Artificial Intelligence and Intellectual Property Law: Ownership, Copyright, Trademarks, and Business Risk in Pennsylvania, New York, and Nationally

Artificial Intelligence and Intellectual Property implications

Artificial intelligence now creates written content, logos, software code, music, designs, and marketing materials at a speed never before possible. For businesses, this raises a fundamental legal question: who owns what AI creates. As a business attorney licensed in Pennsylvania and New York, Todd Nurick of Nurick Law Group regularly advises companies nationwide on how intellectual property law intersects with artificial intelligence and automated content systems.

AI adoption creates opportunity, but it also introduces serious legal uncertainty around ownership, infringement, licensing, and enforcement. Businesses that use AI without understanding these risks may unintentionally forfeit rights or expose themselves to costly litigation.

Copyright and Artificial Intelligence

Human Authorship Remains the Foundation of Copyright

United States copyright law is grounded in human authorship. The United States Copyright Office has issued multiple rulings confirming that works created entirely by artificial intelligence without meaningful human involvement are not eligible for copyright protection. If a business relies solely on AI to generate text, artwork, music, or code, that output may be legally unprotectable.

This means competitors could lawfully reuse that content without permission if no qualifying human creativity is involved. Businesses that want copyright protection must ensure that humans meaningfully shape, edit, select, or direct the final work.

Infringement Risk from AI Training and Output

AI systems are trained using massive datasets that may contain copyrighted works. If AI output is substantially similar to a protected work, the business that uses the output may face infringement claims even if the copying was unintentional.

This risk affects marketing content, software development, design work, and advertising. Businesses remain legally responsible for the content they publish, regardless of whether it was generated by AI.

Trademarks and Service Marks in the AI Era

AI Generated Branding Can Create Trademark Risk

Businesses now use AI to generate brand names, logos, slogans, and taglines. However, AI systems do not reliably screen for existing registered trademarks. A generated name may already be in use in Pennsylvania, New York, or nationally.

If a business adopts an AI generated brand without a proper trademark clearance search, it may face cease and desist demands, litigation, product relabeling, and loss of goodwill.

Ownership of AI Generated Marks

Trademark rights arise from use in commerce, not creation alone. Even if AI generates a logo or brand name, the business only gains enforceable rights after lawful use and proper registration. Businesses must still file applications with the United States Patent and Trademark Office and ensure the mark is distinctive and non infringing.

Trade Secrets and Confidential Business Information

AI Can Destroy Trade Secret Protection

Trade secrets depend on secrecy and reasonable safeguards. Uploading confidential formulas, customer lists, internal strategies, or proprietary code into third party AI tools may destroy trade secret protection if that data is retained, reused, or leaked.

Businesses must assume that anything entered into public AI tools may no longer be confidential. This is particularly dangerous in Pennsylvania and New York where courts apply strict standards when evaluating whether reasonable steps were taken to protect trade secrets.

Ownership and Licensing of AI Generated Content

Vendor Terms Control More Than Most Businesses Realize

Most AI platforms operate under extensive license agreements. Many of these agreements grant the vendor broad rights to store, reuse, and even commercialize content entered into the system.

Businesses must carefully review whether:

(1) The business owns the output

(2) The vendor retains reuse rights

(3) Training rights apply to confidential data

(4) Output can be sublicensed to others

(5) The vendor disclaims infringement liability

Ownership assumptions without contract review are one of the most common AI legal mistakes.

AI and Software Code Ownership

When AI is used to generate code, several risks arise:

(1) The output may include copyrighted open source material

(2) License obligations may be triggered unknowingly

(3) The code may not be exclusively owned

(4) Indemnification may be limited or excluded

(5) Future buyers or investors may question ownership certainty

This creates major risks in mergers and acquisitions, financing, and licensing transactions.

Enforcement Challenges

If a competitor copies AI generated content that lacks copyright protection, the business may have limited enforcement options. Similarly, if a business unknowingly infringes another party’s rights through AI output, it may still face injunctions and damages.

AI complicates enforcement because:

(1) Authorship is unclear

(2) Training data sources are often undisclosed

(3) Similarity analysis becomes harder

(4) Licensing rights overlap

(5) Jurisdictional issues multiply

Business Governance and Risk Management

Boards and officers now treat AI related intellectual property as a governance issue. Businesses should adopt:

(1) Written AI usage policies

(2) Content review procedures

(3) Trademark clearance protocols

(4) Vendor contract review for AI tools

(5) Data handling restrictions

(6) Employee training on IP risk

Todd Nurick and Nurick Law Group assist businesses in Pennsylvania, New York, and nationwide in developing internal AI governance frameworks that protect intellectual property and reduce exposure.

Conclusion

Artificial intelligence has reshaped how businesses create and distribute intellectual property. But the law has not kept pace with the technology. Copyright, trademarks, trade secrets, software ownership, and licensing are now directly affected by AI adoption. Companies that fail to address these issues risk losing valuable rights or facing unexpected liability.

With proper planning, policy development, and legal review, businesses can use AI as a tool without sacrificing ownership, brand protection, or competitive advantage. Todd Nurick and Nurick Law Group continue to advise companies across the country on protecting intellectual property in the age of artificial intelligence.

This article is for informational purposes only and is not legal advice. Reading it does not create an attorney client relationship. Todd Nurick and Nurick Law Group are not your attorneys unless and until there is a fully executed written fee agreement with Todd Nurick or Nurick Law Group.

Sources

United States Copyright Office, Copyright Registration Guidance for Works Containing AI Generated Material

United States Patent and Trademark Office, Trademark Basics and Clearance Guidance

Defend Trade Secrets Act, 18 U.S.C. Section 1836

Lanham Act, 15 U.S.C. Section 1051 et seq.

Federal Trade Commission, Business Guidance on Artificial Intelligence

National Institute of Standards and Technology, AI Risk Management Framework

New York SHIELD Act, General Business Law Sections 899 aa and 899 bb

Pennsylvania Breach of Personal Information Notification Act