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Generative AI Logos

An Ease for Trademark Protection?

Written By Shraddha Desai

Generative AI Logos - An Ease for Trademark Protection?

In today’s business landscape, “ease of doing business” has become key for entrepreneurs. Be it the formation of LLCs or the registration of trademarks. Technology has woven itself into the very fabric of modern commerce. The one technology that is making the lives of entrepreneurs easy is generative artificial intelligence (AI). One area where this intersection is becoming more prevalent is the growing use of AI-driven tools in branding, particularly in creating brand kits and logos. The rise of AI technology is rapidly transforming how businesses operate, offering tools to automate everything from branding to compliance. Before we delve into the role of AI in logo creation for trademark protection, it's essential to understand the fundamentals of trademark law under the Lanham Act.

What is a Trademark?

The Lanham Act defines trademarks as words, names, symbols, or devices that distinguish one person’s goods or services from those of others. In other words, think of trademarks as the ultimate "brand badge" for businesses, giving them a unique identity in the marketplace. They’re why you instantly know the Nike swoosh when you see it! Trademarks don’t just protect a product - they help build consumer trust and brand loyalty.

What are the Trademark requirements under the Lanham Act?

To be legally valid, a trademark must meet three criteria: distinctiveness, non-functionality, and use in commerce (with the exception of intent-to-use). Trademark infringement occurs if a mark creates a likelihood of confusion for consumers about the origin of goods or services.

What is Generative AI and its role in Creating Logos?

Generative AI is a game-changer and has already been simplifying our lives. Think of ChatGPT as a treasure chest of answers and creative ideas. It works well because it uses advanced deep-learning models to produce high-quality text, images, and other content based on the data it learns from. The better the data you feed it, the better your “output” will be.

Today, platforms like Canva, Adobe, and Looka rely on generative AI to help graphic designers and small businesses create logos and branding kits quickly and affordably. But where do your rights as a designer or business owner stand when it comes to AI-generated logos? Especially when you want to use it for trademark registration or commercial purposes.

The next section will break down the policies of these three platforms for AI-generated logos and best practices to help graphic designers and small businesses protect their work, save money, and make the most of these tools for trademark protection.

Canva

Canva lets you design logos that can be trademarked, but there’s a catch. You can create an original logo from scratch using Canva’s basic lines and shapes or upload your own design to build a brand kit. However, Canva doesn’t give exclusive rights to its stock content. Using templates or stock elements in a logo could lead to trademark rejection by the USPTO due to potential confusion. For example, you design a logo for your bakery using a Canva template that includes a stylized cupcake graphic. While the design looks unique, the cupcake is a stock image available to all Canva users. Another bakery in a different state uses the same graphic in their logo.

When it comes to AI-generated logos, Canva’s terms and AI Acceptable Use Policy place the responsibility on you. They don’t guarantee the trademark eligibility of AI-generated designs and leave it up to users to do their own due diligence. For example, if you use Canva’s AI tools to generate a logo for your tech startup, it’s important that you conduct a trademark search before use. The AI may produce a sleek design with an abstract "techy" symbol. However, another company in the same industry may already have a similar logo registered with the USPTO.

Adobe

Adobe is a go-to platform for graphic designers creating logos and other visuals for their clients. Their AI tool, Firefly, is designed to support creative workflows and can even be used for commercial projects. According to Adobe, Firefly’s outputs are based on licensed content, making them safe for commercial use - but only if the feature doesn’t have a beta label.

Adobe does not take any responsibility for the output to be legally sound to use. You are fully responsible for ensuring that Firefly-generated content complies with applicable laws, third-party rights, and Adobe's terms. Furthermore, the use of generative AI features may produce output that is unexpected or unsuitable for you. The output may not be unique, and other users of generative AI features may generate the same or similar output, which could lead to a barrier to protection as a trademark.

Looka

Looka is an AI-powered platform that helps users create logos based on their design preferences. It uses AI to generate professional-looking logos for personal or commercial use. To use these logos, you must pay the fee listed on their website or subscribe to their service. While Looka makes logo creation simple, it doesn’t guarantee the final design or take responsibility for it. Users are fully responsible for ensuring their logos comply with trademark rules and accuracy standards. Like many design tools, Looka requires users to assess and accept all risks associated with using its design resources.

Best Practices for Graphic Designers and Small Businesses Using AI Platforms for Logo Creation

AI tools like Canva, Adobe, and Looka make logo creation quick and affordable, but using them wisely is key to avoiding legal and business challenges. Here are some best practices for both graphic designers and small businesses:

  1. Create logos using basic shapes, lines, or custom illustrations instead of relying on stock elements or templates.
  2. Know the terms of the AI tools you use. Some platforms, like Adobe Firefly, only allow commercial use for non-beta features, and outputs may not be unique.
  3. Save drafts, inspiration sources, and versions of your work to prove originality if questioned.
  4. Check if the platform grants exclusive rights to your logo.
  5. Avoid using templates or stock elements in your logo.
  6. Before using a logo, search for similar designs in your industry.
  7. Always confirm that your design meets trademark standards (distinctive, nonfunctional, and not already in use).

For Small Businesses Working with Graphic Designers:

  1. Ensure the work-for-hire agreement states that you will own all rights to the final design. This prevents any disputes over who owns the logo.
  2. Ensure the logo is original and not copied from other works.
  3. Ask the designer to confirm that the logo is suitable for trademark registration and does not infringe on any existing trademarks.
  4. Specify how you can use the logo. Ensure you have unrestricted rights.
  5. If the designer plans to use AI tools, ask them to disclose which ones and ensure the design meets your requirements for originality and trademark eligibility.

There are currently no rules under the Lanham Act or the USPTO that restrict using AI to file a trademark application. While the USPTO recognizes the possibility that AI will be used to prepare and file trademark applications, it does not require applicants to disclose if a logo was AI-generated. However, when registering a trademark, it’s essential to ensure the mark is distinctive, nonfunctional, and either already in use in commerce or intended for future use.

AI can be a powerful tool to inspire creativity and streamline design workflows, but it’s not a replacement for originality, due diligence, or proper legal protection. If you’re using AI to create a logo, always review the final design for potential legal risks, such as similarity to existing marks, before presenting it to clients or using it commercially.

Protecting your brand starts with smart decisions. Work with a trademark attorney to ensure your logo meets all legal requirements and is fully protected for commercial use.

At OMI Legal, we specialize in guiding businesses through the complexities of trademark law. Our services can help you navigate the trademark law landscape, ensuring your brand is well-protected.

Contact us today to secure your brand's future!

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