Sarvam AI’s $41M Boost: VC Backing Fuels Advancements in AI

The remarkable $41 million fundraising round that Sarvam AI completed highlights the rapidly expanding potential of generative AI. But this promise also entails having to navigate a challenging legal environment. Let’s examine the pertinent laws in more detail and think about the particular legal difficulties Sarvam AI might face:

1. Authorship and Copyright:

Copyright protection: The primary resource of Sarvam AI is its generative AI models, which generate artistic output. Copyright law, however, only affords protection to “original works of authorship.” It’s controversial to decide if content produced by AI qualifies.

Authorship: For copyright protection, identifying the legitimate creator of content produced by AI is essential. Who prompts Sarvam AI—the AI itself, the model owner, or a specific user? There is still no clear answer to this issue, which may call for legislative or judicial action.

Training data copyright: Sarvam AI uses large text and code datasets to train its models. Unauthorized use of copyrighted content may result in copyright infringement. Sarvam AI must make sure that all licenses are in order and adhere to fair use guidelines.

2. Compliance with regulations and data privacy:

General Data Protection Regulation (GDPR): GDPR requires strict data privacy standards, and Sarvam AI must abide by them if it works in the European Union. This entails getting consent with full knowledge, putting strong security measures in place, and granting access to and deletion rights for data.

India’s Data Protection policy: The country is now working on a comprehensive data protection policy that would likely require businesses doing business there to adhere to comparable privacy requirements. Sarvam AI needs to make sure that this new law is followed.

• Algorithmic bias: AI algorithms can produce discriminating results if they are exposed to biases in the training data. Sarvam AI must reduce bias by using a variety of training datasets and fairness checks.

3. Protection of Intellectual Property:

• Patents: It’s difficult to get an AI-based invention patent; you have to show that it’s unique and not obvious. For its distinctive generative models and algorithms, Sarvam AI may think about requesting patent protection.

Trademarks: Sarvam AI’s brand identity can be safeguarded and unlawful usage can be avoided by trademarking particular elements or logos connected to the platform.

Trade secrets: Sarvam AI’s models and algorithms may contain elements that are protected from improper use or disclosure by being classified as trade secrets.

4. Open-source Points to Remember:

Open-source licenses: Sarvam AI must abide by the particular licenses controlling the usage of any open-source technologies it uses. This involves abiding by the conditions of the license with relation to attribution, copyright, and contribution specifications.

Compatibility and integration: To guarantee compatibility and prevent legal issues with open-source licensing, integrating open-source technology with proprietary models necessitates careful thought.

5. International Growth:

International data privacy laws: As Sarvam AI grows globally, it must abide by local data privacy laws in every country. This entails being aware of local regulations, getting the required approvals, and putting in place suitable data transfer procedures.

Intellectual property laws: Copyright protection, patentability, and trademark registration are all governed by different sets of rules in different nations. Sarvam AI must modify its approach to intellectual property in light of this.

New regulatory frameworks: Several nations are now working to create laws specifically about the creation and application of artificial intelligence. Sarvam AI needs to keep up with these changing rules and modify its procedures as necessary.

Additional Considerations:

Liability for harm caused by AI: Liability concerns will surface if harm is caused by AI-generated content. Sarvam AI must guarantee proper insurance coverage and be thoroughly aware of potential liabilities.

Ethical considerations: The creation of AI must take ethics very seriously, as it must with any sophisticated technology. Sarvam AI should embrace moral values and put safety measures in place to guard against technology abuse and guarantee ethical AI development.

Through careful navigation of these legal complications and proactive resolution of potential problems, Sarvam AI may secure its future and maintain its leadership position in the morally and responsibly developed and applied generative AI.

Legal and Ethical Perspective:

  • Intellectual property: It’s critical to safeguard the exclusive generative models that Sarvam AI has developed and the copyright ownership of content produced by AI.
  • Data privacy: Compliance with data privacy laws such as the GDPR and India’s Data Protection Bill is crucial to guarantee responsible data management.
  • Algorithmic bias: It is morally significant to mitigate bias in AI models to stop prejudice.
  • Liability for harm created by AI: It’s critical to provide precise legal frameworks for potential harm brought about by content generated by AI.

Prospects for Sarvam AI:

Sarvam AI is well-positioned to have a big impact on how AI develops going forward because of its substantial funding and its dedication to creating cutting-edge generative AI technology. Its capacity to handle moral and legal issues, uphold ethical development standards, and adjust to the changing AI field will determine how successful it is.

To sum up, Sarvam AI’s $41 million fundraising round represents a significant advancement for both the business and the generative AI community as a whole. With a focus on strategic expansion, a legal and ethical approach, and constant innovation, Sarvam AI can lead the industry and unleash the transformational power of generative AI in a wide range of applications.

Aditya Pratap is a lawyer and founder of Aditya Pratap Law Offices. He practices in the realm of real estate, corporate, and criminal law. His website is adityapratap.in and his media interviews can be accessed at http://www.youtube.com/@AdityaPratap/featured. Views expressed are personal.

This article has been assisted by Himanshi Chandani, a 4th year law student pursuing B.A.LL.B. from Lloyd Law College, Greater Noida.