6 Landmark AI-Related Lawsuits Every Athlete, Brand, and Sports Agent Must Know

The rise of AI and digital technology has created new legal and ethical issues. Athletes, brands, and industries can now monetize digital identities, creating exciting opportunities for revenue and fan engagement.

However, this also opens new avenues for potential misuse and infringement that could harm personality rights owners as well as their fanbase and consumers through unethical campaigns. Misuse of AI can result in significant financial losses and damage to brand reputation.

Understanding the legal and ethical implications of AI is crucial for maintaining control over these assets and ensuring they are used responsibly. In this post, we'll explore several significant lawsuits that are setting precedents for future IP laws. These cases highlight the importance of protecting digital assets and the potential consequences of infringement.

Significant Lawsuits Involving AI

Misinformation: Mata v. Avianca

When: 2022
Who: Federal Court
Background: Imagine you're Roberto Mata, injured on a flight with Avianca Airlines. Your lawyer, Steven A. Schwartz, submits a brief to support your case. You feel hopeful as your lawyer seems confident, armed with precedent cases. However, the cases he cites are from ChatGPT and entirely fabricated. Schwartz, unknowingly relying on AI-generated false information, ends up presenting these fake cases in court. This leads to a significant setback in your legal battle, leaving you feeling betrayed and disheartened.
Outcome: Schwartz and his firm were fined $5,000.
Key Takeaways: Always verify AI-generated information to avoid misinformation that could harm reputation and legal standing. Misuse of AI tools without proper verification can lead to severe professional and legal consequences. Read more about the case.

Disinformation: FTC Bans AI E-Commerce Money-Making Scheme

When: 2024
Who: Federal Trade Commission (FTC)
Background: Consider yourself in the position of one of the many hopeful entrepreneurs investing in an AI-powered e-commerce system that promises easy, automated income. You invest your savings, only to find your online store suspended and your money gone. The owners of this scheme used AI to create false promises and mislead you. As the FTC steps in, you discover that others have lost tens of thousands of dollars too. The emotional toll is heavy, as your financial stability and trust in technology are shattered.
Outcome: The defendants faced a lifetime ban on selling related business opportunities, surrendered millions in assets, and a monetary judgment of $21,765,902.65 was imposed.
Key Takeaways: Ensure AI claims are truthful and substantiated to avoid legal and regulatory consequences. Transparency and accountability in AI applications are crucial to maintain trust and protect consumers. Learn more about the FTC action.

Spearfishing/Fraud: FTC v. Voice Clone Scams

When: 2023
Who: Federal Trade Commission (FTC)
Background: Imagine receiving a frantic call from what you believe is your child's voice, pleading for help and money. Your heart races, and without hesitation, you rush to assist, only to later realize it was a scam. AI voice cloning technology has been used to mimic your loved one's voice perfectly. The emotional and financial impact is devastating, leaving you feeling violated and distrustful. This is where the FTC has stepped in, classifying these AI-generated calls as illegal under the Telephone Consumer Protection Act.
Outcome: Calls made with AI-generated voices are classified as "artificial" under the TCPA, making it illegal to use voice cloning in robocall scams.
Key Takeaways: Be aware of the potential for AI-driven fraud and implement safeguards to protect against it. Staying informed about technological advances and regulatory updates can help mitigate risks. Details on FTC ruling.

Nonconsensual Pornography: Taylor Swift Case

When: 2024
Who: Social Media Platforms, Proposed Legislation
Background: Try to experience the scenario of being a high-profile celebrity like Taylor Swift, only to find explicit images of yourself circulating on social media. These images, entirely fabricated by AI, depict you in compromising situations. The emotional distress and reputational damage are immense. Despite efforts to remove the content, it gains millions of views. Legal teams scramble to find ways to address the misuse of your image while proposed legislation aims to criminalize such acts.
Outcome: Relevant platforms took down the images. Proposed laws like the "Defiance Act" aim to criminalize nonconsensual AI-generated images.
Key Takeaways: Protect digital identities and work with platforms to remove harmful AI-generated content quickly. Proactive measures and legal safeguards are essential to protect personal and brand integrity. More about the incident.

Nonconsensual Use of IP: Scarlett Johansson's Potential Lawsuit Against OpenAI

When: Ongoing
Who: Federal Court (Potential)
Background: Suppose you're Scarlett Johansson, discovering that OpenAI used a voice eerily similar to yours for their AI assistant "Sky" without your consent. You feel a profound sense of violation and distress, as your voice, a critical part of your identity and brand, is used without permission. Johansson's legal team argues that this use violates her right of publicity, similar to the Bette Midler case where an imitated voice was ruled a violation.
Outcome: If successful, Johansson could receive significant damages and reinforce control over her public persona.
Key Takeaways: Ensure consent is obtained when using digital likenesses and voices to avoid legal issues. Clear legal frameworks and robust consent protocols are vital in the use of AI-generated content. Explore the case.

Written Copyright Material: New York Times Lawsuit Against OpenAI and Microsoft

When: 2023
Who: Federal Court
Background: See yourself as part of the New York Times, discovering that your articles have been used without permission to train AI models. These models, now competing with your own platform, use your content to attract readers. The frustration and concern over your intellectual property being exploited are overwhelming. The lawsuit seeks to address this misuse and protect the integrity of your work.
Outcome: The lawsuit seeks billions in damages and raises significant questions about the legality of using copyrighted material for AI training.
Key Takeaways (in Sports Marketing): Be mindful of IP rights when using content to train AI models. Understanding and respecting intellectual property laws are crucial to maintaining ethical standards and avoiding costly legal battles. Details on the lawsuit.

Conclusion

These cases show the importance of understanding the legal and ethical implications of AI. For athletes, brands, sports agents, and personality rights owners, staying informed about these developments is crucial for protecting digital identities and ensuring the ethical use of AI. As AI technology continues to evolve, so too must the legal frameworks and ethical guidelines that govern its use.