Hajra Naz
A few months ago, a global marketing firm rolled out a campaign featuring AI-generated visuals and copy. The results were striking—visually captivating images, compelling messaging, and remarkably fast execution. However, when a competitor repurposed noteworthy components of the campaign, the firm’s legitimate group found a major flaw: the content needed copyright assurance, making authorization about impossible.
This is no longer a hypothetical issue. The U.S. Copyright Office’s recent report, “Copyright and Artificial Intelligence, Portion 2: Copyrightability,” highlights how copyright law is struggling to keep up with AI-generated substance. Companies leveraging AI-driven creativity and those creating AI innovation must presently hook with a basic address: Who claims AI-generated work?
Key Findings from the Copyright Office Report
The Copyright Office’s latest report completely analyzes AI-generated works and their copyright eligibility. Major takeaways include:
- No Copyright Without Human Authorship: The report reaffirms that AI-generated works are ineligible for copyright security unless a human contributes considerable inventive input. This adjusts to the Thaler v. Perlmutter choice, which denied copyright enrollment for AI-generated craftsmanship.
- Case-by-Case Evaluation: The Office emphasizes that copyrightability hinges on assessing the level of human involvement in AI-generated content.
- Global Implications: The report notes that different jurisdictions have varied stances. While China offers limited protection for AI-generated works, the U.S. remains firm on requiring human authorship.
- Business Considerations: Companies using AI in their creative workflows must carefully assess their reliance on such content to avoid legal and IP complications.
Read More: 5 things I learned from AI-generated images for the first time
The Copyright Office’s Position: No Human, No Copyright
The Copyright Office’s stance is clear: only works with human authorship qualify for copyright protection. “Copyright has never stretched so far as to protect works generated by new forms of technology operating absent any guiding human hand,” the Office stated, referencing Thaler v. Perlmutter (2023), in which the court denied copyright registration for an AI-generated artwork that lacked human involvement.
For businesses leveraging AI for creative output, this ruling raises serious concerns. Without copyright protection, competitors can freely copy or alter AI-generated branding, marketing materials, or product designs without facing legal repercussions.
Shira Perlmutter, Register of Copyrights and Director of the USCO reinforces this view: “After considering the extensive public comments and the current state of technological development, our conclusions turn on the centrality of human creativity to copyright. Where that creativity is expressed through the use of AI systems, it continues to enjoy protection. Extending protection to material whose expressive elements are determined by a machine, however, would undermine rather than further the constitutional goals of copyright.”
Business Implications: Risks and Opportunities
The uncertain legal landscape around AI-generated content presents both challenges and opportunities for businesses.
Organizations relying on AI-generated branding and marketing may struggle to prevent unauthorized use. Traditional trademarks may offer some protection, but copyright laws offer little recourse if AI is the sole creator. Companies using AI-generated content in advertising, publishing, or product design must factor in these copyright limitations.
Conversely, businesses seeking to utilize AI-generated content from competitors may find themselves in a unique position. Since AI-generated works lack copyright protection, companies could legally repurpose such content. However, ethical and reputational risks must also be considered.
This ambiguity extends beyond large corporations to startups as well. “If the U.S. wants to encourage AI innovation, copyright laws must be clear enough for even early-stage startups to determine whether their business models comply with IP regulations,” said David Siegel, partner at Grellas Shah LLP. “Right now, we are far from that clarity.”
Read More: Does AI-Generated Content Rank on Google?
Global Landscape: Diverging Approaches to AI Copyright
The AI copyright debate extends beyond the U.S., with various jurisdictions taking different stances:
- European Union: AI-generated works qualify for copyright only if a human’s creative contribution is significant.
- China: AI-generated works may receive copyright protection under specific conditions when human involvement is substantial.
- United Kingdom: Copyright law grants protection to computer-generated works with no human author, but the duration is shorter (50 years instead of the standard 70).
For businesses working globally, these contrasts cruel that AI-generated substance may be ensured in a few regions but not in others, complicating worldwide IP techniques.
Human Intervention: The Key to Copyright Protection
To navigate these uncertainties, businesses must ensure human authorship plays a meaningful role in AI-generated content. The Copyright Office provides guidance on this matter:
- Selection and Arrangement: If a human creatively selects, arranges, or edits AI-generated content, that portion may qualify for copyright protection.
- Hybrid Works: When AI-generated elements are incorporated into a broader human-created work, copyright applies to human contributions.
- Disclosure Requirements: Applicants must disclose AI-generated elements in copyright applications, differentiating between human and machine contributions.
Alternative IP Protections for AI-Generated Content
Given the restricted copyright assurances for AI-generated substance, businesses can investigate other mental property strategies:
- Trade Secrets: Trade Privileged insights: Exclusive information, techniques, or private AI-generated forms may be secured as exchange secrets.
- Contractual Assertions: Authorizing terms and benefit understandings can characterize proprietorship and utilization rights for AI-generated substance.
- Database Rights: In regions like the EU, structured AI-generated datasets may qualify for database rights.
- Copyright with Human Oversight: If human intervention significantly shapes AI-generated content, copyright protection may still apply.
- Patents: AI-driven innovations in design, software, or automation may be patentable, offering stronger protection than copyright.
- Digital Watermarking & Attribution: Blockchain verification and watermarking can establish authorship and discourage misuse.
- Creative Commons & Open Licenses: These allow creators to define usage rights while maintaining some level of control.
- Collective Rights Management: Industry frameworks can help register and license AI-generated works.
- AI-Specific Legal Frameworks: Some jurisdictions are exploring new legal frameworks for AI-generated content.
- Human-Only Content: Restricting content creation to human authors ensures clear ownership under existing IP laws.
By leveraging these alternative protections, businesses can safeguard their AI-generated assets while adapting to evolving IP laws.
Read More: Google Introduces a New Tool to detect AI-Generated Images
The Future of AI and Copyright Law
As AI continues to reshape creative industries, the Copyright Office’s emphasis on human authorship remains the standard. However, ongoing legal debates may lead to new frameworks. Some experts advocate for a sui generis right—a new category of intellectual property specifically for AI-generated works. Others propose that corporate ownership of AI-generated content, where companies that develop and train AI systems hold exclusive rights, could be a viable solution.
Nizel Adams, CEO and principal engineer at AI consultancy Nizel Corp, underscores the complexity of AI copyright: “The problem with AI-generated content is that users don’t always know where the AI is sourcing elements from. Some parts may be original, while others could be derived from copyrighted material or even another person’s AI-generated work.”
For now, businesses must stay informed and proactive. While AI-generated content may lack traditional copyright protection, strategic legal planning can still provide security. As AI technology evolves and regulatory frameworks adapt, companies that refine their IP strategies will maintain a competitive edge in this rapidly changing landscape.
