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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late....

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late.
Inflation does not take away your capital visibly. It does not reduce the number in your bank account. Instead, it reduces what that number can buy. A Rs 100 note today buys far less than what it did ten years ago. This gradual and relentless decline is what truly destroys long-term financial security. The real damage happens when people invest in financial products that earn less than 10 per cent returns, especially over long periods. India’s long-term inflation averages around 6 to 7 per cent. When you add lifestyle inflation - the rising cost of healthcare, education, housing, travel, and personal aspirations - your effective inflation rate is often much higher. So, if you are earning 5 to 8 per cent on your money, you are not growing your wealth. You are moving backward. This is why low-yield products, despite feeling safe, often end up becoming wealth destroyers. Your money appears protected, but its strength - its ability to buy goods, services, experiences, and opportunities - is weakening year after year. Fixed-income products like bank fixed deposits and recurring deposits are essential, but only for short-term goals within the next three years. Beyond that period, the returns simply do not keep pace with inflation. A few products are a financial mess - they are locked in for the long term with poor liquidity and still give less than 8 per cent returns, which creates major problems in your financial goals journey. To genuinely grow wealth, your investments must consistently outperform inflation and achieve more than 10 per cent returns. For long-term financial goals - whether 5, 10, or 20 years away - only a few asset classes have historically achieved this: Direct stocks Equities represent ownership in businesses. As companies grow their revenues and profits, shareholders participate in that growth. Over long horizons, equities remain one of the most reliable inflation-beating asset classes. Equity and hybrid mutual funds These funds offer equity-debt-gold diversification, professional management, and disciplined investment structures that are essential for long-term compounding. Gold Gold has been a time-tested hedge against inflation and periods of economic uncertainty. Ultimately, financial planning is not about protecting your principal. It is about protecting and enhancing your purchasing power. That is what funds your child’s education, your child’s marriage, your retirement lifestyle, and your long-term dreams. Inflation does not announce its arrival. It works silently. The only defense is intelligent asset allocation and a long-term investment mindset. Your money is supposed to work for you. Make sure it continues to do so - not just in numbers, but in real value. (The author is a Chartered Accountant and CFA (USA). Financial Advisor.Views personal. He could be reached on 9833133605.)

Ghibli vs Generative AI: A Battle for the Soul of Art

As Studio Ghibli’s iconic style gets swept into the AI age, a storm brews over copyright, consent, and the soul of art.

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Ghibli-inspired art has taken the internet by storm in recent weeks, especially the social media, where netizens are posting pictures converted into Ghibli Style images by Artificial Intelligence (AI). While the people seem to thoroughly enjoy the new feature of OpenAI, it has opened the doors for several debates, especially in the legal fraternity. It raises several questions regarding privacy, ethical concerns and most importantly about copyright infringement. The founder of Studio Ghibli, Artist Hayao Miyazaki himself expressed his displeasure over the Ghibli styles images of people doing circles on social media, calling the art generated by AI “an insult to life itself”.


The issue began with OpenAI launching GPT-4o which enabled users to upload pictures and turn those into unique high-quality images resembling distinct artistic styles of Studio Ghibli. While this brings out warm nostalgia and excitement, it has also brought to the forefront significant concerns about the legal limits of AI-generated art.


Studio Ghibli has a very unique style of art and an extraordinary way of connecting with people. It’s not just visually stunning, but also deeply emotional. With its detailed hand-drawn animation, it brings both magical moments and everyday life to the screen with equal care and attention. The soft, warm colours add a sense of comfort and nostalgia, making the scenes feel timeless. What truly makes Ghibli special is how effortlessly it blends fantasy into ordinary life. It’s this warmth and authenticity that makes the art feel not just beautiful, but truly human. The animations are carried out by skilled animators and therefore the replication of this style of art has become controversial in the recent times.


A key question is whether Studio Ghibli’s art style can be protected under copyright law. International frameworks like the Berne Convention and TRIPS safeguard only the expression of ideas, not the ideas themselves. Artistic styles, such as Ghibli’s distinctive aesthetics, are typically deemed unprotectable ideas; only specific characters and images qualify for copyright. Granting exclusive rights over a visual style risks stifling creative freedom. OpenAI argues that it uses only publicly available ideas to render images in a Ghibli-like manner. Yet courts apply various tests such as ‘substantial similarity’ and ‘look and feel’ to assess whether imitation crosses into infringement.


Courts often use the ‘look and feel’ and ‘substantial similarity’ tests to determine copyright infringement. The former asks whether an average observer finds the overall impression of two works strikingly similar, while the latter examines whether protectable elements like unique expression or structure have been unfairly echoed in the new work.


Though OpenAI’s outputs may resemble Studio Ghibli’s aesthetic, legal protection applies only to concrete, original expressions, not abstract artistic styles. Courts typically filter out unprotectable elements before applying these tests, making it difficult for Studio Ghibli to argue that its art style, however distinctive, qualifies as a protectable expression rather than a mere idea.


A derivative work, generally is one that is based on, adapted from, or recast of an existing copyrighted work. Under the Indian law, it is considered as an adaptation which is also a subject matter of copyright protection. Therefore, if an AI creates an image that looks a lot like something from Studio Ghibli and especially if that image was generated using copyrighted material as part of its training data without permission, it could be considered an unauthorized derivative work amounting to copyright infringement. Interestingly, if AI is simply inspired by a general artistic style, without copying specific characters, scenes, or unique design elements, it might not qualify as infringement. The debate again boils down to the question of whether the ‘art form’ in itself could be considered as an expression or a mere idea, which will determine its copyrightability.


A critical point of contention is whether using copyrighted material to train AI qualifies as fair use. Proponents argue that AI transforms ideas into new expressions based on user prompts, akin to how original works build on public knowledge. Critics, however, contend that even storing such material for training infringes copyright, as this right rests solely with the creator. In India, the stricter doctrine of ‘fair dealing’ further complicates the issue, raising doubts over whether AI training practices can be legally justified under existing frameworks.

As users upload personal photos to generate Ghibli-style images via AI platforms, concerns have mounted over whether such data is quietly repurposed for model training, raising red flags over privacy and potential misuse. If reused, AI could inadvertently replicate individuals’ likenesses in new artworks, blurring the line between consent and exploitation. Studio Ghibli’s co-founder, Hayao Miyazaki, once called AI animation “an insult to life itself” - a sentiment echoed by traditional artists who fear that hand-drawn craft, rich in emotion and cultural depth, is being undermined. Though not strictly a question of intellectual property, the ethical implications are profound.


The rise of AI-generated art in the style of Studio Ghibli has ignited complex debates around originality, authorship, and copyright. While such technology challenges existing frameworks, it also forces a re-evaluation of transformation, fair use and inspiration in the digital age. Striking a balance between protecting artists and fostering innovation is crucial. To safeguard creativity and progress, clear legal and ethical guidelines must follow to ensure that the future of art remains rich, respectful and imaginative.


(Dr. Sajid Sheikh is Assistant Professor (Law) and Ms. K. Ankita Rao is Research Assistant, DPIIT IPR Chair. Both are at the Maharashtra National Law University, Mumbai. Views personal.)

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