Can I Sell Stable Diffusion Images? Commercial License Terms (2026)

I've been using Stable Diffusion locally (SDXL and the new SD3 models) to generate product mockups for my design agency. Clients love the results but I need to know: can I legally sell these images and use them in client deliverables?

Specifically confused about:

• The CreativeML Open RAIL-M license — what does it actually allow?
• Difference between running locally vs using Stability AI's API
• Can I sell prints on Etsy/Redbubble?
• Do I need to disclose it's AI-generated?

Anyone using SD commercially and dealt with this?

Great question. The answer depends heavily on which model and how you access it:

Stable Diffusion (local/open-source):

• SD 1.5 and SDXL use the CreativeML Open RAIL-M license
• This license explicitly permits commercial use — you can sell generated images
• Key restriction: you cannot use outputs for illegal purposes, to deceive, or to cause harm
• No revenue cap, no attribution requirement

SD3 / Stability AI API:

• SD3 has a separate Stability AI Community License
• Free for individuals and companies under $1M annual revenue
• Above $1M = need Enterprise license from Stability AI
• API usage has its own terms layered on top

For your design agency, the critical question is annual revenue. Under $1M, you're clear for SD3. SDXL is unrestricted commercially regardless of revenue.

I've been selling SD-generated art prints on Etsy for 8 months now. No issues. Here's what I've learned:

• Etsy requires disclosure that items are AI-generated (updated their policy in 2025)
• Redbubble also requires AI disclosure now
• Stock sites (Shutterstock, Adobe Stock) have separate AI programs — you can submit but they're in dedicated AI sections
• The license doesn't restrict selling prints, merch, digital downloads, etc.

One thing to watch: if you fine-tune on copyrighted images without permission, the output could be problematic regardless of the model license.

We use SD in our SaaS product (users generate images through our platform). Important distinction: when you use SD in a product you're offering to others, you need to pass through certain license obligations. The RAIL-M license requires that downstream users also can't use outputs for prohibited purposes.

Our lawyers had us add specific terms about AI-generated content in our ToS. If you're building a product around SD (not just using it yourself), get legal review.

@SD_power_user To directly answer your questions:

1. Can you sell commercially? Yes, both locally-run SDXL and API-accessed models permit commercial use
2. Prints on Etsy/Redbubble? Yes, but comply with marketplace AI disclosure policies
3. Disclosure: No legal requirement to disclose AI generation in most US states (yet), but platforms increasingly require it
4. Copyright: US Copyright Office position is that purely AI-generated images aren't copyrightable. But if you significantly modify/compose them, the human creative elements may qualify

Bottom line: the license allows commercial use. The copyright question (whether you can stop others from copying your AI art) is the bigger risk for commercial sellers.

This is incredibly helpful. So for my design agency use case (creating product mockups for clients), I'm clear to use SDXL commercially with no revenue restrictions. I'll check our revenue against the SD3 threshold just to be safe.

The copyright point is important — I'm not planning to sell the images as standalone art, they're incorporated into larger design deliverables with significant human creative work. That should strengthen any copyright claim on the final deliverable, correct?

@SD_power_user Correct. When AI-generated elements are incorporated into a larger work with substantial human creativity (layout, composition, text, design choices), the human-authored portions are copyrightable. The final deliverable as a whole may qualify for copyright protection — though the individual AI-generated elements within it would not be protectable on their own.

Document your creative process (prompts, iterations, manual edits) in case you ever need to demonstrate the human authorship component.