While generative artificial intelligence (AI) startups are garnering investors’ attention, intellectual property (IP) rights lawyers are exploring best practices for copyright protection.

People are in awe of the powers of generative AI platforms such as ChatGPT, Bard, and Midjourney. However, these tools produce output with the huge existing data fed into the system during training.

Hence, generative AI has sparked a debate on copyright infringement.

Professionals and businesses often use the output from generative AI to generate revenue. But the output is produced from the data used to train the artificial intelligence models, and hence it might violate the original owner’s copyright.

Hence, according to the Financial Times, IP lawyers are closely monitoring the best practices to regulate AI. Data protection and IP lawyer Ceyhun Pehlivan highlighted the issue of unclear copyright protection in the AI realm. 

He believes “it is very difficult” to answer the questions about the steps generative AI developers or users should take for copyright protection.

Governments are working on AI regulations. For instance, in April, the European Union proposed bills requiring full copyright disclosure from Generative AI tools. And last week, US Senators introduced bills for transparent AI usage.

While governments are figuring out the AI regulations, IP lawyer Jennifer Maisel believes users should take risk-mitigating measures before using the output from generative AI tools. She says:

“Look at your agreement with the software provider to determine what warranties exist about the content that the generative AI was trained upon – and whether it reassures that guardrails are already in place to prevent third-party copyright infringement claims.”

While regulators and lawyers explore the best practices to regulate generative AI, a Paris-based startup, Mistral AI, raised €105 million ($113.7 million) in a seed round, which the Financial Times calls Europe’s largest-ever seed round.

Interestingly, the startup is no more than four weeks old and was founded by former Meta and Google’s DeepMind executives.

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Lightspeed Venture Partners, an early investor in Snapchat and Epic Games, led the funding round. It is worth noting that Mistral does not have a product yet, but it plans to launch a generative AI tool next year.

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