Who Owns AI Outputs? Navigating Intellectual Property in AI Solutions
When selecting an AI solution, one critical question to ask is who will own the outputs generated by it. Understanding the ownership and intellectual property (IP) rights can prevent future disputes and ensure your interests are protected. Key considerations include:
Intellectual Property Rights: Determine who holds the IP rights to the AI-generated outputs. Ideally, you should retain ownership of any work products generated by the AI to safeguard your proprietary, client and confidential supplier information.
Licensing : Review the licensing provisions carefully. Some suppliers may claim rights to use, modify, or distribute the AI-generated outputs. Ensure that the licensing terms align with your policies and confidentiality requirements.
Custom vs. Generic Outputs: Clarify whether the AI-generated outputs are customised for you or if they are generic outputs that could be used by other clients. Custom outputs should be owned by you, while generic outputs might fall under the supplier’s ownership – and fall under your IP indemnity.
Confidentiality Clauses: Ensure that the confidentiality clauses adequately protect sensitive information in the AI-generated outputs.
Data and Output Usage Rights: Understand the supplier's rights over the data and outputs. Some suppliers might retain the right to use your data and outputs for training their AI models or improving their services. Negotiate terms that limit or exclude such usage to protect your data integrity.
Dispute Resolution: Include clear terms for dispute resolution related to the ownership and use of AI-generated outputs.
Transfer of Rights: Ensure that the agreement covers the transfer of rights in case you decide to switch supplier or solution or terminate the contract. This ensures a seamless transition without losing access to valuable AI-generated outputs.
Ownership of AI outputs is a critical aspect to consider when adopting AI solutions.
Whether you're looking for a solution, have found one you're happy with or have one in place that you have questions about, get in touch with me to see how I can help.