Month: November 2024 | Kancelaria LBKP Legal

Chat GPT vs personal data

Posted on 27 November 202419 December 2024 by Jakub Chlebiej

A new article by our AI law experts entitled ‘Chat GPT vs personal data’ has appeared in ODO magazine

An interesting article entitled ‘Chat GPT vs personal data’ by Wojciech Kostka and Marek Czwojdzinski has appeared in the latest issue of ODO magazine.

The article takes a close look at the dynamic development of artificial intelligence and the associated challenges for personal data processing. Particular emphasis is placed on ChatGPT, the most popular AI tool, which is gaining increasing recognition worldwide.

The authors, Wojciech Kostka and Marek Czwojdzinski, analyse the key issues concerning the collection, processing and protection of personal data by ChatGPT, with a particular focus on compliance with RODO regulations.

The article answers the following questions:

How does ChatGPT process users’ personal data?

What are the main data protection challenges in the context of AI?

What specific steps is OpenAI taking to protect your information?

How do the RODO regulations affect the development and use of generative AI?

What are the potential risks and how can they be minimised?

This article is not only a technical analysis, but also an overview of the latest user privacy regulations and practices.

Find out how ChatGPT is tackling user data protection, what challenges it faces and what OpenAI is doing to minimise data risks.

We invite you to read the article in ODO magazine! ➡️ [link to article].

Consequences of failure to pay wages on time

Posted on 27 November 202421 December 2024 by Jakub Chlebiej

On the business portal ‘Puls Biznesu’ you can already read an article discussing the consequences of neglecting to pay wages. Failure to pay a salary transfer on time not only results in the accrual of statutory interest. It may also give the employee the possibility to terminate the employment contract without notice.

Our employment law expert, legal counsel Paweł Kempa-Dymiński, emphasises in his commentary that the employee’s actions must be proportionate to the breach committed by the employer. With short delays or minor arrears, immediate termination is generally not justified. In contrast, with long-term non-payment of wages, the employee is entitled to terminate the contract without notice and to receive compensation.

🔗 For detailed information on the consequences of non-payment of wages on time, see the article by Justyna K.

Link: https://www.pb.pl/skutki-nieterminowej-wyplaty-wynagrodzenia-1219796

🛒 Mr buy, Mrs buy – consumer rights vs. B2B sales 

Posted on 27 November 202419 December 2024 by Jakub Chlebiej

B2B, B2C– sounds a bit like chemical formulas, doesn’t it? 🧪 Rest assured, running an e-commerce business is not as complicated as doing a science experiment 😊. However, when planning to set up an online shop, you need to have some basic knowledge of selling inBusiness-to-Business (B2B)andBusiness-to-Consumer (B2C) channels , as well as selling to quasi-consumers. Yes, you are right to guess that what makes the aforementioned channels different is the audience to which your sales offer will be directed.

Selling to businesses and to individual customers, while having many similarities, are strongly different. On top of this, there is the sale to businesses, who in certain situations may be treated as consumers. The differences between the aforementioned sales channels relate to many aspects, such as the handling of the communication and marketing strategy, the purchasing process, pricing and payment types. However, what you absolutely have to bear in mind when starting your e-commerce business – and what we will focus on now – is that B2B and B2C sales involve a slightly differentlegal framework within which you will operate your online shop. 🛍️

What influences whether the customer of your shop is a consumer or a business? 🤔

The general rule of thumb is that there is more room for manoeuvre for the seller when trading in theB2Bchannel. This means that the B2B relationship as a two-sided professional relationship (seller – trader and buyer – trader) is deprived of the protective character enjoyed by the consumer as the weaker contractual party. In this case, the seller is bound by fewer ‘rigid’ rules enforcing specific solutions and the shopper’s rights can be shaped more freely. The situation changes when you identify that the purchaser of your goods or services is aconsumer, i.e. a person who makes a purchase not directly related to his/her economic or professional activity. 🛒

In both cases, the provisions describing your mutual rights and obligations – yours as a seller and those of your customers, whether they are businesses or consumers – should be included in theshop rules. You do not need to create separate rules and regulations for each sales channel (although you could, in theory) – it is enough if you adequately describe the rights of your customers-consumers and customers-businesses within a single set of rules and regulations. 📜

What issues should you describe depending on whether the buyer is a trader or a consumer? 🧐

Abusive clauses 🚫

The first issue is the so-calledabusive contractual clauses. According to the legislation, if a clause in a contract concluded with a consumer has not been individually agreed with him or her, such a clause is not binding on the consumer if it shapes his or her rights and obligations in a manner contrary to good practice, grossly infringing his or her interests.

Examples of abusive clauses:

A clause making the possibility of filing a complaint about a purchased good conditional on the consumer paying the shipping costs.

A clause assuming that the trader can change the shop rules at any time and without having to justify the reason for the change.

