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Chat GPT – The What, Why and How?


Karma Global Possesses a Panel of International Experts Be It

(1) Strategy Consultant

(2) Management Consultant

(3) Operations Consultant

(4) Financial Advisory Consultant And

(5) Human Resource Consultant!

Karma Management has now become Karma Global which was incorporated in the year 2004, having now completed almost 19 years of its existence.

As late as April 2021, Karma Global took a very bold step of venturing into foreign shores in terms of shoving up its business prospects in countries like US, UK, UAE, Canada, South East and South East Asia.

It has already made its mark in terms of providing excellent services in the areas of payroll, outsourcing, recruitment and talent acquisition, facility management services and regulatory compliances including immigration, negotiations and employment contracts in these foreign countries as well. 

The major services provided by Karma Global include Regulatory Audit, Management Consulting, Strategy Consulting, Financial & Tech Advisory, Risk Advisory, and Legal.

Towards the end of April and the first fortnight of May 2023, Pratik Vaidya, MD & CVO of Karma Global was in the U.S. and Canada attending the Select USA Investment Summit 2023 which came to a close, marking the largest Investment Summit in Select USA history, with 4,900 attendees spanning 83 international markets that was well represented.

There was lot of interactive session at Bay Area Houston where the delegates were briefed about business divisions in Franchise, Business Brokerage, Consulting, Education, Technology and Business Immigration and assistance was also offered to the delegates in buying or selling businesses with more than 400 franchise opportunities.

This delegation in association with the Consulate General of India, US Commercial Service of Dallas, IACC of Greater Houston, the Greater Houston Partnership and Economic Development Offices is another step in IACC’s development of relations with the United States of America.


ChatGPT – The What, Why and How?

We’ve all encountered some sort of Chabot while browsing the internet. It’s an easy way to convey information as it’s designed to simulate conversation with human users and provide the needed data instantly on the platform screen itself without one having to screen tons of data to extract the information so desired.


What is ChatGPT?

Artificial Intelligence is taken over the world, with researchers stating that it’s shaping the future of humanity across nearly every industry. Thanks to OpenAI, an AI and research company, we now have one of the most effective chatbots ever.

Chatbots have become a very popular way for companies to convey solutions to their customers on the spot. Instead of having a human being operator, a chatbot answers any “support” inquiries – with limited answers, of course.

Chatting with a bot doesn’t always solve the problem or answer the asked question.

First, this service was created by OpenAI, an AI and research company, which launched it in November 2022. Within the first few days of launch, ChatGPT harnessed more than 1 million free sign-ups.

Unlike other Chatbots, ChatGPT is not just created to answer your inquiries on a certain subject. On the contrary, this technology is designed to have an answer to almost everything. Not only that, but it can also assist users with tasks. You can easily create well-crafted emails with ChatGPT and even write an entire essay and code.

Let Us Understand the Structure of ChatGPT!

“I am a large language model trained by OpenAI. I am a virtual assistant designed to assist with answering questions and providing information.

I do not have a physical form and exist only as a computer program. I do not have the ability to think or feel for myself, and I exist only to serve as a tool for generating text based on the inputs provided to me.

I am not capable of self-reflection or introspection, and I cannot provide information about myself beyond what I have been trained to generate based on the input I receive.”


In a Nutshell ……!

ChatGPT is an auto-generative chat that extracts data from textbooks, newspapers, websites and different articles.

Then it gathers this huge amount of data and processes it using Natural Language Processing (NLP), to make it understandable and as similar as possible to human language.

Thanks to NLP, computer programs can summarise large amounts of data or respond to spoken commands quickly.


ChatGPT – Let Us Also Understand What Is This IP and DP in The UK!

It holds the reality that artificial intelligence is no longer for use by a select few but a tool sure to become more prevalent in our everyday lives. With that in mind, it is crucial to understand how artificial intelligence holds up in a virtual world within a legal framework developed to protect individuals’ intellectual property and personal data in the physical realm.


ChatGPT and intellectual property

ChatGPT is an artificial intelligence chatbot developed by OpenAI, which has been trained and built on large language models (currently GPT-4), which allows users to ask questions or make requests of ChatGPT in return for human-like answers. GPT-4 (and other language models) uses data from books, websites and articles to provide an answer.

