Every major technological advancement-granting the printing press and the internet, goes with a change in intellectual property law. Currently, new digital technologies and AI are challenging copyrights, patents, and trademarks in ways we could not even imagine a decade ago.
On the one hand, these technologies make the creativity process a more democratic thing, a process that has included content creation, distribution, and everything in between for the common man and the business. However, with the rights getting abolished for the creators and owners, questions have arisen: who owns AI-generated art? Does buying an NFT confer copyright ownership? Can blockchain replace copyright registers?
If you are the creator, business, or investor, these technology upheavals very well may affect how you protect and monetize a work. This article considers some of the legal challenges, case laws, and developing IP landscape that will bring the future of creativity into focus in India and the world.
The AI Training Data Puzzle: Where Do Courts Draw the Line?
When advising clients, the first question the law firm usually hear is: “If AI is trained on my copyrighted content, is that theft?”
The reality is complicated. AI companies often use datasets scraped from the internet, books, songs, films, and images, without asking the creators. That’s where disputes arise.
Client case note: A Delhi-based graphic designer the law firm worked with found AI tools spitting out images strikingly similar to her original work. She wanted to know if she could sue. This is exactly where cases like Getty Images v. Stability AI come into play.
Can AI-Created Works Really Get Copyright in India?
Here’s the question the law firm get almost every week: “If I write a book using ChatGPT or design art with MidJourney, can I copyright it?”
- The global stance: WIPO says copyright requires human authorship.
- The Indian position: Section 2(d) of the Copyright Act says the “author” of computer-generated works is the person who caused the work to be created.
If you, as a human, guide, edit, or curate the output, you may still qualify as the author. But if the machine does it all, it won’t be protected.
First-hand experience: It is advised to a startup that wanted to trademark its AI-generated logo. The safe route we suggested was to show enough human involvement, by editing and finalizing the design, to strengthen their claim.
NFTs and IP Rights: Why Buying a Token Isn’t Buying Copyright?
Many clients assume buying an NFT means they own the artwork’s copyright. But that’s a common misunderstanding.
- What you actually own: Usually just the token on blockchain, not the underlying creative work.
- Risk example: There was a client who bought an expensive NFT, only to realize later he couldn’t legally stop others from using the same image online.
A recent example that brought recognition to that was the MetaBirkins case, wherein Hermès successfully argued its trademark infringement against the NFT.
Lesson learned: Always review the smart contract or terms of sale before entering an NFT transaction.
Beyond AI & NFTs: 3D Printing, Blockchain & the Metaverse
Technology is moving faster than courts can decide.
- 3D Printing: There was a query where a client discovered replicas of his patented kitchen tool being sold online using 3D printing. We advised a mix of design patent and trademark action.
- Blockchain: Startups in India are already experimenting with blockchain-based copyright registries. These can act like tamper-proof ownership certificates.
- Metaverse: A fashion brand the law firm worked with wanted to protect its digital outfits sold in virtual stores. They successfully registered trademarks covering “downloadable virtual goods.”
Generative AI in Action: How Clients Are Already Using It?
Every week, the new uses of AI is seen in creative industries:
- Authors co-writing novels with AI.
- Musicians generating background scores.
- Small businesses designing logos and ad material.
But without legal clarity, many of these works fall into a “grey zone.” For example, in the Zarya of the Dawn case, the U.S. Copyright Office only protected the human-written parts of a comic, not the AI-generated images.
First-hand observation: It is said to several clients that while their AI-driven work is commercially valuable, enforcing IP rights over it is still uncertain.
Towards Smarter IP Laws: What Needs to Change?
From experience, neither “all-or-nothing” protection nor complete denial works. We need nuanced reforms, such as:
- Recognizing hybrid authorship, where human creativity mixes with AI assistance.
- Making AI companies license training data instead of scraping it freely.
- Creating new sui generis rights specifically for AI and NFTs.
- Expanding smart contracts for automatic royalty payments in digital art and music.
Conclusion
Intellectual property in India is at a turning point. AI, NFTs, and blockchain are forcing everyone, lawyers, judges, creators, and businesses, to rethink what “original” really means.
It is advised to clients in patent disputes that not to wait too long. Whether establishing an AI-based start-up, creating and selling NFTs, or creating and selling virtual goods, it is always better to be cautious from a legal perspective. Before starting any work concerning AI or NFTs, get your IP attorney to ensure the contracts have been drafted, have your works registered, and that you have your rights protected. It is always cheaper than fighting a potential lawsuit later.
One can talk to lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online free through Lead India.
FAQs
1. Is using copyrighted material to train AI copyright infringement fair use in India?
Indian law has not directly confronted this issue yet, but unless you have been granted permission or received a license, using copyrighted books, music, films, etc., to train AI may be copyrighted infringement.
2. Can I sell my artwork as an NFT without registering my copyright first?
Yes, you can mint an NFT without registration. Registering your copyright provides additional legal rights should you engage in unwanted disputes.
3. What legal risks do Indian startups face with AI generated content?
Startups may face copyright infringement risk based on the nature of their training data if they do not obtain licenses for the training materials, and may face challenges enforcing their IP rights in AI generated works.
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