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1 results

  • 22 - Sales Law and AI

  • from Part III - Corporate and Commercial Law
  • Edited by Ernest Lim, National University of Singapore, Phillip Morgan, University of York
  • Book:
    The Cambridge Handbook of Private Law and Artificial Intelligence
    Published online:
    21 March 2024
    Print publication:
    28 March 2024, pp 492-510

  • Summary

    The differences between AI software and normal software are important as these have implications for how a transaction of AI software will be treated under sales law. Next, what it means to own an AI system – whether it is a chattel, merely a software, or something more than a software – is explored. If AI is merely a software, it will be protected by copyright, but there will be problems with licensing. But if AI is encapsulated in a physical medium, the transaction may be treated as one of the sale of goods, or a sui generis position may be taken. A detailed analysis of the Court of Justice of the European Union’s decision in Computer Associates v The Software Incubator is provided. An AI transaction can be regarded as a sale of goods. Because the sale of goods regime is insufficient, a transaction regime for AI systems has to be developed, which includes ownership and fair use (assuming AI is regarded as merely a software) and the right to repair (whether AI is treated as goods or software).