Artificial Intelligence (AI) has advanced rapidly, becoming a transformative tool across numerous industries. With its growing accessibility and integration into daily operations, AI is poised to play an even more significant role in how businesses in Indonesia and around the world operate. However, alongside its many benefits, the use of AI also introduces substantial intellectual property (IP) risks that businesses must proactively manage.
For companies leveraging AI in creative, operational, or strategic areas, understanding the potential legal pitfalls is essential to safeguard their assets and maintain compliance—particularly in jurisdictions like Indonesia, where IP regulations are evolving quickly.
Below are four key IP-related risks businesses may face when using AI, along with preventative strategies to mitigate them:
Trademark or Copyright Infringement in AI-Generated Outputs
Many generative AI tools are trained on vast datasets, often sourced from publicly available content that may include copyrighted materials or registered trademarks—such as images, articles, music, source code, and designs. As a result, businesses using these tools could unintentionally generate content that closely resembles existing protected works.
This poses a serious risk, especially in marketing, branding, or product development, where AI-generated outputs are used publicly. In Indonesia, where copyright and trademark laws are actively enforced, unintentional infringements can lead to costly legal actions, reputational damage, and regulatory consequences. Copyright Infringement in Indonesia may result in monetary penalties, cease-and-desist orders, or forced content takedowns.
Working with an experienced IP law firm in Indonesia can help businesses conduct IP clearance checks and stay compliant when deploying AI-generated content.
Ownership and Protectability of AI-Generated Works
A significant legal grey area surrounds the ownership of works produced by AI. In most jurisdictions, including Indonesia, copyright protection is granted only to works created by a human author. This means that purely machine-generated content may not qualify for copyright, leaving businesses without enforceable rights over such outputs.
This has major implications for companies seeking to protect their innovations and branding. Without human authorship, claiming exclusive ownership becomes difficult—making enforcement of rights in cases of infringement nearly impossible. Consulting an Indonesia copyright law firm is crucial to understand how to structure creative workflows to ensure protectability and compliance.
Trade Secret Leakage
AI platforms often require users to input specific prompts or data to generate desired results. When those inputs include proprietary or confidential information—like trade secrets, client lists, product designs, or algorithms—there’s a tangible risk of that data being exposed or misused.
Public AI platforms may store, reuse, or train on submitted data, especially if terms of service are not carefully reviewed. Once sensitive data enters these systems, businesses lose control over its security. This risk is heightened in regulated sectors where data privacy laws apply.
Companies should work closely with a patent law firm in Indonesia or IP professionals to implement data protection policies when using AI tools, particularly in handling valuable proprietary information.
Lack of Strategy, Identity, and Originality
While AI excels at generating quick and coherent content, its reliance on pre-existing data can result in outputs that lack originality or brand authenticity. For businesses aiming to build strong market presence and recognizable IP assets—such as logos, slogans, and marketing narratives—this can dilute brand identity.
Moreover, derivative content can weaken trademark applications or expose businesses to opposition claims. Working with experts in Indonesia trademark registration ensures that your branding efforts meet distinctiveness and originality standards required by law.
Overreliance on AI without human creative input may also hinder long-term innovation. By partnering with experienced advisors in intellectual property Indonesia, companies can strike the right balance between efficiency and originality.
Preventive Measures
Use Licensed Tools and Monitor Outputs
Always choose AI tools that come with clear, commercially valid licenses. Many AI platforms have specific limitations regarding how generated content can be used. It’s essential to carefully review the terms of service or end-user license agreements (EULAs) to understand your rights and responsibilities when using such tools.
Beyond licensing, it’s critical to actively review AI-generated outputs. Even if a tool claims to create “original” content, the underlying datasets used for training may contain copyrighted or trademarked material. Implement a content review process that checks for potential infringement, plagiarism, or unintended similarities to existing works. This may involve using plagiarism detection software or manual reviews by a legal or content team.
Maintain Human Involvement in Creative Processes
To qualify for intellectual property protection—especially copyright—a human creator must play a meaningful role in the creative process. Relying entirely on AI to generate works without substantial human input may disqualify the output from legal protection in many jurisdictions.
Ensure that AI-generated content is always guided, curated, or modified by a human contributor. Documenting the creative decisions made by humans throughout the process can also help demonstrate authorship and strengthen your IP claims.
Protect Confidential Information
Never input sensitive business data—such as customer lists, proprietary algorithms, or trade secrets—into AI tools without first understanding how that data will be handled. Public or third-party AI platforms may use submitted data to further train their models, potentially exposing confidential information.
Establish strict internal policies on how employees and teams can interact with AI platforms. Limit access to AI tools for sensitive projects, use internal or on-premise AI models when necessary, and ensure that any third-party vendor agreements include strong confidentiality and data protection clauses.
Preserve Originality and Strategic Vision
While AI is excellent for brainstorming, generating drafts, or speeding up repetitive tasks, overreliance on it can dilute your brand’s unique voice and creative direction. Because AI tools are trained on pre-existing content, their outputs often reflect patterns or ideas that are already prevalent—making it difficult to stand out.
Use AI to support, not replace, your creative teams. Develop internal guidelines that outline how and when AI should be used—ensuring that the final output still reflects your organization’s values, tone, and originality. Investing in a balanced workflow that integrates both human creativity and AI efficiency can strengthen both innovation and brand consistency.
Conclusion
AI is transforming how businesses create, innovate, and compete—but leveraging these tools effectively requires a strong understanding of the intellectual property landscape. By identifying key risks and implementing preventive strategies, companies can protect the value of their IP assets in this rapidly changing environment.
If you have questions about IP and AI—or any other intellectual property concerns—feel free to reach out to us at ambadar@ambadar.co.id. Our team of experienced professionals is ready to help you navigate the complexities of IP law with confidence and clarity.
Written and Reviewed by Nabil Argya
