Why you should care about AI-generated inventions and intellectual property

/ September 2025

Artificial Intelligence (AI) has revolutionised the way content is made.

Offering creators a faster, cheaper, and more accessible way to generate high-quality inventions, AI tools are now capable of producing professional-standard designs for brand development.

But as AI gradually becomes a tempting alternative to employing an in-house designer, one essential question emerges: who actually owns the work it creates?

And, importantly, can you protect it?

Who owns your AI-generated designs?

So, you’ve invested your time and energy into using AI to create a logo, image, or name for your business, but do you actually own the rights to this content? Well, not necessarily.

Many people assume that buying an AI-generated design means they have full ownership, but that isn’t always the case.

The terms set by AI platforms vary widely, and failing to check the fine print could leave your brand exposed in several ways.

Why does it matter?

Building your brand around an AI-generated logo, image, or colour without full ownership rights could create serious legal issues in the future.

Imagine investing in a design, only to find out:

You don’t own it
You can’t protect it as a trade mark
Another company is using the same image
You don’t have the legal right to enforce ownership

Similar issues can also occur with AI-generated brand names and taglines.

If an AI tool creates a brand name or tagline that’s already protected as a trademark, you could face:

Trade mark infringement lawsuits from the owner
Injunctions stopping use of the name or tagline
Financial penalties for damages or lost profits
Reputational damage to your business
The costs associated with rebranding

Where are we right now?

During 2025, we’ve already seen an increase in litigation, significant debate about potential new government regulation, and the continued acceleration of technological capability.

From Guess running AI-generated model campaigns in Vogue, to Nutella’s “Nutella Unica” campaign, which used algorithms to create millions of unique jar designs, many major brands are incorporating AI as part of their creative processes.

Logos, graphic designs, colours, and brand names are signs that have traditionally enjoyed comprehensive protection under UK trade mark law.

However, this legal framework has assumed humans are the authors of creative works.

So, how do AI (or non-human) inventors fit in?

Since 2021, the UK government has launched multiple consultations and held debates in parliament to determine how IP law can be adapted to AI-generated content.

The most recent consultation, which closed in early 2025, proposed clearer rights for creators, data usage transparency, and new licensing mechanisms.

However, at the time of writing, no formal legislation has been enacted.

The IP and AI timeline in the UK

December, 2024 = Government launches consultation proposing rights for creators that prevents their work from being used in AI training and robust AI transparency measures.
February, 2025 = Consultation closes having received more than 11,500 responses for review.
April, 2025 = MPs debate IP and AI, highlighting the various unresolved legal and ethical concerns and championing creatives’ rights.
July, 2025 = Government news release announces creation of an expert working group of representatives from the creative industries and AI sectors, aiming to balance creatives’ rights with continued AI innovation.
August, 2025 – Government and industry continue discussions with no legislation introduced yet.

As explained earlier, assuming full ownership of AI-generated content could leave your brand exposed to avoidable risks.

Until there’s greater clarity and certainty, our trade mark and IP registration specialists advise that businesses must proceed with caution.

Things to consider before using AI-generated designs

License agreements

Many AI platforms grant a license rather than transferring ownership. This often means you have the right to use the image, but not exclusively – and, sometimes, not even for commercial purposes.

Exclusive licenses

Some platforms offer exclusive licenses, preventing resale to others. But even then, restrictions may apply, including time limits, usage conditions, and whether you can protect the design as a trademark.

Intellectual Property ownership

In many cases, these logos are considered stock images, meaning multiple businesses might be using the same design.

Usage restrictions may also apply, including limitations in relation to exclusivity, modification, or resale or the right to protect these as trademarks..

How can you protect your business?

As specialist trade mark registration experts, we recommend:

Hiring a professional designer

To be on the safe side, we recommend working with a professional designer and having an agreement in place which transfers ownership of the designs to you.

