In such a fast-changing world of technology innovation, writers’ strikes and intellectual property (IP) clashes, it can be difficult to see what’s coming next. To help you prepare, CFC sat down with their technology, media and IP experts.

Here are the top five trends they say are shaping 2024 and beyond.

Stabilization for the digital assets sector
In recent years, the digital assets sector has experienced fads from the sudden rise and fall of NFTs to the collapse of cryptocurrency exchange FTX. This has created intense cynicism, consumer interest and scams across the market.

In 2024, we expect this trend to die down, as regulators increasingly focus on digital assets, tightening the market and encouraging greater consumer protection. For example, the UK’s FCA is adopting new, stringent rules in marketing crypto assets, motivating businesses to increasingly integrate new technologies into their ways of working—as well as develop technology themselves.

Increased IP litigation in relation to AI training models
Advancements in AI will continue to pose challenges for IP ownership. With today’s AI models collecting billions of data points from across the internet—often with little regard for permissions—there remains more questions than answers when it comes to how IP law will apply to questions of IP ownership. We can usually expect the unexpected when applying established law to modern technology not envisaged at the time the law was developed.

Additionally, it’s still unclear who owns the rights to AI-generated works. Multiple parties have a legitimate claim, and companies in the creative industries are specifically urging their legal teams to chase down instances where their IP is being infringed by AI models. In 2023, claims in this space came thick and fast—from Getty Images claiming millions of its images were copied from its data base without permission to a group of US authors suing Open AI—and we expect that trend to strengthen in 2024.

An influx of content following the end of the Hollywood strikes
Numerous TV shows and film productions ground to a halt due to the 2023 writers’ strike, with the increasing use of AI a key topic of contention. Expect this to have a series of knock-on effects for actors, production companies and adjacent sub-sectors, as AI innovations continue to displace roles on the one hand, and create valuable efficiencies on the other.

With the end of the writer’s strike we can expect an influx of those working in the creative sector such as writers, videographers, film and tv producers to recommence trading. We’re likely to see post-production bottlenecks as companies race to get productions slated, as the industry attempts to right itself after what has been an uncertain period.

Accelerated demand for brand licensing deals
The global brand licensing market is projected to expand from $276 billion in 2021 to over $422 billion in 2031, driven by the need for brand awareness in the digital age, with products and brands often sold on multiple social platforms. We’ll increasingly see companies set up license deals to monopolize their brand, enabling them to enter new territories and create new revenue streams with minimal investment.

As much as brand licensing is a business opportunity, it comes with risk. Using licensed IP beyond the scope of the license agreement can run a risk for both the licensee as well as the licensor which may have conflicting license agreements in place.

Augmented reality to enhance experiences
Despite heavy investment from developers, AR still isn’t widely accepted by the gaming community, with most preferring keyboards and controllers. So why is Tim Cook in Vanity Fair, modelling the latest Apple Vision Pro, and why are companies like Ray Ban pushing their latest sunglasses integrated with AR?

While the global AR gaming market is expected to reach $38 billion by 2027, AR outside of this is expected to hit $60 billion by the end of 2024. Increasingly, we’ll see it transform everyday tasks from buying clothes online to servicing vehicles. What’s certain is that continuous investment in both the hardware and software surrounding this sector will both improve AR technology while making it more affordable.

Getting cover for emerging exposures
The technology, media and IP landscape is changing fast, giving rise to new and evolving exposures that businesses need to address. By looking ahead at what’s next, CFC helps you navigate this complex space with confidence.

Source: www.cfcunderwriting.com

Not sure if your creative business really needs insurance? Here are a few reasons why it’s a smart idea to invest.

The creative world is fast and furious, with so much going on that insurance typically isn’t top of mind. But as technology quickly changes risk profiles across the industry, taking out a policy can be the difference between sinking and surviving in a drawn-out dispute. So how does insurance actually work in media and entertainment, and does it really make sense to invest?

Let’s banish the uncertainty. Here are five reasons why purchasing media and entertainment insurance could be a smart decision for your business.

Peace of mind against IP infringement and defamation, forever
Big intellectual property (IP) cases have a knack of hitting headlines, but these are the just the tip of a huge iceberg. Anyone who produces or promotes content in the public domain is at risk. That goes for whether you intentionally use a third party’s IP, thinking you have the right licenses and contracts in place, or unknowingly use something that’s been trademarked by another party, or make a defamatory statement.

Media liability insurance protects you against a whole host of IP infringement allegations such as copyright and trademark infringement, and covers defamation—something most general liability policies exclude. By carrying an occurrence-based trigger, any content you produce in a given period will also be protected indefinitely from the day of purchase, even if a claim is filed years later.

Contingent bodily injury and property damage
While general liability policies provide cover for bodily injury and property damage claims resulting from a direct physical interaction, most policies will exclude claims resulting from content you distribute or services you provide. This is particularly pertinent given the shift online for most content distribution and consumption in the modern era.

If your services are carried out online, like on YouTube, you could equally be liable if a claimant injures themselves or damages property as a result of an incorrect instruction given in one of your videos. That’s why taking out a specific media policy is so vital. You can receive support for any bodily injury and property damage claim that results from your business activities, eliminating this gap in coverage.

The potential for breaching contracts is huge
In such a fast-paced industry, keeping to deadlines and maintaining professional standards are integral to success. Even with the best of intentions—contractual obligations can miss the mark and these can often be particularly costly when clients are relying on timely and effective delivery.

It’s tempting to think you’ll never have to make or face a breach of contract claim. Media errors & omissions insurance can provide broad and unambiguous cover, and cater to license agreements, endorsement deals and contracts for services—key steps in empowering today’s creatives to collaborate with confidence.

Protection for your outsourced functions
Collaborating with freelancers and other businesses is often essential when operating in the media space and this inevitably opens the door to vicarious liability risk for work undertaken on your behalf.

Going with a policy that offers sub-contractors’ vicarious liability as standard gives you protection in the event you are held liable. This means that you will have protection in place if you are held responsible for the actions of a third party, enabling you to make the most of your freelance network, safe in the knowledge you have the right protections in place.

Cyber security and support come free
Do you have the right security practices in place for your third-party data? How about the means to proactively prevent cyber attacks and preserve business uptime?

Cyber insurance is evolving to keep pace with today’s technology-driven media and entertainment space. It’s already playing a vital role in safeguarding trading in the digital ecosystem, and it can come as standard in a media-specific policy, backed by expert incident response and claims handling support.

Media insurance isn’t just a safety net for when you file or face a claim. No matter if you create or distribute content, or provide services that support this output, the right policy empowers you to work with confidence, fully utilize your third-party network, and deliver engaging content that truly turns heads.

Source: www.cfcunderwriting.com