INTRODUCTION
Artificial Intelligence (AI) is everywhere. Most of the people are using it in every single type of profession, job, task, and even in daily routines! And why not? It is reliable, time-saving, and cost-effective, it can increase the productivity of a person in just minutes by just using their fingertips and various startups are using AI for their Trademarks.
The question is, why should Startups follow the old and traditional approach for business, when their targeted customers are relying on modern AI? They should consider the use of AI from their very first step of launching their startup.
Trademarking is the most crucial step of any business, as it will determine their market presence as well as customer trust. However, proper trademarking is one of the most expensive steps of business, starting from planning, designing, researching, registering to enforcing. This is something that a startup cannot afford in its initial stages.
That’s where AI takes place, with its creative branding and designing tools, Startups can easily generate Trade Name, Logo, and Slogan for the time and cost much lower than traditional trademarking methods.
Sounds easy, right? What if I say it’s not! Until and unless the legal frameworks completely vanish from the world, an easy, smooth, and hurdleless AI-generated trademark is just a startup’s dream.
In this article, we will explore the legal challenges arising from the dream and how to make the dream into reality.
AI-GENERATED TRADEMARKS: REGISTRABILITY AND OWNERSHIP CHALLENGES
Let’s first understand how IP laws of different jurisdictions treat AI-generated Trademarks:
In India, the Indian Trade Marks Act 1999, even though it does not specifically highlight the use of AI for trademarking, states that marks that are only created by humans will get the right to get trademarked. Similarly, the US and EU IP laws treat AI-generated marks in the same sense.
One crucial case, the RAGHAV AI Case, undoubtedly explains this challenge. In this case Ankit Sahni used an AI tool named Robust Artificially Intelligent Graphics and Art Visualizer or RAGHAV to create an artwork named Suryast by merging Vincent Van Gogh’s artwork “Starry Night”.
The Indian Copyright Office initially accepted the artwork but later revoked the decision. On the other hand, the U.S. Copyright Office denied the application in the first place.
Whereas, in November 2023, the Beijing Internet Court granted IP Protection to the Plaintiff, who generated the work with AI by inputting various prompts and adjusting parameters. This Landmark case indicated that Chinese courts might consider AI-generated works to be granted IP protection, if there is reasonable human involvement in the work.
Similarly, on February 29, 2024, Japan’s Agency for Cultural Affairs Committee’s document considered that joint work made up of both human and AI input might be eligible for IP protection.
Therefore, it can be assumed that with reasonable human involvement, trademark protection can be granted to AI-generated Marks. However, even if a mark gets eligible for trademark registration and protection, who will own the trademark, the AI developer, the AI user, or the AI itself?
The trademark law in most jurisdictions is based on the principle that trademarks must have a human applicant or legal entity as the owner. It can be better understood in the case of Naruto v.s Slater, where it was held that even though the monkey (Naruto) took the selfie, he cannot claim IP ownership as he is an animal and not a human. Similarly, since AI too is a non-human or artificial entity, it cannot be eligible for IP ownership.
Some AI branding platforms claim partial ownership rights over the generated trademark through terms and conditions. This creates a legal hindrance during enforcement of the trademark when AI companies assert ownership over the output of their algorithms.
If the user customises the AI-generated output with suggestions and judgements, they can claim and argue over ownership. This is how the Beijing Internet Court held in favor of the plaintiff, who was the intended user and creator of the AI-generated output.
To avoid ownership disputes, Startups that are using AI-generated trademarks should consider these things:
- Review AI Platform’s Terms and Conditions
Some platforms may include clauses attribution, licensing fees, or IP rights. Ensure that the AI branding or designing platforms does not claim ownership over the AI-generated mark.
- Document Human Involvement in the Trademark Creation Process
Modify AI-generated works to demonstrate human creativity. Keep records of how the AI-generated trademark was created and applied in commerce.
- Register the Trademark under a Legal Entity
Always register AI-generated trademarks under a legal brand or individual name, ensuring clear and legal ownership. This prevents future disputes over whether the AI developer, AI user or any other holds the ownership right.
AI AND TRADEMARKS INFRINGEMENT: RISKS AND LEGAL LIABILITIES
Cheers! Your mark is eligible for Trademark protection, now you have to wait for the completion of the registration process, which will only take YEARS to complete. Sounds confusing, right?
That’s because the process contains a crucial stage, the Objection Period, where your mark will be displayed publicly for 4 months and if any objection by any existing brand is raised, you will face a legal battle that could take years to get resolved. And even if it passes registration, there will still be no confirmation that the mark will not get objected after the mark is registered.
But why does this happen? Because Startups using AI tools may unknowingly infringe on existing ones because they assume AI-generated outputs are always unique in nature, well, it’s not in some cases. AI-generated tools often create similar or same marks of existing brands, increasing the risk of Trademark Infringement.
Again, the question arises- who is liable for this trademark infringement, the AI developer, the AI user, or the AI itself?
