The European Union’s Artificial Intelligence Act, a new regulation concerning the use of artificial intelligence systems, is in force as from 1 August 2024: in a nutshell, here is how it deals with the protection of intellectual property rights.

“Artificial Intelligence Act” a.k.a. “AI ACT” is shorthand for the EU Regulation 2024/1689 concerning the use of artificial intelligence: the regulation is in force as from 1 August 2024 and will become applicable gradually between 6 months and 2 years after that date.

 Considered the world’s first-ever legal framework on artificial intelligence, the AI Act was drawn up with two main objectives in mind: to prevent potential risks arising from artificial intelligence systems and from their use, and at the same time to avoid the danger of thwarting, through an excess of regulation, the further development in the European Union of technologies based on artificial intelligence.

So how does the AI Act deal with the protection of intellectual property rights? Here are the essential facts in a nutshell. Check out our Carlo Lamantea’s article on the proposal for the new regulation for further details.

Respect of EU copyright law

The artificial intelligence systems regulated by the AI Act include so-called “generative” systems (such as ChatGPT) that need be trained using large datasets – meaning content on which third parties often hold copyrights. The use of copyrighted material for instructing such systems has already given rise of several law suits, that have been widely reported on.

Truth be told, the AI Act includes no specific provisions concerning intellectual property rights; The AI Act does, however, state that providers of artificial intelligence models must comply with the European Union’s Copyright Directive No. 790/2019, notably in connection with the “scraping” of databases, which is necessary to train artificial intelligence systems. Although the directive does allow data mining activity without the authorization of right-holders for scientific purposes, extraction activity in general can only take place if use for such purposes has not been expressly reserved by the owners. In both cases, access to the material must have occurred legitimately.

Finally, it should be noted that the AI Act requires artificial intelligence service providers to make available to the public a summary of the material used for model training, drafted according to a precise template developed by the European Artificial Intelligence Office. Such a summary, although not technically detailed, must be complete and take into account the need to protect trade secrets and confidential company information.

AI systems trained outside the EU must comply with EU copyright law

The AI Act’s obligation to respect European Union copyright law extends to any operator introducing an artificial intelligence system into the European Union, regardless of which jurisdiction the system has been trained in. The operator itself will also have to apply a policy concerning the respect of European Union copyright rules.

The aim is to prevent operators from jurisdictions where copyright rules are less strict from enjoying a competitive advantage, and thus to offer a level playing field to all operators within the union’s territory.

Thanks to Carlo Lamantea for contributing to this news item.

Further information

Do you have questions on the protection of intellectual property rights in the European Union? Contact us, we are happy to help.