Intellectual property law

The CJUE Neutralizes the Reciprocity Rule of Article 2, §7 of the Berne Convention for Works Originating from a Non-EEE Country

The Court of Justice of the European Union (CJUE) now effectively neutralizes the reciprocity rule found in Article 2, §7 of the Berne Convention for works originating from a third country outside the European Economic Area (EEE). This shift has immediate consequences for stakeholders in the fields of design and copyright, illustrating the expanding scope of EU copyright harmonization. Below, we outline the core aspects of this change, moving from the overarching principle to its practical implications in a structured manner.

Context and Legal Foundations

  • The Berne Convention and EU Law
    We observe that the Berne Convention has historically allowed signatory states to apply a principle of reciprocity to artistic and applied works from countries that did not offer equivalent protection. Recently, however, the CJUE clarified that the harmonization achieved by European directives (notably Directive 2001/29/EC) supersedes individual Member States’ prerogative to rely on reciprocity in areas that the EU has fully regulated. This decision stems from the principle that only the EU legislator may introduce exceptions or limitations once an aspect of copyright law has been harmonized across Member States.
  • Official Sources and Regulatory References
    According to the CJUE’s interpretation, Member States must refrain from applying reciprocity where EU law intends for equal treatment, irrespective of an author’s nationality or a work’s country of origin.

Key CJUE Decision of 24 October 2024

CJUE, 1re ch., 24 Oct. 2024, Aff. C-227/23, Kwantum Nederland BV, Kwantum België BV c/ Vitra Collections AG
In its landmark ruling of 24 October 2024, the CJUE held that Member States cannot apply material reciprocity under Article 2, §7 of the Berne Convention to refuse or limit copyright protection for works of applied art originating in a non-EEE country. By doing so, the Court confirmed that only the EU legislator may decide on any limitation to economic rights granted under harmonized directives. The decision underscores the principle that national rules tied to the country of origin become inoperative where the EU has established overarching copyright norms.

Impact on Protection for Artistic and Applied Works

  • Extended Copyright for Third-Country Creations
    By neutralizing the reciprocity rule, the CJUE effectively grants works originating from countries outside the EEE a level of protection in line with EU standards, provided they meet the originality and other formal criteria under EU law. This shift primarily benefits foreign creators of designs, industrial models, and artworks who previously faced potential restrictions if their home jurisdictions did not offer reciprocal protection.
  • Reinforced Harmonization and Legal Certainty
    From a business and innovation standpoint, uniform copyright protection across the EU promotes legal certainty. Designers, manufacturers, and distributors now operate under clearer guidelines, facilitating smoother market entry and fewer obstacles linked to a work’s geographic origin.

Practical Consequences for Rights Holders

  • Easier Enforcement: Foreign authors or rights holders can assert their copyrights uniformly throughout the EU, without having to prove reciprocal treatment in their home country.
  • Encouraged Cross-Border Collaboration: Companies in the EEE may confidently license or acquire designs from third countries, knowing that these rights enjoy robust backing under EU directives.
  • Reassessment of Agreements: Existing contracts or licenses that assumed limited rights based on reciprocity might need a thorough legal review to align with the CJUE’s position.

Recommended Next Steps & Best Practices

  • Monitor Legislative Updates: Future EU legislative initiatives may further define or refine limitations.
  • Review IP Portfolios: Rights holders should ensure that new or ongoing filings for design or copyright registration reflect this updated landscape.
  • Consult Specialized Counsel: Given the complexity of international IP rights, professional guidance is indispensable to navigate cross-border transactions effectively.

The CJUE takes on profound significance for EU copyright enforcement. We advise rights holders, designers, and businesses to adapt proactively to this refined legal environment.

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At Dreyfus Law Firm, we stand ready to provide comprehensive legal strategies tailored to each client’s needs. Our services include advising on copyright registration and enforcement, brand and design protection, domain name portfolio management, licensing and transfer negotiations, anti-counterfeiting initiatives, and litigation support across multiple jurisdictions.

Dreyfus Law Firm is in partnership with a global network of Intellectual Property attorneys, ensuring comprehensive assistance for businesses worldwide.

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FAQ

1. Does this ruling apply to all creative works?

Yes. It covers any original work under EU copyright law, including works of applied art and design.

2. What if my home country does not protect such works at all?

Under the CJUE’s new interpretation, EU protection still applies if the work meets EU originality standards.

3. Will this affect the duration of protection?

The CJUE’s decision concerns the scope of protection, not duration. However, the EU already has specific rules on duration that Member States must respect.

 

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The Protection of AI-Generated Inventions Under Patent Law

The rapid rise of artificial intelligence (AI) has led to significant advancements in various fields, including technological innovation. AI systems are now capable of autonomously generating inventions without direct human intervention. This new reality raises a fundamental question in patent law: Can an invention generated by an AI be protected by a patent?

This complex issue is at the center of concerns for intellectual property offices and legislators worldwide, who are debating how patent law should adapt to this new form of innovation.

 Patent eligibility of AI-Generated inventions

Patentability criteria

Pursuant to the article L611-10 of the French Intellectual Property Code, to be eligible for a patent, an invention must meet three fundamental criteria:

  • Novelty: The invention must not have been disclosed to the public before the patent application was filed.
  • Inventive step: The invention must not be an obvious improvement for a person skilled in the art.
  • Industrial application: The invention must be capable of being used in industry.

When an AI generates an invention, assessing these criteria becomes more complex. The originality of the invention largely depends on the training data and algorithms used by the AI. It then becomes difficult to determine whether the invention is truly novel or merely a reformulation of existing information.

Furthermore, the inventive step requires that an invention is not an obvious outcome of prior knowledge. However, if an AI is programmed to analyze a vast corpus of technical data and propose optimized solutions, can its invention be considered as involving sufficient creative effort?

Challenges in recognizing AI as an inventor

One of the major legal obstacles concerns the attribution of inventorship. Today, most legal frameworks require the inventor to be a natural person.

The European Patent Office (EPO) and the United States Patent and Trademark Office (USPTO) have rejected patent applications where an AI was designated as the inventor.

For example, in January 2020, the EPO rejected two European patent applications in which the designated inventor was an artificial intelligence system named DABUS. This decision was based on the European Patent Convention (EPC), which states that only a human being can be recognized as an inventor.

The applicant, creator of DABUS, argued that this AI, based on artificial neural networks, had autonomously conceived the inventions. However, the EPO concluded that, under the EPC, the rights attached to inventorship, such as the right to be mentioned as an inventor or to assign a patent, can only be granted to natural or legal persons. AI systems, lacking legal personality, cannot be recognized as inventors.

This case highlights the legal challenges posed by artificial intelligence in the field of intellectual property.

These decisions are motivated by the fact that only humans can be legally recognized as inventors, particularly due to legal rights and liability considerations.

