What You'll Learn in This Guide
- ✓ How India's Copyright Act 1957 applies to AI-generated images and the legal gap around authorship.
- ✓ Section 2(d)(vi) and the "person who causes" test for computer-generated works.
- ✓ Commercial use risks under Indian law and how to protect your business.
- ✓ Practical recommendations for using AI images safely in the Indian legal context.
As Indian businesses increasingly adopt AI image generators like Adobe Firefly, Midjourney, and DALL-E 3 for marketing, product design, and content creation, the legal framework governing these tools remains unclear. The Indian Copyright Act 1957 was enacted long before generative AI existed, and despite several amendments, it has not been updated to address AI-generated content specifically. This creates significant legal uncertainty for any business using AI images commercially in India. This guide examines the current Indian legal landscape for AI images commercial safety India and what businesses need to know.
The Copyright Act 1957 and AI-Generated Works
The Indian Copyright Act 1957 provides protection for "original" literary, dramatic, musical, and artistic works. For AI-generated images, the key legal question is: who is the author?
Section 2(d)(vi) of the Act defines an 'author' in relation to a computer-generated work as "the person who causes the work to be created." This provision was added during the 1994 amendment to address computer software, but it was never designed with generative AI in mind. The question of whether a person typing prompts into Midjourney or Firefly qualifies as "causing the work to be created" has not been tested in Indian courts.
In 2024, the Government of India stated through a Press Information Bureau release that the "existing IPR regime is well-equipped to protect AI-generated works." However, legal experts disagree — noting that the Act does not mention AI at all and that several key questions remain unanswered.
Key Legal Issues for Commercial AI Image Use in India
1. Ownership and Authorship Gap: If AI generates an image and no human can claim copyright, the image may effectively be in the public domain in India. This means anyone can copy, modify, or sell it. For businesses investing in branded AI-generated visuals, this lack of copyright protection is a significant risk.
2. Training Data Infringement Risk: Section 14 of the Copyright Act gives copyright owners the exclusive right to store or copy their work. When AI models like Midjourney train on copyrighted images scraped from the internet, this could theoretically constitute infringement in India. If an Indian court finds that the training process itself was infringing, businesses using those AI tools could face legal exposure.
3. Section 52 Fair Dealing Exception: Section 52 of the Copyright Act provides certain fair dealing exceptions. AI-generated content used for commercial purposes may not qualify as fair dealing, making it potentially infringing. Unlike the US "fair use" doctrine which is broader, India's fair dealing provisions are narrower and specifically defined.
| Issue | Current Legal Position (India) | Risk Level |
|---|---|---|
| AI as Author? | Not recognised. Only humans can be authors under Copyright Act 1957 | ⚠️ High |
| Copyright for AI Outputs | Unclear. Section 2(d)(vi) may cover it but untested in courts | ⚠️ High |
| Training Data Infringement | Potentially infringing under Section 14. No Indian ruling yet | ⚠️ Medium |
| Fair Dealing for Commercial Use | Narrow exceptions. Commercial use unlikely to qualify | ⚠️ Medium |
| Platform Terms of Service | Contract law applies. ToS grants usage rights per platform | ✅ Lower |
Delhi High Court Case — ANI v. OpenAI
A landmark case is currently being heard by the Delhi High Court: Asian News International (ANI) v. OpenAI. ANI alleges that OpenAI's ChatGPT was trained on its copyrighted news articles without permission. The outcome of this case could set a precedent for how Indian courts view AI training on copyrighted data. If the court rules against OpenAI, it would have major implications for all AI tools operating in India, including image generators. The case is being closely watched by legal experts as it may shape India's AI copyright jurisprudence for years to come.
Comparing Platform Safety for Indian Businesses
For Indian businesses, the safest AI image platform depends on both Indian copyright law and the platform's terms of service:
- Adobe Firefly: Offers the strongest commercial protection globally. While Indian courts may not recognise Adobe's IP indemnification as binding in an Indian proceeding, it still provides contractual protection. Adobe's licensed training data reduces infringement risk regardless of jurisdiction.
- Midjourney: Paid plans allow commercial use via the ToS, but the ongoing US lawsuit and web-scraped training data create risk. Indian businesses using Midjourney should ensure they are on a paid plan and avoid prompting for copyrighted material.
- DALL-E 3 (via ChatGPT Plus): OpenAI's terms grant broad commercial usage rights. However, like Midjourney, the training data includes web-scraped content, and the outcome of the ANI v. OpenAI case could affect the legal standing of all OpenAI-powered tools in India.
Recommendations for Indian Businesses Using AI Images
Given the legal uncertainty in India, here are practical recommendations for businesses using AI-generated images:
- Add human creative input: Indian copyright law protects works with sufficient human authorship. Add significant creative modifications to AI outputs — combining, editing, and transforming AI-generated elements can strengthen your copyright claim under Section 2(d)(vi).
- Document your creative process: Maintain records of your prompts, edits, and creative decisions. If a copyright question arises, evidence of human creative input strengthens your position.
- Prefer platforms with licensed training data: Adobe Firefly has the strongest legal foundation in any jurisdiction because its training data is licensed. This reduces the risk that an Indian court could find the outputs infringing.
- Review platform terms of service carefully: Each platform grants different commercial usage rights. Ensure your chosen platform's ToS explicitly permits commercial use for your business category and revenue level.
- Monitor the ANI v. OpenAI case: This Delhi High Court case will likely establish important precedents for AI copyright in India. Stay informed about its progress and adjust your AI usage policies accordingly.
Conclusion
The legal framework for AI images commercial safety in India remains a work in progress. While the Copyright Act 1957 was amended in 1994 to include computer-generated works, it was not designed for generative AI. Until Indian courts issue clear rulings or Parliament updates the legislation, businesses using AI images commercially operate in a grey area. The safest approach is to use platforms with licensed training data like Adobe Firefly, add meaningful human creative input, and stay updated on legal developments such as the ANI v. OpenAI case in the Delhi High Court. As AI adoption accelerates across Indian businesses, the demand for legal clarity on this issue will only grow.
Last Updated: May 23, 2026 | Source: Indian Copyright Act 1957, Delhi High Court