Before writing your shop’s terms and conditions, take a look at the Register of Prohibited Clauses and make sure you do not find anything you plan to include in the terms and conditions. Look at the subjectwith common sense– if a term or condition is not ‘fair’, abuses the seller’s position, deprives the consumer of some rights they normally have, you are treading on fragile ice. 🧊

Right of withdrawal 🛑.

You yourself have shopped online more than once as a consumer, so you are well aware that in the case ofB2Csales, the rule is that thecustomer canwithdraw from the sales contract within 14 days. This right cannot be limited by the trader to the consumer, except in a few special situations. It will be different if you are selling your goods to a trader.

Of course, you may provide for a buyer-trader right of withdrawal or return/exchange of goods (this is, in fact, often done by established e-commerce businesses), but in such a case, the buyer’s rights will be solely the result of your sales policy and you may shape them in a way that is convenient for your shop. 🛍️

Warranty and complaints 🛠️

By far the most distinction betweenB2BandB2Csales is in the area of the customer’s rights under thewarranty for defects of the goods sold(for consumer sales after 1 January 2023 – for non-conformity of the sold item with the contract). In the case of B2B sales, the customer’s rights can in principle be shaped freely by the trader. Meanwhile, in the case of B2C sales, the trader running the online shop must ensure that the consumer can exercise the warranty rights guaranteed by law. ⚖️

Information obligations 📝

Last but not least, in the case ofB2Csales, the Consumer Rights Act imposes an obligation on the trader running an online shop to provide the consumer with a range ofinformation, including but not limited to:

the characteristics of the product being sold,

the price of the product

The consumer’s rights in relation to the purchase,

contact details of the trader.

This very much influences the shape of the purchase path. Of course, also when selling in theB2Bchannel, you will provide your customers with a range of information, often overlapping with that for B2C sales, but the obligations related to the scope of the information provided and the level of detail will be much smaller in this situation.

Can a trader be a consumer? 🕵️‍♂️

Finally, a small exception 😉 While until 31 December 2020, the division between consumers and traders outlined above was clear and did not give rise to any exceptions, you need to know that from 1 January 2021, a new, third category of entities has emerged – namely, the so-calledconsumer trader.

Who is that? 🤔

It is about sole traders, i.e. natural persons running a sole proprietorship registered in CEIDG, who conclude a sales contract directly related to their business activity with a trader running a shop, if it follows from the content of the contract that it does not have a professional character for that person.

Examples:

A lawyer who buys a printer for his office 🖨️.

A doctor who buys a car to commute to his hospital 🚗.

An architect buying a coffee machine for the office ☕.

Generally, for such customers, you will have to ensure that they are treated as consumers in your shop, although – for consolation – in the event of a dispute, it will be the buyer who will have to prove that he or she is entitled to business status under consumer rights.

Attention! ⚠️

In the market, you may also come across the term prosumer, but remember that the termprosumeris also used in the RES Act and refers to a person who is involved in the production and subsequent consumption of what they have produced (e.g. electricity). The two prosumers should therefore not be confused! ⚡

Sounds complicated? Yes, creating good online shop rules and regulations that guarantee compliance with all regulations is not the easiest thing under the sun, but it can be done! If you need support, contactLBKP, the e-commerce experts who have prepared the legal part of our guide. 📚

The internet has no borders – or the legal issues of selling services and products abroad

Posted on 27 November 202421 December 2024 by Jakub Chlebiej

Back in 2003, a Polish band sang in German that there are no borders. A lot is right about that, whereas fortunately we are in the year 2024 and your e-commerce opportunities go one step further: you can sell online to more than 3 people (you could say:Their More) and not just in Germany! 🌍

Moving smoothly on to the legal issues you need to pay attention to when selling your services and products abroad, let’s look first and foremost at the documentation necessary for the correct and legal operation of your e-commerce, which consists of ..:

📜 the terms and conditions of the online shop

🔐 privacy policy (information obligations under RODO and cookies)

✉️ newsletter regulations (if foreseen)

🔄 returns and complaints regulations

📜 shop regulations

Of the above-mentioned documents, the most relevant, and the one we recommend starting with in order to complete the relevant documentation, is the webshop regulations.

This is a rather complex issue, but in order to make your life easier in the future and to comply with legal requirements, it is advisable to define, amongother things, ..:

⚖️ applicable law– It is up to you which applicable law you choose. Obviously, in the case of a Polish shop, it will be the easiest and safest to choose Polish law. Add also that the choice of this law does not deprive the consumer of the protection granted under the laws of the customer’s country of origin.

🛒 the range of electronic services available– This is about what the customer can actually do in your shop. Usually issuessuch as user account, newsletter, conclusion of sales contracts etc. are mentioned.

💸 terms and conditions of the sales contract– A very important part of the terms and conditions. It is worth indicating here the times of purchase, currencies, methods of payment and fulfilment of the order, or the issue of taxes.

🚚 delivery termsand conditions– Specify issues such as shipping costs, available delivery methods, delivery times.

