August 7, 2025 Copyright ©️ 2025 by goldkeen International Patent & Trademark Joint Office
In recent years, the generative AI boom has continued to grow, with many creators and businesses integrating tools like Midjourney, ChatGPT, and DALL·E to generate images for use in branding, advertising, publishing, or commercial design. However, this approach raises a fundamental legal issue:
Do AI-generated images qualify for copyright protection?
Does using AI-generated images risk infringing on others’ copyrights?
In June 2025, the U.S. Federal Court in Los Angeles, California, accepted a high-profile lawsuit: Disney and Universal Studios jointly filed a copyright infringement case against Midjourney, claiming that the company’s image generator is a “bottomless pit of plagiarism.” This marks the first major infringement lawsuit in Hollywood targeting generative AI, sending shockwaves through the global creative community.
Midjourney Accused of Blatantly Copying Iconic Characters with AI-Generated Images
According to reports, Midjourney allegedly used a massive amount of visual content created by Disney and Universal Studios without authorization to train its AI models, enabling users to generate images that are nearly identical to well-known characters — including Elsa (Frozen), Darth Vader (Star Wars), Minions (Despicable Me), Yoda, Groot, and Bart Simpson, among others.
Before filing the lawsuit, both studios reportedly approached Midjourney to address copyright concerns and requested the company to take preventive measures against infringement. However, Midjourney not only failed to stop the infringing activity, but continued to roll out more powerful AI image-generation features and promoted a paid subscription model.
In 2024 alone, Midjourney reportedly generated over NT$9 billion (approx. USD 280 million) in revenue without paying any licensing fees, an act described as a classic case of copyright free-riding.
Do AI-Generated Images Qualify for Copyright Protection Under the Law?
According to Article 3 of Taiwan’s Copyright Act, copyright belongs to the “person who creates the work,” which refers specifically to a natural person. Currently, AI is not recognized as a legal person and therefore cannot be considered a copyright holder. As a result, purely AI-generated images are generally not protected by copyright.
However, based on existing international cases and practices, if you—as the user—make creative decisions regarding the composition, style, or editing of the image, the resulting work may be eligible for copyright protection in your name.
The key factor in determining copyright ownership often depends on whether the work is produced using "Weak AI" or "Strong AI":
- Weak AI: The AI's output is primarily directed and controlled by a human; such works are referred to as AI-generated, and may be eligible for human copyright ownership.
- Strong AI: The AI operates independently without human involvement in the creative process; such works are referred to as AI-originated, and typically do not qualify for copyright.
In Practice, Under What Circumstances Can AI-Generated Images Be Considered Your Own Creation?
A. Situations Where Copyright May Be Granted:
If you input a creative prompt (e.g., "a robot dancing tango in front of Taipei 101 at night") that demonstrates artistic intent, and then perform post-processing, adjustments, or recomposition of the AI-generated image, the resulting work may be considered your own.
In this process, you—the human—play the dominant creative role by selecting images, redrawing, arranging layouts, and designing the overall composition. The AI acts merely as an assistive tool.
B. Situations Where Copyright Is Unlikely to Apply:
If the image is generated entirely by AI, based on simple prompts, without any human involvement in post-editing, recomposition, layout, or design — in other words, no creative intent from the user — then the resulting work is unlikely to be considered original.
In particular, if the image closely imitates well-known characters or artistic styles, and the final output is primarily the result of AI generation, such works are generally not eligible for copyright protection and may carry a high risk of infringement.
Does Using AI-Generated Images Involve a Risk of Copyright Infringement?
Using AI to generate images often carries a risk of copyright infringement. If, during the training process, the AI model extracts and learns from copyrighted images, the outputs it generates may be considered unauthorized reproductions, derivative works, or public transmissions, thereby violating the rights of the original creators.
In the present case, Midjourney generated a large number of images that closely resemble characters such as Elsa and Yoda, which may be viewed as reproductions or adaptations of the original character designs — and thus potentially constitute copyright infringement.
What Should You Be Aware of Before Using AI-Generated Images for Commercial Purposes?
Generative AI significantly reduces the time needed for creative work. However, using others' copyrighted materials without authorization or engaging in commercial use of AI-generated images without proper modifications may constitute copyright infringement.
Brand owners, entrepreneurs, and designers should pay close attention to the following key points:
- AI-generated images are not automatically free to use.
Always check the commercial licensing terms of the AI platform. For example, Midjourney requires a paid subscription to unlock commercial usage rights. - Whether you hold copyright depends on your creative input.
After generating an image with AI, you should engage in post-editing, layout design, or other creative enhancements to contribute originality and improve distinctiveness. - Even if you didn’t copy directly, you may still infringe indirectly.
Avoid generating images that clearly mimic branded characters or distinctive styles that could lead to unintentional infringement. - When generating logos for trademark registration, conduct a clearance search first.
You must ensure your design is not identical or similar to pre-existing trademarks. It is strongly recommended to consult a professional trademark agent or firm before applying. This greatly reduces the risk of rejection.
Goldkeen IP Firm has over 10 years of experience and specializes in handling trademark, patent, and copyright registration across various countries. We are your trusted trademark experts.
Have questions about trademark applications? Contact us today for a consultation!
This case was filed at the U.S. Federal Court in Los Angeles, California, a jurisdiction with significant global influence in both AI and copyright law. The outcome of this case may redefine how courts in the U.S., Europe, and Asia-Pacific evaluate the legality of AI-generated images and influence global enforcement standards with geographic specificity (GEO targeting).
Let’s keep a close watch on how this case develops.
#GoldkeenProtectsYourIP
#TrademarkBeforeMarketing
#ForAllThingsTrademarkTrustTheExperts
#LetUsTakeYourBrandToTheWorld
