CHILE Law and Practice Contributed by: Carolina Cabrera, LawTech
7. Data Protection Considerations 7.1 Relevant Laws and Regulations for Data Protection Chile’s framework for data protection, information security and cybersecurity is built in layers rather than in a single statute. The main pillars are the Data Pro - tection Law, the Cybersecurity Framework Law, the Computer Crimes Law, CMF financial-sector regula - tion, telecoms regulation, consumer protection rules, electronic contracting rules and digital government standards. The Data Protection Law is the central regime for per - sonal data. It has recently been modernised and now follows a structure closer to international standards, with clearer controller/processor roles, legal bases, enhanced data subject rights, rules on sensitive data, automated decisions, security, breach management, international transfers, compliance models, sanctions and a dedicated Data Protection Agency. The Cybersecurity Framework Law creates the nation - al cybersecurity framework, including the National Cybersecurity Agency and CSIRT structures, and introduces obligations for state bodies, essential ser - vices and operators of vital importance. It is relevant for telecoms, digital infrastructure, financial services, health, energy, transport, water, payment systems and managed IT services. The Computer Crimes Law modernised Chilean crimi - nal law in line with the Budapest Convention, covering unlawful access, attacks on systems and data, inter - ception, computer fraud, misuse of devices and relat - ed conduct. It is also relevant for incident response, digital evidence and data preservation. Financial-sector rules issued by the CMF are among the most developed sources for information security, outsourcing, cloud, business continuity, operational risk and incident reporting. Telecoms, consumer, e-commerce, e-signature and public-sector digital transformation rules may also apply depending on the service.
6.5 IP and AI/Computer-Created Works Chile does not yet have a specific enacted statutory regime that fully determines ownership or author - ship of AI-generated works. The issue is currently addressed through ordinary copyright, industrial prop - erty, contract, confidentiality, unfair competition and data protection rules, together with emerging admin - istrative criteria and the pending AI bill. Under Chilean copyright law, protection is built around works of the intellect and the concept of an author, making human creative contribution central. The current administrative approach of the Department of Intellectual Rights is that a result created autono - mously by generative AI is not treated as a copyright- protected work. If AI is used as a tool to transform an original work owned by the applicant, registration may be possible case by case. The practical distinction is between AI as an auton - omous generator and AI as a tool within a human creative process. Where the human role is limited to prompting and selecting a machine-generated out - put, protection is uncertain. Where there is meaningful human selection, editing, direction, arrangement or transformation, ordinary copyright rules may apply. For patents, Chile does not have a separate AI-inven - torship regime. INAPI guidance on computer-imple - mented and AI-related inventions focuses on whether the invention solves a technical problem through tech - nical means and meets ordinary patentability require - ments. Applicants should define the technical prob - lem, describe the technical contribution, avoid black boxes, claim a specific technical application and not claim source code as such. The pending AI bill does not create a complete IP ownership regime for AI outputs, but it recognises IP issues through copyright principles, synthetic content transparency, incidents involving copyright infringe - ment, and confidentiality for IP, trade secrets and source code. In practice, contracts should regulate prompts, outputs, datasets, training data, fine-tuned models, embeddings, logs, feedback, model improve - ments, confidentiality, warranties and indemnities.
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