ANALYSIS: How Watermarks Might Erode AI’s Infringement Immunity

The first wave of intellectual property lawsuits against generative AI companies has been dominated by copyright claims. A lot of billiable hours have been dedicated to the fair use defense, and whether it applies to this new technology. But a handful of pending cases could open a back door to IP infringement liability: one that’s accessible through trademark law.

Specifically, the charge of trademark dilution—as opposed to the more common trademark infringement claim—might prove a powerful tactic for famous trademark holders to protect their intellectual property without having to wrestle with questions of fair use or substantial similarity that are ...