Since AI is not a human or legal entity, it cannot be held liable for the infringement.
AI developers may be held partially liable if they own ownership of the mark through IP licensing or claiming rights through their Terms and Services as mentioned previously. However, proving liability is complex because AI tools operate based on algorithms and datasets without direct human intent.
The primary liability often falls on the AI users as they have clear ownership over the AI-generated mark. This could lead to serious legal damages, including:
- Cease and Desist Order
- Trademark Proceedings Cancellation
- Legal Suit
- Penalty for Infringement
You may think that unintentional infringement may be a solid defence to avoid injunctions and compensation, but that’s not the case, even first-time unknowing infringers are accused and charged.
To avoid such suits, Startups that are using AI-generated trademarks should consider these things:
- Comprehensive Trademark Searches
AI-generated marks may be unique in appearance but could still infringe upon existing trademarks due to similarity in sound, meaning, or visual elements. A thorough and in-depth trademark search helps identify potential conflicts before filing for trademark registration.
- Human Oversight in Branding Decision
While AI can generate thousands of branding options in seconds, it lacks legal reasoning and contextual judgment. Relying solely on AI can lead to unintentional infringement and lack of distinctiveness. Human intervention is necessary to ensure compliance with legal and commercial standards.
Finally, your startup’s brand is ready to be trademarked, but now all you can see is that someone has already trademarked it before you could file for protection. Sounds frustrating, right? This is how Trademark Squatting works, leveraging AI tools to register potential brand names in bulk, even before legitimate businesses get a chance.
Trademark Squatting isn’t a new thing, it has existed for decades, with individuals and entities registering trademarks in bad faith, waiting to sell them at a profit. However, here’s how AI is helping trademark squatters:
- Mass Registration of AI-Generated Marks
AI branding tools can create thousands of potential brand names in seconds. Squatters use these tools to generate and register huge amounts of trademarks across multiple jurisdictions, making it difficult for Startups to secure their desired marks.
- Predictive Trademark Squatting
AI can analyse industry trends, domain registration, and keyword searches to predict which brand will become valuable and profitable in the future. Squatters utilise analysis by registering trademarks that Startups are likely to seek.
- AI-Generated Similarities to Existing Brands
Even when squatters don’t directly copy existing brands, they use AI to generate deceptively similar marks, leading to legal disputes that force Startups into lengthy legal proceedings.
If a startup finds its AI-generated mark already registered by a squatter, the process of reclaiming the mark can be expensive and time-consuming. Here’s why:
- First-to-File Jurisdictions give an Advantage to Squatters
Many jurisdictions, like the European Union (EU) and China, follow a first-to-file system, meaning that whoever registers a trademark first holds the rights—regardless of whether they intend to use it.
Startups in these regions must either buy back their own brand names or engage in costly legal battles to prove bad faith.
- Proving Bad Faith Is Legally Complex
Courts and trademark offices often require strong evidence to prove that a trademark was filed in bad faith.
If a squatter claims they have a legitimate business plan involving the mark, Startups may struggle to challenge the registration.
- Domain Name Disputes Add Another Layer of Complexity
Many AI-driven squatters register domain names alongside trademarks, forcing Startups into expensive UDRP (Uniform Domain-Name Dispute Resolution Policy) proceedings to reclaim them.
While AI-driven trademark squatting creates a serious threat, Startups can take proactive steps to secure their Trade before squatters do. Here’s how:
- File for Trademark Protection Early
As soon as a startup finalizes its AI-generated brand name, immediately file a trademark application- especially in first-to-file jurisdictions.
- Use Trademark Monitoring Services
AI-powered trademark watch tools can help Startups detect suspicious filings of similar marks, allowing them to oppose squatters before registrations go through.
- Secure Domain Names Alongside Trademarks
Squatters often register domains linked to AI-generated trademarks, so Startups should secure relevant domain names (e.g., .com, .io, .ai) as soon as possible.
- Build Evidence of Prior Use
In jurisdictions that consider first-to-use rights, Startups should maintain clear records of commercial use, branding, and marketing materials to strengthen claims against squatters.
- Challenge Bad-Faith Filings Promptly
If a squatter registers an AI-generated mark, file an opposition or cancellation petition early before legal costs escalate.
HOW GOVERNMENTS ARE ADAPTING TO AI INNOVATIONS
The intersection of AI and IP is reshaping legal frameworks worldwide Recent developments highlights key changes in how legal frameworks are adapting to keep pace with AI’s growing influence.
- On February 9, 2024, Indian Ministry of Commerce and Industry announced that India’s current IP Laws are sufficient for AI-generated and related innovations. And it is not necessary to create a separate legal framework for AI-generated content.
- The U.S. Copyright Office’s 2025 Report clarifies AI-assisted works’ copyright eligibility. It reaffirms that purely AI-generated works are ineligible, while AI-assisted creations with substantial human input may qualify. This highlights the ongoing IP-AI interplay and the need for clear legal boundaries.