This stance raises a dilemma: When human intervention is minimal or nonexistent in the invention process, who should be credited as the inventor?

Some experts suggest attributing inventorship to the AI user or the entity that controls the AI, but this approach remains highly debated.

Legislative developments

International Perspectives

Given the uncertainties surrounding AI and patentability, several initiatives are underway worldwide:

  • The World Intellectual Property Organization (WIPO) has launched consultations on the impact of AI in patent law and is considering potential reforms to harmonize approaches among different countries.
  • The United States has seen the emergence of several legislative proposals aimed at clarifying the legal status of AI-generated inventions, although no major reform has been adopted so far.

In the United States, in October 2023, the White House issued an executive order aimed at ensuring the safe and reliable development of artificial intelligence (AI). In response, the USPTO published, in February 2024, guidelines on the patentability of AI-assisted inventions.

These guidelines specify that:

  • AI may contribute to an invention, but
  • Only a human who has made a significant contribution to each claim can be legally recognized as an inventor.

This position aligns with previous court decisions affirming that the inventor must be a natural person. Thus, patent applications involving AI must explicitly name individuals who have made a substantial contribution to the invention, excluding the possibility of designating the AI itself as the inventor.

This regulatory development highlights the importance of clarifying the respective roles of humans and AI systems in the innovation process, to ensure adequate legal protection for inventions in the United States.

Recent changes in patent law

Some countries have already introduced legislative changes:

  • South Africa became the first country to grant a patent to an AI-generated invention, although this remains an isolated case.
  • Australia also examined the issue, and in a decision on July 30, 2021, the Federal Court admitted this possibility (Thaler v Commissioner of Patents [2021] FCA 879).

These developments show that the recognition of AI-generated inventions is an evolving topic, and regulators will likely need to clarify their stance to address the challenges posed by AI and intellectual property.

Practical Considerations for Innovators

Strategies for Protecting AI-Generated Inventions

Businesses and innovators must anticipate legal challenges by adopting suitable strategies:

  • Ensure a human role in the invention process: A researcher or engineer should be sufficiently involved to be designated as the inventor.
  • Document every stage of creation: Keeping detailed records of how the AI operates and its role in the invention is essential.
  • Explore alternatives to patent protection: When patentability is uncertain, other forms of protection, such as trade secrets, may be considered.

Implications for Intellectual Property management

Companies must adapt their patent management strategies to the challenges posed by AI. It is advisable to:

  • Update contracts to clearly define ownership of AI-generated inventions.
  • Monitor legislative developments to anticipate possible regulatory changes.

Conclusion

The emergence of AI in innovation raises profound legal and ethical questions. Current patent law is not fully adapted to this new reality. Legislators and intellectual property offices must therefore adapt to address the challenges posed by autonomous AI-generated inventions.

Until regulatory clarifications are made, innovators must adopt proactive strategies to effectively protect their inventions and safeguard their intellectual property rights.

Need expert guidance on AI and intellectual property? Dreyfus Law Firm specializes in intellectual property law, including trademark, copyright, patent and AI-related legal matters. Our experts stay ahead of AI and copyright developments!

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Revisions to China’s Three-Year Non-Use Trademark Revocation Procedure: What You Need to Know

In the realm of intellectual property law, China’s trademark regulations, as outlined in Article 49 of the Trademark Law of the People’s Republic of China, mandate that registered trademarks be subject to cancellation if not used within a continuous three-year period. This policy aims to prevent the hoarding of trademarks and ensure that only actively utilized marks remain protected. Recent developments indicate potential changes to this revocation procedure, signaling a significant shift in China’s trademark enforcement landscape.

Current Framework of China’s Non-Use Trademark Revocation

Under the existing legal framework, a registered trademark in China may be vulnerable to cancellation if it has not been used for three consecutive years, in accordance with Article 49 of the Trademark Law. The revocation process is typically initiated through a formal request by a third party, often a competitor or interested entity, who petitions the China National Intellectual Property Administration (CNIPA) to cancel the inactive trademark. The trademark holder is then required to provide evidence of genuine use within the specified period to maintain their rights.

Proposed Amendments to the Revocation Procedure

Recent discussions within China’s legislative bodies suggest forthcoming amendments to the non-use revocation procedure. While specific details remain under deliberation, the proposed changes may include:

  • Extension of the Non-Use Period: Consideration of lengthening the current three-year period to a longer duration, providing trademark owners with more flexibility before facing potential cancellation.
  • Modification of Evidence Requirements: Reevaluation of the types and standards of evidence required to demonstrate genuine use, potentially streamlining the process for trademark holders.
  • Introduction of Grace Periods: Implementation of grace periods or exceptions for certain industries or circumstances, acknowledging that some sectors may require longer lead times to commence trademark use.

Implications for Trademark Holders

These proposed changes carry significant implications for both domestic and international trademark holders operating in China:

  • Strategic Planning: Trademark owners may need to reassess their portfolio strategies, considering the potential for extended non-use periods and adjusted evidence requirements.
  • Compliance and Monitoring: Enhanced vigilance in monitoring trademark use and maintaining comprehensive records will be essential to comply with any new regulations.
  • Legal Consultation: Engaging with legal experts specializing in Chinese trademark law will be crucial to navigate the evolving legal landscape and ensure continued protection of intellectual property rights.

Conclusion

As China moves towards amending its three-year non-use trademark revocation procedure, trademark holders must stay informed and proactive. Adapting to these changes will be vital in safeguarding intellectual property assets within China’s dynamic market.

Dreyfus Law Firm assists clients at all stages of trademark protection and management in China and internationally. Our services include trademark portfolio monitoring and management, preparation and submission of evidence of use, and defense in case of challenges. We also assist clients in administrative procedures before the CNIPA and provide tailored strategies to adapt to regulatory changes in the Chinese market. With our in-depth intellectual property expertise and our global network of specialized attorneys, we ensure comprehensive and customized support to secure and enhance your intangible assets.

Dreyfus Law Firm is partnered with a global network of attorneys specializing in Intellectual Property.

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FAQ

1. What is the current non-use period for trademark revocation in China?

Currently, a registered trademark in China can be canceled if it has not been used for three consecutive years as stipulated in Article 49 of the Trademark Law.

2. What constitutes 'genuine use' of a trademark in China?

Genuine use refers to the actual commercial use of the trademark in connection with the goods or services for which it is registered.

3. How can a trademark holder prove genuine use?

Evidence such as sales invoices, advertising materials, and product packaging displaying the trademark can be submitted to demonstrate genuine use.

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Decision of the Paris Judicial Court on the Protection of the Iconic Kelly and Birkin Bags – February 7, 2025

On February 7, 2025, the Paris Judicial Court issued a notable decision (Case No. RG 22/09210) in the dispute between Hermès International and Hermès Sellier against Blao&Co. This case raises essential questions regarding the protection of design works under French copyright law and trademark infringement. This article provides a detailed legal analysis of the ruling, highlighting its implications for designers and fashion companies. 

