Dedicated intellectual property protection for AI developers and enterprises training models on large datasets. As the legal landscape around AI-generated content evolves rapidly, organizations need specialized coverage that addresses the unique IP risks of machine learning systems.

The Legal Shift

Recent court cases like Thomson Reuters v. ROSS have ruled that using copyrighted material to train AI is not necessarily "fair use"—especially if the AI output competes with the original work. This legal precedent creates substantial financial exposure for:

• Companies training foundation models on web-scraped data
• Enterprises deploying generative AI that produces text, images, or code
• Software vendors incorporating third-party AI models into their products

The Coverage Gap

Standard Commercial General Liability (CGL) policies only cover copyright infringement if it occurs in an "advertisement"—a narrow definition that excludes most AI use cases. This means your existing insurance likely provides no protection when:

• A rights holder claims your training data included their copyrighted works
• Your AI generates output that allegedly infringes on existing IP
• You face claims related to code, images, or text produced by your models

The Solution

Ocean Falls Insurance provides dedicated IP Liability coverage specifically designed for AI-related intellectual property risks. Our policy includes:

• Legal defense costs for copyright and IP infringement claims related to training data
• Coverage for damages arising from AI-generated outputs that allegedly infringe third-party rights
• Protection regardless of whether the infringement allegations are true or false
• Coverage extending to both direct model developers and downstream users

Protect your AI investment from the evolving IP litigation landscape. Partner with Ocean Falls Insurance for coverage that keeps pace with the technology.