Knowledge Marketplace
My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

Back to Takes

There's a significant opportunity to build a frivolous lawsuit business targeting AI companies due to legal gray areas around copyright and intellectual property

Spiciness
business_prediction

The Reasoning

AI companies have raised significant funding, operate in legal gray areas around training data and intellectual property, and would prefer to settle quickly rather than fight lengthy legal battles that could impact fundraising

What Needs to Be True

  • AI companies are vulnerable to IP and copyright claims
  • Legal system allows broad interpretation of IP violations
  • AI companies prioritize quick resolution over legal precedent
  • Settlement amounts are economically attractive relative to legal costs

Counterargument

AI companies will fight these cases to set precedent, courts will dismiss frivolous cases quickly, and regulatory clarity will emerge reducing gray areas

What Would Change This View

Strong legal precedents protecting AI companies, quick dismissal of early cases, or regulatory clarity explicitly protecting AI training practices

Implications for Builders

AI companies should budget for legal defense

Consider IP clearing processes early in development

Build relationships with specialized AI legal counsel

Document training data sources and permissions

Example Application

E-commerce companies routinely settle ADA compliance lawsuits for $10-20K rather than fight, even when claims are questionable, proving that well-funded companies will pay to avoid legal hassles