Case Background

Hermès International and Hermès Sellier, renowned for their iconic Kelly and Birkin bags, discovered that Blao&Co had been selling handbags under the brand name “NDG” since 2021. These products, particularly the “Paisley Jane” model, were marketed through Blao&Co’s website, social media platforms, and as NFTs on OpenSea.

Claiming that these handbags reproduced the distinctive features of their protected models, Hermès sent multiple cease-and-desist letters to Blao&Co in March and April 2022, demanding the cessation of the infringing bags’ sale, as well as the associated NFTs. After receiving no satisfactory response, Hermès filed a lawsuit in July 2022 for copyright and trademark infringement.

Arguments of the Parties

Hermès’ Position

Hermès argued that Blao&Co’s “Paisley Jane” bags were an unauthorized reproduction of their Kelly and Birkin models, which are protected under copyright due to their originality. Additionally, Hermès claimed that Blao&Co unlawfully used their registered three-dimensional trademark, particularly the signature lock closure featured on their bags.

Blao&Co’s Defense

Blao&Co contested the originality of the Kelly and Birkin bags, arguing that their features were common to many handbags or dictated by technical constraints. The company also denied trademark infringement, asserting that the elements used were generic and did not infringe on Hermès’ rights.

Legal Analysis of the Court

Originality of the Kelly and Birkin Bags

The court first examined the originality of the Kelly and Birkin bags, an essential condition for copyright protection. It was established that the Kelly bag has a trapezoidal shape with side gussets, a cut-out flap, a specific closing system, a special handle, four basic studs and a removable shoulder strap. The Birkin bag, on the other hand, has a slightly rectangular shape, a flap with a three-notch cut-out, a specific closing system, two special handles, specific gussets and four basic studs. The court concluded that these features were the result of free and creative choices, giving the bags a distinctive and recognizable appearance, thus satisfying the criterion of originality required for copyright protection.

Trademark infringement

Concerning trademark infringement, the court noted that Hermès has held a three-dimensional trademark registered since 2003, covering in particular the distinctive clasp of its bags. Blao&Co’s “Paisley Jane” bags were found to reproduce this clasp in an identical or similar manner, creating a risk of confusion in the mind of the public. The court therefore concluded that Blao&Co had infringed the trademark.

Implications of the Decision

For Fashion Designers

This ruling reaffirms the importance of originality in the protection of design works under copyright law. Fashion designers are encouraged to:

  • Develop distinctive and innovative designs to ensure effective legal protection against unauthorized copies.
  • Consider registering their designs as trademarks or design rights for enhanced protection.

For Businesses

Businesses must exercise caution to ensure that their products do not infringe existing intellectual property rights. This case underscores the importance of:

  • Conducting thorough legal research before launching new products.
  • Consulting intellectual property attorneys to assess potential risks and avoid costly legal disputes.

Conclusion

The Paris Judicial Court’s decision of February 7, 2025, establishes a significant precedent in fashion design and trademark protection. It recognizes the originality of fashion creations as works protected under copyright law and reaffirms the enforcement of three-dimensional trademarks against infringement.

Dreyfus & Associates Law Firm: Your Intellectual Property Partner

The Dreyfus & Associates Law Firm assists designers, businesses, and industry professionals in defending their intellectual property rights. Specializing in trademarks, patents, and design law, our expert legal team helps protect, value, and defend your creations against infringement risks and legal disputes.

Contact us for a personalized consultation and safeguard your designs!

Dreyfus & Associates Law Firm is partnered with a global network of attorneys specializing in Intellectual Property Law.

FAQ

1. What is originality in copyright law?

Originality is a fundamental requirement for copyright protection. It means that the work reflects the author's free and creative choices, giving it a unique and recognizable appearance.

2. Can handbags be protected by copyright?

Yes, provided they exhibit originality. The Paris Judicial Court confirmed that Hermès' Kelly and Birkin bags met this requirement, as their distinctive features resulted from creative choices.

3. What is the difference between a three-dimensional trademark and a design right?

A three-dimensional trademark protects a product’s distinctive shape as a commercial identifier. In contrast, a design right protects only the aesthetic appearance of a product for a limited duration.

4. How can companies avoid trademark or copyright infringement in fashion?

Companies should: • Conduct extensive IP research before launching new products. • Consult an intellectual property lawyer to evaluate potential risks.

5. What are the penalties for trademark or copyright infringement?

Penalties may include: • Product sales bans • Stock destruction • Monetary damages • Fines • In severe cases, criminal charges

 

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Customs Surveillance in Intellectual Property Matters

In today’s globalized economy, the protection of intellectual property rights is essential for businesses seeking to safeguard their trademarks, innovations, and creative works. With the increasing flow of goods across borders, infringed products and infringements on trademarks, patents, and copyrights pose significant risks to legitimate rights holders. Customs authorities play a critical role in enforcing intellectual property rights by identifying and detaining suspected counterfeit goods before they enter the market.

This article explores the mechanisms of customs surveillance, detailing how customs detention operates, the legal frameworks supporting intellectual property protection, and the procedures for filing an Application for Action (AFA) with customs services. Understanding these processes allows businesses to enhance their anti-counterfeiting strategies and protect their intellectual assets effectively.

I – Understanding customs detention

What is Customs Detention? Customs detention is the process by which customs authorities intercept and hold goods suspected of infringing intellectual property rights at a country’s border. This process prevents counterfeit goods from being imported, exported, or transshipped, reducing financial and reputational damage to rights holders and ensuring consumer safety.

Customs officials may detain goods ex officio (on their own initiative) or at the request of a rights holder who has filed an Application for Action (AFA). Once detained, the rights holder is notified and given the opportunity to examine the goods and provide evidence of infringement.

Legal basis for customs detention

In the European Union, customs detention is governed by Regulation (EU) No 608/2013, which outlines procedures customs authorities must follow when seizing counterfeit or pirated goods.

Key provisions include:

  • Customs officials may intervene when they suspect an infringement of intellectual property right as trademark, patent, copyright, topographies of semiconductor products, utility models, supplementary protection certificates for medicines and plant protection products, new plant varieties, designations of origin, geographical indications and geographical denominations and design rights.
  • Goods can be detained for up to 10 working days (extendable by another 10 days in some cases) while rights holders assess the infringement.
  • If the rights holder confirms the goods are counterfeit, legal action can be pursued, including destruction of the goods.

Beyond the EU, similar regulations exist in many jurisdictions, such as the U.S. Customs and Border Protection (CBP) enforcement mechanisms under the Trade Facilitation and Trade Enforcement Act (TFTEA).