🔄 terms of complaints– It is useful to have a procedure in case of complaints. Specify what the customer’s entitlements are and within what timeframe.

🤝 conditions for out-of-court complaint handling (ADR)– Indicate the possibilities for out-of-court complaint handling, even if it is not mandatory.

📝 s ample documents– It is useful to include sample forms, e.g. complaint and withdrawal.

🔐 Privacy policy, i.e. information obligations under RODO and cookies

Meeting the personal data obligations imposed by the RODO is another important topic. It is mainly about information obligations towards the customer and information regarding cookies.

In your privacy policy, explain, amongother things..:

Who you are and how you process customers’ personal data,

What rights the customer has in this respect,

What data is collected, for what purpose, on what legal basis and for how long it is processed,

Who has access to them.

In addition, specify in a separate document what cookies are, what types of cookies there are and for what purposes they are used by your e-commerce.

✉️ Newsletter and returns and complaints regulations

Remember that these terms and conditions are also important parts of your documentation, especially if you sell abroad. You will need to make them available in English. 📄

🚫 Geoblocking

Geoblocking (geo-blocking) is the restriction of users’ access to a specific site based on their country of residence or stay. However, legislation has been introduced to prohibit such discrimination in trade within the EU.

An interesting example of geoblocking is access to streaming platforms, such as Netflix, where the offer can vary from country to country. 🌍

📝 Internet consent practices

It is worth bearing in mind that despite pan-European regulations, different countries have different practices regarding consents for processing personal data or sending newsletters.

🚀 Summary

Careful preparation of e-commerce documentation is the first step towards success. Well-prepared documentation will avoid disputes with customers and build a positive image of the company.

If you need a consultation– contact us 📞

I consent to … or data protection in e-commerce

Posted on 26 November 202421 December 2024 by Jakub Chlebiej

📌 Running an online shop without processing customers’ personal data is impossible. Or rather, not only impossible, but also devoid of much sense. What you simply need to know is that such processing is regulated by the EU Data Protection Regulation (RODO) and involves, among other things,collecting, recording, storing, amending, sharing and deleting your customers’ data. You’ve certainly heard of RODO – since it’s in force (2018), information clauses can literally jump out even from the fridge.

So, wanting to be legally compliant, you need to remember to include in your e-commerce:

an information clause/privacy policy,

and, in some situations, consent clauses for data processing.

As a trader, you must inform your customers that you are processing their data at the latest at the time you collect the data, or in due time if you obtain the data through a third party. In practice, you can do this at the stage of creating an account, placing an order, sending an enquiry via a contact form or subscribing to a newsletter, among other things.

📌 You have various options for implementing the information obligation, you can, for example:

include all (complete) information at each data collection point, or

place short references in the aforementioned places redirecting you to the privacy policy, which will describe in detail the data processing processes within your shop.

👉 In practice, the second solution is most often chosen. It is simpler and definitely reduces the amount of text placed in each place where a customer can share their data with you.

Remember that taking consent for data processing is not always necessary or justified, and sometimesit is a mistake. In e-commerce shops, it is common to see consent checkboxes for processing personal data, e.g. to process an order placed. However, such an action is not correct. The regulations provide for various grounds for data processing – one of them being the necessity for the performance of the contract, i.e. precisely the delivery of the goods ordered by the customer. In this case, taking additional consent for the same will generate more problems than good for you.

For what purposes can you use customer data? 💻

Customer data is usually processed for account creation, order processing or statistics and marketing activities. In doing so, the regulations are quiteflexibleand do not define specific possible processing purposes.

📲 However, you should remember that your customers’ data:

are not collected ‘for back-up’, but only for explicit and legitimate purposes that you define at the time of collection;

are only collected to the extent necessary to fulfil the purposes, i.e. do not collect more data than you actually need;

kept no longer than necessary;

were secure – most high fines (yes, there are fines for breaches of RODO and they can be very high) are due to security breaches, which in addition can be fatal to your image and customer trust. Of course, the customer should be aware of the purposes for which you are processing their data. Inform him or her by placing a so-called information clause at the point where data collection starts.

📌 How to ‘slim down’ the purchase path to sell more effectively

Creating a user-friendly purchase path and eliminating excessive content is your goal. Keep consents as short as possible and shorten the required information obligations. This will help customers stay on your shop page longer and fill up the virtual shopping cart.

Regulations require a lot of different content to be included in the purchase path. However, you can simplify them by avoiding complicated legal language. Your customer will appreciate simple and understandable messages.

Example

The regulation requires you to collect consent for ‘the use of telecommunications terminal equipment for direct marketing purposes, in the form of text messages sent to the mobile phone number I have provided below, in accordance with the Telecommunications Law of 16 July 2004 (Journal of Laws No. 171, item 1800)’.

You can simplify the content to, for example, ‘I agree to receive newsletters in the form of SMS to the telephone number provided’.

