Michael D. Moberly, Principal, Founder kpstrat – November 30, 2023 

Risk projections and mitigations to address the nefariously inclined players in generative artificial intelligence, e.g., extract – exploit proprietarily held intangible assets, etc., are obliged to include these universalities…

  1. 70 – 80+% of most business’s valuation, competitiveness, revenue generation capability, capacity, and sustainability is attributable to intangible (non-physical) assets. Intangibles | BrookingsUnseen Wealth: Report of the Brookings Task Force on Intangibles on JSTORIntangible Assets: Computers and Organizational Capital | Brookings
  2. intangible asset intensity – dependency – reliance relate across business sectors and transactions, irrespective of size, stage of development, sales, products, services, or location. Boom of Intangible Assets Felt Across Industries and Economy – UCLA Anderson Review

Risk projections and mitigations for all businesses today are obliged to distinguish the various types, contexts, and applications of intellectual, structural, and relationship capital (intangible assets) which it…

  • relies, depends, and holds as proprietary.
  • contribute to business-brand competitiveness, revenue generation, valuation, and reputation.

Risk projections and mitigations for all businesses today is obliged to reflect experiential insights of management teams, R&D administrators, product developers, brand managers, and investors, et al, to ensure a clear portrait of which, when, where, how, and why particular ‘mission essential’ intangible assets are consistently in play and can be at risk to nefariously applied generative AI systems.

Risk projections and mitigations for all businesses today is obliged to differentiate risks (to particular ‘mission essential’ intangible assets) relative to…

  • vulnerability (susceptibility, exposure, occasion)
  • probability (likelihood, opportunity, expectation, attractivity) and
  • criticality (adversity experienced, liabilities, obligations, and impact duration).

Preferably, each risk differentiator reflects – relates to an occurrence, circumstance, or situation.

 Risk projection and mitigation considerations should, of course, be ‘intangible asset specific to a business.’ Otherwise, risk projections and their risk differentiators (vulnerabilities, probabilities, criticalities) can signal they are mere ‘guesstimated generalizations’ that oblige only minimal (check-the-box) oversight, resources, or action toward (eventual) execution.

For readers unfamiliar with projecting – mitigating various types of risk associated with  nefariously applied generative artificial intelligence, the complaint, filed Feb. 3, 2023 in the US District Court for the District of Delaware, by Getty Images, may be useful, wherein…

Getty Images is accusing Stability AI Inc. of using more than 12 million Getty photos without permission or compensation, i.e., a copyright and trademark lawsuit against the use of artificial intelligence tools to generate art. Getty Images Sues Stability AI Over Art Generator IP Violations (bloomberglaw.com)

  1. Stability AI unlawfully used Getty’s copyrighted images and associated text and meta-data to train its AI text-to-image tool Stable Diffusion.
  2. raise new copyright questions, including whether AI creators can be held accountable for their use of existing copyrighted works to train their AI generators.
  3. the infringement of its content “on a massive scale has been instrumental to” Stability AI’s success.
  4. the output generated by Stable Diffusion violates trademark law and dilutes its mark by removing Getty’s watermark of its name or contains a modified version of lowers image quality.
  5. Stability AI benefited from the accuracy and detail of Getty’s image-text pairing to train Stable Diffusion.
  6. “Stable Diffusion at times produces images that are highly similar to and derivative of the Getty Images proprietary content.
  7. Stability AI copied extensively in the-course of training the model.
  8. Stability AI is stealing a service that Getty already provides through their licensing of digital assets for AI and machine learning purposes, thereby depriving Getty and its contributors of fair compensation.
  9. This Getty case is one of several addressing the murky legal IP landscape brought on by the rise of AI applications. These lawsuits—including a first -of-its-kind infringement suitfiled earlier this year, also against Stability AI.

The Business Intangible Asset Blog was created in 2006 and now includes 1100+ topic specific posts intended to provide readers, ala business leaders, management teams, R&D administrators, boards, and investors, etc., with reliable insights to the application, valuation, competitiveness, revenue generation, and sustainability contributions of intangible assets.

Posts at Business Intangible Asset Blog are intended to (a.) draw attention to and guide the development, application, management, safeguards, and risk mitigation of business’s ‘mission essential’ intangible assets.

kpstrat is a Business Intangible Asset Strategy – Risk Mitigation Collaborative.

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