Tech behemoth Microsoft (NASDAQ:MSFT) has promised to protect its commercial customers who are using its Copilot tool in the event of any intellectual property (IP) disputes. The 365 Copilot is Microsoft’s advanced generative artificial intelligence (AI) tool, which is being employed by select businesses and is still in the testing phase. As per a Financial Times report, the customers include users of both the $19 per month GitHub Copilot plan (aimed at coders) and the Microsoft 365 Copilot program.
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The company has committed to covering legal penalties in the event of any copyright infringement cases stemming from the output generated by its software. The AI software is a large language model (LLM)- based tool that generates output on MSFT’s Word, PowerPoint, and coding tools.
Microsoft’s Commitment to Commercial Customers
Hossein Nowbar, general counsel of corporate legal affairs at Microsoft, issued a statement on September 7. In this statement, Nowbar acknowledged the customers’ concerns while announcing the new Copilot Copyright Commitment. Under this agreement, Microsoft will bear the legal costs arising from “any adverse judgments or settlements that result from the lawsuit, as long as the customer used the guardrails and content filters we have built into our products,” he added.
Thanks to the copyright commitment, Microsoft’s customers will now be able to use the data generated by the AI software without having to worry about the legal consequences. The pact ensures higher usability and acceptability of Microsoft’s Copilot tool amid growing competition in the AI space. Importantly, Microsoft is confident that its AI business will be the first to reach $10 billion in annual revenue.
Meanwhile, another Financial Times report also noted Microsoft’s unscrupulous ways of manipulating initial regulatory inquiries to its advantage before they escalate into full-fledged cases. The report cited the recent decision to unbundle the Teams service from its other Office applications in the EU. Further, Microsoft also announced the sale of its streaming rights to games to Ubisoft. This step was aimed at winning the UK’s approval for its long-pending acquisition of Activision Blizzard (NASDAQ:ATVI).
How Good is MSFT Stock?
Wall Street is certainly highly bullish on Microsoft stock. On TipRanks, MSFT stock commands a Strong Buy consensus rating based on 30 Buys, two Holds, and one Sell rating. The average Microsoft price forecast of $390.97 implies 18.5% upside potential from current levels. Year-to-date, MSFT stock has gained 38.6%.
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