Do you see the difference? 🧐

You have more options like this, if only when communicating the information clause required by RODO. You can include only brief references/hyperlinks at the data collection points linking to the comprehensive information provided, for example, in the privacy policy tab. Don’t let the data processing information take over the purchase path!

New sales channels, same consents and customer accounts

Yes, yes it is possible, however you must verify the documents you have and make sure they cover the planned activities. However, if the agreement you have concluded with the customer only concerns the maintenance of an account within a service available at a specific address, the launch of an account on a mobile app will require an adaptation of the consent and therefore an amendment to the terms and conditions. Once the consent has been extended accordingly, the customer will be able to use the account on the mobile appwithout having to register again.

The second document to review, besides the terms and conditions, is the information clause provided to the customer previously under the RODO. Make sure that the information in it was universal enough to also cover this channel. If not then it should be supplemented.

👉 Data collected in e-commerce versus stationary business

You may be wondering whether you can also use the data collected in your e-commerce shop for your stationary shop activities. The answer is yes. For example, you have launched a loyalty programme that entitles you to discounts, promotions or rewards received in the stationary shop, you can also include purchases made in the online shop. You want to carry out other marketing activities in stationary shops based on consents collected in the online shop, this is also possible. The current regulations favour such solutions.

👉 Usually, the consents obtained in e-commerce for data processing for marketing purposes are sufficient to be able to organise marketing campaigns also in the stationary shop.

The same is true for newsletter consent. You have consent for a newsletter concerning your online shop then you can include information about your stationary business in it. The idea is to obtain consent for a ‘general’ newsletter promoting your goods or services. Make sure that the information provided to the customer is asuniversalas possible – do not include provisions that limit the planned activities only to the online shop. This is important because the customer needs to know that his or her data collected in the online shop is also processed for stationary business purposes.

Too many consents, data and clauses? Not a problem, contact LBKP, the experts in new technology law who have prepared the legal section of our guide. They will be happy to answer your questions.

Dr Wojciech Lamik nominated in the Rising Stars 2024 competition

Posted on 26 November 202426 November 2024 by Jakub Chlebiej

✨ Wojciech Lamik is going like a storm, with steadfast determination and passion conquering successive peaks, proving that no challenge is too great when vision is combined with action.

We are delighted to announce that Wojciech has been nominated for a prestigious award in the 8th edition of the competition organised by Wolters Kluwer PolskaRising Stars Lawyers – Leaders of Tomorrow 2024! Among many outstanding candidates, it was his impressive substantive knowledge and extensive experience that made him stand out.

Wojciech specialises in the law of new technologies, the protection of personal data and personal rights, IP and e-commerce, including in particular the implementation of the Digital Services Act. Over the years, he has developed his skills by gaining experience in leading law firms in Wrocław, Warsaw and Katowice and in the Security Department of one of the largest banks in Poland.

His academic achievements include a PhD defended at the University of Wrocław, numerous scientific articles in the field of new technology and personal data law and co-authorship of monographs and commentaries on the latest legal regulations such as RODO or the Digital Services Act. ⚖️💻

Wojciech is active in promoting legal standards in new technologies:

🔷 as chairman of the Committee on New Technologies and Digital Transformation at OIRP Wrocław

🔷 Coordinator of the New Technologies team at the National Council of Legal Advisers.

🔷 Co-host of the popular podcast ‘Law and New Technologies’, which has gained thousands of listeners

At the end of September this year. Wojciech was also elected as:

🔷 Member of the Council of the OIRP in Wrocław for the term 2024-2028.

🔷 delegate to the National Congress of Legal Advisers.

In addition, Wojciech receivedthe Silver Badge of ‘Merit for the Self-Government of Legal Advisers’ – this prestigious award sums up his commitment to the self-government in recent years. 🏅

His passion for the development of new technology law not only inspires, but also influences real change in the industry. We congratulate Wojciech on this exceptional nomination and keep our fingers crossed for further success! 🚀

#RisingStars #Nomination #LeadersTomorrow #Competition #WoltersKluwer #LBKP

Open AI OASIS

Posted on 26 November 202419 December 2024 by Jakub Chlebiej

The AI-generated revolution and the challenges in the game dev industry (and beyond).

What is and what opportunities does artificial intelligence (AI) offer under the Open AI Oasis, and how does AI regulation change the rules of the game from a legal perspective?

Source: www.oasis.decart.ai/introduction

AI – from experimentation to revolution in more industries

Artificial intelligence (AI) is increasingly boldly entering more industries and sectors. Not long ago, there were huge (but mixed) excitement about language models based on machine learning/deap learning: ChatGPT, designed by OpenAi, or the increasingly popular Gemini from Alphabet (owner of Google), which have now become part of the canon of standard tools used by businesses in virtually all industries. There is equal excitement about graphical tools using AI (such as Midjourney, DALL-E3 or Canva AI Art Generator).

