While testing a text-generation model, a company notices that some outputs reproduce paragraphs that appear word-for-word from a copyrighted novel. Which legal risk does this situation illustrate?
Loss of customer trust
Intellectual property infringement
Biased model output
Data privacy breach
Reproducing copyrighted text without permission can violate the copyright holder's intellectual property rights. This situation represents the legal risk of intellectual property (IP) infringement. Bias, loss of customer trust, and data privacy breaches are different risks: biased outputs concern unfair or discriminatory content, customer-trust issues relate to user confidence, and privacy breaches involve unauthorized exposure of personal data.
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