Copyright and AI-Generated Images and Videos: What Businesses Need to
Service2Client

Copyright and AI-Generated Images and VideosKnow to Stay Legal

Artificial intelligence (AI) tools are reshaping content creation. It is now easier for businesses to produce images and videos for use on websites, social media, and other digital outlets. All this is possible without the traditional hurdles of expensive photoshoots, special design skills, or complex video production. However, as exciting as it is, business owners must pose and confront the question of whether these AI-generated images and videos are legally safe for commercial use from a copyright perspective.

Understanding AI-Generated Content and Copyright

AI-generated content is created by training algorithms with massive datasets of existing images, videos, and text. The AI models then analyze patterns from the training data to generate new content. However, issues arise concerning the ownership of the generated content. Without clear legal guidelines, the ownership of AI-generated images and videos remains a gray area that leaves businesses and individuals vulnerable to potential disputes.

Most jurisdictions, including the United States and the EU, deny copyright protection to work purely generated by AI as it lacks human authorship. The U.S. Copyright Office stated that only content with human creative input can be eligible for protection. In its January 2025 report, the U.S. Copyright Office also states that copyrightability must be assessed on a case-by-case basis.

Laws differ globally. For instance, while the U.S. copyright office has rejected applications for AI-generated content, the U.K. allows copyright when a significant human intellectual effort guides the output.

Copyright laws do agree that a business risks infringement claims if AI-generated content resembles existing copyrighted material. So far, there has been a surge in the number of copyright lawsuits because of generative AI. A good example is Getty Images sued Stability AI, alleging its Stable Diffusion model copied millions of Getty’s photos without permission.

Generally, despite the efforts made to develop copyright laws for AI output, unlike content created by humans, there still lacks a clear legal framework for ownership and usage rights. For one, laws and legal frameworks struggle to keep up with the speed at which AI technology advances. This means that currently, no definitive, globally recognized legal standards firmly establish the copyright status of AI creations. For a business, although using AI visuals is not inherently legal or forbidden, it is best to be cautious and take due diligence.

Best Practices Every Business Owner Must Keep in Mind

  1. Read the terms of service (TOS)
    Every AI image and video generator has its own unique terms of service. Therefore, it is crucial to examine these terms carefully. Specifically, look for clauses that address issues such as commercial usage, ownership, indemnification, and TOS change policies.
  2. Understand model releases
    This especially applies where the AI-generated images may include recognizable human faces. In the same way that there are rights of publicity and privacy in traditional photography of human models, consider if this also applies to AI-generated faces.
  3. Documentation
    It is crucial to keep a record of each generated AI visual asset. Keep information such as AI platform used, prompts used, date of creation, TOS at the time of creation, and modifications made to the generated visual.
  4. Consider using well-established platforms.
    Although there is no AI platform that offers a 100 percent guarantee of copyright safety, it is safer to lean toward well-established and respected AI generators. Also, platforms trained using licensed or public domain data should be considered.
  5. Adopt the “human-in-the-loop” approach.
    This involves edits such as text overlays, color adjustments, or storyboarding. AI-generated content can be used as a starting point or for inspiration, but it is modified and refined by human designers. This results in a blend of AI assistant and human creative input to potentially mitigate copyright concerns.
  6. Seek expert legal counsel.
    When dealing with content that is central to a business identity, such as branding or major marketing campaigns, it is critical to seek guidance from an attorney specializing in intellectual property law.
  7. Stay informed
    Copyright law in the age of AI is not static; it is actively evolving. It is important, therefore, to commit to staying informed about legal developments, court rulings, and evolving practices. Business content strategies and practices also should be adjusted as the legal landscape changes.

Embrace the Future of Visuals Responsibly and Legally

The transformative power of AI to generate stunning visuals is promising to revolutionize business marketing and communication. However, business owners must approach this technology with a balanced perspective. That is, embracing its potential while avoiding copyright infringement, ensuring ethical content creation, and effectively safeguarding intellectual property assets.


Disclaimer 

Have any questions, give us a call here at Metro Tax & Financial Services.
We are here to help you get through the stress of taxes!

We offer a free 30-minute consultation so call us and let’s get your appointment set up (928) 680-1444

For more Tax Facts make sure you are following us on Facebook

Click HERE for more Tax Facts and Financial News

Suggested Articles

Tax Fact: How to Lower your 2019 Tax Bill

Even though 2019 may be over, there are still a few things you can do to lower your 2019 tax bill, if you have a little cash on hand. You cannot make any more contributions to your 401(k) for last year, but you can still make IRA and Health Savings Account (HSA)...

Tax Fact: Financial Health?

What is Financial Health?Financial Health is a term used to describe the state of one's personal monetary affairs. There are many dimensions to financial health, including the amount of savings you have, how much you’re putting away for retirement, and how much of...

Tax Fact: Do Not Give Out Your Personal Information

I feel like I need to touch base on this subject again... "Do Not Give Out Your Personal Information" My financial establishment, along with many others, are receiving reports of criminals who are contacting individuals directly, claiming to be from the CDC, state, or...

Tax Fact: Stimulus Checks Sent Out + Tax Deadline

Stimulus checks are being sent out, the tax deadline has been extended to July 15th and here are some other bits of financial help that I want to pass along 401K and IRA withdraw penalty suspended: People under 59 1/2 years old can temporarily withdraw up to $100.000...

Tax Fact: SBA Loans for suffering businesses

COVID-19 has caused such havoc in our Great Nation. With the request for us to quarantine and for businesses to close down temporarily or cut back on their hours, it has caused a huge amount of stress on business owners and employees. The U.S. Small Business...

New Tax Cut & Spending Bill, Protecting Law Enforcement, VA Benefits and Semiconductor Supply Chains

One Big Beautiful Bill Act (HR 1) – Introduced by Rep. Jodey Arrington (R-TX) on May 20, this tax bill supports the president’s tax and immigration agenda. The legislation includes:Making permanent the income and estate tax cuts passed in the Tax Cuts and...

Pre-Retirement Planning Guide – Finding Purpose In Life

Step 7: Find Your Raison d’EtreWhat do you consider to be your purpose in this world? Few people think about their life that way. In Japan, they call it your ikigai. In France, they refer to your raison d’etre. For Americans, that roughly translates to...

Building Deeper Customer Connections: Leveraging Web3 for Loyalty, Community, and Engagement

Competition in business today has become fierce. Each organization is constantly looking for innovative ways to form strong relationships with its customers. Loyalty programs have been used for a long time to build a devoted customer base. As technology advances, new...

Tax Fact: Does buying or selling a house affect my Taxes?

How does buying or selling a house affect my taxes? Whether you are buying or selling a house, the process can be quite stressful, especially when thinking about potential tax implications. Buying a House- The new Closing Disclosure Form is one of the most important...

Tax Fact: Money Fun Facts

Today here are some "mOneY fUn FaCts" Did you know that a penny costs more to manufacture than it's worth? It costs the government roughly $0.02 to make a single penny! Did you know that the secret designs on the $1 bill link it to the original 13 colonies? If you...