- 2 March 2026
- the date the US Supreme Court declined to hear Thaler v. Perlmutter, leaving the human-author rule in place
- 50 years
- how long UK law protects a “computer-generated” work with no human author, under the 1988 Act
- €15m or 3%
- maximum EU AI Act fine for breaching the Article 50 transparency and deepfake disclosure duties
- $1m
- annual gross revenue above which Midjourney says a company needs a Pro or Mega plan to own its images
AI image tools are now part of everyday business. A café owner makes a menu illustration in ChatGPT, a marketer produces product shots in Gemini, a self-published author designs a book cover in Midjourney, and a freelancer hands a client a logo built in Canva or Adobe Firefly. Most people never stop to ask what they are allowed to do with the result.
The law has not caught up neatly, but it is clearer than many people think. Ownership, infringement, faces, contracts and labelling are five separate questions, and each has a different answer. This guide takes them one at a time, with the main differences between the US, EU, UK, China, India and other markets.
A note on tools: ChatGPT (OpenAI), Gemini (Google’s Imagen and “Nano Banana” image models), Midjourney, Adobe Firefly, Canva, Stable Diffusion and Grok all generate images. Claude, Anthropic’s assistant, does not natively generate photos or other raster images, although it can write SVG or code that draws simple graphics. The legal principles below apply whichever tool you use.
Key takeaways
- Most AI image tools let you use outputs commercially, but the exact rights depend on your plan and the tool’s current terms.
- In the US and EU a purely AI-generated image is unlikely to be protected by copyright, while your own edits, selection and arrangement can be.
- An AI-generated logo can still be registered as a trade mark, because trade mark law asks whether a sign identifies your business, not who drew it.
- Copying a style is generally not infringement, but reproducing recognisable characters, logos or a real person’s likeness can be.
- New labelling and advertising rules in the EU, China, India and New York mean some AI images must now be disclosed as AI.
Who owns an image you made with ChatGPT or Midjourney?
There are two layers. The first is the contract with the tool provider. OpenAI’s terms say that, as between you and OpenAI, you own the output and OpenAI assigns you whatever rights it has. Google’s terms say it will not claim ownership of content you generate. Midjourney says paying users own their images, with conditions covered below.
The second layer is copyright, which is a right against the whole world. Here the answer is less comfortable. Most legal systems protect only work that reflects human creative choices, so a purely machine-made picture may not be protected at all. The tool can only hand you rights it has, and if no copyright exists, there is nothing to hand over.
In practice, this means you can usually use the image, sell products with it and put it in your marketing. What you may not be able to do is stop a competitor from copying it. That matters most for logos, mascots, book covers and anything you expect to defend.
Can you copyright an AI image? The position country by country
The US is the clearest. In its January 2025 report on copyrightability, the US Copyright Office said prompts alone generally do not make you the author, because you do not control how the system turns them into an image. Human selection, arrangement and real modification can be protected. In the Zarya of the Dawn decision (2023), the Office registered a comic book’s text and the author’s arrangement, but not the Midjourney images inside it.
The courts agree. In Thaler v. Perlmutter the D.C. Circuit held in March 2025 that a work made autonomously by an AI system cannot be registered, and the Supreme Court declined to hear the case on 2 March 2026. The EU test of originality, the author’s “own intellectual creation”, points the same way, although no top EU court has ruled on AI images yet.
Other markets differ. The UK’s 1988 Act protects “computer-generated works” with no human author, giving ownership to the person who made the arrangements for the work and 50 years of protection. In March 2026 the UK government recommended removing that rule, but no law has changed yet. China’s Beijing Internet Court in Li v. Liu (2023) protected a Stable Diffusion image because of the user’s detailed prompts and adjustments. India’s Copyright Act also names the person who causes a computer-generated work to be created as its author, but how that applies to modern AI is untested in the courts.
| Market | Current position | What helps you |
|---|---|---|
| United States | No, unless there is meaningful human authorship | Your edits, compositing, selection and arrangement |
| European Union | Unlikely; needs the author’s own intellectual creation | Documented creative choices beyond the prompt |
| United Kingdom | Yes, as a computer-generated work, for now | Repeal recommended in March 2026; no law change yet |
| China | Possibly, if prompts and tweaks show real intellectual effort | Keep records of prompts, settings and iterations |
| India | Statute covers computer-generated works; untested for AI | Clear human input and records |
| Japan | Only where a human makes a creative contribution | Human editing and creative control |
Can you trademark a logo made with AI?
Often, yes. A trade mark is a sign that tells customers which business a product or service comes from. Trade mark offices ask whether the sign is distinctive and not confusingly similar to existing marks. They do not generally ask who, or what, drew it.
So an AI-made logo can be registered as a trade mark in the US, UK, EU, India and most other markets, even if it has no copyright. Registration then gives you rights against anyone using a confusingly similar sign for similar goods or services. That is often the protection a small business really needs.
