Can I Legally Grant Exclusive Rights to an AI-Generated Design?

Dear Will & AiME,

A client wants exclusive rights to an AI-generated design we created. Can we legally grant them exclusivity?

— Freelance Designer in San Francisco

Short answer💡

Yes, but not through copyright alone. Because AI-generated designs may not qualify for copyright protection, exclusivity is typically created and enforced through clear contractual licensing terms and, in some cases, trade secret or trademark strategies.

Dear Freelance Designer in San Francisco,

AI-generated designs present unique ownership challenges. Unlike traditional works, which are protected under copyright, AI-generated content may not be eligible for copyright protection. However, exclusive rights can still be granted through contractual agreements.

Why Copyright May Not Apply to AI-Generated Designs

Since AI-generated works may not qualify for copyright, exclusivity must be handled through:

• Contractual agreements – A properly drafted contract can specify exclusive use rights. Be aware, however, of potential preemption issues with copyright law. Adding an extra element to the license that would not be protected by copyright may help avoid preemption.

• Licensing terms – Define what rights are being transferred, including duration, usage, and modifications.

• Trade secret protections – If the design is confidential, contractual NDAs can help maintain exclusivity.

How to Contract for Exclusive Rights in AI-Generated Designs

To protect yourself and your client, follow these steps:

1. Draft a Clear Agreement
   Define the scope of exclusivity, whether it’s full ownership, limited usage, or exclusive commercial rights.

2. Specify Licensing Terms
   Clarify whether exclusivity applies worldwide, for a set time, or for specific industries.

3. Use Alternative Protections
   If copyright isn’t an option, consider trademarks to help secure the design’s value.

While AI-generated works may not qualify for copyright, a strong contract can still grant exclusive rights and prevent disputes.

-Will & AiME

Three Takeaways:

• AI-generated works may not have copyright protection, but exclusivity can be granted contractually.

• Well-defined licensing agreements ensure clear ownership and usage terms.

• Consider trademarks or trade secrets to add legal protection beyond contracts.