there ever be threats of copyright infringement or theft. 

3. Establish intellectual property policies 

Companies should develop clear intellectual property policies that outline their expectations for the use and protection of their assets. By establishing clear and transparent intellectual property guidelines, you can foster stronger awareness and understanding among employees, partners, and third parties. In turn, this ensures consistent protection and compliance across all interactions with company-owned material. 

4. Choose safe AI solutions, tailored for data privacy and security

The good news is that not all AI is built for wide-open use with no regulations. In fact, there are a number of solutions for companies looking for safe,custom AI. For example, Unicorn can improve productivity and efficiency for mission-critical industries requiring full data confidentiality, privacy, and security. Whether it’s to fetch specific information, summarize, or generate data-based content, Unicorn can be deployed either within your company’s infrastructure or in iGenius’ cloud, in total safety. As a result, organizations in highly regulated industries can build their own private model – an “AI brain” tailored to their business – while retaining maximum information confidentiality and protection.

‍

AI and intellectual property are still uncharted territory, and while the technology continues to quickly evolve, significant improvement is still needed to fully protect proprietary data and assets. 

To effectively counterbalance the threats of intellectual property infringement, businesses must be proactive. Rather than waiting for a solid legal framework to emerge, companies should actively manage risks and adopt tools that prioritize data privacy and security. While the AI and intellectual property laws remain blurry, companies can turn to custom solutions that will allow them to safely harness the power of AI. 

One thing is certain, the ongoing development of AI offers exciting opportunities for companies eager to stay ahead of the curve. With proper safeguards in place, the benefits of AI can reliably be accessible to all.