using midjourney output in client logo project — exposure?

I publish illustrative scenarios prepared by my practice. All participants and conversations are fictional. “Terms.Law commentary” passages are general commentary from my practice and are not legal advice. The fictional posts are not posts by real users, accounts of client experiences, or reports of actual results.
Illustrative scenario and Terms.Law commentary prepared by my practice.
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
Hypothetical question

used midjourney to generate concept boards for a logo project. i did the actual logo in illustrator from scratch but the inspiration board has 30+ MJ-generated images. client now wants to use the boards in marketing materials. do i need to disclose? do they own those? does anyone?

Illustrative response

USCO position is that pure AI output isn't copyrightable — no human authorship. so technically no one owns those images. anyone can copy them, including your competitors. that's actually MORE risky for the client than copyright infringement.

Illustrative response

midjourney commercial license also has weird terms — depends on which tier the user was on. read THEIR ToS. paid tiers grant broader rights but with limits.

Terms.Law commentary

Quick framework on AI-generated commercial use:

(1) Output ownership: USCO has held that pure AI output without human creative selection/arrangement isn't subject to copyright. Practical effect — your concept boards are essentially in the public domain unless you can show meaningful human authorship in the curation/composition. (2) Generator ToS: Midjourney's commercial license rights flow to paid users; check the specific tier you used. (3) Training data risk: the bigger concern is whether the generated image inadvertently reproduces a specific copyrighted work — face/character resemblance, distinctive style. If it does, you could be liable downstream.

For client-facing work I recommend (a) a license/disclosure clause in your SOW noting use of AI tools, (b) for the actual logo (which you said you drew from scratch in Illustrator), document the human authorship trail, and (c) any "inspiration" boards should be clearly labeled as references rather than deliverables. Informational only.