The catch is clearance. AI tools can produce logos that look like existing brands, because they learned from millions of them. Search the trade mark registers in your markets before you print anything, and add your own human design changes so you also have some copyright in the final version.
Can an AI image infringe someone else’s copyright or trade mark?
Yes. If the output reproduces a recognisable part of a protected work, publishing it can infringe copyright, whoever typed the prompt. Famous characters are the obvious risk: a picture of Mickey Mouse, Spider-Man or Pikachu on your product is a problem even if a machine drew it. Brand logos and packaging that appear in an image can also raise trade mark issues.
Style is different. Copyright protects expression, not a general style or idea. That is why the “Ghibli-style” portraits that went viral after ChatGPT added native image generation in March 2025 are generally not infringing in themselves. The risk rises when the image copies specific characters, scenes or frames, or when you market it as connected to the studio.
Courts are now testing where the lines sit. Disney and Universal sued Midjourney in Los Angeles in June 2025, claiming it trained on and generates their characters such as Darth Vader and the Minions, and Warner Bros. Discovery filed a similar case later that year. As of October 2026 those cases are still pending. In the UK, Getty Images largely lost its case against Stability AI in November 2025, but the court found trade mark infringement where early versions of Stable Diffusion produced images bearing Getty and iStock watermarks.
- Avoid prompts naming famous characters, brands or living artists for commercial work.
- Check outputs for stray logos, signatures and watermarks before publishing.
- Run a reverse image search on anything important, such as a cover or logo.
Can you use a real person’s face in an AI image?
This is often the biggest risk in practice. Many countries protect a person’s name, face and voice against commercial use without consent. In the US this is called the “right of publicity” and is mostly state law; California and New York have strong versions. In India the courts call it “personality rights”, and in September 2025 the Delhi High Court granted interim orders protecting Aishwarya Rai Bachchan and Abhishek Bachchan against AI deepfakes and misuse of their likeness.
The UK has no general image right, but using a celebrity in an ad can still be “passing off”, meaning a false suggestion that they endorse you. Advertising codes in the UK, EU and elsewhere also forbid implying an endorsement that does not exist. Data protection law adds another layer: an identifiable face is personal data under the GDPR and similar laws.
Made-up people are not risk-free either. Since June 2026, New York requires advertisers to disclose conspicuously when an ad uses a “synthetic performer”, an AI-generated human who is not a real, identifiable person. Penalties are $1,000 for a first breach and $5,000 for later ones.
What the tool’s terms of service say about commercial use
Terms matter more than most people realise, and they change. OpenAI and Google give you their rights in the output and allow commercial use within their usage policies. Midjourney says paid subscribers own their images, but a company with more than $1 million in annual gross revenue, or its employees, must be on a Pro or Mega plan to own them. Midjourney images may also be visible to other users unless you use its private mode.
Adobe markets Firefly as “commercially safe” because it says the models were trained on licensed content such as Adobe Stock and public domain works. Qualifying enterprise plans include an intellectual property indemnity, a promise that Adobe will defend you and cover certain costs if a generated image is said to infringe. Indemnities usually have conditions and do not cover your own edits, so read them closely.
Free and consumer plans rarely offer any indemnity. Stable Diffusion models come under their own licences, which can restrict commercial use above a revenue level depending on the model version. Screenshot the terms that applied when you made the image and keep them with the file.
Do you have to label AI images?
Increasingly, yes, in certain cases. The EU AI Act’s Article 50 requires providers of generative tools to mark outputs in a machine-readable way, and requires businesses using them to disclose “deepfakes”, meaning realistic images of real people, places or events. These duties have applied since 2 August 2026, and fines can reach €15 million or 3% of worldwide turnover, with lower caps for small companies.
China’s labelling measures, in force since 1 September 2025, require visible labels and hidden metadata on AI content. India’s amended IT Rules, in force since 20 February 2026, require platforms to label “synthetically generated information” and keep embedded markers. California’s AI Transparency Act puts watermarking duties on large AI providers.
Many tools now mark images automatically. OpenAI and Adobe attach C2PA “Content Credentials”, a signed record of how the file was made, and Google adds its invisible SynthID watermark to images made with its models. Do not strip these markers. Removing them can breach platform rules and, in some markets, the law.
Advertising rules: when an AI image misleads customers
Advertising law does not care how an image was made. It asks whether the ad gives a false impression. A product photo that shows a dish, room or garment better than the real thing can mislead, whether it came from a camera, Photoshop or Gemini. In the US the Federal Trade Commission (FTC) polices deceptive ads, and its 2024 rule bans fake reviews, including AI-generated ones.
The UK’s Advertising Standards Authority (ASA) has said ads made with AI are subject to the same rules as any other ad. Its earlier rulings against beauty ads that used filters to exaggerate a product’s effect show how it will likely treat AI-enhanced product images. EU consumer law and India’s Consumer Protection Act take the same approach to misleading ads.
