It’s no secret that Artificial Intelligence (AI) is rapidly transforming how businesses develop content, create brand assets, and build customer-facing materials.

AI tools like ChatGPT, Midjourney, and DALL·E are now integral to the creative workflow of many Australian businesses.

But while these tools offer speed and scale, they also raise a key legal question: who owns the output?

And more importantly, can that output be legally protected under Australian trademark and IP law?

If your business is utilising generative AI to support marketing, branding, or innovation, it’s essential to comprehend the intellectual property (IP) implications, particularly regarding trademark ownership, copyright, and usage rights.

Read our related article on “AI in Business: Legal Considerations Every Business Owner Should Understand”.

Why IP Ownership Is Not Always Straightforward with AI

Traditionally, IP protection applies to content created by a human author. But with generative AI, there may be no clear human creator.

For example, if you ask an AI tool to generate a new brand name or slogan, does that make you the legal owner of the content? Or does the software developer hold those rights?

Under Australian law, for content to qualify for copyright or trademark protection, it must be created by a person. Currently, purely AI-generated content may not meet that threshold, which could leave your brand assets vulnerable if they’re not properly reviewed and secured.

Who Owns AI-Generated Trademarks?

If you use AI to generate a business name, product title, or tagline, you may want to register it as a trademark. However, the ownership and validity of that trademark will depend on how the content was produced and whether a human played a meaningful role in its creation.

The more input and curation you contribute to the AI-generated output, such as editing, refining, or selecting from multiple options, the stronger your claim to ownership may be.

Still, relying on AI alone can weaken your ability to enforce trademark rights or challenge infringement.

Consent and Licensing in AI Training Data

Another layer of risk is tied to the training data that generative AI tools rely on. These models are often trained on large volumes of publicly available content, which may include trademarked or copyrighted material.

If your AI-generated logo or product description resembles an existing brand or copyrighted work, you could face legal claims for infringement. Even if the similarity was unintentional, you remain responsible for the content you use commercially.

That’s why reviewing AI-generated assets for originality and avoiding lookalike content is essential before you commit to brand development or public use.

How to Protect Your Brand When Using AI

To avoid disputes and safeguard your intellectual property, consider the following steps:

  • Only use AI tools with clear usage and licensing terms. Check whether you have commercial rights to any content you create.
  • Document your involvement in the creation process. Keep records of how you directed, selected, or edited the final output.
  • Conduct a trademark and copyright search before using AI-generated assets.
  • Avoid relying solely on AI to produce final brand elements without conducting a thorough legal review.
  • If in doubt, speak to a trademark lawyer before applying for registration or going to market.

How City Pacific Lawyers Can Help

Trademark law is evolving, and AI adds a layer of complexity that many businesses aren’t prepared for. At City Pacific Lawyers, we help business owners understand the risks associated with AI-generated content and navigate the complexities of trademark registration and IP protection.

Whether you’re rebranding, launching a new product, or just testing creative tools, our team can help you secure your rights, avoid infringement, and protect your business value.

For practical advice on trademarks, licensing, and ownership in the age of AI, book a free consultation with our commercial law team today.