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Does Generative AI’s Output Violate Content Owner’s IP Rights?
Friday, February 23, 2024

Courts have yet to rule definitively on whether the content consumed to “train” generative AI is an infringement of any exclusive right granted under the U.S. Copyright Act. Those considering the issue have not been inclined to rule in favor of copyright owners. But what happens when the output of the game is similar enough to pre-existing content that it raises questions about whether AI is being used in a fashion that infringes rights under copyright (and even trademark)? A recent suit by The New York Times against OpenAI raises the question in the context of news reporting, but as with other creative content such as visual art and fiction, another brewing dispute raises the issue in a different creative medium: video games.

Was AI behind what many are calling the recently released Palworld game: “Pokémon with guns”? The Palworld developer Pocketpair has used generative AI to help develop certain aspects of another of its games. This has caused debate about whether this is also true for Palworld – and by extension, has contributed to its success. The Palworld game sold over five million copies within just three days. This instantaneous fame was especially surprising because a majority of the sales appear to be the result of word of mouth – a rare phenomenon in today’s world – and has focused the games’ fans on the issue of intellectual property infringement due to noticeable similarities in their respective characters.

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