II – Protection of intellectual property rights by customs authorities

Legal framework

The enforcement of intellectual property rights at borders is an international effort supported by several legal instruments, including:

Scope of protection

Customs authorities have the power to act against various types of IP infringements, such as:

  • Trademark infringements : unauthorized use of registered trademarks on counterfeit products (ex : Fake luxury handbags bearing a registered brand’s logo).
  • Patent infringements : importation of products infringing on a granted patent (ex : Unauthorized production of pharmaceutical drugs protected by a patent).
  • Design infringements : copying of registered industrial designs without authorization (ex : Knockoff furniture replicating a well-known designer’s work).

III – Filing an application for action with customs services

Eligibility and requirements

Rights holders, including individuals, companies, and trade associations, can file an Application for Action (AFA) requesting customs authorities to monitor and intercept infringing goods.

An AFA must include:

  • Proof of Ownership: Trademark or patent certificates.
  • Technical Specifications: Unique features of the authentic goods.
  • Known Infringements: Reports of prior counterfeit activity.
  • Contact Details: Representatives must be available to assist customs.

Procedure for Submission

  1. Obtain an EORI number: Required for all customs transactions.
  2. Complete the AFA form: Available through national customs portals. In France, all the information you need is available on the Customs and Excise portal.
  3. Submit electronically: Via the IP Enforcement Portal (IPEP).
  4. Approval & implementation: Customs reviews the application, and if accepted, begins monitoring for infringements.

Duration and renewal

  • An AFA is valid for one year and must be renewed annually.
  • Renewal requires updated information on counterfeit risks and authorized suppliers.

IV – Best Practices for Enhancing Customs monitoring

To maximize customs intervention effectiveness, rights holders should:

  • Conduct regular IP audits: Ensure all trademarks and patents are up to date.
  • Train customs officials: Provide guides and images to help identify counterfeits.
  • Monitor supply chains: Collaborate with customs to track high-risk shipments.
  • Use technology: Employ blockchain and AI-based tracking for better enforcement.

Conclusion

Customs monitoring is a vital tool for protecting intellectual property rights from counterfeiting and piracy. By proactively filing an AFA, businesses can leverage customs enforcement to block the import and export of infringing goods, safeguarding their brands and innovations.

At Dreyfus Law Firm, our team of intellectual property experts is dedicated to guiding businesses through the customs enforcement process. We provide tailored support for filing AFAs, monitoring customs interventions, and enforcing rights against counterfeiters. Our global network of IP attorneys ensures comprehensive protection in multiple jurisdictions.

Dreyfus Law Firm collaborates with a global network of IP attorneys specializing in Intellectual Property.

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1 – What are the three main missions of customs?

Customs have three primary missions: • A fiscal mission: Customs collect and monitor duties, import VAT, and excise taxes, contributing to the national and European Union budget. • An economic mission: Customs facilitate and secure trade by enforcing import and export regulations while ensuring fair competition and economic competitiveness. • A protection mission: Customs combat fraud, protect consumers, and ensure national security by inspecting dangerous, prohibited, or counterfeit goods.

2 – How can intellectual property rights be protected?

The protection of intellectual property (IP) rights involves several key steps: • Registering rights: Filing a trademark, patent, or design with the appropriate offices (INPI, EUIPO, WIPO) grants exclusive rights to the owner. • Market monitoring: Implementing surveillance strategies to detect counterfeits both online and offline. • Customs enforcement: Filing an application for action with customs authorities allows them to seize suspected counterfeit goods. • Legal actions: In case of infringement, right holders can initiate legal proceedings, including seizure of counterfeit goods and civil or criminal lawsuits.

3 – What tools are available to protect intellectual property?

Several tools help reinforce IP protection: • Customs Application for Action (AFA – Action in Favor of Right Holders): This procedure enables IP owners to notify customs about suspicious goods and facilitate counterfeit seizures. • Online monitoring platforms: Various tools help identify counterfeit products sold on marketplaces and social media. • Training and awareness programs: Right holders can collaborate with customs to train officers in detecting counterfeit goods. • Cooperation with authorities: Agreements between IP owners, customs, and law enforcement enhance the fight against counterfeiting.

4 – What is the role of customs in the fight against infringement?

Customs play a crucial role in combating counterfeiting by enforcing border controls and intercepting illicit goods: • Goods inspections: Customs officers check imports and exports to identify suspicious products. • Seizures of counterfeit goods: When counterfeits are detected, customs can seize and destroy the illicit merchandise. • Collaboration with rights holders: Businesses and trademark owners can report counterfeit products to customs through the application for action process. • Awareness campaigns: Customs regularly conduct information campaigns to educate consumers and businesses about the risks of counterfeit products. Customs are a key player in intellectual property protection, working alongside businesses and authorities to secure markets and combat fraud.

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Artificial Intelligence as a Legal Assistant

In the rapidly evolving landscape of legal services, artificial intelligence (AI) has emerged as a transformative force, particularly in the realm of intellectual property (IP) law.

The integration of artificial intelligence into the legal sector signifies a paradigm shift, offering tools that augment the capabilities of legal professionals. In the field of intellectual property, where precision and efficiency are paramount, AI serves as a catalyst for innovation and improved client service.

I – The role of AI in legal assistance

Automation of repetitive tasks

AI excels in automating routine tasks that traditionally consume significant time and resources. Document review, contract analysis, and due diligence are now expedited through AI-driven platforms, allowing legal practitioners to focus on more complex and strategic activities. For instance, AI can swiftly analyze vast amounts of legal documents to identify relevant information, thereby reducing the time spent on manual reviews.

Predictive analytics in legal decision-making

Beyond automation, AI offers predictive analytics capabilities that assist in forecasting legal outcomes. By analyzing historical case data, AI models can predict the likelihood of success in litigation, enabling lawyers to devise informed strategies. This predictive power is particularly beneficial in intellectual property disputes, where understanding potential case trajectories can inform negotiation and litigation approaches.

II – Impact on intellectual property consultancy

Enhancing efficiency and accuracy

In the realm of intellectual property consultancy, AI enhances both efficiency and accuracy. AI-powered tools can conduct comprehensive prior art searches, ensuring that patent applications are both novel and non-infringing. Additionally, AI aids in monitoring potential IP infringements by scanning global databases and marketplaces, providing timely alerts to rights holders. This proactive approach enables IP consultants to offer clients robust protection strategies.

Challenges and ethical considerations

While AI offers numerous benefits, its integration into legal services presents challenges and ethical considerations. Concerns regarding data privacy, algorithmic bias, and the potential erosion of client trust must be addressed. Legal professionals are tasked with ensuring that AI applications comply with existing regulations and uphold the profession’s ethical standards. This includes maintaining transparency in AI-driven analyses and safeguarding sensitive client information.

III – Recent governmental initiatives

National AI Strategies

Governments worldwide recognize the transformative potential of AI and are formulating strategies to harness its benefits responsibly. For example, the French government has launched a national AI strategy aimed at fostering innovation while ensuring ethical deployment across sectors, including the legal domain. Indeed, an information report titled “Artificial Intelligence and Legal Professions” was adopted on December 18, 2024. This strategy encompasses investments in AI research, development of regulatory frameworks, and initiatives to upskill the workforce in AI competencies.

