AI Content Generation Agreement: Key Terms, Ownership, Compliance
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What is an AI Content Generation Agreement?
With so many people using artificial intelligence (AI) to produce content, AI content generation agreements are becoming more popular and necessary.
These contracts explain and outline how generative AI is allowed to be used to create text, video, and other types of content. It features important terms related to intellectual property (IP), privacy, and more.
To better understand an AI content generation agreement, read the rest of this article. We’ll dive into what key terms are usually found in this contract, what to check for before signing it, and how a lawyer can help you draft or review it for accuracy, fairness, and legal soundness.
What is in an AI Content Generation Agreement?
An AI content generation agreement usually contains key components such as the following:
- Output ownership. This section of the agreement specifies if the client or provider of the content owns it.
- Roles. Duties of both parties must be defined so that AI is used with transparency.
- Usage. It’s important for the agreement to define how the content can be used and what’s prohibited.
- IP rights. The agreement should state that the content doesn’t violate any third-party IP rights.
- Liability and indemnification. This states who is responsible for issues such as copyright infringement.
- Disclosure. Since transparency is key, the agreement must clarify how the AI should be disclosed to users of the content.
- Term and termination. This specifies how long the agreement will last and governs rules for how the generated content is handled after contract termination.
What are Common Issues Found in AI Content Generation Agreements?
AI content generation agreements are prone to specific concerns. Being aware of these is important, such as when reviewing the contract, so that you notice any red flags and can seek clarification with the other party prior to signing it.
Legal Compliance
Since AI laws are evolving, it can be tricky to know what compliance is required. The agreement should be aligned with all relevant laws, not just those related to AI, such as privacy and copyright rules.
Unclear Ownership
If the contract doesn’t clearly specify which party owns the AI outputs, this can cause various problems, such as disputes or legal action. It’s also important to know who owns the content after the contract is terminated.
Lack of Disclosure
Without transparency in how AI has been used to generate content, this can result in problems such as a lack of client trust and business reputation harm. There are also legal risks involved. It’s essential for all parties involved to be open and honest about the use of AI.
Lack of Modification Provisions
If something goes wrong with the process, such as if there are biases introduced by the AI tools, there should be provisions included in the contract for how content can be changed. Human review or monitoring of systems is also advisable.
What Should You Do Before Signing an AI Content Generated Agreement?
You should never sign an agreement before you’ve had time to review it. Here are things to bear in mind so that you don’t rush into the process of accepting the agreement terms.
Review the Agreement
Take your time to read through everything in the contract, making sure you understand all the terms. You should make a note of anything that’s unclear or misleading.
A lawyer can help you review your AI content generated agreement for clarity. On online legal platforms like ContractsCounsel, you can easily request a review from a professional lawyer who’s been vetted on the platform. Here are the steps to follow:
1. Visit the ContractsCounsel marketplace.
2. Post your request for a legal review for free. Include a few details of what you require.
3. Wait for lawyer bids. Lawyers will send multiple bids to work with you on your project.
4. Review the lawyers' profiles. Before selecting the best lawyer for your requirements, view information provided on the platform, such as the lawyers’ locations, their years of experience and expertise, and client ratings for previous projects completed on the platform.
5. Select the best lawyer for your purposes and hire them.
Discuss the Agreement with the Other Party
Before agreeing to the contract, you should discuss any concerns you have with the other party. Negotiating aspects of the contract can help you get more favorable terms, such as regarding privacy, obligations, and duties.
A lawyer can help you with the negotiation process as they’re skilled at making offers, counter-offers, and pushing back without compromising the deal.
Consider Your Needs
It’s essential to think about what you need the AI content generation agreement for to check that it’s aligned with your goals. Focus on what the contract is for and if you need full ownership. This is the case if you want to engage in publishing or selling activities.
You should also consider if you need a long-term agreement or not. This will help you guide discussions with the other party.
Do You Need a Lawyer for an AI Content Generation Agreement?
Since AI content generation agreements can be tricky, it’s advisable to work with a professional lawyer who can help you in various ways. Here’s what a lawyer can do:
- They’ll review your agreement, not just read it. This ensures they’ll identify any risks or legal jargon that can be problematic.
