AI and Copyright: Who Owns the Creative Work?
- michael64671
- Jun 24
- 4 min read
Updated: Jun 27
Artificial intelligence has entered the creative process, and it’s not going away. From screenwriters sketching dialogue with ChatGPT, to designers using Midjourney for mood boards, to musicians experimenting with AI-generated stems, the line between human and machine-made content is blurring fast.
But as the tools become more powerful, so do the legal questions:
Who owns AI-generated content? Can it be copyrighted? And what happens when a client or a court decides your “original work” isn’t quite so original after all?
Let’s break down what creators and founders need to know about copyright and AI right now.
1. Copyright Law Protects Human Creativity Not Machine Output
The U.S. Copyright Office has made its position clear: copyright protection only applies to works created by humans. In a 2023 decision, the Office rejected a copyright application for an image created solely by an AI system, stating that copyright “protects only the fruits of intellectual labor that are founded in the creative powers of the human mind.”
That means:
If an AI system generates an image, movie or TV script, or music track without meaningful human input, it’s not copyrightable.
If you submit a registration for a work that contains AI-generated content, you must disclose which parts were created by AI.
Failing to do so can jeopardize your registration and your legal leverage.
2. What Counts as “Meaningful Human Authorship”?
Here’s where it gets tricky.
Let’s say you type a detailed prompt into Midjourney and choose one of the outputs. You tweak the colors, maybe blend in some of your own photography, and use it as a poster. Is that copyrightable?
Maybe but not fully. You can likely claim copyright on the parts you created or significantly altered, but not on the raw AI-generated material. Courts and the Copyright Office are still figuring out exactly where the line falls, but the more creative control and editing you exert, the stronger your claim.
Think of it like this: AI tools are like collaborators with no rights. You can use them, but they can’t contribute “authorship” in the eyes of the law.
3. Contracts Matter More Than Ever
Because AI-generated content falls into a legal gray area, contractual terms are now the backbone of ownership.
If you're a freelancer using AI to deliver work to a client, make sure your contract:
Discloses the use of AI in the creative process.
Clarifies who owns what, especially if AI output is a major part of the deliverable.
Includes indemnification language in case third parties challenge the originality of the work.
If you’re the client commissioning content, you’ll want the same clauses, but from the other side: disclosure, warranties of originality, and indemnification.
4. What About Training Data and Infringement?
Even if your work is mostly human-made, you could still run into problems if your AI tool was trained on copyrighted material without permission.
This issue is front and center in lawsuits against companies like OpenAI and Stability AI. The plaintiffs argue that AI models are “digesting” protected works and spitting out derivative content. The companies argue fair use and transformative learning.
The outcome of these cases will shape the industry. But in the meantime, creators and startups should be cautious:
Don’t assume AI outputs are “free to use.”
Avoid using AI to mimic the style of real artists or existing IP unless you have a license.
Stay up to date on the tools’ terms of service and legal disclaimers. Many shift liability to the user.
5. So What Should You Do Now?
If you’re a creator or startup using AI in your workflow, here are a few key takeaways:
Be transparent: Disclose AI use to collaborators, clients, and (when applicable) the Copyright Office.
Get it in writing: Strong contracts can clarify ownership and limit your exposure.
Don’t over-rely on protection: You might not be able to copyright 100% of what you generate.
Watch the legal landscape: This area is evolving fast. What’s true today may change in the next major court decision.
The bottom line: AI is here to stay. But legal clarity isn’t... yet. Until it is, a little caution and good counsel go a long way.
Need help navigating this new terrain?
Whether you’re building an AI-integrated product, licensing AI-generated assets, or just making sure your pitch deck isn’t a minefield, knowledgeable legal guidance is essential.
Spiller Law is an advisor to startup businesses, entertainment and media companies, and artists. Feel free to schedule a free consultation.
Spiller Law is a San Francisco business, entertainment, and estate planning law firm. We serve clients in the San Francisco Bay Area, Silicon Valley, Los Angeles, and California. Feel free to arrange a free consultation using the Schedule Appointment link on our website. For other questions, call our offices at 415-991-7298.
The information provided in this article is for general informational purposes only and should not be construed as legal advice or opinion. Readers are advised to consult with their legal counsel for specific advice.
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