Who Owns the Copyright of AI-Generated Works? Legal Risks in New York


The legal uncertainty surrounding copyright protection for AI-generated works is rooted in the foundational principles of copyright law, recent case law developments, and evolving guidance from the U.S. Copyright Office. This guide explores originality and authorship, key case law, regulatory updates, hypothetical scenarios, business risks, and reform proposals, all with a focus on how creators, developers, and businesses in New York can navigate ownership rights and infringement risks when human authorship is not clearly established.

 

At the heart of the issue, New York’s creative economy, including publishing houses, media outlets, advertising agencies, and tech startups, finds itself at a crossroads. The appetite for generative AI tools is undeniable, but the law’s insistence on human authorship risks leaving some of the most innovative outputs unprotected. The tension between innovation and doctrine runs through every legal dispute.

 

Ownership and Protection Under Copyright Law

 

Under U.S. copyright law, protection applies only to “original works of authorship fixed in any tangible medium of expression.” 17 U.S.C. § 102. This excludes ideas, procedures, processes, systems, and methods of operation. Section 101 defines an “author” to include individuals or entities for whom works are made for hire, but it does not account for non-human creators.

 

This statutory framework creates a core challenge for AI-generated works. Without clear human authorship, courts and regulators have repeatedly rejected copyright claims. Businesses may view AI tools as creative partners, but the law treats them as instruments like brushes or cameras. Until reform occurs, copyright attorneys in New York advise companies to ensure identifiable human input in every creative step.

 

Copyright protection for AI content

Source: Areness Law

 

Case Law and Regulatory Guidance

 

Several recent cases highlight the copyright issues surrounding AI:


– Thaler v. Perlmutter (2023): The D.C. District Court ruled that works created solely by AI cannot be copyrighted. Human authorship remains a constitutional requirement.

 

U.S. Copyright Office (March 2023 Guidance): Only human-authored portions of AI-generated works may be registered if the human maintains creative control.

 

– The New York Times Co. v. Microsoft Corp. (2023): Ongoing case alleging AI companies unlawfully used copyrighted works for training datasets.

 

– The Intercept Media v. OpenAI (2024): Plaintiffs alleged infringement through content scraping and removal of copyright management information.

 

These disputes show courts applying traditional principles to emerging technology. For New York’s media and publishing industries, the takeaway is clear: without meaningful human involvement, copyright protection remains limited.

 

Hypothetical Scenarios: Who Owns AI-Generated Content?

 

Imagine a business using AI for marketing visuals. If a human merely enters a vague prompt, the resulting work may lack copyrightable authorship. However, when a person exercises creative judgment, curating outputs, directing edits, and refining results, their contributions may establish authorship.

 

As Ranieri v. Adirondack Dev. Group (2016) explained, providing ideas does not make one an author. Authorship depends on expressive choices. For New York businesses, documenting human involvement in AI-assisted projects is crucial to support copyright claims.

 

Business Risks: Infringement and Licensing

 

Businesses relying on generative AI face two primary risks:

 

– Infringement Claims AI trained on copyrighted datasets could expose both developers and users to liability.

– Ownership Disputes Without clear agreements, questions may arise over who owns AI-assisted work.

 

For New York businesses, especially in media and advertising, proactive risk management is essential: define ownership in contracts, ensure human creative oversight, and work with an experienced intellectual property litigation attorney.

 

Proposals for Reform and Policy Considerations

 

Scholars and policymakers are exploring options to address AI copyright gaps:

 

– Expanding “authorship” definitions to recognize AI as a co-creator.

 

– Legislative amendments clarifying ownership of AI-generated works.

 

– Introducing sui generis rights, similar to EU database protections.

 

Any reform must balance rewarding human creativity with encouraging innovation. For now, industry-led solutions such as Adobe’s Content Credential system or standardized licensing frameworks proposed by groups like the Dataset Providers Alliance are filling the gap until legislation catches up.

 

AI generated works on copyright laws

Source: LinkedIn

 

Practical Steps for New York Businesses

 

To minimize risks while using AI in creative industries, businesses should:

 

– Ensure human creators actively guide and direct AI outputs.

 

– Document the role of human decision-making in the process.

 

– Use contracts that clearly define ownership of AI-assisted works.

 

– Monitor evolving case law and regulatory policies.

 

The safest path forward is to treat AI as a creative assistant—not an author—and assume courts will scrutinize human input.

 

Why Choose the LAW FIRM OF DAYREL SEWELL, PLLC?

 

For businesses and creators in New York navigating the complex world of AI-generated copyright issues, the LAW FIRM OF DAYREL SEWEL, PLLC, provides trusted legal guidance.

 

– Proven Experience in intellectual property and copyright litigation.

 

– Strategic Legal Solutions tailored to AI and emerging technology challenges.

 

– Client-Centered Approach, ensuring your business goals remain protected.

 

– Comprehensive Representation in negotiation, litigation, and compliance.

 

Whether you are a startup, media company, or creative professional, the LAW FIRM OF DAYREL SEWELL, PLLC, offers the expertise to safeguard your rights and manage risks in this evolving legal landscape.

 

Contact the LAW FIRM OF DAYREL SEWELL, PLLC, today to schedule a consultation and protect your creative assets.

 

 

FAQs

– Can AI-generated works be copyrighted in New York?

 

No, works created solely by AI cannot be copyrighted under current U.S. law. Human authorship is required, though human contributions in guiding AI may qualify for protection.