Regulatory frameworks and compliance

To navigate the complexities of AI integration, regulatory bodies are establishing frameworks that promote innovation without compromising ethical standards. These regulations address issues such as data protection, accountability in AI decision-making, and the prevention of discriminatory practices. Legal professionals must stay abreast of these developments to ensure compliance and to advise clients effectively on AI-related matters.

Conclusion

Artificial intelligence stands as a pivotal ally in the evolution of legal services, particularly within intellectual property consultancy. Its capacity to automate tasks and provide predictive insights not only enhances operational efficiency but also elevates the quality of client counsel. As AI continues to mature, its symbiotic relationship with legal professionals will undoubtedly redefine the landscape of legal practice.

Need expert guidance on AI and intellectual property? Dreyfus Law Firm specializes in intellectual property law, including trademark, copyright, and AI-related legal matters.

We are committed to integrating cutting-edge AI technologies to deliver unparalleled intellectual property services and  collaborate with a global network of intellectual property attorneys.

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FAQ

1 – How can AI be used in the legal field?

Artificial intelligence is a powerful tool that can be leveraged in the legal field to automate certain tasks, enhance data analysis, and optimize case management. The main applications include: • Automation of repetitive tasks: AI can generate contracts, analyze clauses, and verify document compliance. • Legal research: AI-powered search engines accelerate the identification of case law precedents and applicable legal texts. • Predictive analysis: Some AI systems can assess the likelihood of success in legal cases based on past court decisions. • Risk management and compliance: AI algorithms detect anomalies in financial documents or contracts, helping companies comply with regulations.

2 – What is the relationship between law and artificial intelligence?

The relationship between law and AI is twofold: • AI applied to law: AI optimizes the work of legal professionals by automating complex tasks, facilitating access to legal information, and improving decision-making. • The regulation of AI: The rise of artificial intelligence presents legal challenges concerning data protection, algorithmic liability, ethics, and regulatory frameworks. Legislators must establish legal safeguards to prevent bias, ensure transparency, and protect individual rights.

3 – Can AI replace lawyers?

AI cannot replace lawyers, but it can significantly enhance their work by providing decision-support tools and automating time-consuming tasks. Lawyers bring indispensable expertise in legal interpretation, litigation strategy, and negotiation. AI lacks the judgment, creativity, and empathy required to defend a client in complex situations. It remains a highly effective assistant but not a substitute for legal professionals.

4 – How do consulting firms use AI?

Intellectual property and legal consulting firms use AI in several ways: • Brand monitoring and protection: AI helps detect fraudulent use of trademarks on the internet, social media, and e-commerce platforms. • Management and analysis of trademark and patent portfolios: AI algorithms can identify protection opportunities, detect potential conflicts, and propose tailored strategies. • Regulatory compliance audits: AI simplifies contract and legal text analysis to ensure compliance with current regulations. • Automation of document drafting: AI-powered tools generate contracts, legal clauses, and personalized analyses based on clients' needs. In summary, AI does not replace legal expertise but serves as an efficiency and precision tool that transforms legal practice and optimizes risk management.

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AI and Data privacy

The convergence of artificial intelligence (AI) and data privacy law has introduced complex challenges and opportunities for businesses and regulators alike. The exponential growth of AI-powered systems, particularly those reliant on personal data, necessitates a balanced approach to innovation and compliance. This article explores how the General Data Protection Regulation (GDPR) addresses the complex legal issues raised by AI technologies, including accountability, data minimization, and lawful bases for processing, while highlighting recent case law and enforcement actions.

I – The legal foundations: AI and GDPR compliance

A – AI’s dependency on personal data

AI systems often require vast amounts of personal data to function effectively. From training large language models to deploying recommendation engines, personal data is indispensable. However, the GDPR imposes strict conditions on such processing, challenging AI developers to balance utility and privacy.

Key Issues Addressed by the GDPR:

  • Lawfulness, fairness, and transparency (Art. 5 GDPR: AI systems must be transparent in their data handling practices, ensuring individuals understand how their data is used.
  • Purpose limitation (Art. 5 GDPR) : AI developers must define specific purposes for data processing and refrain from repurposing data without further legal justification.
  • Data minimization (Art. 5 GDPR) : The principle mandates that only data necessary for the intended purpose is processed.

B – Lawful bases for AI data processing

The European Data Protection Board (EDPB) has clarified that legitimate interest may justify processing personal data in AI development, provided it passes a three-part test:

  1. Identification of the legitimate interest.
  2. Demonstration of necessity for processing.
  3. Balancing this interest against individuals’ rights​​.

II – Key challenges in applying GDPR to AI

  • Anonymization and Pseudonymization : The distinction between anonymized and pseudonymized data is critical in determining GDPR applicability. AI models trained on pseudonymized data remain subject to GDPR, whereas truly anonymized data falls outside its scope​.
  • Transparency in complex systems : AI systems, particularly deep learning models, are often criticized as “black boxes,” making it difficult to explain how decisions are made. The GDPR’s right to explanation (recital 71) adds pressure on AI developers to enhance transparency.
  • Cross-Border data transfers : AI systems relying on global data sources face scrutiny under GDPR’s strict data transfer rules. The recent Schrems II decision invalidated the EU-US Privacy Shield, compelling organizations to adopt alternative safeguards for lawful data transfers​​.

III – Enforcement and precedent: Lessons from case law

A – The OpenAI Case: Italy’s landmark fine

In December 2024, the Italian Data Protection Authority fined OpenAI €15 million for GDPR violations, including a lack of transparency, failure to verify user age, and insufficient safeguards for sensitive data. This case underscores the importance of robust compliance strategies in AI deployment​.

B – Meta platforms and data security breaches

The Irish Data Protection Commission’s €251 million fine against Meta highlighted the consequences of inadequate data breach notifications and poor system design​.

C – The European Commission’s Illegal Data Transfers

A 2025 ruling against the European Commission revealed unlawful data transfers to the US, emphasizing accountability even for public bodies​.

IV – Practical recommendations for AI developers and businesses

  • Implement privacy by design and default : integrating privacy safeguards during the AI system’s design phase ensures compliance with GDPR’s data protection by design principle ( 25 GDPR).
  • Conduct Data Protection Impact Assessments (DPIAs) : DPIAs are mandatory for high-risk AI systems processing personal data. These assessments help identify risks and mitigate potential non-compliance​.
  • Strengthen transparency mechanisms : AI developers must provide clear, accessible privacy notices and explain automated decision-making processes, empowering users to exercise their rights effectively.
  • Monitor regulatory developments : As the EU progresses with the AI Act, businesses must adapt to evolving legal landscapes to avoid penalties and maintain consumer trust.

