Selling client IP to an AI data firm? Grok lays out civil, criminal and conspiracy risks
MatthewChang · x · 2026-10-01
Grok analyzed the legal fallout of an engineering firm selling client IP to a Silicon Valley data company: without ownership or authorization, the firm faces breach-of-contract and DTSA misappropriation claims (injunctions, up to 2x damages for willfulness), plus criminal exposure under 18 USC 1832 carrying up to 10 years in prison. An AI company knowingly acquiring such data faces the same civil and criminal liability, with profit motive strengthening evidence of intent.
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