With Redress Compliance's guidance, the streaming media company finalized an AI service agreement that safeguarded its content IP at every turn. The final contract explicitly stated that scripts, transcripts, and media data would not be used to train the provider's models or be shared elsewhere.
Background
A popular streaming media company wanted to leverage generative AI to enhance its content operations. They envisioned GPT tools to auto-generate subtitles and metadata for their vast library, and even power a content-recommending chatbot.
The company entered negotiations for an OpenAI API integration. Given the high value of its content and strict licensing agreements, the legal team was very concerned about how an AI vendor would handle their proprietary media assets. Ensuring that any scripts or media fed into the AI remained confidential and unused beyond the service was a top priority.
Challenges
As the legal team reviewed the standard AI service agreement, several serious gaps emerged:
No Training Data Prohibition
The agreement did not explicitly prevent the provider from retaining or learning from the content provided—risking that exclusive content could inadvertently feed the vendor's models or leak to others.
No Data Deletion or Location Limits
The draft lacked data deletion commitments or processing location limits, violating some of the studio's distribution rules and content licensing agreements.
Minimal Liability Terms
Liability terms were minimal, leaving the streaming firm little recourse if the AI made a mistake that led to a copyright or moderation issue on their platform.
Unwilling to risk its content assets or upset content licensors, the company paused before signing and brought in Redress Compliance to vet and renegotiate the contract.
How Redress Compliance Helped
Redress Compliance performed an AI contract risk review focused on IP and data security. The team reviewed the contract, identified all provisions requiring modification, and negotiated the following redlines:
1
Content Usage Prohibition
Negotiated a clause explicitly barring the AI vendor from using any of the streaming company's content—scripts, metadata, or otherwise—for anything beyond the immediate service.
IP Protection2
Mandatory Data Purging
Added an obligation for the vendor to promptly delete the company's content data after processing, preventing it from lingering in any systems or caches.
Data Security3
AI Output Ownership
Added a provision affirming that all AI outputs generated from the company's content (subtitles, summaries, etc.) would be the company's property, with no license back to the vendor.
IP Protection4
Regional Processing Restrictions
Ensured that AI processing would occur only in specified data centers within the required regions, satisfying content export restrictions from studio partners.
Compliance5
Shared Liability & Remediation
Advocated for shared responsibility—if the AI mishandled content and caused a breach, the vendor would assist in remediation and provide fee credits.
Liability6
Extended Confidentiality
Tightened confidentiality clauses to cover all media assets and AI outputs, backed by references to the client's obligations under studio contracts and copyright law.
Data SecurityThese content-specific redlines convinced the vendor to accept the modifications, giving the streaming company a contract that matched the gravity of its IP obligations.
Outcome and Impact
100%
Content IP Protected
Full Purge
Post-Processing
Owned
All AI Outputs
Compliant
Regional Processing
✓
Vendor bound to purge all content data after processing—eliminating lingering exposure
✓
Full ownership of all AI-generated materials (subtitles, metadata, recommendations)
✓
Data processing restricted to approved regions with strong uptime and support SLAs
✓
Improved liability clauses providing vendor remediation and fee credits if something goes wrong
✓
GPT-driven tools deployed successfully—improving metadata, subtitles, and recommendations with zero IP risk
Client Testimonial
Client Quote
Our content is our crown jewel, and we were not about to compromise on protecting it. Redress Compliance understood that immediately. They rewrote the contract to ensure that none of our scripts or media could be leaked or misused. We now have total ownership of any content created by the AI, and the vendor is contractually bound to our privacy standards. Redress turned a risky contract into one that meets our high bar for content security.
— General Counsel, Streaming Media Company
Working with AI on High-Value Content?
Don't sign anything until you're sure your IP is safe. Redress Compliance specializes in AI contract risk advisory for media and technology companies.