V – Future Outlook: navigating AI’s legal landscape

The interplay between AI innovation and data protection laws will intensify as technologies evolve. The EU AI Act, set to harmonize regulations across member states, aims to create a comprehensive framework that addresses both risks and benefits of AI systems. Businesses that proactively align their operations with GDPR principles will not only mitigate legal risks but also gain a competitive edge in a privacy-conscious market.

Conclusion : Striking a balance

The relationship between AI and personal data protection exemplifies the tension between innovation and regulatory compliance. By embracing GDPR principles, businesses can harness AI’s transformative potential while respecting individual rights. This dual focus on efficiency and accountability will define the future of AI in an increasingly regulated world.

At Dreyfus Law Firm, our recognized expertise in intellectual property and new technologies is at your service to guide you through the intricate challenges posed by artificial intelligence and data protection.

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FAQ

1 – What is Artificial Intelligence?

Artificial Intelligence (AI) refers to a set of technologies that enable machines to mimic certain human cognitive abilities, such as learning, reasoning, and decision-making. AI relies on advanced algorithms, including machine learning and deep learning, to analyze data and perform complex tasks without human intervention.

2 – What is the link between Artificial Intelligence and personal data?

AI relies on processing large amounts of data, including personal data such as names, addresses, online behavior, and user preferences. These data help machine learning algorithms improve their accuracy and provide personalized services. However, their use raises legal and ethical concerns, particularly regarding compliance with the General Data Protection Regulation (GDPR) and the security of sensitive information.

3 – What are the six principles of data protection?

The GDPR, which regulates the collection and processing of personal data in the European Union, is based on six fundamental principles: 1. Lawfulness, fairness, and transparency – Data must be processed lawfully, transparently, and in a way that is understandable to users. 2. Purpose limitation – Data must be collected for specific, explicit, and legitimate purposes. 3. Data minimization – Only data that is strictly necessary for processing should be collected. 4. Accuracy – Data must be kept up to date and corrected in case of errors. 5. Storage limitation – Data should not be retained longer than necessary. 6. Integrity and confidentiality – Data must be protected against unauthorized access, loss, or destruction.

4 – How does AI process data?

AI analyzes data in several stages: • Collection: Information is gathered from various sources (websites, sensors, databases, social networks, etc.). • Cleaning and structuring: Data is filtered, corrected, and organized to avoid errors and biases. • Analysis and modeling: Algorithms extract trends, detect anomalies, or make predictions. • Decision-making: AI generates recommendations, automates processes, or takes actions based on its analysis.

5 – What does AI do with your personal information?

Artificial Intelligence uses personal data to: • Personalize services (targeted advertising, content recommendations, virtual assistants). • Optimize algorithm performance (improving chatbots, voice recognition, and facial recognition). • Automate certain decisions (credit scoring, fraud detection, medical diagnosis). • Analyze user behavior to enhance products and services. However, the collection and processing of these data must comply with the GDPR and ensure the confidentiality and protection of users' sensitive information.

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Art Market and Trademarks: Navigating Intellectual Property in the Art World

The art market is a sector where intellectual property plays a key role. While copyright remains the primary legal tool for protecting artistic creations, trademark law has become an essential strategy for safeguarding the names, logos, and reputations of artists, galleries, and auction houses.

According to the 2023 annual report of the INPI, 90,874 trademark applications were filed in France that year, highlighting the growing importance of brand protection, including in the art sector.

The challenge is twofold: ensuring the protection of artists’ and galleries’ identities against fraudulent use and guaranteeing the authenticity of artworks. The unauthorized use of well-known artists’ names to sell counterfeit goods is a recurrent issue that threatens the market’s value.

The Role of Trademarks in the Art Market

Trademarks play an essential role in the valorization of artists, galleries, and auction houses. They protect brand identity and market reputation, ensuring recognition and exclusivity.

Trademarks and Art Galleries’ Business Names

Art galleries must register their names and visual identities as trademarks with the INPI in France or the EUIPO for a European trademark. This registration prevents identity theft, commercial parasitism, and disputes over exploitation rights.

Prestigious galleries such as Gagosian Gallery and David Zwirner have established their names as trademarks to secure international recognition and prevent fraudulent use.

Artists’ Trademarks and Personal Branding

Many contemporary artists, including Jeff Koons, Banksy, and Damien Hirst, have registered their names as trademarks to control the commercialization of their works and derivative products, such as posters, miniature sculptures, and NFTs.

A critical legal question arises upon an artist’s death: Who owns the trademarked name, and who can exploit their image commercially? Some artist estates, such as Christo and Jeanne-Claude’s, have attempted to trademark their names to maintain control over posthumous exploitation.

Counterfeiting and Trademark Misuse

The art market faces a growing counterfeiting issue, affecting both artworks and branding elements, such as gallery logos or famous artist names.

Some online platforms and secondary markets exploit gallery and artist names without authorization, selling fake or unauthorized reproductions. Fraudulent NFTs have become a major concern, prompting artists to register their digital signatures and names as trademarks.

Copyright vs. Trademarks: Which Protection for Artworks?

While copyright law primarily governs the protection of artistic works, trademark law can apply in specific cases.

Copyright Protection for Artistic Works

Under French law, copyright automatically protects any original work from its creation, as stated in Article L111-1 of the Intellectual Property Code.

Artists hold moral rights (which are inalienable) and economic rights (which can be transferred). An art gallery must obtain explicit authorization to use or reproduce a copyrighted artwork.

Three-Dimensional Trademarks for Artistic Creations

Some artworks can be registered as three-dimensional trademarks if they are distinctive and not purely functional.

For example, Jeff Koons’ Balloon Dogs have been trademarked to prevent unauthorized reproductions.

Conflicts Between Copyright and Trademarks

Several conflicts arise between copyright and trademark law, including:

  • Can a gallery register an artwork as a trademark without the artist’s consent? No, unless the artist has transferred or licensed their rights. Unauthorized registration could be challenged as an infringement of the artist’s moral and economic rights.
  • Can a brand use an artist’s work without financial compensation? Generally no, unless it falls under an exception such as fair use or public domain. Unauthorized use could lead to legal action for copyright or trademark infringement.
  • When copyright expires (70 years after the artist’s death), can a trademark holder monopolize the work? A trademark cannot grant exclusive rights over a work in the public domain. However, a trademark on a name, logo, or distinctive element related to the artist may still provide some control over commercial use.

Notable Litigation and Case Law

Banksy vs. Full Colour Black, R 1246/2021-5 (2021)

Banksy registered several of his works as trademarks with the EUIPO. However, the company Full Colour Black contested these filings, arguing that Banksy was not using the trademarks for commercial purposes. The EUIPO annulled several of his trademarks, considering his filings an abuse of the system.

Jeff Koons and Copyright Infringement, 960 F.2d 301 (1992)

Jeff Koons has faced multiple lawsuits for allegedly copying other artists’ works under the pretense of “transformation.” These cases highlight the tension between artistic appropriation and intellectual property rights.

