Govt Panel to Urge Protections for Intellectual Property in AI Terms of Use; Creators Could Seek Compensation in Contracts

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Figurines with computers and smartphones are seen in front of the words “Artificial Intelligence AI” in this illustration taken on Feb. 19, 2024.

Providers of artificial intelligence will be asked to compile terms of use that include protections for intellectual property rights, according to a summary of a government panel’s draft interim report.

The report by the expert panel on intellectual property rights in the AI era contained a raft of measures expected to guide developers and users of generative AI alike. The government established the panel in response to rapid developments in generative AI.

The government plans to discuss the issue based on the interim report at an April 22 meeting of the panel, and to make an official decision on the proposed regulations as soon as May.

The draft interim report states that laws, technologies and contracts will be in a “complementary relationship at each stage” when it comes to protecting intellectual property rights, and that the wide array of people involved in generative AI will need to cooperate at each stage and work to protect those rights.

More specifically, the report calls on AI developers to collect data fairly and adopt technologies that reduce the risk of infringing on rights. The report also urges those who provide their copyrighted works for AI learning to require user IDs and passwords that restrict access and prevent people other than intended recipients from using the material. The report recommends regular users of AI confirm through the terms of use whether an AI platform accommodates intellectual property rights.

The report also lists examples of possible tech solutions. These include tools that prevent AI learning by applying a special filter over images, technologies that deny access to programs that automatically collect vast amounts of data, and digital watermarks that allow users to identify whether an image has been generated by AI.

The report also states creators could demand compensation from AI developers in contracts even when intellectual property rights are not legally protected. This was prompted by consideration of Article 30-4 of the Copyright Law, which allows AI to learn copyrighted works without permission.

The report also acknowledges the limitations of existing laws, given that abilities nurtured during the creation of artworks and literary or artistic styles that do not lend themselves to precise definitions fall outside what is protected by the Copyright Law.