 

– Who owns AI-assisted works in a business setting?

 

Ownership depends on contracts and human involvement. If an employee or contractor uses AI, businesses should clarify rights in agreements to avoid future disputes.

 

– What legal risks do New York businesses face when using AI?

 

The biggest risks include infringement claims from training data and uncertainty over who owns AI-generated content. Proper contracts, documentation, and compliance help mitigate these issues.

 

– How can the LAW FIRM OF DAYREL SEWELL, PLLC help?

 

The firm provides expert legal counsel on copyright disputes, intellectual property litigation, and contract drafting for businesses using AI in New York.

 

 

 



What Is Commercial Litigation? Guide for Business Owners in 2025


In today’s fast-paced business world, legal disputes are almost inevitable. From contract breaches to shareholder conflicts, companies face challenges that can impact revenue, reputation, and long-term growth. This is where commercial litigation comes into play.

 

In this guide, we’ll explain what commercial litigation is, why it matters for business owners in 2025, and how the LAW FIRM OF DAYREL SEWELL, PLLC can help protect your company’s interests.

 

 

What Is Commercial Litigation?

Commercial litigation is a legal process that involves resolving business-related disputes through the court system, arbitration, or mediation. Unlike civil litigation, which typically deals with personal matters (like injury claims or family disputes), commercial litigation focuses specifically on conflicts between companies, organizations, or business partners.

In short, commercial litigation covers any dispute that could disrupt business operations or profitability.

 

Best commercial litigation attorney in NYC at LAW FIRM OF DAYREL SEWELL, PLLC – expert legal guidance in 2025

Source: Nakase Law Firm

 

Why Is Commercial Litigation Important for Business Owners in 2025?

Business disputes are becoming more complex in today’s economy. Here’s why every business owner in 2025 should understand commercial litigation:

 

1. Globalized Contracts

With cross-border deals and digital agreements, disputes over terms and jurisdiction are more common than ever.

 

2. Rise of Intellectual Property Cases

AI, digital branding, and e-commerce have increased the risk of IP theft and copyright infringement.

 

3. Partnership & Shareholder Conflicts

Growing businesses often face disagreements among stakeholders, which can threaten the company’s future.

 

4. Regulatory Challenges

Businesses in industries like finance, healthcare, and tech face strict regulations, increasing the chance of disputes with agencies or partners.

 

Understanding commercial litigation gives business owners the foresight to manage risks before they escalate into lawsuits.

 

Common Types of Commercial Litigation Cases

1. Breach of Contract

When one party fails to meet contractual obligations, litigation may be necessary to recover damages or enforce terms.

 

2. Shareholder & Partnership Disputes

Conflicts among partners or shareholders can threaten business stability. Litigation resolves ownership rights and responsibilities.

 

3. Intellectual Property Disputes

Protecting trademarks, copyrights, and patents is vital for modern businesses. Litigation ensures competitors don’t unlawfully benefit from your creations.

 

4. Employment Disputes

From wrongful termination to wage conflicts, employment-related lawsuits are a growing part of commercial litigation.

 

5. Fraud & Misrepresentation

Businesses may face cases involving false statements, financial fraud, or deceptive trade practices.

 

The Role of a Commercial Litigation Attorney

A commercial litigation attorney represents businesses in disputes, whether in court, arbitration, or settlement negotiations. Their responsibilities include:

 

  • Evaluating cases and creating legal strategies
  • Negotiating settlements before trial
  • Representing businesses in state and federal courts
  • Protecting business assets and reputations
  • Advising on compliance to prevent future disputes

 

Commercial Litigation attorney consulting business owners about strategies at sewellnylaw.

Source: Feldman & Feldman

 

Why Choose the LAW FIRM OF DAYREL SEWELL, PLLC?

When it comes to commercial litigation in New York, the LAW FIRM OF DAYREL SEWELL, PLLC is a trusted name among business owners.

Here’s why:

 

  • Proven Experience handling complex commercial disputes.
  • Client-Centered Approach that prioritizes your business goals.
  • Strong Litigation Strategies designed to achieve the best outcomes.
  • Comprehensive Support — from negotiation to courtroom advocacy.

 

Whether you’re a startup, a mid-sized company, or a large corporation, the LAW FIRM OF DAYREL SEWELL, PLLC, provides tailored legal solutions to safeguard your business in today’s competitive market.

 

Final Thoughts

Commercial litigation is an unavoidable part of doing business in 2025. Whether it’s a contract issue, a partnership dispute, or protecting your intellectual property, having the right attorney by your side makes all the difference.

If you’re a business owner looking for trusted legal guidance in New York, reach out to the LAW FIRM OF DAYREL SEWELL, PLLC. With a proven track record and client-focused strategies, their team ensures your business stays protected and prepared for any legal challenge.

 

Schedule a consultation with the LAW FIRM OF DAYREL SEWELL, PLLC, today to safeguard your business for the future.

 

FAQs

1. What’s the difference between civil and commercial litigation?

Civil litigation covers personal disputes, while commercial litigation specifically deals with business-related conflicts.

 

2. How long does commercial litigation take?

The timeline depends on case complexity. Some disputes settle quickly, while others may take months or years.

 

3. Can commercial disputes be resolved without going to court?

Yes, many cases are resolved through mediation or arbitration to save time and costs.

 

4. When should I hire a commercial litigation attorney?

You should contact an attorney as soon as a dispute arises to protect your rights and strengthen your legal position.