Christo and Jeanne-Claude: Posthumous Protection

After the deaths of Christo and Jeanne-Claude, their heirs attempted to register their names and works as trademarks to control their commercial exploitation.

NFTs and Emerging Intellectual Property Issues

With the rise of NFTs (Non-Fungible Tokens), trademark protection has taken on a new dimension.

  • Artists register their names and digital signatures as trademarks to prevent fake NFTs.
  • Galleries trademark certification systems to authenticate digital works and avoid identity fraud.
  • Platforms such as OpenSea and Rarible face legal challenges regarding unauthorized NFT sales.

Recommendations for Artists and Galleries

  • Register trademarks to protect artist names and gallery branding.
  • Ensure legal compliance before exhibiting or selling any artwork.
  • Monitor counterfeiting and unauthorized use of artist names and trademarks.
  • Utilize digital tools (blockchain, NFTs) to guarantee authenticity and traceability.

The intersection of art and trademarks presents both opportunities and challenges. While copyright remains the primary protection for artworks, trademark law is becoming increasingly strategic for securing artist and gallery identities.

With the rise of NFTs and digital art, intellectual property strategies must evolve to protect names and artworks from unauthorized exploitation.

Dreyfus Law Firm provides expertise in intellectual property protection for artists and galleries, working with a global network of specialized trademark attorneys.

 

FAQ

1. What is the relationship between art and trademarks?

Art and trademarks often intersect when artists incorporate branded elements into their works or when brands collaborate with artists to create unique products.

2. Can an artist use a trademarked logo in their artwork?

Using a trademarked logo without permission can lead to legal issues, as it may be considered trademark infringement.

3. What is fair use in the context of trademarks?

Fair use allows limited use of trademarked material without permission, typically for purposes like criticism or commentary. However, its application is limited in trademark law.

4. How can artists protect their intellectual property?

Artists can protect their work by registering copyrights, monitoring for unauthorized use, and taking legal action when necessary.

5. What are some examples of successful artist-brand collaborations?

Collaborations like those between Takashi Murakami and Louis Vuitton showcase successful partnerships that blend art and commerce.

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Dreyfus and the Protection of Intellectual Property Rights in Europe: An Analysis

Since its inception, Dreyfus has established itself as a leader in the management of intellectual property rights (IPR) on a European scale. Faced with the rise of global trade and the growing challenges posed by counterfeiting, the company provides invaluable support to organizations of all sizes to protect and enhance their intangible assets. This article highlights recent trends in the enforcement of IPR in the European Union (EU), drawing on major jurisprudence to illustrate current challenges and solutions.

An Overview of the Fight Against Counterfeiting in Europe

The year 2023 marked a significant milestone in the EU’s efforts to combat counterfeiting. Over 152 million counterfeit items were intercepted, with an estimated value of approximately 3.4 billion euros. This represents a 77% increase compared to the previous year, highlighting the growing effectiveness of surveillance and enforcement measures, thanks to international cooperation and technological advancements.

Most Affected Product Categories

Products such as “Games,” “Toys,” and “Recorded CDs/DVDs” dominate the seizures in terms of volume. However, the rise in violations involving “packaging materials” and “labels” reveals a new trend where counterfeiters use neutral components to evade customs controls. This strategy was addressed in Coty Germany GmbH v. Amazon Services Europe Sàrl (C-567/18, CJUE, 2020), where the Court clarified the responsibilities of e-commerce platforms. Essentially, the company is not liable for trademark infringement unless it actively participates in offering or marketing counterfeit products.

Performance by Member States

Ten European countries stand out for their major contributions to seizures, with Italy taking the lead (74% of intercepted items). France, Romania, and Spain are also key players in these enforcement operations. The importance of cross-border cooperation was underscored in Top Logistics BV v. Bacardi & Company Ltd (C-379/14, CJUE, 2015), which clarified the conditions for seizing goods in transit within the EU

Transportation and Evasion Strategies

Counterfeiters exploit various transportation methods to move their products. Postal shipments account for 37% of cases, while maritime transport dominates in terms of volume, with containers holding thousands of items. This diversity underscores the need to adapt control methods to each logistical channel.

Trademarks at the Heart of Infringements

Trademarks are the most targeted rights, accounting for 84% of recorded infringements in 2023. Copyright violations (7%) and designs (3%) also raise concerns, particularly for high-profile brands.

Dreyfus: A Strategic Partner for IPR Protection

As an intellectual property specialist, Dreyfus offers key services to counter infringements:

  1. Proactive Monitoring: The company uses advanced technologies to detect potential violations in physical and online markets.
  2. Legal Management: With solid legal expertise, Dreyfus assists clients in IPR-related disputes by collaborating with national and international authorities.
  3. Training and Awareness: By educating companies on the best prevention strategies, Dreyfus helps strengthen their internal capabilities.
  4. Institutional Partnerships: The company works closely with organizations such as the EUIPO to enhance protection measures in the European market.

Future Challenges and Perspectives

Several challenges remain:

  • Local Assembly: Counterfeiters use innovative strategies to assemble unbranded products in Europe, avoiding border seizures. In Nintendo v. BigBen Interactive (CJUE, C-25/16, 2018), the CJUE confirmed that intellectual property rights apply even when production stages are outsourced.
  • E-commerce: The speed of online transactions complicates the detection and tracking of infringements. This issue was highlighted in Google France SARL v. Louis Vuitton Malletier SA (C-236/08, CJUE, 2010), which clarified the responsibilities of advertising platforms.
  • Regional Disparities: Differences in resources and priorities among member states hinder a coordinated response. The case Comité Interprofessionnel du Vin de Champagne v. Aldi Süd (TGI Paris, 2019) illustrates the impact of variable standards on protecting geographical indications within the EU.

To address these challenges, Dreyfus advocates for a comprehensive approach based on technologies such as artificial intelligence and big data, as well as better harmonization of procedures across the European Union.

Conclusion

The year 2023 represents a turning point in the fight against counterfeiting in Europe. Thanks to a combination of concerted efforts, technological innovations, and landmark judicial decisions, the EU is better equipped to tackle these threats. Dreyfus positions itself as a key player in supporting companies in this essential battle, contributing to the protection of intangible assets and the preservation of European competitiveness. With concerted efforts and innovative solutions, it is possible to significantly reduce the impact of counterfeiting on the economy and society.

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DeepSeek: The Emergence of China’s New AI Powerhouse

In the rapidly evolving landscape of artificial intelligence (AI), the emergence of new players can significantly disrupt existing paradigms. One such entrant is DeepSeek, a Chinese AI startup that has recently garnered attention for its innovative approaches and competitive performance metrics. As enterprises consider integrating DeepSeek into their operations, it is imperative to understand not only its capabilities but also the legal, data privacy, and intellectual property implications associated with its use.