The basic questions that arise in this thread are: will they replace graphic designers and artists? And another, also crucial: is it good for the world/creative industry?

In recent days, numerous discussions have been sparked by the Spanish fashion chain Mango, which has decided to replace some models with those generated by artificial intelligence. ‘It’s about creating content faster,’ said CEO Toni Ruiz. Mango thus joins other brands such as Levi Strauss & Co., Louis Vuitton and Nike, which have already partnered with AI modelling companies. The financial benefits are obvious – as the use of AI goes well beyond marketing and advertising. For example, it helps to design collections, providing inspiration for fabrics and more.

‘The bot is now able to create clothes in line with Mango’s design aesthetic,’
– Ruiz, quoted earlier, said.

AI in the game dev industry

AI has already entered the games industry as well (despite the numerous negative evaluations and feelings of some players). And it is not just a matter of supporting their production process with, among other things, the aforementioned tools or ‘automating’ the creation of game lore or the story itself. We are already talking about games generated by AI in real time – depending on the player’s preferences or decisions.

In particular, the creative aspect, a kind of ‘x-factor’, which is supposed to distinguish masterpieces, true ‘gems’ (requiring human emotion or thought) from games written by a ‘machine’, is up for debate. Comparisons are often made to series or films (especially so-called ‘blockbusters’), which are not intended to have a typically artistic value, but simply to tick off a list of items that modern audiences (according to trends) simply want to watch. If some film projects are written in this way by humans (going by the points on the list that the studio imposes), then the natural next step seems to be to outsource this to increasingly sophisticated AI.

Source: www.oasis.decart.ai/starting-point

Open AI OASIS – the first fully private, real-time AI-generated project

Not so long ago, would we have been able to imagine that any of the generative AI models on the market would manage to generate something that could be called a ‘game’? Working together: Etched and Decart, which specialise in AI, have released the first fully playable project called ‘Open AI OASIS’. This game is based on AI generating video, but unlike the competition, it creates a frame-by-frame image based on user interaction. The image is rendered in real time at 20 frames of animation per second.

‘Oasis is the first step in our research into more complex interactive worlds,’
– write the producers.

Open AI OASIS is reminiscent of Minecraft at first glance (not without reason). So we can move around in it, build, influence blocks and use equipment. The model was trained using Diffusion Forcing on a huge dataset from Minecraft using OpenAI open source code. ’

Open AI OASIS can be customised to generate a wide range of new maps, games, features and modifications with limited additional training”
– claim the developers.

According to the creators (and comments from the market), this is only a foretaste of what lies ahead. In the future, we will be able to ‘animate’ any image. Already, many creators see huge potential for AI in interactive videos, which will be able to bring much more advanced, if only graphically advanced, worlds to life than that of Minecraft (which has won the hearts of gamers with, among other things, its graphical simplicity, yet offers virtually unlimited creative possibilities). Open AI OASIS itself attracted so much interest that, in just over three days of its launch, it managed to attract one million unique players testing this demo version.

Open AI OASIS brings new opportunities for players

For the time being, the game seems to be more of a curiosity (while already offering a surprisingly large number of possibilities), which will be developed further, especially once it has the support of the community. However, it seems only a matter of time before there is a rash of clones or titles inspired by the idea itself. In time, there will probably be fully-fledged (no longer purely experimental) titles based on similar premises. Are they the future of the industry and can they creatively replace game developers (and capture that ‘x-factor’)? Voices are, as usual, divided and it is hard to give a definite answer here at this stage – with the industry (and AI tools) evolving so rapidly.

It is certainly not a phenomenon that can be downplayed (as Kodak once did with digital photography). After all, who among gamers has not dreamt at least once of becoming the creator of a dream game, developed according to their own expectations and preferences? To some extent, this function was fulfilled by mods (game modifications) created by the gaming community, changing certain elements of the game: from outfits or the appearance of weapons, to changing certain mechanics (often those annoying the players) and developing the plot line itself. This could be an ideal option for the game dev community, especially for those who are not interested in mods in their current form – because they do not have the knowledge, skills, time, etc. to create mods on their own. An AI module, implemented in the game, would suffice here, where players would simply type in certain prompts and, within a certain (probably ever-widening framework), get what they ‘dream of’.

Law in gaming – how do AI regulations change the rules of the game?

And this is where the standard issues for AI classically arise (because they must), in particular the issues of setting ethical and legal boundaries for such interference and the development of a given product. In particular, copyright (who will be the author and to what extent?), issues of personal data (we assume that a given product learns from the player and can process the player’s data in many fields) or liability for content generated in this way (especially if it violates certain laws or rules; so-called ‘ unlawful content’).

It seems that the issue of protecting against excessive interference with such code or intellectual property of game dev studios will become even more difficult. Although there is a growing trend in the market (going hand in hand with the aforementioned ‘revolution’) to standardise production, even of the biggest games, on a common engine developed by many game dev studios. A key and prominent one in recent years has been the one created by EPIC Games: the Unreal Engine. This one, in its latest version ‘5 ’, will be used, for example,in CD Projekt RED’s latest games (which may be related to RedENGINE’s problems with Cyberpunk 2077).

