Back to Academy
Legal
Intermediate
9 min read
Alex Morgan (JD)
November 28, 2024

Commercial Use & Copyright Basics for AI-Generated Images

Understand who owns the output, the limits of fair use, and the best practices for safely selling or licensing your AI artwork.

Copyright
Licensing
Commercial

Can you legally sell an AI-generated illustration to a client? What if it was trained on copyrighted photographs? This guide demystifies the current legal landscape (US/EU-centric) so you can monetise your work with confidence.

1Who Owns the Output?

In most jurisdictions the **human** who provided the creative input owns the result, *not* the model vendor. You must contribute meaningful creativity (prompt crafting, edits, composition choices) for copyright to attach.

2Training Data vs. Final Image

Using a model trained on copyrighted data does *not* automatically infringe. Courts look at the similarity of the *output* to any specific copyrighted source (the "substantial similarity" test).

3Fair Use & Transformative Works

In the US, transformative purpose, amount taken, market effect, and nature of original all matter. Purely decorative commercial use is *less* likely to be fair use than commentary, parody, or research.

4Licensing to Clients

Spell out in writing: 1) that the image is AI-assisted, 2) you own/transfer copyright, 3) any model licence requirements (e.g. no logo usage). Offer indemnity only if you’re comfortable absorbing risk.

Pro Tips & Best Practices

Save prompt + seed to prove your authorship timeline.
Avoid celebrity likenesses unless you have publicity-rights clearance.
Check your model’s TOS—some prohibit trademark usage in final products.
When in doubt, add substantial human post-processing.

Practical Examples & Prompts

Example 1

// Prompt:
"Retro-futuristic city poster, bold flat colours, commercial poster design, 300 DPI, CMYK"

Safe for merchandise after verifying no trademarked skyline silhouettes are recognisable.

Example 2

// Prompt:
"Photorealistic coffee product hero shot, studio lighting, --neg brand logo, watermark"

Intentionally excludes third-party branding to reduce infringement risk.

Important Note

Remember that AI image generation is both an art and a science. These techniques provide a foundation, but experimentation and practice are key to mastering your craft. Don't be afraid to break rules and try unconventional approaches!