The safest practice is to use AI for mood and illustration, and real photographs for what the customer will actually receive. Where an AI image could be mistaken for a real product shot or a real customer, say so.
| Use case | Main risk | Safer approach |
|---|---|---|
| Logo | No copyright; may resemble an existing brand | Clear trade mark searches, add human edits, register it |
| Product photo | Misleading customers about the real product | Use real photos for the product itself; label illustrations |
| Social media post | Characters, brands or celebrities in the image | Avoid named characters and real people; check for stray logos |
| Ad with a person | Publicity rights, false endorsement, disclosure rules | Use consenting models or disclose synthetic performers |
| Book cover | Cannot stop copycats; stores may ask about AI | Add human design work; disclose AI where the store asks |
| Client deliverable | Contract promises you cannot keep | Tell the client which parts are AI; limit IP warranties |
The market now: an image boom, and the courts catching up
AI image making went mainstream in 2025. ChatGPT’s native image generation in March 2025 set off the Ghibli-style trend within days, and Google’s Gemini image models drew a similar wave of viral edits later in the year. Businesses quickly moved from experiments to everyday marketing, product listings and client work.
Rights holders responded. The studio lawsuits against Midjourney, Getty’s case against Stability AI and many other claims are testing whether training and outputs infringe. Stock libraries took different paths: Getty Images and Shutterstock have generally not accepted AI-generated uploads from contributors, while Adobe Stock accepts them if they are labelled and do not use third-party content without permission.
The direction of travel is fairly clear. Courts are unlikely to give copyright to purely machine-made images, but will protect real human input. Liability for outputs that copy characters or faces is growing. And labelling is moving from good practice to legal duty. If you treat AI images like stock photos you do not fully own, you will usually stay on the right side of these trends.
Checklist
- Check the current terms of your AI image tool and confirm your plan allows commercial use.
- Upgrade to the required plan if your business crosses a revenue threshold, such as Midjourney’s $1 million rule.
- Avoid prompts that name famous characters, brands or living artists for commercial images.
- Inspect every output for stray logos, signatures, watermarks and lookalike characters.
- Get written consent before using any real person’s face, voice or likeness.
- Search trade mark registers before adopting an AI-generated logo, then register it.
- Add and document your own human edits on images you want to protect.
- Label AI images where they could be mistaken for real people, places or products.
- Keep C2PA credentials and watermarks intact rather than stripping them.
- Tell clients which deliverables are AI-generated and adjust your contract warranties.
FAQs
Can I sell products with AI-generated images on them?
Usually, yes, if the tool’s terms allow commercial use on your plan and the image does not copy protected characters, logos or real people. Remember that you may not be able to stop others copying a purely AI design.
Is it legal to make Ghibli-style images with ChatGPT?
Generally, yes, for a general style. Copyright protects specific expression, not a look or technique. Copying actual Ghibli characters or scenes, or suggesting the studio endorsed your product, is where the risk lies.
Can I copyright a book cover I made with Midjourney?
It depends on how much you did yourself. In the US, only your own text, layout and real edits are likely to be protected, not the raw Midjourney image. In the UK, the computer-generated works rule may still help for now.
Do I need to tell people an image is AI-generated?
It depends on the image and the market. Realistic deepfakes of real people, places or events need disclosure in the EU, and AI human performers in ads need disclosure in New York. Ads that could mislead customers should be honest about AI anywhere.
Can I use an AI image of a celebrity in my marketing?
No, not without permission. It can breach publicity or personality rights, advertising codes and false endorsement rules in most major markets. Courts in India and the US have acted quickly against unauthorised AI likenesses.
Will the AI company protect me if I get sued?
Usually not on free or consumer plans. Some enterprise plans, such as qualifying Adobe Firefly plans, include an IP indemnity, but these come with conditions and caps. Read your terms before relying on any promise.
Can I upload AI images to stock photo sites?
It depends on the site. Getty Images and Shutterstock have generally not accepted AI-generated uploads from contributors, while Adobe Stock accepts them if labelled and free of third-party content. Check each site’s current contributor rules.
Primary sources
US Copyright Office, Copyright and Artificial Intelligence, Part 2: Copyrightability (January 2025)US Copyright Office, Zarya of the Dawn registration decision (February 2023)Thaler v. Perlmutter, D.C. Circuit opinion (March 2025)US Supreme Court docket 25-449, Thaler v. Perlmutter (certiorari denied 2 March 2026)UK Copyright, Designs and Patents Act 1988, section 12 (duration, including computer-generated works)Getty Images v Stability AI, High Court judgment (4 November 2025)EU AI Act, Regulation (EU) 2024/1689 (Articles 50 and 99)Midjourney Terms of ServiceGeneral information, not legal advice.