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Technology
13 August 2024

Navigated Legal Terrain Of Games And AI

Exploring the intricacies of intellectual property rights and privacy issues within gaming AI

Generative artificial intelligence (GenAI) is shaking up the gaming industry, highlighting both its vast potential and associated legal risks. With developers increasingly using GenAI to streamline processes like creating game levels and enhancing gameplay, the conversation around legalities is becoming more pronounced.

Presently, many industry events, including the Game Developers Conference (GDC), have seen companies share how GenAI can streamline workflows and even respond to players' actions. Yet, the growing reliance on this technology raises important questions about intellectual property (IP) law, privacy issues, and potential tort claims.

One of the most pressing concerns is how GenAI interacts with intellectual property. Key questions loom such as, is there IP infringement if the AI model was trained on protected content? Could the AI generate outputs considered protected IP itself?

This discourse isn't merely theoretical; it mirrors wider industry debates highlighted by cases involving high-profile entities like The New York Times and Microsoft. For example, the legal battle over whether Microsoft's use of Times' articles to train ChatGPT constitutes fair use illustrates the stakes involved.

The outcome of such cases could set critical precedents for how courts view the training of GenAI models, potentially reshaping the future of AI's role in gaming. On the flip side, there's the equally delicate issue of what happens when the output of GenAI infringes on others’ IP rights.

A legal gray area exists when considering outputs from AI models trained on copyrighted content. If DevAI produces game elements closely resembling trademarked logos or characters, developers might be opening themselves up to infringement claims.

This risk escalates dramatically if the AI has been trained using previous works, such as guiding the model using only games from one publisher. Developers might unwittingly create characters or artwork so similar to existing IP, potentially leading to costly legal battles.

Yet, developers can take steps to mitigate these risks by implementing thorough review processes. Ensuring human oversight or utilizing additional models to assess generated content can help maintain distance from existing IP.

Despite advancements, obtaining IP protection for GenAI-generated content remains complex. Courts and institutions are actively defining this space, with rulings indicating AI-generated works alone cannot be copyrighted.

The ruling of Thaler v. Vidal emphasized this point, determining AI cannot be declared the inventor of a patent application. Similarly, the U.S. Copyright Office asserts it won’t register works produced purely from machine processes with no human creative input.

Still, there are ways for developers to secure protections around their creations. By showcasing significant human intervention during the creation process—essentially demonstrating the creative direction imposed by human developers—protection avenues may open up.

On another front, privacy laws present additional layers of complexity. Different states have varying regulations—California's Consumer Privacy Act, for example, plays out significantly within this context.

For both DevAI and LiveAI, there’s the risk of inadvertently using or leaking personal data from users. Game developers must proceed with caution, ensuring they comply with privacy laws when handling user data, particularly when leveraging it for training AI models.

Under tort law, the right of publicity emerges as another pressing issue. This legal concept governs how individuals' identities can be commercially exploited, raising questions about using someone's likeness without consent.

High-profile instances, such as the NCAA uproar over athletes profiting from their names and images, demonstrate the value and complexity of these rights. A game might unintentionally produce outputs derived from a player's appearance, leading to potential legal claims for misuse.

The stakes get higher for game developers when considering how player data might be employed without proper consent. With the evolution of GenAI, developers need to navigate their obligations toward protecting personal data closely to avoid backlash.

Greater caution is imperative, especially with fan-favorite characters or actors whose likenesses might be modeled. Recently, the SAG-AFTRA strikes reflect these rising tensions, with actors voicing fears over losing opportunities due to AI-generated likenesses.

The potential for cost savings is tempting for developers willing to embrace AI models trained on past performances. But the backlash from the creative community suggests this is fraught with risks and ethical dilemmas.

Clear disclaimers addressing how user data might be utilized are among the starting steps developers should take. Yet, these measures won't necessarily shield companies from reputational harm or legal repercussions if mishandled.

Even with disclaimers, consent remains pivotal when using AI, especially where actors' portrayals and branding are concerned. The shift to GenAI drastically alters expectations across the board, affecting actors, developers, and players alike.

Moving forward, developers must remain diligent. Clear frameworks will need to be established to navigate the evolving interplay between AI technology and the legal realities of game design, ensuring the industry can thrive without infringing on individuals' rights.

There's no doubt GenAI holds tremendous potential to revolutionize gaming. Still, the industry must tread carefully to mitigate legal pitfalls and respect the rights of all stakeholders involved.

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