When AI Meets Law: The DocuSign vs. Vibe Coder Saga

Tuesday, June 24, 2025

A developer builds a free e-signature tool inspired by DocuSign, only to receive a legal notice. Let’s unravel the drama behind ‘vibe coding’, AI innovation, and intellectual property in the AI era.

📰 The Legal Drama Unfolds: DocuSign vs. Vibe Coder

Picture this: Michael Luo, a developer with a knack for rapid AI-powered app creation, launches Inkless—a free e-signature tool that offers unlimited document signing. The catch? It’s built in just two days using AI-powered coding assistants like ChatGPT, Cursor, and Lovable. 🚀

Fast forward, and in the blink of an eye, DocuSign swoops in with a legal cease-and-desist notice. Why? Because Inkless bears a strong resemblance to DocuSign’s own product, and the company claims intellectual property rights infringement plus concerns about "false and misleading statements."


💡 What’s Inkless, and Why Does It Matter?

Inkless is that cool kid on the digital signature block letting anyone sign unlimited documents—no charges, no catches. Unlike the free plan of DocuSign, which lets you sign unlimited documents but limits sending for signatures to just three per month (aye, those paywalls!), Inkless apparently pushes the boundary for free e-signing further.

Michael Luo states emphatically: “I never stole anything from DocuSign or made misleading statements. They basically got scared that I created a free e-sign tool.” Oh snap! 🧐


🤖 Meet Vibe Coding: The Speedy AI-Powered Developer Trend

If you haven’t heard of vibe coding, it’s Andrej Karpathy’s term for this new wave of AI-assisted ultra-fast coding. Imagine building apps within days (or even hours!) leveraging AI tools that transform natural language prompts into code.

Luo’s creation of Inkless in just 48 hours is a classic vibe coding moment — AI + human creativity = rapid innovation.

But here comes the sticky part: rapid AI-powered creations can sometimes clash with existing companies’ legal guardrails and IP policies. And lawyers don’t vibe the same way code does.


⚖️ Intellectual Property in the Age of AI: A Bit of a Minefield

DocuSign’s statement was clear:

“Just as DocuSign respects the intellectual property rights of third parties, we expect third parties to do the same with our intellectual property.”

Makes sense, right? Corporations can’t have their cards copied, especially in a competitive SaaS market.

But what happens when someone uses open AI tools to replicate a product's functionality? How does the law keep up? No straightforward answer yet.

Inkless’ case spotlights this new battleground where AI innovation meets legal boundaries.


🚀 Why Should You Care?

Whether you’re an indie dev, product manager, or AI enthusiast, this story has layers worth noting:

  • Innovation speed is insane. AI tools let you whip products out before you can say "legal notice."
  • Be aware of IP rights: Building on top of existing ideas? Watch your back and understand the legal landscape.
  • Free alternatives shake markets: Inkless aims to democratize access to e-sign tools — a welcome disruption but a legal headache for incumbents.
  • The AI arms race isn’t just tech — it’s also legal and ethical.

📝 Quick Recap: What Happened Here?

  • Michael Luo creates Inkless, a free e-sign tool, using AI coding assistants.
  • DocuSign fires off a legal warning to stop using aspects of their IP.
  • Luo denies any wrongdoing but acknowledges the pressure from the notice.
  • He’s pushing forward, improving the tool, riding the vibe coding wave.

🔮 Looking Ahead

The DocuSign vs. Vibe coder episode is just one of many stories to come as AI rapidly accelerates app development. For developers, it’s both an exciting playground and a potential legal landmine.

For startups and businesses, this means:

  • Staying vigilant about IP laws.
  • Preparing for fast tech pivots driven by AI.
  • Balancing innovation speed with respect for competitors’ rights.

Stay tuned, and keep vibing — just keep your legal counsel close. 😉


🧑‍💻 About the Author

Supreeth Koundinya is an engineer fascinated by AI’s role in shaping tomorrow. When he's not decoding AI trends, he’s spinning stories that connect tech to real-world impact.


📢 Feel like discussing this buzzing intersection of AI and law? Share your thoughts and spread the vibe!