Open AI OASIS and the law

The legal documents available on the Open AI OASIS website are, for the time being, very standard (the Terms of Use itself subject to New York State law) and do not adequately address many of these issues. The law will cover and regulate these issues in increasing detail – that much is certain. It already raises many questions to which there is no clear answer (so these issues are regulated contractually, and even here they raise many questions).

We are watching the development of AI with great curiosity, including in game dev. The coming years seem to be a period in which the application and impact of AI on the game dev industry (and beyond) will exclusively progress. At what pace and to what extent? This is something we are unable to predict.

If you are struggling with similar issues and are looking for answers to key legal questions (because, for example, you want to use AI in your business, not just in game dev), we would be happy to support you in these matters – also in our practice both #AI and #game dev are the subject of numerous studies, contracts and implementations for our clients.

Feel free to contact us!

_________________________________________

Wojciech Kostka

Specialises in new technology law, real estate, IT, intellectual property, data protection, e-commerce and business and M&A law.

He has been involved in the GameDev industry for many years, where he has gained valuable practical experience as an enthusiast in this field. Considered one of the most experienced legal experts in the GameDev sector in Poland, he is the author of many publications on GameDev law. He currently serves as Vice Chairman of the Supervisory Board of Techland S.A., where some of the world’s most anticipated games are developed.

He advises on strategic projects, negotiating key domestic and international trade and investment agreements. He has extensive experience in the e-commerce industry. Actively supports clients in data protection projects in the operations of Polish and global capital groups (including international data flows).

Sources:

www.oasis.decart.ai
www.wirtualnemedia.pl
www.gry.interia.pl

Suno AI – your personal composer and singer in the world of artificial intelligence

Posted on 25 November 202419 December 2024 by Jakub Chlebiej

In recent years, the development of artificial intelligence (AI) has revolutionised technology and the fields of arts and culture, while at the same time posing challenges around the law of new technologies, copyright and ethics in AI-generated creations. Can music created by platforms such as Suno AI be sold? Is it legal, and what is the copyright issue in the context of new technologies?

Source: www.suno.com

Brief on Suno AI

One popular platform that uses artificial intelligence to create music is Suno AI. It allows users to customise compositions through instrument selection, arrangement and sound effects, making it a tool for both amateur and professional musicians.

AI has increasingly caused controversy in art competitions such as the Colorado State Fair and the Sony World Photography Awards, where its use has undermined the integrity of the competition. Despite the doubts, the US National Academy of Recording Arts and Sciences has announced that songs using AI are eligible to compete for a Grammy award, provided that artificial intelligence does not play a dominant role in them. The fact is that the use of AI in the art world creates room for various abuses. Examples of fraud include the generation of images, texts or photos by AI, forcing organisers to update rules and regulations and use tools to detect content created by algorithms.

While AI can foster creativity, its misuse poses legal, ethical and fair competition challenges.

Source: www.suno.com

Are Suno AI songs legal and can they be sold?

Free users of Suno AI can only create music for non-commercial use, while subscribers to the Pro and Premier plans have the right to monetise it according to the platform’s terms and conditions. Choosing a paid plan allows commercial use of the songs and reduces legal risks.

Free users must always acknowledge Suno AI’s authorship when publishing all their creations (e.g. by briefly stating ‘Created with Suno’) – paid users may or may not do so.

Is it possible to monetise Suno AI on YouTube?

If a user wants to use music created with Suno AI on YouTube and monetise it, there are some legal issues to consider. Using the free Suno AI plan only allows you to create music for non-commercial purposes, so you cannot monetise these tracks on YouTube. In order to have the right to monetise, you need to upgrade to a paid subscription plan (Pro or Premier), which allows commercial use, including monetising YouTube ads, as long as you comply with Suno AI’s terms of service. It is important to create your own lyrics and, when using copyrighted song lyrics, you must obtain the appropriate permissions to do so to avoid legal issues.

Legal risks – does Suno AI have any limitations?

Who should be considered the owner of a song created by AI? – Copyright.

As the law currently stands, authorship is attributed to humans, which complicates the situation for music generated by algorithms. The owner could be the software developer, the user using the AI or, in theory, the AI itself. There have already been court cases in the US and EU that are beginning to frame these discussions, but there are no clear standards.

In the context of Suno AI, the owner of the created song becomes Suno AI in the case of free users. Paid subscribers become the owners of songs created using Suno AI. However, what is cleverly referred to by Suno as ‘ownership’ does not imply full copyright ownership of Sunu AI’s creations.

Using the lyrics of well-known songs, even in the case of AI-created music, can lead to copyright infringement. Original lyrics remain protected by copyright, and using them without the appropriate licences may have legal consequences and may outweigh potential profits.

