IP Risks: Input Liability for Generative AI Companies

Protect Your Business: Navigating IP Risks in Generative AI

November 23, 20233 min read

Protect Your Business: Understanding IP Risks in Generative AI

The rise of generative AI has brought exciting opportunities for innovation, but it also comes with significant legal risks. While much attention has been focused on the outputs of generative AI, recent lawsuits have highlighted a critical and often overlooked issue: IP liability at the input stage. At Cadet Legal, we’re here to help you navigate these complex challenges and safeguard your business.

Why Input Liability Matters

Recent cases like Andersen v. Stability AI Ltd. and Getty Images v. Stability AI demonstrate how using copyrighted materials to train AI models can lead to legal disputes.

Andersen v. Stability AI Ltd.: Artists alleged that their copyrighted works were unlawfully used to train AI platforms. Although their claims were dismissed, they were not dismissed on the merits, meaning lawsuits could be re-filed against individual defendants.

Getty Images v. Stability AI: Getty alleged the use of over 12 million copyrighted photos, captions, and metadata to train AI models, along with trademark infringement related to replicated watermarks. This case is ongoing, but it underscores the risks of using unlicensed content.

These lawsuits are not just isolated incidents—they signal a broader legal and financial risk for AI companies and businesses utilizing AI technologies.

How This Affects Your Business

If your business uses AI models, particularly for content creation or decision-making, ask yourself:

Are you using copyrighted materials, such as Getty stock photos, to train your models?

What safeguards are in place to monitor and prevent IP infringement?

The challenge lies in the fact that once copyrighted material is input into a model, it becomes nearly impossible to “forget” that data. As courts begin to rule on these issues, the legal landscape for businesses using AI will likely shift dramatically.

Steps to Protect Your Business

At Cadet Legal, we specialize in helping businesses like yours navigate these complex legal risks. Here’s how we can help:

1. Review Your AI Practices: We’ll assess whether your business is at risk of IP liability based on your use of AI models.

2. Implement Safeguards: We’ll help you develop policies and procedures to mitigate risks, such as using fully licensed content for training models.

3. Stay Ahead of Legal Changes: With ongoing court cases and emerging regulations, we’ll keep you informed about how new developments may impact your business.

Why Choose Cadet Legal?

Navigating the legal risks of generative AI requires a partner with expertise and a proactive approach. At Cadet Legal, we provide:

Personalized Guidance: Tailored solutions to meet the unique needs of your business.

Expertise in IP Law: Deep understanding of intellectual property risks in emerging technologies.

Long-Term Support: Ongoing monitoring and advice to keep your business compliant and protected.

Don’t Wait Until It’s Too Late

The legal risks surrounding generative AI are complex and evolving. By taking proactive steps now, you can avoid costly lawsuits, safeguard your business, and stay ahead of the competition.

Have questions about how these issues affect your business? We’re here to help.

Book a Free Consultation Today

Get peace of mind knowing your business is protected. Book a free 30-minute consultation with Cadet Legal to discuss your needs and how we can help you navigate these challenges with confidence.

Schedule Your Consultation Now

At Cadet Legal, we’re committed to helping businesses thrive in the ever-changing legal landscape. Let’s tackle these challenges together. Reach out today and take the first step toward protecting your business.

Denzel Cadet is the founder and managing member of Cadet Legal, a boutique firm specializing in corporate law, private equity, and venture capital. With years of experience working with startups, small businesses, and investors, Denzel combines top-tier legal expertise with a personalized approach to help clients navigate complex challenges and achieve long-term success. His passion lies in empowering business leaders to grow with confidence through tailored legal strategies.

Denzel Cadet

Denzel Cadet is the founder and managing member of Cadet Legal, a boutique firm specializing in corporate law, private equity, and venture capital. With years of experience working with startups, small businesses, and investors, Denzel combines top-tier legal expertise with a personalized approach to help clients navigate complex challenges and achieve long-term success. His passion lies in empowering business leaders to grow with confidence through tailored legal strategies.

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