Copyright Laws in Digital Art Creation with AI Tools: A Royalty Free Guide You Need To Know


Published by:

Nemanja Djokic CEO


13min Read

Embark on a comprehensive exploration of the intricate landscape where digital art creation intersects with copyright laws, guided by our insightful roadmap designed to navigate you through the complexities of intellectual property and royalty rights. In this illuminating guide titled "Navigating Copyright Laws in Digital Art Creation with AI Tools: A Royalty-Free Guide," we delve deep into the realm of digital artistry enhanced by AI technologies while unraveling the legal frameworks that govern intellectual property rights.

Join us on this enlightening journey as we demystify the copyright laws surrounding AI-generated artistry, offering invaluable insights to empower creators with the knowledge needed to navigate the evolving landscape of digital art with confidence and without legal IP consequences.

1. Embracing AI: Stable Diffusion and Other AI Art Creation Tools

At Shindiri Studio, we've embarked on an exhilarating journey into the realm of AI-generated art, and one of our favorite tools in this venture is Stable Diffusion. This innovative tool mirrors the creative strides of our esteemed Shindiri family. Witnessing the extraordinary results achieved for our Austrian client, with whom we dedicated a year and a half to create and customize their NFT character and following traits, totaling over 7,700 unique combinations, has left an indelible mark on our team.

Initially focused on custom 3D modeling, our collaboration took a transformative turn with the introduction of Stable Diffusion to the market. With this tool, we were able to curate the remaining character traits and legendary characters, significantly enhancing our creative process. Reflecting on our journey, we couldn't help but lament and laugh at how Stable Diffusion hadn't emerged earlier in the market. Undoubtedly, its presence would have accelerated the project's release, minimizing our efforts while preserving and even augmenting our commitment to exceptional quality.

2. Legal Considerations: Insights from Our Experience and Perspective

Before integrating Stable Diffusion into our workflow, our legal team conducted comprehensive research to ensure that our clients would not encounter any copyright issues stemming from the use of AI tools. At Shindiri, safeguarding the interests of our clients is our foremost priority, especially when navigating the legal landscape surrounding digital art creation.

Our legal team meticulously scrutinized the legal frameworks dictating the utilization of AI tools in digital art creation, encompassing regulations spanning from the EU and the USA to countries worldwide. Our focus was on ensuring compliance with copyright and royalty regulations. Below, we outline the steps we took to ensure that our utilization of AI tools aligns with legal standards, safeguarding against any potential infringement issues. It's imperative to underscore the potential ramifications of copyright violations, which can have severe consequences for both individuals and companies.

After confirming legal compliance with the guidance of our legal team, we confidently delved into exploring the capabilities offered by new AI programs, ensuring our adherence to legal standards and upholding our commitment to delivering innovative solutions to our clients.

3. Navigating Copyright Risks in AI-Generated Art: Legal Safety Guidelines


One of the most significant risks associated with AI-generated art involves the use of other people's artworks, such as digital images that are subsequently modified using Stable Diffusion (SD) or other AI programs. In such cases, copyright issues may arise, particularly when the resultant digital art is created for commercial purposes and subsequent monetization.


This especially pertains to individuals or entities that appropriate the artistic works of others and subsequently alter them using AI tools, with the intention of marketing them as their own digital creations. Such actions are unequivocally prohibited!


Based on insights from our legal team, we provide freely accessible guidance to empower creators with a comprehensive understanding of permissible usage and how they can navigate legal complexities. It's essential to adhere to these guidelines to avoid potential copyright infringements and legal consequences.


For a deeper exploration of the legal considerations surrounding AI-generated art and copyright laws, as well as to gain additional insights on how to sell your works, we encourage you to explore the following links. This will allow you to gain a more comprehensive understanding firsthand:


4. Understanding Copyright Laws in AI Art: Key Legal Advice for Creators

The foremost rule and most crucial aspect is to refrain from using others' artworks and creations, including images, designs, music, 3D models, videos, or any other type of work that is not your own creation!

