CorpConnect Corporate Law News November 2025

10 Critical Intellectual Property Mistakes That Can Destroy Startup

Intellectual property is one of the important yet misinterpreted assets for start-ups. Entrepreneurs intensively focuses on the development of products, market research and validation and fund raising, but they forgot to strategize the IP protection and overlook the importance of the IP protection until it’s too late. These oversights may be catastrophic and potentially destroy years of hard work and invested money.

Data Breach Reporting in India: Legal Obligations and Best Practices

In October 2025, a communication platform with over 200 million active users worldwide disclosed a significant data breach that originated not from its own systems, but from a compromised third-party customer service provider. An attacker compromised the systems of the third-party customer service provider gaining unauthorized access to the support ticket queue containing sensitive customer information. The incident impacted a select group of users who had recently communicated with the platform’s Customer Support or Trust and Safety teams.

Scope of data compromised

The exposed information includes:

• Your name, platform username, email and other contact details if you provided them
• Limited payment information, including payment type, last four digits of your credit card, and purchase history if associated with your account
• IP addresses
• Messages and attachments sent to our Customer Support or Trust & Safety agents
• Government ID images

Meity Unveils India’s Approach Towards Regulating Artificial Intelligence

On November 5, 2025, Ministry of Electronics and Information Technology (hereinafter referred to as ‘MeitY’) unveiled the AI Governance Guidelines (hereinafter referred to as ‘AI Guidelines’) under the IndiaAI mission. The aim of these guidelines is to ensure safe, inclusive, and responsible adoption of artificial intelligence across sectors by focusing on human-centric development, responsible AI and mitigation of potential harms. The guidelines highlight the ‘Do No Harm’ as a core principle and propose a robust governance framework to foster cutting-edge innovation and safely develop and deploy AI for all while mitigating risks to individuals and society.

Openai’s Report Triggers Ethical Al Concerns: 1.2 Million Users Seek Self-Harm Related Advice from Chatgpt

On October 27, 2025, OpenAI published a report on its platform stating that approximately 0.15% of the ChatGPT users exhibit suicidal thoughts or psychosis and seek advice on way and methods of self-harm. While this percentage figure may make it seem insignificant, ChatGPT currently has approximately 700-800 million active users. Considering this, the number of users exhibiting self-harm tendencies is as high as 1.2 million. This stat has raised ethical concerns around Artificial Intelligence (hereinafter referred to as ‘AI’) systems.

The Trigger

The conversation around AI ethics and safety of the users, especially teenagers, was sparked after the parents of a 16 year old California based teenager sued ChatGPT for their son’s wrongful death. They allege searching his phone after he committed suicide and finding everything to be clean except ChatGPT. The parents allege that despite acknowledging Adam’s suicidal tendencies and that he would ‘do it one of these days’, the AI Chabot neither terminated the session nor initiated any emergency protocol.

Issue of Prompt Injections: Open Al’s New Atlas Browser Faces Critical Cybersecurity Threats

On October 21, 2025, OpenAI unveiled its AI-powered web browser name ‘Atlas’. Similar to Perplexity’s Comet browser which was launched in early October, Atlas is OpenAI’s offering of Artificial Intelligence (hereinafter referred to as ‘AI’) powered browser which allows users to browse the internet through prompts instead of clicking on links. While this is considered as the next big step in AI innovation, major cybersecurity firms like NeuralTrust and LayerX have tested and discovered that the AI browser is highly vulnerable to prompt injection attacks (hereinafter referred to as ‘PIA’).

2025 It Rules Amendment: Regulating Synthetically Generated Information in India’s Al and Privacy Landscape

The Ministry of Electronic and Information Technology (MeitY) has proposed amendment to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules) marking a significant new phase in the regulation of online content.  The 2025 Amendment focuses on mandatory disclosure and labelling of Artificial Intelligence (AI) generated synthetic content or modified content by all social media user who post such material and that at least 10% of the visual display area, or the initial 10% of an audio clip’s duration, will have to be devoted to such disclaimers. This initiative seeks to enhance transparency, accountability and user awareness in the rapidly evolving digital ecosystem.

Pernod Ricard alleged that its two whiskey brands have gained a significant amount of goodwill and reputation wherein the word ‘Pride’ being the most unique component of its trademark ‘Blenders Pride’.