Clause · Intellectual Property — Patents, Trade Marks, Copyright, Designs

Clause set: ownership of AI-generated output and training-data rights (with warranties and indemnities)

Clauses for contracts involving generative AI: who owns outputs (and what happens where no copyright subsists), whether customer data may be used for training, training-data warranties, output indemnities and records of human contribution.

Kind
Clause. Wording to drop into a longer document.
Where it applies
Australia, United Kingdom (England and Wales), United States, European Union
AI use
Yellow AI can help in set ways. A lawyer checks specific points before use.
Law stated as at
17 October 2026
Status
Maintained. Checked against the cited sources on 17 October 2026.
Version
1
Source
Written for this library

When to use it

Use in services, licensing, data-licensing or AI development agreements where a party will use generative AI to produce deliverables or will receive data that could be used for training. Choose the customer-side or supplier-side alternatives. For full SaaS terms use the technology contracts library.

How AI may be used

AI may draft the clause set from the instructions and the vendor's technical description and compare it with the counterparty's terms. The ownership position, risk allocation and indemnity scope are settled by the lawyer.

AI may

  • Extract ownership, training-use, retention and indemnity terms from the counterparty's AI terms into a comparison table.
  • Fill the definitions from the vendor's technical description of the system and data flows.
  • Check the clause set for consistency with the main agreement's liability and IP clauses.

AI must not

  • Must not state that copyright subsists in AI outputs or that training on third-party material is lawful.
  • Must not choose between the customer and supplier alternatives.
  • Must not upload the client's confidential deal terms to a tool that trains on inputs.

The lawyer checks

  • The ownership clause works even if no copyright subsists in the outputs.
  • Training-data permissions match the client's privacy obligations (APPs 6, 8 and 11) and any confidentiality duties to third parties.
  • Indemnity exclusions and caps align with the main agreement.

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Read the full text

More in Intellectual Property — Patents, Trade Marks, Copyright, Designs

All precedents for Intellectual Property — Patents, Trade Marks, Copyright, Designs · Tasks and AI use in this area