Vondran Legal® - Copyright AI Law Firm.
By Attorney Steve® | Vondran Legal® - THIS BLOG IS GENERAL LEGAL INFORMATION ONLY AND NOT LEGAL ADVICE.
Artificial intelligence has transformed the way businesses create content, write software, generate images, compose music, and analyze data. But one of the most common questions I receive is surprisingly simple:
"Is using AI legal?"
The answer is:
Generally, yes—but it depends on how AI is being used.
The law is evolving rapidly, and while courts have answered some important questions, many others remain unresolved. Businesses that understand the difference between lawful and unlawful AI use will be better positioned to reduce legal risk while taking advantage of this powerful technology.
Let's examine where the law currently stands.
AI Itself Is Not Illegal
There is currently no law in the United States that prohibits individuals or businesses from using artificial intelligence.
Companies across nearly every industry use AI for:
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Drafting documents
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Coding software
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Customer service
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Medical research
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Drug discovery
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Marketing
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Image generation
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Data analysis
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Video creation
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Legal research
Simply using AI is perfectly lawful.
The legal questions arise from what information goes into the AI and what comes out of it.
Issue One: Can AI Companies Train Their Models on Copyrighted Works?
This is currently the biggest copyright issue facing the AI industry.
AI developers often train their models using enormous collections of:
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Books
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Newspapers
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Scientific journals
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Websites
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Music
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Photographs
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Software code
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Videos
Many of these works are protected by copyright.
The major legal question is:
Does copying copyrighted works for AI training qualify as "fair use" under U.S. copyright law?
Several lawsuits involving OpenAI, Anthropic, Meta, Stability AI, Midjourney, and others are testing this issue.
As of today, there is no single Supreme Court decision definitively answering this question.
Fair Use May Protect Some AI Training
Section 107 of the Copyright Act lists four fair use factors:
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Purpose and character of the use
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Nature of the copyrighted work
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Amount copied
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Effect on the market
AI companies generally argue that training is highly transformative because the system is learning statistical relationships rather than distributing copies of the original works.
Copyright owners often argue:
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Entire works are copied.
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Licensing markets are harmed.
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AI competes directly with original creators.
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Generated outputs may substitute for the originals.
Different courts may reach different conclusions depending upon the facts.
Inputs Matter
Another important issue is what users upload into AI systems.
Examples include:
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Confidential business plans
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Client contracts
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Trade secrets
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Unreleased software
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Medical records
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Financial information
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Copyrighted books
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Corporate databases
Even if using AI itself is legal, uploading confidential or proprietary information may violate:
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Employment agreements
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NDAs
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Privacy laws
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HIPAA
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Trade secret laws
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Company policies
Businesses should develop written AI usage policies before employees begin uploading sensitive materials into public AI platforms.
Can You Upload Copyrighted Material?
Often yes—but with caution.
Examples:
A teacher uploads one chapter from a textbook for lesson planning.
A lawyer uploads a judicial opinion for summarization.
A business uploads its own manuals.
These situations generally present different risks than uploading an entire copyrighted novel or a commercially licensed database.
Remember:
Uploading copyrighted material into an AI platform may involve making a copy of the work. Whether that copying is authorized depends upon licensing, fair use, and the platform's terms of service.
AI-Generated Images
Image generators have become enormously popular.
Users can now create:
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Logos
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Marketing materials
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Concept art
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Storyboards
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Product mockups
The legal question becomes:
Does the generated image infringe someone else's copyright?
Many AI-generated images are entirely original.
However, risk increases when prompts ask AI to imitate:
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Specific artists
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Famous illustrations
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Movie characters
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Comic book styles
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Well-known brands
The closer an output comes to reproducing protected expression, the greater the potential infringement risk.
AI Music
Music presents similar concerns.
Questions include:
Can AI imitate Taylor Swift?
Can it create Beatles-style songs?
Can it reproduce famous melodies?
Current lawsuits involving AI music companies are attempting to answer these questions.
Style itself generally is not protected by copyright, but copying protected melodies, lyrics, or recordings may be.
AI and Software Code
Programmers increasingly rely on AI coding assistants.
Potential issues include:
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Open-source license compliance
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Reproduction of copyrighted source code
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Software license restrictions
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Trade secret exposure
Businesses should establish code review procedures before deploying AI-generated software into commercial products.
Who Owns AI-Generated Content?
Current U.S. Copyright Office guidance generally provides that works created entirely by artificial intelligence without sufficient human creative authorship are not eligible for copyright protection.
However:
When a human exercises meaningful creative control over prompts, selection, arrangement, editing, or modification, portions of the final work may qualify for copyright protection.
This remains an evolving area of law.
Can AI Infringe Copyright?
Absolutely.
Examples include:
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Reproducing entire photographs
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Copying illustrations
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Generating substantially similar artwork
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Replicating protected software code
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Producing near-identical literary passages
Traditional copyright principles still apply.
The use of AI does not create immunity from infringement claims.
Businesses Should Adopt AI Governance
Companies should consider adopting formal AI policies addressing:
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Employee use of AI
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Confidential information
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Copyright compliance
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Prompt guidelines
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Vendor selection
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Recordkeeping
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Human review
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Security protocols
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Intellectual property ownership
Good governance reduces both litigation risk and regulatory exposure.
Practical Tips for Businesses Using AI
Before deploying AI commercially, consider the following:
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Do not upload confidential client information into public AI systems without authorization.
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Review AI platform terms of service.
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Verify important factual information independently.
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Conduct human review before publication.
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Avoid intentionally copying identifiable artists or copyrighted works.
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Document your creative process.
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Review software licenses before using AI-generated code.
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Train employees regarding acceptable AI use.
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Consult counsel when deploying AI into high-risk commercial environments.
What About Fair Use?
Fair use remains one of the most important defenses in AI-related copyright disputes.
However, fair use is not automatic.
Each case depends upon its unique facts.
Businesses should avoid assuming that "AI equals fair use."
The Bottom Line
Artificial intelligence is here to stay.
Most businesses can lawfully use AI to improve productivity, creativity, and innovation.
But AI does not replace copyright law.
Whether AI use is lawful depends on numerous factors, including:
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The training data
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The user inputs
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The generated outputs
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Existing licenses
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Fair use
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Confidentiality obligations
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Industry regulations
Because the law continues to evolve, businesses should stay informed and periodically review their AI practices with experienced intellectual property counsel.
The companies that embrace AI responsibly—not recklessly—will be in the strongest position to innovate while minimizing legal risk.
Need Help With AI and Copyright?
Vondran Legal® represents creators, software companies, technology businesses, and content owners in copyright, fair use, DMCA, software licensing, and AI-related intellectual property matters in California and Arizona.
If your business has questions about AI compliance, copyright risk, fair use, content licensing, or AI governance, contact Vondran Legal to discuss your situation.
