Decades in Business, Technology and Digital Law

Legal Issues to Consider: Toys “R” Us has created a video ad using generative artificial intelligence

by | Jun 28, 2024 | Firm News

Toys “R” Us has created a video ad using generative artificial intelligence, depicting its late founder, Charles Lazarus, as a child dreaming of a toy store and Geoffrey the Giraffe. The ad, made with OpenAI’s Sora tool, has elicited mixed reactions, being praised as “brilliant” by some and criticized as “abysmal” by others. The project involved extensive collaboration and numerous revisions to achieve the desired results. The ad highlights AI’s potential to reduce production costs and time but also raises concerns about its impact on quality and employment in the marketing industry. Toys “R” Us aims to reintroduce its brand through this ad, which will be aired on various platforms.

Legal Issues Arising from AI-Generated Artistic Works:

  1. Copyright Ownership:
    • Determining who owns the copyright of the AI-generated content can be complex. Is it the company, the creators who provided the input, or the developers of the AI tool?
  2. Intellectual Property Rights:
    • Ensuring that the AI-generated content does not infringe on existing copyrights, trademarks, or other intellectual property rights.
  3. Liability for Errors or Infringements:
    • Identifying who is liable if the AI-generated content contains errors or infringes on someone’s rights. This includes issues related to defamation, privacy, or the unauthorized use of likenesses.
  4. Ethical and Moral Rights:
    • Addressing concerns about the ethical implications of using AI to replicate human creativity and the potential loss of jobs for creative professionals.
  5. Transparency and Disclosure:
    • The need for transparency about the use of AI in creating content, including whether viewers should be informed that the content was AI-generated.
  6. Contractual Issues:
    • Revising contracts to reflect the new roles and responsibilities when AI tools are used in the creative process, including how agencies bill clients for AI-generated work.
  7. Quality and Consistency:
    • Ensuring that AI-generated content meets industry standards for quality and consistency, which can be challenging given the imperfections noted in the Toys “R” Us ad.

These legal issues highlight the need for clear guidelines and regulations to manage the use of AI in creative industries.

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