I – Overview of DeepSeek

A – Development and Release

DeepSeek, officially known as Hangzhou DeepSeek Artificial Intelligence Co., Ltd., unveiled its open-source R1 model on January 27, 2025. This release sent ripples through the U.S. technology sector, particularly as reports highlighted that DeepSeek achieved performance levels comparable to established models like OpenAI’s o1-mini, but at approximately 5% of the development cost. This development challenges the prevailing notion that advancing large language models (LLMs) necessitates substantial capital and computational resources.

B – Key Features and Performance

DeepSeek’s R1 model is designed to handle a variety of complex tasks with notable efficiency. Its open-source nature allows users to download and run the model locally, eliminating the need for data storage on cloud platforms controlled by DeepSeek. This flexibility has attracted a surge of AI developers exploring DeepSeek as a viable alternative to existing models.

II – Legal Considerations for Enterprise Users

A – Data Ownership and Usage Rights

Enterprises must exercise caution when utilizing DeepSeek’s online platforms, such as its iOS, Android, or web chatbot interfaces. DeepSeek’s privacy policy grants the company broad rights to exploit user data collected through prompts or from user devices. This includes monitoring interactions, analyzing usage patterns, and using data to train and improve their technology. Additionally, DeepSeek reserves the right to share collected information with advertising and analytics partners, as well as third parties in connection with corporate transactions.

B – Compliance with International Trade Laws

The storage of all personal data on servers located in China introduces complexities concerning international trade laws that restrict or prohibit data transfers to certain foreign countries, including China. Companies should thoroughly review DeepSeek’s privacy terms to ensure compliance with their internal data security policies and external commitments to customers.

III – Data Privacy and Security Concerns

A – Data Storage and Transfer

DeepSeek’s practice of storing user data on servers within the People’s Republic of China (PRC) raises significant data privacy concerns. The PRC’s regulatory environment differs markedly from frameworks like the General Data Protection Regulation (GDPR) in the European Union or the California Consumer Privacy Act (CCPA) in the United States. Users should be aware that their data may be subject to local laws that permit government access without the stringent safeguards found in other jurisdictions.

B – Potential Risks for Enterprises

For enterprises handling sensitive or proprietary information, using DeepSeek’s online platforms could pose confidentiality risks. The broad data usage rights claimed by DeepSeek may conflict with an organization’s obligations to protect client data or trade secrets. It is crucial for companies to assess these risks and consider whether running a local instance of DeepSeek’s model, thereby retaining full control over their data, is a more suitable option.

IV – Intellectual Property Challenges

A – Allegations of Unauthorized Use

Recent reports indicate that OpenAI has accused DeepSeek of unlawfully using its AI models, raising significant legal and ethical concerns. OpenAI asserts that there is evidence suggesting DeepSeek illicitly utilized its models to enhance its own AI systems.

B – Implications for AI Development

These allegations, if substantiated, could have profound implications for the AI industry, particularly concerning the protection of intellectual property and the ethical development of AI technologies. Enterprises should monitor these developments closely, as they may impact the legal landscape surrounding AI tool usage and development.

V – DeepSeek AI: Privacy Concerns and Regulatory Actions in Europe

Unlike other AI models, DeepSeek is open-source and entirely free. However, its use raises significant concerns regarding data privacy, particularly in terms of compliance with the General Data Protection Regulation (GDPR).

European data protection authorities have expressed concerns about DeepSeek’s data collection and processing practices. For instance, the Luxembourg National Commission for Data Protection (CNPD) has warned about the risks associated with using DeepSeek, emphasizing that user input may be recorded, transferred, stored, or analyzed without a clear data protection framework. The absence of a DeepSeek representative in the European Union complicates GDPR enforcement and makes it difficult for EU citizens to exercise their data rights.

In response, some regulatory authorities have taken concrete action. The Italian Data Protection Authority (Garante) ordered the blocking of the DeepSeek application in Italy after the company failed to provide requested information regarding its privacy policy and data processing practices.

These measures highlight the challenges posed by the rapid emergence of AI models like DeepSeek, particularly regarding compliance with European data protection regulations. European authorities continue to monitor these developments closely to ensure user data security and privacy.

Conclusion

DeepSeek represents a significant advancement in the AI field, offering promising capabilities that could benefit various enterprise applications. However, organizations must carefully weigh these advantages against the potential legal, data privacy, and intellectual property risks associated with its use. Conducting thorough due diligence and consulting with legal experts in data protection and intellectual property law is essential before integrating DeepSeek into business operations.

Need expert guidance on AI and intellectual property? Dreyfus Law Firm specializes in intellectual property law, including trademark, copyright, and AI-related legal matters.

Dreyfus Law Firm collaborates with a global network of IP attorneys to provide tailored legal solutions in the evolving field of AI and copyright.

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FAQ

1 – What is the link between artificial intelligence and personal data?

Artificial intelligence (AI) relies on processing and analyzing large datasets to learn, identify patterns, and make predictions. When AI processes information that can identify an individual (such as names, addresses, browsing history, biometric data, etc.), this data is considered personal and is subject to strict regulations, including the General Data Protection Regulation (GDPR) in Europe.

2 – How does artificial intelligence process data?

AI systems process data through machine learning and deep learning algorithms. These models are trained on large amounts of data to recognize patterns and improve predictions. The processing includes: • Collecting and storing data • Cleaning and structuring information • Analyzing trends and modeling predictions • Making automated decisions based on the analysis To comply with regulations, data must be used transparently, minimized, and secured.

3 – What is the legal framework for AI?

AI is regulated by multiple legal frameworks at both national and international levels. In Europe, it is primarily governed by: • The GDPR, which imposes strict obligations on the collection, processing, and storage of personal data. • The proposed EU AI Act, which aims to classify AI systems based on their risk level and impose specific obligations on developers and users. • Other sector-specific regulations, such as those related to consumer protection, cybersecurity, and liability for errors or damages caused by AI.

4 – Does AI collect your personal information?

AI can process personal information if it is designed to analyze user data (e.g., facial recognition, personalized recommendations, virtual assistants). However, companies and organizations using AI technologies must comply with principles of transparency, data minimization, and user consent. Responsible AI systems should integrate data protection mechanisms such as anonymization, encryption, and access control to prevent misuse or non-compliant processing.

5 – Does the GDPR apply to AI?

Yes, the GDPR applies to any AI system that processes personal data, regardless of the technology used. Key obligations include: • Obtaining explicit user consent for data collection and usage. • Complying with the principle of data minimization, meaning only collecting data that is strictly necessary. • Implementing security measures to protect data processed by AI. • Ensuring the right to explanation, allowing individuals to obtain information about automated decision-making processes. • Granting individuals the right to erasure of their personal data upon request. Any organization using AI must ensure that its systems comply with GDPR requirements and other applicable regulations.

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