- AI’s growing role in IP is reshaping patent filings, enforcement, and regulatory oversight. The UK and other jurisdictions are reviewing AI’s impact on IP laws, while AI-powered tools are transforming patent searches and infringement detection. As AI-driven innovation accelerates, legal frameworks must evolve to balance innovation and IP protection.
- In 2025, the China National Intellectual Property Administration (CNIPA) intensified its efforts to challenge malicious trademark registrations, including those related to AI-generated mass filing.
CONCLUSION
So, what do you think? Should Startups embrace AI for trademark creation or stick to traditional methods? The answer isn’t a simple yes or no- it’s about using AI strategically while staying legally informed.
AI branding tools offer a fast, cost-effective way to create trade names, logos, and slogans, making them an attractive option for Startups. However, trademarking isn’t just about creativity—it’s about legal protection, market presence, and customer trust. An AI-generated mark might look unique, but without proper legal safeguards, it could lead to ownership disputes, infringement risks, or even costly legal battles.
The dream of effortless AI-driven trademarking is still entangled in legal complexities. Most IP laws recognize only human-created trademarks, raising questions about registrability and ownership. Even if a Startup secures a trademark, there’s no guarantee it won’t face objections or challenges, especially in jurisdictions with first-to-file rules or rampant trademark squatting. AI-driven branding can also unknowingly infringe on existing marks, putting Startups at risk of lawsuits and penalties.
So, how can Startups make AI work for them instead of against them?
- Review AI Platform Terms – Ensure AI branding tools don’t claim ownership over your trademark.
- Document Human Involvement – Modify AI-generated outputs to show human creativity, strengthening ownership claims.
- Conduct Comprehensive Trademark Searches – AI can generate thousands of branding options, but they may not always be legally unique.
- File for Trademark Protection Early – In first-to-file jurisdictions, securing your brand name before squatters do is crucial.
- Secure Domain Names Alongside Trademarks – Prevent others from registering your brand online before you do.
- Monitor Trademark Filings – Keep an eye on similar marks to detect potential conflicts before they escalate.
AI isn’t the enemy, but it isn’t a magic solution either. It’s a powerful tool that, when combined with legal awareness and strategic decision-making, can help Startups navigate the complexities of modern trademarking. The Startups that master this balance, leveraging AI while safeguarding their legal interests, will be the ones that thrive in the AI-driven branding era.
Frequently Asked Questions (FAQ)
1. How does AI affect trademarks?
AI impacts trademarks by enabling fast and cost-effective branding but raises legal issues regarding ownership, registrability, and infringement risks.
2. Can you trademark AI content?
It depends on the jurisdiction. Most IP laws require human involvement, so purely AI-generated content may not qualify for trademark protection.
3. Can you trademark a logo created with AI?
Yes, if there is significant human involvement in its creation. However, some AI platforms may claim ownership rights.
4. Can AI be copyrighted in India?
No, purely AI-generated works are not eligible for copyright under Indian law, as only human authorship is recognized.
5. Is using AI copyright-free?
No, AI-generated content may still be subject to copyright laws, and some AI tools retain rights over their outputs.
6. Is AI patentable in India?
No, India does not grant patents to AI as an inventor, though AI-assisted inventions by humans may be patentable.
7. How to use AI for trademarking in India?
Startups should use AI for name/logo generation but ensure human oversight, conduct trademark searches, and review AI platform terms to avoid ownership conflicts.
8. Who regulates AI in India?
AI is not currently regulated under a specific law, but bodies like the Ministry of Electronics and IT (MeitY) and the DPIIT oversee AI-related policies and IP issues.
9. Can I patent AI?
AI itself cannot be patented, but inventions using AI may qualify if they meet patent eligibility criteria.
10. Can AI-generated logos be trademarked?
Yes, but only if there is substantial human involvement in their design and application.
11. Who owns the copyright of an AI-created brand name?
The AI user may claim ownership if they actively contribute to the creation, but AI platforms may assert partial rights based on their terms of use.
12. Legal issues with AI-generated trademarks
Key issues include ownership disputes, infringement risks, and lack of recognition under existing IP laws.
13. Can I get sued for using an AI-generated brand name?
Yes, if the AI-generated mark infringes on an existing trademark, the AI user could face legal action.
14. Famous trademark disputes involving artificial intelligence
The RAGHAV AI case in India and various AI-assisted copyright cases globally highlight the challenges of AI-generated trademarks.
15. Future of AI in intellectual property law and trademark protection
AI will continue shaping IP law, with evolving regulations to address ownership, infringement, and registrability of AI-generated trademarks.
About Author
Anisha Haque, a student of Calcutta University, studying in BA LLB 1st year. Anisha’s interest is in trademark law for startups, which focuses on helping emerging businesses protect their brand identity while exploring its legal complexities. It includes an analysis of case studies, legal frameworks, AI’s role, and strategies for startup-friendly trademark protection.