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AI Licensing and Contracts Andrew Katz Moorcrofts LLP www.moorcrofts.com [email protected]

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Page 1: AI Licensing and Contracts - AEA - EALaea-eal.eu/wp-content/uploads/2019/06/Presentation-Andrew-Katz.pdf · contract by translating contractual obligations into computer code In this

AILicensingandContracts

AndrewKatzMoorcroftsLLP

www.moorcrofts.com

[email protected]

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TwoIssues

Licensing:someaspectsofcopyright–no

patents!

Contracting:anoldapproachtoanewproblem

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CopyrightandAI

•  AI-generatedworks•  Infopaq:“Author’sownintellectualcreation”•  Incentivisation:creatingtheAIsoftwarein

thefirstplacewillproduceacopyrightwork.Whatareweincentivisingifwegrantprotectiontoitsoutput?

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TheEUStudy(2016)

“Cananautonomousrobotbedeemedtheauthorofanintellectualwork,entitlingittocopyrightprotection?”

http://www.europarl.europa.eu/RegData/etudes/STUD/2016/571379/IPOL_STU(2016)571379_EN.pdf

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TheFourModes

AICo-productionHumanselectionofpre-generatedworksBruteforceIndependentmachinecreationandselection

https://bora.uib.no/browse?type=author&value=Bøhler,%20Helene%20Margrethe

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ButintheUnitedKingdom…

CopyrightDesignsandPatentsAct1988(asamended):

s9(3):Inthecaseofaliterary,dramatic,musicalorartisticworkwhichiscomputer-generated,theauthorshallbetakentobethepersonbywhomthearrangementsnecessaryforthecreationoftheworkareundertaken

s173:“Computer-generated”,inrelationtoawork,meansthattheworkisgeneratedbycomputerincircumstancessuchthatthereisnohumanauthorofthework.

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NovaProductionsv.Mazooma

“…thearrangementsnecessaryforthecreationoftheworkwereundertakenbyMrJonesbecausehe…wrotetherelevantcomputerprogram…[he]thereforeisdeemedtobetheauthorbyvirtueofs9(3).

KitchinJhttp://www.bailii.org/ew/cases/EWHC/Ch/2006/24.html

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Notsosimple…

Iftheworkiscomputer-generated…copyrightexpiresattheendoftheperiodof50yearsfromtheendofthecalendaryearinwhichtheworkwasmade.(CDPAs.12(7))

Whatifsomeoneplaysagameof“PocketMoney”in150yearstime?DoesMrJones’sestateownthecopyrightintheimages?

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Notsosimple…

Whatifthewriterofthecodewasacontractorwhofailedtoassignfuturecopyrightinworksgeneratedbythecodetheywrote(asopposedtothecodeitself)?

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TheClean-RoomRewriteProblem

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Art1.2SoftwareDirective:

Ideasandprincipleswhichunderlieanyelementofacomputerprogram,includingthosewhichunderlieitsinterfaces,arenotprotectedbycopyrightunderthisDirective

WhatifweuseAItodoaclean-roomrewriteofapieceofsoftwarebydistillingitto‘ideasandprinciples’andre-creatingit?

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CommerceandMachines

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Contractingwithamachine

Vendingmachine–aunilateralcontractorstandingoffer

Smartcontracts–aconceptcoinedbyNickSzaboMinimisesthehumaninteractionAutomatestheexecutionandperformanceofthecontractbytranslatingcontractualobligationsintocomputercode

Inthisscenario,themachineissimplyatoolusedbythehumanagent

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Contractingwithanautonomousintelligentagent

NolongerjustameretoolAutonomousintelligentagentsmayformapparentlybindingcontractsinwaystheirhumanownersdidnotanticipateorwelcome

Contractformation:meetingof‘minds’?

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Autonomousintelligentagent

Autonomousandintelligent=capableofinteractingwithothersoftwareservices,andinitiatingandcompletingcertaintasks,withoutanydirectinputorsupervisionAgent=anythingthatcanbeviewedasperceivingitsenvironmentthroughsensorsandactingonthatenvironmentthroughactuatorsavarietyofentities(fromwebbotsorsoftwaretoprogrammedhumanoidrobots)

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Single-andmultiple-targetagents

Single-targetagentsaredesignedtooperateagainstasingleplatformeBaysnipingapplications–throughtheuser’saccount,theycanenterabidonbehalfofthesniperatthelastminute

Multiple-targetagentsaredesignedtointeractwithmorethanoneplatformorsiteTheapplicationmayscanallonlineauctionplatformsinordertopurchaseanitemforthebestpossibleprice

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The‘WalledGarden’effect

Theuserwouldhavetohadalreadyformedapre-existingcontractualrelationshipwitheachofthewebsitesconcerned,andhadconveyedthosecredentialstotheagent

Solution–multiplesitesallowAIAstotransactwiththemandpresentageneralAPItoeachagenttofacilitateaccessAlreadyusedfromenergymarkets(Engerati)tofinancialtrading(SWIFTnetwork)

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LeavingtheWalledGarden

IntheabsenceofsuchanunderlyinglegalframeworkallocatingrightsandresponsibilitiestopartiestransactingthroughAIAs è AIAsasagentscoupledwithastrict liabilityforanydamagecaused

Withincreasingcomplexity,thestrictliabilityprinciplemayproduceundueriskfortheowneroftheagent

Whoistheowner?Onwhomdoestheliabilityarise?

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RomanLawInAncientRome,commercialpracticesreliedonslaves– intermediariesthatarenotlegallypeople,butthings.Slaveslackedlegalpersonalityandthereforehadnocorrespondingrightsorresponsibilities,couldnotownproperty,sueorbesued

Yet,actingonhismaster’sbehalf,aslavecouldenterintoacontractandtherebybindathirdparty

Peculium=abundleofassetsallocatedtoslavestocarryoutspecificactivitiesonbehalfoftheirmasterThevalueebbedandflowedinaccordancewiththeslave'sbusinessandthesizeofapeculiumwasonlydeterminedwhenaclaimwasbroughtagainstit

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‘ElectronicSlave’metaphor

AparallelbetweenAIAsandRomanslaves–bothpossessvaluableskillsandcanindependentlyperformvariousimportantcommercialtasksuponcommand

AIAsdonothavelegalpersonality,completewithrightsandresponsibilities(yet),noraretheysimplyjustsophisticatedtools

Reducingfrictionincommerceisseenasagoodthing.

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Digitalpeculium

DigitalpeculiumasaspecialsetofrulesdefiningtheparametersofliabilityforAIAsinthecontextofcommercialtransactions

Authenticatedidentity,backedbyaninsurancescheme

Strikesabalancebetweentheuncertainriskoftechnologyandtheprotectionofhumaninterestsbylegalaccountability

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Plug

FutureLawSeries-EdinburghUniversityPressChapterontheDigitalPeculiumThankstoDrMichaelaMacDonaldQMUL.Duetobepublishedimminently…

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Thankyou

AndrewKatzMoorcroftsLLP

www.moorcrofts.com

[email protected]