#AIcontent: Labeling obligations and new challenges for intellectual property
Artificial intelligence is increasingly shaping the way content is created, from marketing copy, graphics, and video to editorial materials and artistic works. The European Union is currently preparing to introduce mandatory labeling for content generated or modified by AI. The first draft of the Code of Practice on AI Content Transparency was published in December 2025, with the new regulations set to take effect in August 2026.
The draft Code introduces a clear distinction between the obligations of AI system providers and the entities that deploy these systems in practice. AI providers will be required to ensure multilayered labeling of content, both visible to users and machine-readable—while also providing verification tools and documenting the resilience of these labels against manipulation. In turn, entities using AI, including publishers and creative teams, will be obligated to clearly label content from the very first point of audience contact, utilizing a unified European AI icon and marking public content that has been generated or materially modified by AI.
The draft Code explicitly states that no single universal technical solution exists to ensure full resistance to manipulation. Consequently, compliance will be assessed holistically, through the lens of internal processes, documentation, testing, and audit readiness. For companies, this necessitates a systemic approach to compliance and transparency, rather than relying solely on technology.
AI and intellectual property – new challenges for creators and businesses
From an intellectual property perspective, these upcoming regulations introduce additional complexities. Labeling content as AI-generated or co-created may influence the assessment of originality and copyrightability. In the case of hybrid content, created through human-AI collaboration, questions regarding the scope of protection, authorship, and economic rights remain complex.
However, labeling mechanisms, metadata, and verification tools may serve as crucial evidence in copyright disputes, facilitating the determination of content origin and supporting the enforcement or defense of legal claims. Furthermore, in the context of commercialization, these labels will play a significant role in licensing, rights transfers, and establishing the liability of entities publishing content online.
How to prepare your company for the era of transparent AI
Although the draft Code is currently voluntary, the regulatory trajectory is definitive. Companies should begin analyzing their AI usage now, organizing copyright and licensing frameworks in AI projects, and establishing clear procedures for content labeling and documenting creative workflows. Integrating AI into IP and compliance strategies will be essential to mitigating future legal risks.
JWP support in AI and intellectual property
At JWP, we assist clients in protecting and commercializing intellectual property, analyzing AI-related legal risks, drafting agreements and procedures for AI-generated content, and navigating disputes involving copyright and emerging technologies.
If your business utilizes AI, now is the ideal time to evaluate your operations through the prism of IP and transparency. We invite you to contact us to ensure your company is prepared for these upcoming changes.
