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No, the Sky Is Not Falling

IP, AI, and the Reality of Global Market Developments

As AI adoption accelerates, Danny Marti of Tencent argues that intellectual property is not breaking but evolving—and that execution, scale, and collaboration, rather than reinvention, will determine how IP systems adapt globally.

There’s a growing narrative that AI is breaking the IP system. Is that how you see it?

Not exactly, the sky isn’t falling. We’ve seen something like this before. Each major technological advance—like the rise of the Internet, user-generated content, streaming, 3D printing, and so on—has raised serious concerns about the adequacy of IP frameworks.

And yet, what happens is not collapse, but adaptation. IP remains the infrastructure of trust that enables value creation. Questions around ownership, licensing, and enforcement may be debated or challenged in the short term with AI, which is fair, but IP systems don’t break down.

The difference is that the speed and scale of AI adoption is changing how fast those questions need to be asked … and answered.

Is that what’s different this time—the timing?

Basically, yes. AI compresses timelines. What used to take years now happens in months, or even weeks. Content is created, distributed, and monetized at unprecedented velocity in the digital space and AI hyper-scales even that.

All this puts pressure on systems that were not designed for that level of velocity. But the answer isn’t to rethink IP from scratch. It’s to operationalize better. No one has all the answers in this space, but we need to work daily to get it right.

At Tencent, we don’t think about IP as a technical legal backstop. IP is embedded across our business. It’s how we build trust with brands and creators, structure partnerships, and bring our services to market.

"IP absolutely has a legal dimension, but at some point, it becomes a business strategy."

- Danny Marti | Tencent (USA)

Okay, but how does that play out in practice at Tencent?

Tencent operates across video gaming, music, film, TV, sports and other digital services and platforms, often simultaneously. That means IP must be part of our operational strategy, both short and longer term.

Take music as an example. A decade ago, piracy rates in China were extremely high. I recall an IFPI [International Federation of the Phonographic Industry] figure putting piracy at roughly 97 percent at the time. What changed wasn’t just IP enforcement, although it was part of the solution. It was licensing at scale through Tencent Music Entertainment, combined with accessibility and affordability, that helped create a thriving digital music ecosystem serving hundreds of millions of users.

So, invest, make a good product, and support an IP enforcement strategy that honors and gives life to the underlying investment.

Or look at video gaming and sports media. Whether it’s publishing global titles or the digital distribution of NBA games in China, everything depends on clear ownership, structured licensing, and a consistent enforcement framework. In each of these examples, IP is what allows those ecosystems to function and grow.

AI won’t erode this framework. It will build on it, and maybe even create new ways to engage and serve fans and users.

Many companies still treat IP as purely, or at least primarily, a legal function. Is that outdated?

It’s incomplete. IP absolutely has a legal dimension, but at some point, it becomes a business strategy. IP is what turns products into scalable, lasting economic value.

If you’re entering new markets, forming partnerships, or building global brands, IP is not something you “check” at the end. It’s something you must design into the system from the beginning. The companies that understand that are the ones that scale effectively.

Back to the topic of the day, where does AI fit into that framework?

AI is an accelerant, not a reset. It raises familiar questions, like who owns the output, how training data is used, how value is distributed—but it does so at a much larger scale.

Our approach at Tencent is pragmatic. There’s a tendency to frame AI as something entirely foreign or destabilizing. But in many ways, it’s a continuation of trends we’ve already been managing. Just faster and more complex. Cue nervous laughter!

What should the IP community be focused on right now?

Execution. Partnerships. Collaboration. A lot of the same things I and others have been saying for years. The fundamentals of IP are sound.

The challenge is implementing an effective IP strategy across 100+ jurisdictions, different platforms, and technologies. That includes improving basic standards between IP systems, while also allowing for differences. Simplifying licensing frameworks and investing in enforcement teams and mechanisms that can operate efficiently.

I shouldn’t be surprised, but I continue to be surprised when I speak with large household brands that either have zero or one person in China, or worse, across all of Asia, and they complain about enforcement limitations.

Although we have had a long period of time where the term “globalism” has been under attack in political circles, the reality in the business community is that our products, consumers, and supply chains all continue to have international aspects that must be met with local expertise and know-how. There is no substitute for local expertise.

Why is INTA an important forum for this conversation?

INTA brings together the people who manage and operate the system: brand owners, content creators, policymakers, and IP practitioners. At a time when there’s a lot of noise around disruption, it’s important to have a grounded conversation about what is working, and how to build on it. This is one of INTA’s true strengths. It is a thoughtful convenor, trusted for its expertise, rigor, and reach to support and shape global IP dialogue.

Tencent is proud to support that dialogue, including sponsoring the Annual Meeting’s closing event at the Tate Modern. Our support reflects our belief that strong IP systems support consumer trust and enable creativity, commerce, and culture to move across borders with confidence.