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Have you ever asked chat GPT, or as I like to call him "Chatty G", to write your website copy, use Midjourney to create social media images, or had Canva's AI generate a logo, advertisement, or a video.
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If so, you are definitely not alone.
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AI has become one of the most powerful marketing tools available to business owners.
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It saves time, reduces costs, and help people produce content they never would've been able to create themselves.
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But here's the problem.
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Many businesses are so focused on what artificial intelligence can do that they're not stopping to ask whether they actually have the legal rights to use what it creates, and that's creating a whole new category of intellectual property risk.
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Today we are talking about the hidden IP risks of using AI in your marketing and the few simple steps that you can take to protect yourself and your business.
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Welcome back to Elise Explains ip.
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I am your host Elise Steegstra, IP nerd and commercial lawyer.
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AI isn't a copyright lawyer.
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A misconception I see is that people assume if an AI tool generates something, they automatically own it.
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Unfortunately, it isn't that simple.
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Different AI platforms have different terms of service.
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Some grant broad commercial rights, others impose conditions, some reserve rights to use your prompts or outputs for training their models and some don't.
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If you are using AI to produce content for your business, understanding the licence terms is every bit as important as reading the licence for a stock photography.
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Ignoring those terms can leave you using material in ways you never intended or never had permission to do.
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So ownership is becoming one of the most interesting legal questions in intellectual property In Australia.
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Copyright generally protects works created by a human author.
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Purely AI generated material may not qualify for copyright protection at all.
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That means while you may have permission under the AI's platform's licence to use the content commercially, you might not actually own exclusive copyright in it.
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Think about that for a moment.
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You could spend months building your marketing and campaigns around AI generated images or articles only to discover that you have very limited legal rights to stop competitors from copying them.
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That isn't a problem many businesses expect.
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Another issue is where the AI learned its skills.
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Most generative AI systems have been trained on enormous data sets, containing books, artwork, photographs, websites, music, and other creative works.
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Around the world there are still numerous courts cases testing whether those training methods infringe copyright.
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We talked about this a little bit in episode eight in relation to Getty Images and stability ai.
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Now, that doesn't necessarily mean every piece of AI generated content infringes somebody else's rights.
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Far from it, but it does mean businesses should appreciate that the legal landscape is still evolving.
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Using AI doesn't magically remove copyright risk.
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AI can also produce outputs that closely resemble existing works.
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Perhaps you've asked it to create a logo similar to "apples", or write an article or a webpage in the style of Nike or design my packaging like to look like Tiffany and Co.
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Sometimes AI will politely refuse.
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Sometimes it won't.
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Sometimes it'll generate something that feels uncomfortably close.
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The more closely your prompts imitate another business, the greater the risk.
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You are moving from inspiration to into infringement.
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Remember, copyright protects the expression trademarks protect brands passing off, and consumer law protects against misleading consumers.
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AI doesn't exempt anyone from those laws.
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Another risk is using AI to recreate existing content.
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And this is becoming increasingly common.
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Somebody has uploaded a competitor's brochure, another business's website, perhaps a professional photograph, or a podcast transcript, or maybe an ebook, and ask the AI to rewrite it.
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A lot of people assume that because the wording has been changed, everything is fine.
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It isn't.
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If the rewritten work substantially reproduces the original expression or copies, distinctive creative elements, there may still be copyright issues.
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AI is a very sophisticated assistant.
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It isn't a legal shield.
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AI is also helping businesses create names and logos, which is fantastic.
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But here's what AI generally doesn't do.
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It doesn't check whether someone else already owns the trademark.
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It doesn't tell you whether your new brand is legally registrable.
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It doesn't search overseas markets for availability.
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It doesn't warn you that your brilliant new name belongs to a multinational company.
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I've seen businesses invest thousands into branding before discovering someone else already owns those rights.
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Not necessarily AI content, but uh, it happens all the time.
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And that's a very expensive mistake.
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AI can help create ideas, but it shouldn't replace proper trademark clearance searches.
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Here's another risk.
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Many businesses paste confidential information into AI platforms without thinking draught contracts, marketing strategies, customer information, product designs, business plans, even financial forecasts.
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And while many enterprise AI products now offer stronger privacy protections, not every platform works the same way.
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Before uploading confidential information, ask yourself.
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Do I actually know what happens to this data? Do I have permission from my client and have I got an appropriate privacy policy? Because if you don't, you may be exposing valuable intellectual property without even realising it.
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Another of the biggest emerging risks isn't actually the business owner, it's the team.
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Marketing staff are increasingly using AI every day, creating blogs, designing graphics, writing newsletters, producing videos, generating advertisements.
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Without an AI policy, businesses often have no visibility over which AI tools are being used, what confidential information is being uploaded, whether licences, permit commercial use, who owns the resulting content, and whether records of prompts and outputs are being retained.
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A simple AI policy or a responsible use of AI policy can significantly reduce these risks while still allowing your team to benefit from the technology.
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'cause quite frankly, people are gonna keep using ai, so let's make it easier and smoother for them.
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So what should businesses do? AI isn't something to fear.
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It is an extraordinary productive tool.
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But it works best when combined with good intellectual property practises.
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So some practical steps include, read the commercial licence terms for the AI tools that you use.
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Don't assume AI generated content is automatically protected by copyright.
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Avoid asking AI to imitate competitors or famous brands.
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Conduct proper trademark searches before adopting AI generated names or logos.
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Be cautious about uploading confidential information and implement an AI usage policy for your business.
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Keep records of significant prompts or outputs that have been used in commercial projects and have important marketing assets reviewed before major launches.
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A little caution early on is much cheaper than trying to fix an infringement dispute later.
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AI is changing marketing faster than almost any technology we've seen, but intellectual property law hasn't disappeared.
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If anything, it's become even more important.
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Businesses that use AI successfully won't be the ones generating the most content.
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They'll be the ones combining AI with smart legal strategy because the goal isn't simply creating more.
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It's creating assets your business can safely use, protect, and build value around.
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And thanks for listening to Elise Explains ip.
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If you'd like to make sure your business is protecting the intellectual property it's creating, whether it's through AI or more traditional means, you can book an IP strategy call through my website, and while you're there, download my free IP audit checklist.
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It's a practical guide to help you identify the intellectual property your business already owns, where the risks might be, and what steps you can take to better protect it.
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Until next time, thanks for listening.
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Thanks for spending time with me on Elise Explains ip.
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If you picked up something useful, hit follow, subscribe, leave us a review or send it to a founder friend who could use this information.
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And remember, this is general information, not legal advice.
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If you do want help with your ip, you can book a strategy call with me at any time via my website, the links in the description.
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So until next time, own your own ideas.