---
title: "Clause set: ownership of AI-generated output and training-data rights (with warranties and indemnities)"
url: "https://ailawframework.com/precedents/intellectual-property-patents-trade-marks-copyright-designs/ai-generated-content-ip-warranty-clause"
type: "precedent"
site: "AI Law Framework"
id: "a23-ai-generated-content-ip-warranty-clause"
area_id: "A23"
kind: "clause"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# 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…

Canonical page: https://ailawframework.com/precedents/intellectual-property-patents-trade-marks-copyright-designs/ai-generated-content-ip-warranty-clause  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

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.

## Key facts

- Kind: Clause. Wording to drop into a longer document.
- Practice area: [Intellectual Property — Patents, Trade Marks, Copyright, Designs](https://ailawframework.com/precedents/intellectual-property-patents-trade-marks-copyright-designs.md)
- Jurisdictions: Australia, United Kingdom (England and Wales), United States, European Union
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 7 authorities it cites, for 4 jurisdictions.

## 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.

## Authorities

- [Copyright Act 1968 (Cth) ss 32, 35 (subsistence in original works of qualified persons; ownership by the author)](https://www.legislation.gov.au/C1968A00063/latest/text)
- [Copyright Act 1968 (Cth) ss 196, 197 (assignment; future copyright)](https://www.legislation.gov.au/C1968A00063/latest/text)
- [Telstra Corporation Ltd v Phone Directories Company Pty Ltd 2010 FCAFC 149 (no copyright where much of the work was computer-generated rather than human-authored)](https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/full/2010/2010fcafc0149)
- [Attorney-General (Cth), media release, 26 October 2025 (Government rules out a text and data mining exception; CAIRG to examine licensing, AI-generated material and enforcement)](https://ministers.ag.gov.au/media-centre/albanese-government-ensure-australia-prepared-future-copyright-challenges-emerging-ai-26-10-2025)
- [Copyright, Designs and Patents Act 1988 (UK) s 9(3) (computer-generated works)](https://www.legislation.gov.uk/ukpga/1988/48/section/9)
- [Thaler v Perlmutter, No. 23-5233 (D.C. Cir., 18 March 2025), 130 F.4th 1039; certiorari denied 2 March 2026 (No. 25-449)](https://media.cadc.uscourts.gov/opinions/docs/2025/03/23-5233.pdf)
- [Regulation (EU) 2024/1689 (AI Act) art 53(1)(c)–(d) (copyright policy and training-content summary for general-purpose AI model providers)](https://eur-lex.europa.eu/eli/reg/2024/1689/oj/eng)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/intellectual-property-patents-trade-marks-copyright-designs/ai-generated-content-ip-warranty-clause and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*