IP and AI Indemnity

As the use of artificial intelligence (AI) continues to grow at an astonishing rate, the legal ramifications of the technology challenge creators, manufacturers, distributors and end users. You used an AI platform to create a specific solution for a customer, and now the customer is being sued for copyright infringement by another party – and the customer is turning to you. Who is responsible? You? The customer? The AI platform? Who has indemnity in this scenario? We work with clients at every stage of product development to address such issues and mitigate risk before it reaches a critical point.

Why BakerHostetler?

We have leading intellectual property (IP) indemnification and AI practice teams who have technical knowledge of AI and emerging technologies and who focus on our clients’ business needs and goals, clients’ risk tolerance, and industry specifics to craft solutions and provide recommendations. We have analyzed, drafted and enforced thousands of indemnification, infringement, limitation-of-liability and confidentiality provisions in numerous technology transactions and other agreements and can do so in any contract or agreement. Having built our indemnification practice more than 16 years ago, we have the length, breadth and depth of experience to manage the indemnification life cycle, from conception to negotiation to enforcement to litigation.

How We Help Clients

Serve as indemnification counsel to the lead defendant in a complex nonpracticing entity (NPE) patent infringement matter with over 56 patents-in-suit. Notified over 100 suppliers regarding their indemnification obligation, managed supplier relations, allocated indemnified loss across numerous technology spectrums, enforced indemnification, negotiated settlements, and to date have collected more than $55 million in indemnified defense costs and settlement contributions.
Represent systems aggregators in the analysis and enforcement of indemnification rights in more than 200 complex patent infringement litigations and prelitigation cases, resulting in substantial decreases in exposure and the diversion and recovery of dollar amounts in excess of nine figures for our clients.
Represented a food service company in providing patent litigation services to its customer/indemnitee; neither the client nor its customer/indemnitee was required to pay any out-of-pocket settlements.
Serve as indemnification counsel for an AI technology company providing indemnity to its customers.
Provide counsel to telecommunication and cable corporations regarding best practices for supplier and technology agreements, including issues associated with privacy, IP, indemnification and transparent formulae that maximize post-loss reimbursements.
Provide counsel to healthcare and pharmaceutical industry clients to negotiate and draft vendor and service provider agreements to mitigate potential exposure, and to incorporate optimal indemnification and limitation-of-liability language in order to shift liability and defense exposure to the service provider; leverage a service provider’s insurance coverage; incorporate warranties that hold the service provider accountable for rendering services in accordance with the agreement and applicable law; apply a favorable choice of law provision governing disputes under the contract; and avoid potential pitfalls such as waivers of subrogation that may preclude clients or their insurers from recovering damages attributable to a service provider’s conduct.
Provided a consortium of more than 40 companies with organizational advice centered on AI and related third-party consulting regarding data collection and use, algorithm development, IP ownership and licensing, data privacy and security impact, data lake development, data flows and use of limited datasets, and de-identified data and algorithm application, as well as monetization considerations and related contracting.
Advised clients on the liability implications of providing generative AI tools to users, including Digital Millennium Copyright Act platform safe harbor protections and contractual limitations.