AI tools rely almost entirely on existing data to generate content, which can result in logos that are similar to pre-existing designs, landing you in legal hot water.

A clear example is Getty Images’ lawsuit against the AI platform, AI Stability, that created content containing its proprietary watermark. This demonstrates that even automated systems can infringe on IP rights without users realising it.

An experienced designer or agency can create an effective, high-quality, and unique logo for your business, and then legally transfer full ownership to you.

Always reading the fine print

If you do decide to use an AI-powered tool for business design purposes, always check the platform’s terms before purchasing.

Relevant terms might include usage restrictions, preventing the commercial use of AI-generated designs or specific elements within them.

Conducting your due diligence

Before you commit to using an AI-generated design or name, it’s vital that you conduct your due diligence. This is because these tools can accidentally reproduce existing trade marks or copyrighted material.

Due diligence therefore involves carrying out clearance searches which can help you to determine whether the AI-generated name or tagline is already trademarked or in commercial use.

Crucially, if you’re found to be using a brand name, logo, or tagline, that has been protected as a trademark, claiming that an AI tool generated the name is not a valid defence against an infringement claim.

Seeking professional legal advice

If you’re unsure about your rights to use AI-generated imagery or other content, don’t wait until you’re hit with a costly infringement case – speak to a trade mark expert.

Receiving tailored guidance before making any commitments can help you to understand the potential legal risks and implement adequate IP protection.

Expert AI and IP protection advice

With the UK still refining its approach to AI and IP through ongoing consultations, debates, and policy proposals, professional guidance is essential for understanding ever-evolving trade mark law.

To avoid putting your brand at risk, contact Trademark Eagle today.

We offer tailored legal advice that can help you to protect what’s yours!

You can get in touch with our helpful team by calling us on 08081 890 219 or using our contact form for more information.

As explained earlier, assuming full ownership of AI-generated content could leave your brand exposed to avoidable risks.

Until there’s greater clarity and certainty, our trade mark and IP registration specialists advise that businesses must proceed with caution.

Things to consider before using AI-generated designs

License agreements

Many AI platforms grant a license rather than transferring ownership. This often means you have the right to use the image, but not exclusively – and, sometimes, not even for commercial purposes.

Exclusive licenses

Intellectual Property ownership

In many cases, these logos are considered stock images, meaning multiple businesses might be using the same design.

Usage restrictions may also apply, including limitations in relation to exclusivity, modification, or resale or the right to protect these as trademarks..

How can you protect your business?

As specialist trade mark registration experts, we recommend:

Hiring a professional designer

To be on the safe side, we recommend working with a professional designer and having an agreement in place which transfers ownership of the designs to you.

AI tools rely almost entirely on existing data to generate content, which can result in logos that are similar to pre-existing designs, landing you in legal hot water.

An experienced designer or agency can create an effective, high-quality, and unique logo for your business, and then legally transfer full ownership to you.

Always reading the fine print

If you do decide to use an AI-powered tool for business design purposes, always check the platform’s terms before purchasing.

Relevant terms might include usage restrictions, preventing the commercial use of AI-generated designs or specific elements within them.

Conducting your due diligence

Due diligence therefore involves carrying out clearance searches which can help you to determine whether the AI-generated name or tagline is already trademarked or in commercial use.

Seeking professional legal advice

If you’re unsure about your rights to use AI-generated imagery or other content, don’t wait until you’re hit with a costly infringement case – speak to a trade mark expert.

Receiving tailored guidance before making any commitments can help you to understand the potential legal risks and implement adequate IP protection.

Expert AI and IP protection advice

With the UK still refining its approach to AI and IP through ongoing consultations, debates, and policy proposals, professional guidance is essential for understanding ever-evolving trade mark law.

To avoid putting your brand at risk, contact Trademark Eagle today.

We offer tailored legal advice that can help you to protect what’s yours!

You can get in touch with our helpful team by calling us on 08081 890 219 or using our contact form for more information.