Feroz Ali (National Law School of India University) has posted How Generative AI is Reforming IP: Rethinking Criminal Sanctions in IP Law on SSRN. Here is the abstract:
AI has profoundly disrupted traditional intellectual property (IP) enforcement frameworks. This paper critically examines the intersection of criminal sanctions in IP law and the transformative impact of AI-generated content. Historically, criminal penalties for IP infringement were introduced to combat large-scale counterfeiting and piracy. However, the exponential increase in AI-generated works has outpaced the ability of traditional IP systems to meaningfully examine and enforce these rights, creating what this paper defines as the Creation-Examination Paradox. This paradox arises from the conflict between the limitless production of AI-generated creative works and the limited capacity of IP offices to scrutinize and verify them. In response to these challenges, this paper argues for a rethinking of criminal sanctions for IP infringement. It explores how delegalization of IP enforcement—marked by a shift from court-based litigation to Alternative Dispute Resolution (ADR) and private enforcement mechanisms—is becoming an emerging trend in IP dispute resolution. The rise of AI-driven content moderation, automated copyright enforcement, and consensus-based resolution platforms suggests that traditional criminal sanctions may no longer be viable or necessary for protecting IP rights in the digital age. This paper contributes to the ongoing debate on AI’s impact on IP enforcement by proposing a decriminalization approach, recognizing that IP disputes, particularly those involving AI-generated works, should be addressed as civil matters rather than criminal offenses. It further discusses the potential of digitally-native IP offices evolving into Decentralized Autonomous Organizations (DAOs) that can autonomously manage, verify, and enforce IP rights. By critically analyzing these emerging trends, this paper advocates for a modernized IP enforcement regime that aligns with the realities of AI-driven innovation and the digital transformation of creative industries.