From blog posts to digital art to lines of code, artificial intelligence can now generate a wide array of content. But who owns that content? As businesses increasingly use generative AI tools like ChatGPT, DALL·E, or Midjourney, the question of intellectual property (IP) ownership has become more relevant and more complicated than ever.

What Counts as AI-Generated Content?

AI-generated content refers to any material created with minimal human input through machine learning systems. This includes:

• Written content (like marketing copy)
• Visual art and illustrations
• Music or soundscapes
• Code and software scripts

Tools like OpenAI's GPT models or image generators work based on training data, algorithms, and user prompts. However, they do not “create” in the human sense.

U.S. Copyright Law and Human Authorship

According to U.S. copyright law, protection applies to “original works of authorship” created by a human. In a key 2023 decision, the U.S. Copyright Office rejected a copyright registration request for an AI-generated artwork, stating it lacked human authorship. Human authorship remains a requirement for protection (U.S. Copyright Office Policy).

This ruling has important implications. If AI generates a work without significant human modification, it may not qualify for copyright. That means:

• You cannot stop others from using it
• You cannot license it for exclusive commercial rights
• You may lose competitive advantage if others reuse the same content

What If You Co-Create with AI?

There is good news. If there is meaningful human input—such as shaping, editing, or curating AI content—then your final product may still qualify for copyright. The more creative control a human exerts, the more likely it is to be considered “authored.”

Example:

• A pure AI image generated with a single prompt is unlikely to be protected
• A complex marketing campaign using AI-generated visuals, human-written slogans, and design could potentially be protectable as a compilation or derivative work

Who Owns AI Outputs in Commercial Settings?

Ownership often hinges on contractual terms. For example:

• In-house work: If employees use AI as part of their job, the company likely owns the output
• Freelancers or agencies: Without a work-for-hire agreement, ownership may be unclear
• Third-party platforms: Some AI tools claim rights over generated content. Always read the terms of service

As of 2025, OpenAI allows commercial use of outputs generated from its tools, but it does not offer copyright assurances for users.

What Can You Do to Protect AI-Generated Work?

Even if copyright protection is limited, there are still ways to safeguard your intellectual assets:

• Trademarks: Brand names, logos, and slogans developed with AI can still be trademarked if they meet eligibility criteria
• Trade Secrets: Custom AI prompts, workflows, or data sets can be protected as confidential business information
• Contracts: Clarify ownership of AI-generated assets in employment or vendor agreements

Final Thoughts: Navigate the Gray Area Proactively

As AI continues to evolve, IP law will likely catch up. But right now, it's a legal gray zone. If you're using AI in your creative or commercial projects, it is critical to:

• Document your human contributions
• Use contracts to clarify ownership
• Be cautious with how you repurpose and monetize AI outputs

To fully understand your rights or protect your competitive edge, consult an experienced IP attorney who stays up to date on the rapidly changing landscape.

Need help navigating AI-related IP challenges?

Contact our team to ensure your innovation stays protected.

‍