From Creation to Registration: The New Challenges of Intellectual Property, Legal Protection, and the Commercial Exploitation of AI-Generated Brands

When Artificial Intelligence Creates the Brand, Who Owns the Rights?

Artificial intelligence has significantly changed the way brands are created today, as names, logos, and slogans can be generated within minutes. Speed and convenience, however, do not automatically translate into legal protection. In the age of AI, the key issue is not only what technology can create, but also which of the things it creates can ultimately be protected by law.

Accordingly, in the case of AI-generated brands, the issue is not limited to determining who qualifies as the creator. In trademark law, what is crucial is whether the particular brand can be protected as a trademark and used in the market without infringing earlier rights.

Artificial Intelligence Creates – But Control Remains a Human Responsibility

The greatest risk is similarity.

AI can generate something that appears new and impressive, creating the illusion of originality and uniqueness, without necessarily being equally safe from a trademark law perspective.

A business may use AI to create its brand, website, and marketing campaign and then make a significant investment in the market. However, if it is subsequently discovered that there is an earlier similar trademark, the business may be forced to change its entire identity. The problem is not necessarily bad faith, but rather the absence of adequate checks before making the investment.

The use of AI to create a brand should therefore be followed by a systematic availability search and legal assessment. The basic principle is: clearance first, investment second.

Can I Use the AI-Generated Result?

Creating a brand using AI raises significant legal questions regarding the lawful use and registration of the logo as a trademark. A search must be conducted for any earlier trademarks or other third-party rights that may restrict its use. At the same time, the terms of use of the AI platform and the scope of rights in the individual elements of the generated result must be examined. Particular importance should be given to the extent of human creative contribution in shaping the final work.

Whether the result can be protected under copyright law depends on the applicable law, the nature of the work, and the extent of human creative contribution.

The Importance of Human Intervention

An important issue is the extent to which a human intervenes in the creative process.

In the context of trademarks, it is relevant whether AI is used merely as an assisting tool or whether it creates the trademark almost entirely on its own. Human involvement, such as the selection of prompts, evaluation of the output, and final modifications, may be significant. For this reason, businesses should consider retaining records of the creative process so that they can demonstrate how the trademark was created and developed and mitigate potential legal risks.

Protection in Cyprus and the European Union

In Cyprus, registration of a trademark grants the proprietor an exclusive right, subject to the applicable requirements, as well as protection against similar marks, particularly where there is a likelihood of confusion. The use of AI does not eliminate the need for a sound protection strategy. On the contrary, it makes early availability searches, assessment of earlier rights, and the appropriate selection of the trademark even more important.

Similarly, at European Union level, a mark may be protected as an EU trademark, provided that it satisfies the relevant requirements of Regulation (EU) 2017/1001 and does not conflict with earlier rights. Protection does not depend on whether the mark was created exclusively by a human or with the assistance of a technological tool. Technology changes the way in which a mark is created, but it does not eliminate the fundamental principles of trademark law.

From Creation to Protection

At the same time, the increasing use of AI by businesses is creating new challenges. Nevertheless, fundamental principles such as distinctiveness, priority, earlier rights, likelihood of confusion, genuine use, and reputation protection remain critical. AI does not eliminate them. On the contrary, it accelerates the emergence of new legal conflicts.

Businesses should therefore adopt a clear process: creation, clearance, legal assessment, registration, and ongoing protection.

The New Strategic Value of Legal Advice

The real competitive advantage will not simply be a business’s ability to create hundreds of brands with the assistance of AI, but its ability to identify which of those brands can be registered, used, protected, expanded internationally, and ultimately turned into commercial assets.

In the age of Artificial Intelligence, the critical question is:

“Of everything that AI can create, what can we truly make our own and protect?”

That is precisely where the new challenge for Trademark Law lies.

The use of Artificial Intelligence does not alter the essence or purpose of intellectual property protection. Technology may change the way in which a work or a brand is created, without, however, eliminating the need for legal protection and recognition of the relevant rights. Intellectual property protection remains essential, regardless of the tool used in the creative process.

And that is, at the same time, where the new strategic value of legal advice lies.

The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact the IP Department, Nicosia office, tel +357 22447777 or email koulla.christodoulou@kyprianou.com