Baker Botts Partner Paul Ragusa and Associate Coleman Strine examine Fastcase Inc. v. Alexi Technologies Inc. as a cautionary example of how pre generative AI data licensing agreements can produce costly disputes when vague terms collide with unforeseen technological advances such as AI model training. It argues that licensors and licensees can mitigate similar risks by drafting highly specific, forward looking license provisions that clearly define permitted AI uses, confidentiality safeguards, post termination rights, and risk allocation.

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AI Licensing Suit Exhibits Pitfalls Of Vague Contract Terms