Legal things creatives must know when using AI tools for client work.

With the explosion of the use of AI tools such as ChatGPT in the workplace, you'd be living on another planet if you weren't either using (or curious about using) AI platforms to produce creative content at work.

However if you are an Australian creative professional using AI tools to produce (or help produce) creative assets for clients, there's some really important legal things you need to be across to protect both your business and your clients' businesses.

6 things you really need to know...

If you are a creative using or keen to use AI tools during client engagements (for example to produce draft or final concepts, drawings, artworks, copy or written material), then here's some of the key legal considerations you need to be across.

1. As the law stands in Australia, outputs created through AI tools are not likely to be protected by copyright in Australia because currently non-human authors (i.e. machines) cannot legally own copyright.
2. As the law stands in Australia, humans using AI tools to create content usually protected by copyright (for example, written works or images) will not generally own copyright in the content.
3. If you do not own the copyright in content you create for a client using AI tools (Client Content), you cannot legally transfer ownership of the copyright in that content to your client.
4. Your client services agreement with a client may require you to do the following two key things. One: Transfer legal ownership of the Client Content you create for your client under the agreement. Two: Only deliver Client Content to your client which you have yourself created and is 'original' to you.In our experience, it is common for clients to expect creatives professionals to comply with the above terms. These terms are also commonly found in client services agreements.However, as the law stands in Australia, if you use AI tools to create Client Content for a client, you may not be able to transfer legal ownership of the Client Content to your client, and deliver 'original' material to your client. If you can't, this puts you at risk of breaching express as well as implied terms of your client contract.
5. If you are unable to transfer legal ownership of Client Content to a client, here are some of the negative impacts and issues your client might face. Issue 1: Your client may not own important IP rights relating to their business that they absolutely need to own - this might become a critical issue, if your client wants to sell its business or seek investors. Issue 2: Your client's business and IP asset portfolio may be worth less. Issue 3: Your client may not be able to enforce their IP rights against a copycat/infringer because they do not own those rights in the first place (resulting in your client's valuable IP being copied). Issue 4: Any logo trade marks they file with IP Australia (which are also protected by copyright) may be void or challenged.
6. If you breach your client contract and fail to deliver legally sound IP assets to your client, your client may seek financial compensation and other remedies from you in relation. Your reputation may also be significantly damaged.

Key Takeaway for Creatives

Until the law in Australia around AI and copyright ownership is clarified and evolves to better support the use of AI tools, creatives should be very careful using AI tools to create creative assets for their clients, especially when their clients needs to own and protect the assets against infringement.

Get in touch!

If you are a creative and want to know more about how to protect your business, and your clients' businesses in the AI age, please get in touch with me on [email protected] or via DMs.

Disclaimer: The information in this post is of a general nature. It does not constitute formal legal advice, and should not be relied on as such. Please see the full disclaimer in our website terms. Please contact Studio Legal if you are seeking advice about a specific legal matter.