{"id":936,"date":"2024-02-23T12:42:21","date_gmt":"2024-02-23T17:42:21","guid":{"rendered":"https:\/\/norrismclaughlin.com\/mtym\/?p=936"},"modified":"2024-02-23T12:48:12","modified_gmt":"2024-02-23T17:48:12","slug":"does-generative-ais-output-violate-content-owners-ip-rights","status":"publish","type":"post","link":"https:\/\/norrismclaughlin.com\/mtym\/trademark-infringement\/does-generative-ais-output-violate-content-owners-ip-rights\/","title":{"rendered":"Does Generative AI\u2019s Output Violate Content Owner\u2019s IP Rights?"},"content":{"rendered":"

Courts have yet to rule definitively on whether the content consumed to \u201ctrain\u201d generative AI is an infringement of any exclusive right granted under the U.S. Copyright Act<\/a>. Those considering the issue have not been inclined to rule in favor of copyright owners<\/a>. 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<\/a> by The New York Times<\/em> 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.<\/p>\n

Was AI behind what many are calling the recently released Palworld<\/em> game: \u201cPok\u00e9mon with guns\u201d? The Palworld <\/em>developer Pocketpair has used generative AI<\/a> to help develop certain aspects of another of its games. This has caused debate about whether this is also true for Palworld<\/em><\/a> \u2013 and by extension, has contributed to its success. The Palworld<\/em> 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 \u2013 a rare phenomenon in today\u2019s world \u2013 and has focused the games\u2019 fans on the issue of intellectual property infringement due to noticeable similarities in their respective characters, shown below.<\/p>\n

Ad from Palworld<\/em> game<\/a>:<\/a><\/h2>\n

\"Ad<\/a>
\nFrom https:\/\/www.pocketpair.jp\/palworld\u00a0<\/a><\/p>\n

Pok\u00e9mon characters:<\/h2>\n

\"Pok\u00e9mon
\nFrom https:\/\/www.pokemon.com\/us\/pokedex\/wigglytuff<\/a> and https:\/\/www.pokemon.com\/us\/pokedex\/piplup<\/a><\/p>\n

Pok\u00e9mon fans and the gaming community have flooded social media with posts remarking on the similarities in the characters from the two games. Some have speculated Pok\u00e9mon\u2019s owner, Nintendo, will pursue Palworld<\/em>\u2019s developer, Pocketpair, for copyright infringement. Nintendo publicly stated<\/a>:<\/p>\n

We have received many inquiries regarding another company\u2019s game released in January 2024. We have not granted any permission for the use of Pok\u00e9mon intellectual property or assets in that game. We intend to investigate and take appropriate measures to address any acts that infringe on intellectual property rights related to the Pok\u00e9mon. <\/em><\/p><\/blockquote>\n

Pocketpair claims that it had no intention of infringing on Nintendo\u2019s intellectual property rights and the similarities between the games are attributable to common aspects of pocket monster-based games.<\/a> Palworld<\/em> gained traction as a PC game, and is now available on Xbox Game Pass after a recent partnership with Microsoft. Despite the swirl of allegations, Microsoft expressed its intent to continue working with Pocketpair to improve the Xbox gaming experience.<\/p>\n

Adding to the speculation about whether intellectual property laws have been violated, Pocketpair allows users to modify the Palworld<\/em> game to include Pok\u00e9mon characters (which are protected by U.S. trademark as well as copyright law). Such modifications are common in the video game community, but one user\u2019s Palworld<\/em> video featuring the modification was taken down pursuant to a DMCA notice from Nintendo. As of Feb. 1, 2024, that user adjusted the modification<\/a> to include more \u201cgeneric\u201d characters instead of almost identical imitations of Pok\u00e9mon. But the game functionality remains.<\/p>\n

Should Nintendo choose to pursue litigation, the result will likely have a significant impact on not only the video game industry but, if implicated the question of whether generative AI\u2019s output can result in an infringement of copyright and trademark law.<\/p>\n

Please contact Jeanne Hamburg<\/a> if you have any questions about trademark and copyright law, and, in particular, our Creative Economy<\/a> and Intellectual Property<\/a> practices.<\/p>\n

Jeanne would like to thank Sajani Patel, a law clerk at Norris McLaughlin, P.A.<\/a>, for her contributions to this blog.<\/p>\n","protected":false},"excerpt":{"rendered":"

Courts have yet to rule definitively on whether the content consumed to \u201ctrain\u201d 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 […]<\/p>\n","protected":false},"author":67,"featured_media":940,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[405,315,27],"tags":[],"coauthors":[477],"acf":[],"yoast_head":"\nDoes Generative AI\u2019s Output Violate Content Owner\u2019s IP Rights?<\/title>\n<meta name=\"description\" content=\"The video game Palworld has raised questions about what happens if a developer uses generative AI that infringes on on intellectual property rights.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/norrismclaughlin.com\/mtym\/trademark-infringement\/does-generative-ais-output-violate-content-owners-ip-rights\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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