It's imperative to refrain from using others' artworks and presenting them as your own creations. Instead, consider that art can be created simply by using prompts/words, allowing you to elevate your sketches and works to unprecedented creative proportions.

Therefore, our primary advice is: USE ONLY YOUR ORIGINAL WORK!

  • You are required to create your own original works, including initial concepts, characters, or any other content, without infringing on the intellectual property rights of others. These works should either be your own intellectual property or that of your clients for whom you are undertaking the work.

  • At Shindiri, we employ Stable Diffusion to refine and enhance completed renders and artworks of our own, aligning them with our clients' specifications. Our process entails refining renders/images using Stable Diffusion through 'image-to-image' techniques to generate final versions, which we then further customize through retouching and manual fine-tuning in Photoshop (PS).

  • These artworks aren't merely AI-generated images based solely on prompts; they're the result of an exhaustive and extensive process that encompasses both 2D sketching and 3D design, driven by continuous learning and labor until the desired results are achieved. Consequently, the digital works created in this manner are unique to us and our clients, as recognized by law.

  • If someone appropriates your work and produces a visually similar creation, you have the legal recourse to initiate legal proceedings against them for infringement of your copyright.

  • Rendered images must undergo extensive further fine-tuning and editing in tools such as Photoshop, both before and after being created in Stable Diffusion, to achieve the desired appearance according to your or your clients' specifications.

  • If an artist or a entity (such as Shindiri) uses their own original artwork (whether NFT art or any other form of digital art previously created by the company), which is subsequently enhanced using AI tools such as Stable Diffusion, all resultant artworks remain the property of the creator, who retains the right to sell and commercially use them as their own creations.

5. Navigating Copyright Laws in AI-Generated Art: Maximizing Creative Potential with Legal Integrity

The advent of AI-generated tools has heralded a new era of creativity and innovation, offering us an expansive array of possibilities to explore and exploit in our artistic endeavors. Through the utilization of these cutting-edge technologies, we have harnessed the power of artificial intelligence to craft a diverse range of digital artworks, including NFT creations and various other projects commissioned by our clients.

However, amidst the boundless potential afforded by AI-generated art, it is imperative that creators exercise caution to avoid inadvertently infringing upon copyright laws and intellectual property rights. While AI tools provide a wealth of resources and capabilities for artistic expression, they also present certain legal considerations that must be carefully navigated to ensure compliance and mitigate the risk of legal repercussions.

Let's summarize the key precautions to bear in mind when leveraging AI-generated art:

  • Originality is Key: Always prioritize the creation of original content that is entirely your own or that of your clients. Avoid using pre-existing artworks, images, or designs that may be subject to copyright protection without obtaining proper authorization or licensing.

  • Respect Copyright Laws: Familiarize yourself with copyright laws and regulations governing the use of digital content, including images, music, videos, and other forms of creative expression. Ensure that your use of AI-generated tools does not infringe upon the rights of others or violate existing copyright protections.

  • Obtain Proper Licensing: If you intend to incorporate third-party content into your AI-generated artworks, obtain the necessary licenses or permissions from the rightful copyright holders. This may involve purchasing licenses for stock images, obtaining clearance for copyrighted music, or securing permission to use proprietary designs or artwork.

  • Use AI Tools Responsibly: Exercise responsible use of AI tools and technologies, adhering to ethical guidelines and best practices for digital art creation. Avoid using AI-generated content in a manner that may mislead or deceive viewers into believing that it is original or created entirely by human artists.

  • Protect Your Own Intellectual Property: Safeguard your own intellectual property rights by taking proactive measures to protect your original creations. Consider registering your artworks with relevant copyright offices or utilizing digital watermarking techniques to deter unauthorized use or reproduction.

By incorporating these precautions into your creative process, you can harness the full potential of AI-generated art while ensuring compliance with copyright laws and safeguarding the rights of creators and copyright holders alike. At Shindiri, we remain committed to upholding the highest standards of ethical and legal conduct in our artistic pursuits, leveraging AI-generated tools responsibly to unlock new realms of creativity and expression.

We are confident that we have addressed any concerns and provided valuable assistance for your future endeavors in AI art creation.