Copyright offices, such as the U.S. Copyright Office and ZAiKS, are developing guidelines for the notification of AI-created works to define precisely what can be protected by copyright and what information is required for registration.

ZAiKS on the copyright of works created by AI

On 11 June 2024, ZAiKS (the Association of Authors and Stage Composers) announced that works created solely by artificial intelligence will not be protected by copyright or subject to licensing. Only human-created works will be protected by law, and AI-supported works in which the creator has freedom of choice may be registered under the existing rules.

In March 2023, the US Copyright Office published guidelines for the registration of AI-assisted works, which specify that works created solely by AI are not protected by copyright. Creators must document their substantial contribution to the creative process and clearly identify the extent to which AI was used in the creation of the work.

Plagiarism versus inspiration – is it legal to rework songs?

Music generated by AI is often based on the analysis of existing songs, which updates the risk of accusations of plagiarism. If the generated song resembles a copyrighted work too closely, a conflict may arise. It becomes crucial to determine what originality criteria should apply in the assessment of AI-generated works.

Intellectual property of databases

AI, including Suno AI, learns from vast amounts of music data. The use of this data may infringe the copyright of its original creators if appropriate licences are not obtained. Regulations enforcing transparency in the process of training models could help solve this problem, but global standards are still lacking.

Music created by artificial intelligence. Enforcement issues

Generating music on a massive scale, often anonymously and across borders, makes copyright enforcement difficult. An example of this is when songs created by AI are sold on digital platforms without the consent of the rights owners of the source material on which the algorithm has learned.

The boundary between an artist’s work supported by AI and a work created entirely by AI depends on the degree of human control and creative input. If the human’s role is limited only to initiating the process and all the rest of the work is done by AI, such a work will not be protected by copyright.

Music labels against Suno AI

The dilemma of whether AI reflects or copies musical ideas is just playing out before our eyes, raising questions about the limits of machine creativity.

Around 200 artists, including Billie Eilish and Nicki Minaj, have signed a letter calling for an end to the ‘predatory’ use of artificial intelligence in the music industry. The artists expressed concerns that AI could threaten their work and artistic values, demanding copyright protection and fair treatment for creators.

Lawsuits for using songs to train AI models

On 24 June 2024, the Recording Industry Association of America (RIAA) filed two lawsuits alleging copyright infringement of sound recordings allegedly copied and used without permission to train genAI’s music generation tools Suno and Udio, seeking damages of up to $150,000 for each infringed work. Music labels such as Sony Music, Universal Music and Warner Music, which represent the interests of copyright owners of sound recordings, are also plaintiffs in the case.

Allegations include the use of protected works to train AI models without the consent of the rights holders and the generation of music that mimics the style and work of artists, which may mislead consumers. In the lawsuits, the labels are seeking three settlements: an acknowledgement of copyright infringement of sound recordings by both services, an injunction against further infringement and damages for infringements already committed.

The lawsuit points out that Suno and Udio create songs, such as ‘’, that are so similar to the original ABBA recordings that even the band’s most devoted fans would have difficulty distinguishing between them. Other songs mentioned in the lawsuit include Mariah Carey’s ‘All I Want for Christmas is You’ and ‘My Girl’ by The Temptations.

A ruling that will have an impact on the music industry

The RIAA’s chief legal officer, Ken Doroshow states that:
‘these are clear cases of copyright infringement involving unlicensed copying of sound recordings on a massive scale. Suno and Udio are attempting to hide the full extent of their infringements, rather than basing their services on solid and legal foundations. These lawsuits are necessary to reinforce the basic principles of responsible, ethical and legal development of generative AI systems and to end Suno and Udio’s blatant copyright infringement.’

Udio representatives claim that their system is designed to create music that reflects new musical ideas. In addition, they assure that the company has implemented and continuously improves advanced filters that prevent the copying of copyrighted songs and artists’ voices.

In a statement provided to Music Week, Mikey Shulman, CEO of Suno, said:
‘Suno’s mission is to enable anyone to create music. Our technology is groundbreaking; it is designed to generate entirely new results, not to memorise and repeat existing content. That’s why we don’t allow user queries relating to specific artists to be entered … Suno was created with new music, new applications and new musicians in mind. We value originality.’

The complaint against Suno is available here. The ruling could have implications for the development of AI and the music industry.

Suno AI – opportunities for the music industry in a legal context

Suno AI-generated music, offers exciting possibilities, but at the same time poses many challenges for the legal industry. Are the current regulations sufficient? We need innovative regulations that take into account the specificities of AI creation while protecting the interests of artists, producers and users.

Suno AI can become a catalyst for modern licensing agreements. Automated music generation enables the development of solutions such as end-user sub-licences, which allow the widespread use of works in multimedia projects. It is also possible to introduce automated cloud-based licensing that simplifies the process of obtaining approvals for music use, eliminating the need for time-consuming negotiations.

