AI-enabled content creation tools have gained significant traction across various industries, and for small business owners and entrepreneurs, the appeal of using such tools is self-evident. These AI models, at least on their face, remove the need for in-house or third-party creative teams. Instead, content for branding, logo design, name generation, and marketing materials is available within minutes. These tools promise speed and savings which can be hard to ignore when budgets are tight. However, before incorporating AI-generated content into something as important and central as your brand, it’s worth considering how this new technology might impact intellectual property protection and long-term value.
AI-Generated Content and the Law
Based on current U.S. law, and subject to any agreement to the contrary between the involved parties, ownership of intellectual property largely depends on human authorship. Copyright and patent protections for works created or invented are grounded in the principle that when a person creates something, that person owns the creation. This sounds elemental, but if or when an AI program performs most of the creative or developmental work, that legal foundation of human authorship or inventorship simply does not exist.
That’s not to say the absence of a similar legal cornerstone related to creation or authorship by AI is due to neglect. Innovation, legislation, and regulation move at differing velocities. Recent Federal Court decisions are signaling that perhaps the gap between AI innovation and the law related to such innovation is slowing. For example, two California judges recently handed down novel decisions regarding generative AI and copyright law. Although these cases involve the training of large language models, the decisions signal that other cases involving the use of AI are likely on the horizon.
As AI continues to expand into and molds our status quo, cases concerning the relationship between the user of the AI and the AI being engaged to create or develop intellectual property will naturally crop up. However, unless changed, our current statutes and case law will guide our courts through this novel point in history.
Utilizing AI tools and What That Looks Like
That doesn’t mean you can’t use AI at all. If you’ve created something yourself (a logo, a tagline, a name, or other marketing content) and you’re instructing AI as to what you want created or using AI to polish or fine-tune it, that’s a different story. The original idea or details related to the idea still came from you. The development or enhancement of that idea doesn’t remove you as the creator, especially if the final product reflects your choices and vision. The same goes for names generated using prompts. If you choose the name and subsequently check it against existing trademarks, and use it in business, it may still qualify for trademark protection.
Echoing this spirit, popular AI resources like Chat GPT’s terms of use grant the human user broad discretionary ownership. If a user submits “input” to the model and then receives “output” collectively known as “content,” the user is responsible for that content. In short, all rights assigned to AI-generated content are given to the user. Of course, some of the content provided by AI might be subject to third-party intellectual property rights as well, and any user of AI should be aware of that possibility and the risks associated with that possibility.
Ultimately, the safest path toward IP protection is still rooted in personal creation. AI can support your process, but relying on it to carry the weight of your content creation comes with risk. If the line between your input and the tool’s output becomes blurry, so does your legal claim to the result.
Potential Drawbacks to Using AI in Public-Facing Ways
There’s a growing familiarity with how AI-generated content looks and sounds. Titles and slogans may bear nonsensical spelling errors and convoluted graphics. Mascots or brand figures may present an extra appendage or uncanny features. Video content maxes out at a certain number of frames, resulting in the absence of continuity between shots. All in all, AI technology is still developing and subject to a wide range of quality.
Some people may not notice or care, but others likely will. Those who work in design, marketing, or writing often recognize AI patterns quickly and might not hesitate to point them out. If your brand relies on building trust, being called out for using AI to create your brand or the content related to your brand might dissuade you from relying too heavily on AI in your public-facing brand materials or products.
This kind of feedback about the use of AI-generated content could fade over time, especially as AI becomes both more precise and more common in everyday tools. Still, if your goal is to stand out, lead, or show personality through your branding, people may place greater value on that human influence. The reaction you get also can depend on your audience, so understanding where they place value helps you make informed choices.
Adopting New Tools is a Sensible Decision for Any Company
The use of new technology also can shift how businesses operate. AI is part of that shift. It’s changing the way teams brainstorm, design, and communicate. Ignoring it altogether could mean missing out on tools that make work easier or more efficient.
Still, each tool has its place. As you integrate AI into your processes, knowing what parts of your work are protected and which aren’t is critical. We stay current on these changes to help you make thoughtful, forward-looking choices.
Forward-Thinking IP Solutions for Modern Businesses
Your brand deserves lasting protection. At McDermott IP Law, we provide personalized and modern-focused IP support that reflects how business is done today. Let us help you power your innovation and protect your brand while you build something meaningful. Contact our firm in Charlotte, North Carolina, when you’re ready for personal, high-level IP guidance with long-term value.
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