While there is widespread adoption of ChatGPT work product, important questions remain about information accuracy, ethics and societal connotations.


Why ChatGPT is an opportunity for schools

For example, in academia, the International Baccalaureate (IB), a global leader in international education, gave the green light on using the software, accepting that artificial intelligence will be part of everyday life. The IB did so because it does not regard any work produced by these tools to belong to the students using it, and any use of the tools should be quoted and referenced. Such use does not raise intellectual property concerns under English law, as the use by students is private and non-commercial, meaning it is an exempt activity under the English Copyright, Designs and Patents Act 1988 (CDPA). However, it is interesting to note that the IB regards the author, and subsequently the first owner, of the work to be the chatbot rather than the student operating it.


Beyond academia, and in commercial settings, what are the implications for users of ChatGPT

There are many questions raised to this effect and to give some examples like:

  • How to talk to ChatGPT to optimize its output for use at work. Can the marketing managers ask ChatGPT to write a social media post taking into account engagement for their client?
  • Will this tend to be a kind of infringement of copyright at any point by doing so?
  • What about the music artist who can ask ChatGPT to write a song, then the artist goes on to perform it for money? Who owns that copyright? Is copyright infringed at any point? If so, who infringes it?


Chat GPT in Market Research

An AI bot is a man-made offering that has been trained extensively to give out the best results. However, it would not be advisable to rely solely on Chat GPT. No matter how attractive it may look, it is bound to produce more errors. For excellent results, traditional practices must be coupled with AI. For example, you can fetch basic information or data using Chat GPT and later use credible resources (like papers, articles, reviews, etc.) to fuel your market research process,


Source material

ChatGPT relies on source material for the language model and training to provide its output. This source material may be subject to certain intellectual property rights and therefore be legally protected.


However, if ChatGPT is not directly copying or reproducing the source material but is simply deriving inspiration or learning from such material, can it be alleged to infringe on the intellectual property held in the source material? Some generative AI companies, such as Stable Diffusion and Midjourney, are facing legal challenges in the US by artists claiming that the AI tools have been trained to use images without the consent of their owners; these tools create images from simple text instructions by analysing existing images including illustrations, artwork, and photographs.

Following a consultation into AI and intellectual property, the UK Intellectual Property Office (UK IPO) proposed a new exception for copyright law in June 2022. Specifically, where text and data mining systems extract data and copy works for any purpose (without a license), it would not constitute copyright infringement (TDM exception). There would be no option to allow rights holders to opt out of this exception.

However, following significant backlash from creative industries, UK government representatives have publicly suggested that the proposed TDM exception will not proceed and, instead, further engagement with the creative industry is anticipated. The Design and Artists Copyright Society, which represents visual artists, has warned that “this change will have far-reaching detrimental consequences” and has urged the Government to “look again at how the policy objectives” of supporting AI-driven technologies “can be better met without undermining creators’ rights.” Given the government’s intention to become a hub for digital innovation and to have an attractive regulatory framework for the industry to thrive, it is likely that we will see further developments in the law favouring AI technologies, which may be of concern to rights-holders who will want to ensure that their intellectual property is protected.



Section 9(3) of the CDPA states, “in the case of a literary, dramatic, musical or artistic work which is computer-generated, the author shall be taken to be the person by whom the arrangements necessary for the creation of the work are undertaken.” This is supplemented by section 178 of the CDPA, which defines a computer-generated work as one that “is generated by computer in circumstances such that there is no human author of the work.” The “person by whom the arrangements necessary for the creation of the work are undertaken,” is still rather ambiguous and it is unclear whether the owner is the programmer, the user or both.

ChatGPT opinion on this matter: “Who owns the copyright of content generated by ChatGPT and on what basis?” ChatGPT gave the following response: “The ownership of the copyright… would depend on the specific terms and conditions agreed upon by the user and OpenAI… OpenAI would likely retain the copyright to the output generated by ChatGPT as it is the owner of the technology and the data used to train the language model. However, the specific terms of use and license agreements could vary depending on the intended use of the output and the agreement between OpenAI and the user.”


