Lesson 2 addresses contract terms governing intellectual property (IP) rights in prompts and other customer inputs into an AI system – and also in outputs created by the system. It looks at terms preserving customer rights in prompts and other inputs and at the limits on what vendors can and should promise about inputs. And the lesson explores vendor assignments and licenses of IP in outputs, as well as more limited concessions from the vendor, like disclaimers and no-contest terms.

Lesson 2 also debunks the widespread idea that it's possible to own data in any meaningful way, whether that data appears in outputs or inputs. It also explains the limits on copyrights and patents available for computer-generated content and inventions in outputs.

For clauses related to Lesson 2, please visit "AI Contracts, An Issue-Spotter," Parts A and B, at TechContracts.com. See also Chapter I.F ("Transfer of IP Ownership") and Appendix 1 ("Intellectual Property"), as well as more generally, Chapter I.C.1 ("Copyright License Rights") of The Tech Contracts Handbook, 3d ed.