Student's pen: AI as a Juristic Person and IP regulations around it

ABSTRACT

Humans increasingly interact with machines and this interaction has resulted in the emergence of Artificial Intelligence. The debate to grant legal personhood status to AI is echoing across the corners of the modern world. This could be one of the biggest challenges for the legislators as important legal issues act as hindrance in granting the legal personhood status to AI.

Analyses of the concept, utility and history of legal personhood and how AI can be misused or it can create confusion if not properly regulated by its developers should be the first steps towards recognition of legal personhood status to AI.

INTRODUCTION

“Possibilities make this universe uncertain and attract curiosity. Without uncertainty, the curiosity would wither, and the wonder of existence would fade”.

All across the world, Artificial Intelligence Systems are actively being used to create works of literature, music, arts, etc. This creates a need to identify AI as a legal entity to provide due credit to the work performed by them, putting aside the issue of personality. Machine-based creation should be protected under the copyright law to ensure that there is due credit given. AI systems now write news reports, compose songs, paint pictures and these activities generate value, and provide monetary assistance.

In general digital technologies and artificial intelligence in particular have left a remarkable imprint in our society. As the human intellect is exploring various fields through technological development, the legal field is moving at slow pace in legislating law and framing rules and regulations. There are a plethora of questions to be acknowledged while granting legal personality to AI such as how it correlates with moral values, how it affects the economy, what would be the consequences, etc.

AI & INTELLECTUAL PROPERTY RIGHTS

In the recent past years AI has exceptionally performed in creating never heard before sounds (Google’s Nsynth), intriguing art (the Next Rembrandt), pioneer drug discovery (Atomwise) and also perform better than humans in the process of automating the tasks of applying machine learning to real world problems (Google’s AutoML). The requirement that needs immediate attention is not just the recognition of AI inventions but AI itself needs its own recognition independent of its creator.

The European Parliament released a draft proposal in 2020 that advocates for granting AI-generated content the same copyright protection as content made by humans. Before addressing patent issues in AI-generated content, intellectual property experts must first decide if copyright protection should apply to these works.

The inventorship issue with AI-generated inventions has caused patentability issues. There are no set criteria for determining “autonomously generated” inventions using AI. AI systems are becoming increasingly crucial in innovation. The concern has been raised as to how the patent system would safeguard AI-generated inventions. Traditional patent laws have failed to distinguish between AI as a tool and AI as the fundamental source of invention. The big firms are eager to invest in AI development. However, the uncertainty surrounding AI patents may have an impact on innovation and economic progress.

CHALLENGES

It seems appealing for emotional or economical reasons to grant personhood status to AI but there are also potential risks and challenges that the law needs to address. The proposal to provide AI exclusive intellectual property ownership without addressing the issue of an AI's personhood raises a number of issues. Consider the following queries, for example:

1. If a person’s copyright is infringed by the AI then can that person sue AI when it has no existence in law? Can the person claim damages for the infringement?
2. If a person wants a license to the AI’s invention, can He/She approach the AI?

The AI being merely algorithm and incompetent for negotiations will make the provisions of law redundant. Can the AI be put in jail if its actions cause someone to suffer physical harm? Will the technology that suspends AI (the closest thing to imprisonment) have any reformative or rehabilitative effects, which are the main components of criminal remedies? Punishment and reprimand are even applicable to animals, but cannot apply to AI.

The fundamental issue to be debated in times to come is the correctness, practicality, and sustainability of AI’s legal status to facilitate innovation and equate its rights and liabilities with respect to others.

WAY AHEAD

The Indian government should create new intellectual property standards to promote creative innovation. Artificial intelligence systems learn copyrighted human content such as books, articles, photographs, films, videos, and audio recordings. Under copyright law, creators have exclusive rights to imitate their creations. Using copyrighted materials without authorization constitutes a copyright violation. AI applications that rely on these intellectual materials breach existing copyright restrictions, posing a unique legal challenge.

To establish limits on the AI's reach, a legal definition of the AI technology is essential. The Companies Act of 2013, which permits the formation of a "One Person Company," must also consider the concept of a "Zero Person Company" and other comparable structures. This would allow AI systems to be treated as legal persons in the same way that companies are. AI may be classified as a 'person' under the law because, unlike corporations, it operates autonomously—once the AI reaches a certain level, its actions are directed by its own intelligence rather than direct supervision from its programmers. Furthermore, the United Nations Convention on the Use of Electronic Communications in International Contracts recognizes the legality and enforceability of contracts made between automated systems and natural persons.

AI companies should also be cognizant of the Consumer Protection Act of 2019, specifically Section 2(47) which defines "unfair trade practice." This covers activities such as fraudulent representation and misleading information. However, the Act does not address issues connected to AI's automatic decision-making algorithms. As a result, AI developers or enterprises adopting commercial AI may face consumer protection complaints, which can be lodged online from the convenience of one's own home. The Act also defines unfair practices as releasing a consumer's personal information to someone else without their agreement, unless allowed by law or in the public interest.

CONCLUSION

The rapid change in the technological world warrants the adaptive reforms in the current legal system. So, that our legal system is not left behind in finding solutions to the legal issues raised by the technological developments in our society. As the AI system develops itself to overcome the human intellect, recognition of Legal personhood status to AI would ensure that their actions don’t go unseen and unmonitored. Strengthening the legal framework to steer AI toward the direction of society's growth in a controlled way should therefore be the recommended course of action. Consequently, society will continue to develop.

REFERENCES:

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