Overview
The intellectual property regulation community has been buzzing about how to deal with artificial intelligence and content produced by generative AI. Where might we see consumer survey research be used?
AI and IP
When people buy or make digital products, it is not always clear what they own. Often, we purchase licenses to the use of a product, rather than a physical copy of the product. For example, if we buy music online, we are most often buying revocable licenses and agreeing to certain terms. Licensing protections around digital IP do not typically fall within the jurisdiction of the Federal Trade Commission. However, if consumers are led to believe that they own or have certain rights because they licensed a product or produced work from licensed software, the FTC may be the regulatory body to defer to in the event of infringement or legal action. We can see instances of this arising when businesses change terms to licenses or functionality.
FTC Act Violations and Machine Learning
Section 5 of the Federal Trade Commission Act outlines what constitutes unfair or deceptive advertising statements. Recently, the FTC published a blog post that discussed how AI-generated content and licensure could trigger FTC enforcement. Here are some of the ways that AI-affiliated businesses could trigger FTC enforcement, and potential ways for consumer surveys to be used when seeking remedies.
Transferring a License, not Ownership
If a consumer believes that they are receiving ownership of a product or service, but are instead receiving a limited-use license, the seller may have violated section 5. The FTC has heard a number of cases cited as violations of section 5 as they relate to unfair practices related to subscriptions and cancellations, but with AI, the licensing has even more implications for changes of use and use following the subscription.
Training on Protected IP
If AI is trained on protected content, that must be disclosed. A company that fails to disclose this, and possibly the end user, could be held liable for any protected intellectual property in the products. These disclosures, and the extent to which they are communicated to consumers, could be measured by surveys, should they be challenged in a court of law or by a regulatory body.
Unfair or Deceptive? Cue Consumer Surveys
In a legal action alleging unfair or deceptive statements, MMR Strategy Group can help parties gather evidence using consumer surveys. Consumer surveys can measure what consumers understand an agreement to mean, what visual information to display, and much more. In cases arising from false and deceptive advertising or disclosures, courts and regulatory bodies often rely on consumer surveys. If you are involved in a legal matter or regulatory dispute arising from false or deceptive advertising or disclosures, contact MMR Strategy Group for reliable consumer survey research.