ChatGPT and Data Protection

Confidentiality of input. From a user experience perspective, the ChatGPT service is similar to using a search engine or a translation application in so far as the queries or the translation text is input into the consumer interface. However, in ChatGPT-4 your employees could input up to 25,000 words worth of prompts, which is clearly a lot more than goes into a search engine query. Also, all use of Chat GPT by employees is on a logged in basis so OpenAI know exactly who made the query. A number of issues arise in connection with this.

First, the ChatGPT terms of use give OpenAI the right to use that input content to develop and improve the services.

Second, OpenAI does not give any security assurances in its terms of use (although, there is an extensive security portal and a statement that commercially reasonable security measures will be applied in the privacy policy that would help found a claim for misrepresentation in the event of a security breach).

A corporate ChatGPT policy should make employees aware of the uncertainty as to how input prompts may be handled and should ban the use of personal information and any client or confidential information in such input prompts.

Incorrect or misleading outputs. GPT-3 and GPT-4 are not searching the internet, rather, they are generating content based on the data sources they were last trained on and the algorithm.

Using the output of ChatGPT without a framework for benchmarking the quality of the input (the prompt) and the accuracy of the output is a leap of faith. The output should therefore not be used unless reviewed by someone who understands how the model works together with someone possessing domain expertise in the subject matter who is in a position to gauge the accuracy/quality of the output.

Biased and/or offensive outputs. ChatGPT is trained on real world data which reflects the biases, inequalities and offensive conversations and content that are present in it.

As such, employees should once again be urged to check output before using it.

Non-unique outputs and detection of use. ChatGPT may (but won’t always) generate the same output to the same or similar prompts. There are also tools available to detect AI generated content, although they are not very accurate.

You should ensure that your employees understand that others may be able to detect that output is AI rather than human generated and to avoid using it in situations where this could be reputationally damaging. It may be safer to be transparent as to when ChatGPT has been used.

Ownership of output. Currently, OpenAI assigns all rights in output to the user (although it retains a right to use it for improving its services).

Training data IP infringements. GPT was trained on copyright works. The generated output may be very similar or even identical to the training works. At a certain point, this may amount to copyright infringement by OpenAI and by the user.

Where output is going to be valuable, widely reproduced or disseminated, this latent IP infringement risk may make using it too risky. You should ensure your employees declare whether output is generated by AI so that these types of risks can be evaluated before such use is made.

Training data privacy infringements. The Italian data protection authority has temporarily banned the use of ChatGPT in Italy for a number of reasons including that the individuals whose information was in the training data set were not given notice by OpenAI that their information was held and being used for training and that OpenAI does not appear to have a legal ground to justify such processing.

You should therefore ensure that your policy prohibits making queries about individuals through ChatGPT so that your organization does not become subject to the same potential ChatGPT data protection infringements.


In Conclusion – Care Should Be Taken Whether There Will Be Copyright Infringement:   

In conclusion, ChatGPT is certainly an interesting tool in many fields, including intellectual property, as it can provide information and assistance.

However, care should be taken when “feeding it” confidential information, as this could end up ruining novelty or being detrimental to the protection trade secrets.

Moreover, be careful when copying content generated by ChatGPT as it may be considered as copyright infringement if based closely on existing works. And, as the source of the information provided is not cited, it is hence not necessarily trustworthy.

For this reason, it is important for intellectual property rights holders, and especially copyright holders, to be aware of the latest developments in this field, and to adequately protect their rights.

As a final remark, please note that although this tool can provide information and assistance as regards intellectual property, it is always advisable to seek advice from IP experts, as (for the time being) it cannot replace an IP lawyer!


Proprietary blog of Karma Global Management Tech LLC

This blog has been collated and compiled by the internal staff of Karma Global with the knowledge and expertise that they possess, besides adaptation, illustration, derivation, transformation, collection and auto generation for its monthly newsletter Issue 12 of June   2023 and in case of specific or general information or compliance updates for that matter, kindly reach out to the Marketing Team – /

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