With AI technology, legal issues can become more efficient. Automation of licensing rights makes it easier to quickly obtain licences for advertising, games or audiovisual productions. An example is the generation of ‘sounds on demand’ by Suno AI, which allows small companies and individual creators to use professional music resources without having to invest in expensive productions.

Another important aspect is the possibility of creating open databases with AI-generated music. Regulatory support for such initiatives could increase the availability of music resources, which would have a positive impact on the development of culture and creativity.

The future of licensing?

International legal standards are needed to regulate the authorship and licensing of AI-generated music. One possibility is the introduction of new legal categories such as ‘co-created works with AI’.

Blockchain technology and smart contracts could simplify licensing issues by introducing transparency and automation in copyright. With these tools, the history of the generation and use of works could be tracked, ensuring that creators are appropriately compensated.

The discussion on the future of copyright and licensing in the age of artificial intelligence is just beginning. Collaboration between the legal, artistic and technological communities will be key to developing solutions that maximise the potential of AI while minimising the risk of conflict and abuse.

We look forward to hearing from you!

________________________________

Mateusz Borkiewicz

Mateusz specialises in data protection, information security (with a particular focus on cybersecurity and privacy), e-commerce, IP, IT, AI systems, new technologies, contracts and consumer protection law matters.

He advises on strategic issues, including data protection, within Polish and international capital groups (with particular emphasis on cross-border data transfers), e-commerce projects, artificial intelligence, ML in e-marketing, spam and infringement of personal rights on the internet.
Mateusz is a frequent and valued speaker at conferences, seminars, advisory panels and workshops. He is the author of numerous publications on legal challenges involving data protection law matters and co-author of two books on privacy and data protection topics (“Personal Data Protection in HR Departments According to GDPR” and “Personal Data Protection in the IT Department”) published by PRESSCOM Publishing House. Mateusz is also the author of a book on the Digital Services Act.
He worked for one of Poland’s largest law firms, where he led the Wroclaw office and headed the firm’s new technologies (TMT/GDPR) practice.
LOB/industries served: IT, software, cloud computing (SaaS, IaaS, PaaS), web and mobile applications, IoT, AI, e-commerce, e-learning, e-sports, game development, marketing, influencer marketing, media, VR, AR, non-profit, advisory and consultancy, e-medicine, retail sales, manufacturing and extractive.

What legal challenges does artificial intelligence face?

Posted on 14 November 202419 December 2024 by Jakub Chlebiej

What legal challenges does artificial intelligence face? 🤖 Then we have something for you! The article ‘Legal guide to AI’ prepared by our experts Advocate Mateusz Borkiewicz and Advocate Grzegorz Leśniewski is a real mine of knowledge 🧠 for everyone who wants to better understand the legal side of AI .

What do you find in the article? 📚

For geeks: Section 1 is an in-depth legal analysis of AI
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For practitioners: Sections 3-5 are substantive practical questions and answers – ideal for those looking for specific guidance on how to legally use AI in their day-to-day business.

Why it’s worth reading. 🌍

In an age of rapidly evolving technology, questions about the legality of AI and accountability for its activities are becoming increasingly pressing. This guide not only answers these questions, but also shows you how to navigate effectively to avoid potential pitfalls.

👉 You will learn, among other things:

Is it legal to use AI? 🔍
Who is responsible for AI mistakes? ⚖️
How to create AI legally? 💻
How to use AI tools safely in a company? 🛡️

Click and explore AI in a legal context with LBKP! 📲(all text to be a link to the article)

https://www.legal500.com/firms/239992-lesniewski-borkiewicz-kostka-partners/c-poland/news-and-developments/legal-guide-to-ai-by-lesniewski-borkiewicz-kostka-partners

The AI-generated revolution and the challenges in the game dev industry (and beyond).

AI – from experimentation to revolution in more industries

‘The bot is now able to create clothes in line with Mango’s design aesthetic,’

AI in the game dev industry

Open AI OASIS – the first fully private, real-time AI-generated project

‘Oasis is the first step in our research into more complex interactive worlds,’

Open AI OASIS can be customised to generate a wide range of new maps, games, features and modifications with limited additional training”

Open AI OASIS brings new opportunities for players

Law in gaming – how do AI regulations change the rules of the game?

Open AI OASIS and the law

Feel free to contact us!

Brief on Suno AI

Are Suno AI songs legal and can they be sold?

Is it possible to monetise Suno AI on YouTube?

Legal risks – does Suno AI have any limitations?

Who should be considered the owner of a song created by AI? – Copyright.

ZAiKS on the copyright of works created by AI

Plagiarism versus inspiration – is it legal to rework songs?

Intellectual property of databases

Music created by artificial intelligence. Enforcement issues

Music labels against Suno AI

Lawsuits for using songs to train AI models

A ruling that will have an impact on the music industry

Suno AI – opportunities for the music industry in a legal context

The future of licensing?

We look forward to hearing from you!

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