AI-Generated Content & Copyright

Why This Matters to E-Commerce Brands

From product descriptions to ad visuals, e-commerce teams are embracing AI tools like ChatGPT, Midjourney, and Canva’s Magic Write. They're fast, cheap, and seemingly magical, but here's the legal catch: Copyright law wasn’t written for robots.

If you’re building a brand on AI-generated content, you need to know where the legal lines are drawn, and where you're exposed.

Essential Elements of a Valid Contract

Several essential elements must be present for a contract to be legally enforceable. These include offer, acceptance, consideration, legality of purpose, capacity, and consent. An offer is a proposal made by one party to another, indicating an intention to enter into a contract under specific terms. Acceptance occurs when the other party agrees to the terms of the offer, creating mutual assent or meeting of the minds.

Consideration refers to something of value exchanged between parties, such as goods, services, or money, which forms the basis of the contract. Additionally, contracts must have a lawful purpose, be entered into by competent parties, and be formed without duress or fraud. Understanding these fundamental elements is essential for drafting, negotiating, and executing contracts that are valid and enforceable.

The Core Issue: No Human = No Copyright

Under most copyright laws (including in the EU, UK, AU and US), only humans can hold copyright. That means:

• If an AI completely creates the image, text, or design = you likely don’t own the copyright

• If you significantly direct or modify the AI output = your input may qualify for copyright

The grey zone? Massive.