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The biggest question for businesses adopting AI is: "Will we get sued?" Clarity has finally emerged in 2025. Here is what every enterprise needs to know.
1. The 2025 Legal Landscape
Courts in the US and EU have largely settled on a framework: AI-generated content is Public Domain by default. This means that a raw output from Midjourney or Magnuto is not owned by the prompter, but it is also not owned by the AI company (in most cases).
2. What "Commercial Use" Means
"Commercial Use" means you can use the image to make money. This includes:
- Putting it on a t-shirt and selling it.
- Using it in a Facebook Ad.
- Using it as a book cover.
Crucial Distinction: Most free AI generators restrict commercial use. Magnuto explicitly grants full commercial rights to users for any image they generate.
3. Can You Copyright AI Art?
The US Copyright Office states that "human authorship" is required for copyright.
Scenario A: You type "dog on moon" and get an image.
Verdict: No copyright. Anyone can copy it.
Scenario B: You generate a dog, open it in Photoshop, paint new
fur, add a spacesuit helmet you designed, and color grade it.
Verdict: The human-added elements are copyrightable. The
underlying AI generation is not.
4. Magnuto's License Terms
We keep it simple for our enterprise clients:
- Ownership: You own the rights to use the images you create.
- Royalty-Free: You never owe us a cent from your profits.
- No Attribution: You do not need to say "Generated with Magnuto" (though we appreciate it!).