- They’ll draft or revise the contract. They can make changes to the agreement so that it’s transparent, fair, and legal.
- They’ll negotiate for you. If you want to change anything in the document, your lawyer can help you by communicating with the other party and getting you a better deal.
- They’ll help you understand your legal risks. This will cover you if something goes wrong. They can also include clauses in the agreement that will protect you.
- They’ll keep you compliant. A lawyer will ensure that the agreement is aligned with all industry regulations and laws to keep you out of legal trouble.
Where to Find a Lawyer for an AI Content Generation Agreement
If you need to hire a professional, reliable lawyer to review, draft, or negotiate your AI content generation agreement, you can find one on ContractsCounsel.
On the platform, search for the best lawyer for your legal requirements according to factors such as their credentials, years of experience, and client ratings they’ve achieved on the platform. They have the skills to help you navigate all aspects of your AI content generation agreement so you can feel confident to sign it.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Meet some of our AI Content Generation Agreement Lawyers
Albert M.
I am a New Jersey licensed attorney and I have been in practice for over nineteen years. My practice mainly consists of representing public entities (municipalities, school boards, etc) and businesses, both small and large. In that capacity, much of work consists of drafting, reviewing and revising contracts.
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I am a corporate lawyer with expertise working with small businesses, venture capital and healthcare. Previously, I worked at large law firms, as well as head attorney for companies. I graduated from Harvard College and University of Pennsylvania Law School. I speak 5 languages (Spanish, French, Italian and Russian, plus English), visited over 60 countries, and used to compete in salsa dancing!
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Legal services cost too much, and are often of low quality. I have devoted my law practice to providing the best work at the most affordable price—in everything from defending small businesses against patent trolls to advising multinational corporations on regulatory compliance to steering couples through a divorce.
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Jo Ann J.
Jo Ann has been practicing for over 20 years, working primarily with high growth companies from inception through exit and all points in between. She is skilled in Mergers & Acquisitions, Contractual Agreements (including founders agreements, voting agreements, licensing agreements, terms of service, privacy policies, stockholder agreements, operating agreements, equity incentive plans, employment agreements, vendor agreements and other commercial agreements), Corporate Governance and Due Diligence.
"Greatly appreciate Jo Ann's responsiveness and quick turnaround. Brought an incredible amount of knowledge and experience to a project I have little experience in."
Don G.
Texas licensed attorney specializing for 22 years in Business and Contract law with a focus on construction law and business operations. My services include General Business Law Advisement; Contract Review and Drafting; Legal Research and Writing; Business Formation; Articles or Instructive Writing; and more. I am able to draft and review contracts, and have experience with, contract law and business formation in any state. For more insight into my skills and experience, please feel free to visit my LinkedIn profile or contact me with any questions.
"Don is very responsive, knowledgeable, efficient and professional."
Meghan P.
I am a licensed attorney and a member of the California Bar. I graduated from the University of Dayton School of Law's Program in Law and Technology. I love IP, tech transfers, licensing, and how the internet and developing technology is changing the legal landscape. I've interned at both corporations and boutique firms, and I've taken extensive specialized classes in intellectual property and technology law.
"Meghan was great to work with! She understood everything perfectly and delivered greatly."
Charlotte L.
I hold a B.S. in Accounting and a B.A. in Philosophy from Virginia Tech (2009). I received my J.D. from the University of Virginia School of Law in 2012. I am an associate member of the Virginia Bar and an active member of the DC bar. Currently, I am working as a self-employed legal consultant and attorney. Primarily my clients are start-up companies for which I perform various types of legal work, including negotiating and drafting settlement, preparing operating agreements and partnership agreements, assisting in moving companies to incorporate in new states and setting up companies to become registered in a state, assisting with employment matters, drafting non-disclosure agreements, assisting with private placement offerings, and researching issues on intellectual property, local regulations, privacy laws, corporate governance, and many other facets of the law, as the need arises. I have previously practiced as an attorney at a small DC securities law firm and worked at Deloitte Financial Advisory Services LLC. My work experience is dynamic and includes many short-term and long term experience that span across areas such as maintaining my own blog, freelance writing, and dog walking. My diverse background has provided me with a stong skill set that can be easily adapted for new areas of work and indicates my ability to quickly learn for a wide array of clients.
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