Commercial Use and Licensing

The Business Side of AI Images

🔄 Quick Recall: In the previous lesson, we mastered platform-specific techniques for DALL-E, Midjourney, and Stable Diffusion. Now we’ll address the question everyone asks but few research thoroughly: “Can I actually use this commercially?”

Generating beautiful images is one thing. Using them legally in a business context is another. The legal landscape around AI-generated images is evolving rapidly, and what was true six months ago may not be true today.

By the end of this lesson, you’ll understand the licensing, legal, and practical considerations for using AI-generated images in business.

Platform Licensing Overview

Each platform has different terms. Here’s the current landscape:

DALL-E (OpenAI)

Commercial use: Yes, with paid access (ChatGPT Plus or API) Key terms:

• You own the rights to images you create
• OpenAI does not claim ownership
• You’re responsible for legal compliance
• Cannot generate images that violate their content policy

Midjourney

Commercial use: Depends on tier

• Free tier: Limited commercial rights; images are public
• Basic/Standard/Pro: Full commercial rights
• Companies with >$1M annual revenue: Must have Pro or Mega plan Key terms:
• All images are public by default unless on Pro plan (Stealth Mode)
• You own what you create on paid plans
• Community guidelines apply

Stable Diffusion

Commercial use: Depends on the specific model

• Base SD models: Open license with commercial use allowed
• Community models: Check each model’s specific license
• Fine-tuned models: Inherit the base model’s license plus any additional restrictions Key terms:
• No central authority—you manage your own compliance
• Greater freedom comes with greater responsibility

Copyright and AI Images

This is the most debated area. Current status:

What the Law Says (Mostly)

United States: The Copyright Office has ruled that purely AI-generated images are not copyrightable. However, images with “sufficient human authorship” (significant editing, compositing, curation) may qualify.

European Union: Similar trajectory—pure AI output lacks the human creativity required for copyright.

Other jurisdictions: Varying approaches; some more permissive, others more restrictive.

What This Means in Practice

• Your AI-generated images may not have copyright protection
• Others can potentially use your AI-generated images freely
• Significant human modification (editing, compositing) may establish copyright
• This area of law is evolving—stay informed

✅ Quick Check: If you generate an image with DALL-E, then heavily edit it in Photoshop—adding elements, changing colors, and compositing it with photographs—does this change the copyright situation?

Legal Risks to Understand

1. Reproducing Copyrighted Works

AI models were trained on copyrighted images. Occasionally, outputs can resemble specific copyrighted works—especially if you prompt for a specific artist’s style.

Mitigation:

• Avoid prompting for specific living artists’ names
• Use movement names instead of artist names (“Impressionist” not “in the style of [specific artist]”)
• Check outputs against reverse image search before commercial use
• Use general aesthetic descriptions

2. Trademark Issues

AI might generate images containing recognizable logos, brand elements, or trademarked designs.

Mitigation:

• Inspect images carefully for recognizable brand elements
• Avoid prompting for specific brand names
• Use negative prompts to exclude logos and brand text

3. Right of Publicity

Generating images of real people raises legal issues even if the platform allows it technically.

Mitigation:

• Don’t generate images of real people without consent
• Be cautious with celebrity likenesses
• Use generic descriptions for people (“a professional woman in her 40s” not “[specific person]”)

4. Bias and Representation

AI models can reproduce and amplify biases present in training data.

Mitigation:

• Review generated images for harmful stereotypes
• Be explicit about diversity in prompts when appropriate
• Don’t use generated images that reinforce negative stereotypes

Best Practices for Commercial Use

Before Generating

1. Confirm your plan’s commercial license — Read the actual ToS, not summaries
2. Understand your use case — Print, digital, advertising, editorial, product
3. Know your audience — B2B vs. B2C, domestic vs. international

During Generation

1. Keep prompt records — Document prompts, seeds, and parameters for every commercial image
2. Generate multiple options — Don’t rely on a single generation
3. Avoid specific artist names — Use movements and style descriptions
4. Review for recognizable IP — Check for inadvertent trademarks or copyrighted elements

After Generation

1. Inspect carefully — Zoom in, check for artifacts, unwanted text, recognizable brands
2. Edit for polish — Touch up in Photoshop/Canva (also strengthens copyright claim)
3. Maintain records — Save prompts, platform, date, and final usage context
4. Disclosure — Consider disclosing AI use, especially in editorial or journalism contexts

Industry-Specific Considerations

Building a Sustainable Workflow

For ongoing commercial use, build a system:

1. Image library management — Organize generated images with metadata (prompt, platform, date, license)
2. Style guide — Document prompts and settings that produce on-brand results
3. Review process — Before any image goes live, check legal and quality standards
4. Stay current — AI image law changes frequently; review platform ToS quarterly
5. Diversify platforms — Don’t depend entirely on one platform’s licensing terms

Try It Yourself

Review the terms of service for the AI image platform you use most. Answer:

1. Does your subscription tier allow commercial use?
2. Are there revenue thresholds that affect your rights?
3. Are generated images public or private?
4. What content restrictions exist?
5. Who owns the generated images?

Key Takeaways

• Each platform has different commercial licensing terms—read the actual ToS for your tier
• AI-generated images currently have limited or no copyright protection in most jurisdictions
• Avoid prompting for specific artists, real people, and brands to reduce legal risk
• Inspect all commercial images for inadvertent IP reproduction and bias
• Keep detailed records of prompts and generation details for all commercial images
• The legal landscape is evolving rapidly—stay informed and review terms quarterly

Up Next

In Lesson 8: Capstone, you’ll bring everything together by completing a full image project from concept to final, commercially-ready output.