HEADING

TITLE : CHATGPT AND THE LOOMING CONCERNS OF IP INFRINGEMENT

DATE: April 21, 2023

INTRODUCTION:
Chat GPT (“CGPT”) is an extraordinary language processing tool trained on a staggering
amount of text data capable of understanding and generating human-like responses in prose
form. Using CGPT, a user can pose questions (input) and generate answers (output) in the
form of articles, essays, manuscripts, etc. The application of CGPT at once raises legal issues
such as copyright infringement, indicative that while CGPT is innovative and revolutionary, it
is not risk-free. An example of such legal risk is presented in the Getty Images case. In
January 2023, Getty Images sued Stability AI Inc. in London for copyright infringement,
claiming that Stability AI had copied over 12 million images from its database to train its
image generation model without permission. ChatGPT and other large language models
have the ability to generate human-like text, which raises concerns about the potential
impact on intellectual property. Specifically, there is a concern that these models
could be used to create fraudulent or infringing content, such as plagiarized written
works or manipulated audio or video. Additionally, there is the possibility that the
generated content could be used to impersonate individuals or organizations,
potentially damaging their reputation or infringing on their right of publicity. These
concerns highlight the need for further research and regulations to address the
potential impact of language models on intellectual property.1

Background:

As CHATGPT technology becomes more advanced and widespread, the issue of

intellectual property infringement has become a concern for many individuals and
organizations. One of the main concerns is that CHATGPT systems can potentially be
used to copy and reproduce copyrighted material, such as music, images, and text,

1
ChatGPT, Answer to “Write an introductory paragraph on the impacts of ChatGTP on intellectual
property.”, https://chat.openai.com/, generated by ChatGPT on april 19, 2023
without permission from the original creator. For example, an CHATGPT system
could be trained on a large dataset of copyrighted images and then generate new
images that are very similar, potentially infringing on the original works.
Another concern is that CHATGPT systems could be used to automate the process of
creating and filing patents, which could lead to a flood of low-quality or fraudulent
patents. This could make it more difficult for legitimate inventors to secure patents
and could also lead to legal disputes.

To address these concerns, there are several strategies that individuals and
organizations can employ:
1. One approach is to use watermarks or other digital identifiers to track the origin
of digital content and prevent unauthorized copying.
2. Another approach is to use technical measures such as encryption to protect
proprietary data and algorithms.

In addition to technical measures, legal frameworks and regulations are also important
to protect intellectual property in the age of CHATGPT. For example, laws around
copyright and patents may need to be updated to account for the use of CHATGPT
technology.
Ultimately, as CHATGPT technology continues to advance, it will be important for
individuals and organizations to stay vigilant about protecting their intellectual
property rights and to work together to develop effective strategies for doing
so.
As an CHATGPT language model, ChatGPT is not capable of infringing intellectual
property rights on its own. ChatGPT does not create original content nor does it
generate outputs that are protected by intellectual property laws. However, it is
possible for ChatGPT to generate outputs that incorporate or reference copyrighted
material, such as text, images, or music. In such cases, it is the responsibility of the
users who input the initial prompts and use the generated outputs to ensure that they
are not infringing on any intellectual property rights.
Additionally, ChatGPT itself is a product of OpenCHATGPT, which holds the
intellectual property rights to its technology and software. The use and reproduction
of the ChatGPT system without the permission of OpenCHATGPT may be
considered a violation of intellectual property rights. It is important for users of
ChatGPT, as with any technology or platform, to be aware of intellectual property
laws and to respect the rights of content creators and owners.

REMEDIES AVAILABLE FOR INFRINGEMNET:

Under the Copyright Act, if ChatGPT or any other technology platform is found to
have violated someone's intellectual property rights, there are several remedies that
the affected party can take, including:
1. Cease and Desist Letter: The affected party can send a cease and desist letter to the
owner of the infringing platform, requesting that they stop using and distributing the
copyrighted material.
2. DMCA Takedown Notice: The affected party can send a DMCA takedown notice
to the owner of the infringing platform, requesting that they remove the copyrighted
material from their platform. The Digital Millennium Copyright Act (DMCA)
provides a process for copyright owners to request the removal of infringing content
from online platforms.
3. Lawsuit: The affected party can file a lawsuit against the owner of the infringing
platform, seeking damages and injunctive relief for the infringement.
It is important to note that the specific remedies available will depend on the
circumstances of the infringement and the applicable laws in the jurisdiction where
the infringement occurred. It is also important to consult with an experienced
intellectual property attorney to determine the best course of action in any given case.

IP Risk Management:

OpenAI, as well as any other company that plans on taking a layered approach with
their AI-based innovation, needs to consider various issues related to their IP,
particularly in terms of risk management. Some elements of OpenAI’s IP strategy
may not be gleaned from publicly available information, for example, OpenAI’s IP
risk identification and mitigation strategy. While such elements may not be known for
certain, it is likely that issues such as inventorship/authorship and copyright
infringement are being considered.
Copyright Infringement:

Copyright infringement is another issue AI developers should be aware of. As it

stands, it is unclear how inputs and outputs of an AI are treated under copyright law.
When AI is involved in creating text-based works (or works of art, for that matter), it
may expose the company that owns the AI and/or the person who used the AI to the
possibility of being sued for copyright infringement. For example, a large language
model such as ChatGPT that has been trained on copyrighted material could cause
that model to excessively draw from another’s work when providing a response to a
user. This may violate reproduction rights under the Copyright Act and lead to
infringement claims.[xi] [xii]In fact, such cases have already started to be brought
before the courts. For example, Getty Images filed a claim against Stability AI,
alleging that its AI art tool scraped human-created copyrighted images for training
data.2

Conclusion:

When asked whether IP is important in the AI space, ChatGPT itself said:

Yes, intellectual property is an important factor in the artificial intelligence space.

Artificial intelligence (AI) technologies are often based on complex algorithms and
software, which are protected by patents and copyrights. By protecting intellectual
property rights, companies can protect their AI inventions and discourage others from
copying or using their technology without permission. Furthermore, patents can be
used to generate revenue by licensing the technology to others.3

Not bad, ChatGPT, but what about trade secrets, open source, and IP risk? One should
not overlook the fact that AI-based companies that leverage the use of open-source
software cannot reveal all of their secrets if they want to be profitable. As such, an IP
strategy that uses a layered approach, where the company decides which innovations
to patent and which to keep as a trade secret, can have significant advantages.

2
Vincent, James, “Getty Images is suing the creators of AI art tool Stable Diffusion for scraping its
content”, The Verge, april 20, 2023, retrieved from https://www.theverge.com/2023/1/17/23558516/ai-
art-copyright-stable-diffusion-getty-images-lawsuit.

3
ChatGPT, Answer to “Is intellectual property important in the artificial intelligence
space?”, https://chat.openai.com/, generated by ChatGPT on april 21,2023
Moreover, companies engaging in AI innovations such as text and art generators will
want to ensure they have a robust and well thought out IP risk mitigation plan. As the
law evolves to address advances in AI, businesses should routinely review their IP
strategy. The reality is IP is everywhere and is becoming increasingly more valuable
in today’s knowledge economy. Protecting AI innovations is no exception. For more
information, or if you have questions about your IP strategy and AI-based innovation,
please feel free to contact our artificial intelligence practice group. 4

4
https://www.bereskinparr.com/practicearea/artificial-intelligence-ai