Can I sell Stable Diffusion art commercially? Confused about the license

Hey everyone, I've been using Stable Diffusion locally on my machine for about 6 months now. Mostly SDXL but also some 1.5 models with various LoRAs for specific styles.

I want to start selling art prints on Etsy. Some friends are telling me SD is "open source" so I can do whatever I want, but others say there are restrictions. The license language is confusing.

Can I sell Stable Diffusion art commercially? What's the actual license situation here? Does it matter which version or model I use?

Good question, and the answer is nuanced. Let me break down the licensing for Stable Diffusion models:

CreativeML Open RAIL-M License (SD 1.x, 2.x, SDXL):

The official Stable Diffusion models from Stability AI are released under the CreativeML Open RAIL-M license. This is NOT a traditional open source license. Key points:

• Commercial use IS permitted - you can sell images you generate
• You cannot use the outputs for illegal purposes
• You cannot use outputs to harm, deceive, or exploit others
• No generating CSAM, deepfakes for harassment, or disinformation
• The license travels with the model - if you fine-tune it, your derivative must maintain these restrictions

What this means for selling prints:

Selling art prints of landscapes, abstract art, fantasy scenes, etc. is perfectly fine under the license. The restrictions are about harmful uses, not commercial ones. You're good to sell on Etsy.

Marcus is right about the base models, but there's important nuance about different versions:

SD 1.5: CreativeML Open RAIL-M. The most widely used, tons of LoRAs and fine-tunes available. Commercial use allowed.

SD 2.0/2.1: Same license. Less popular due to training differences, but same commercial rights.

SDXL 1.0: Same CreativeML Open RAIL-M license. Higher quality, commercial use allowed.

SD 3.0 and newer: Here's where it gets tricky. Stability AI changed licensing for SD 3.0. It has a more restrictive license for commercial use - you need to check if your revenue is under certain thresholds or get a commercial license from Stability AI.

For selling prints on Etsy, stick with SDXL or 1.5 and you're completely in the clear license-wise. SD 3.0+ has enterprise licensing requirements that kick in at certain revenue levels.

I've been selling SD art on Etsy for about 14 months now. Around $2-3k monthly revenue. No legal issues so far.

What I've learned:

• Etsy doesn't explicitly ban AI art but requires honest disclosure in listings
• I use "AI-assisted digital art" in my descriptions - full transparency
• The handmade crowd can be hostile in reviews, but plenty of buyers specifically search for AI art
• I mostly use SDXL with custom fine-tuned models for my style
• Always modify outputs - color grading, compositing, adding elements in Photoshop

The legal stuff hasn't been an issue at all. The bigger challenge is market saturation - everyone and their dog is selling AI art now. You need to find a niche and develop a consistent style.

Pro tip: I also sell on my own Shopify store with Printful integration. Better margins and no Etsy fee increases eating into profits.

@PrintMaker_Jess - I need to flag a significant risk you mentioned: using LoRAs.

The LoRA problem:

LoRAs (Low-Rank Adaptation models) are trained on specific datasets to add styles or subjects. The legal risk depends entirely on what training data was used:

• LoRAs trained on copyrighted art: If you use a "style of [famous artist]" LoRA trained on that artist's work without permission, outputs could be derivative works infringing their copyright
• Character LoRAs: LoRAs trained on copyrighted characters (anime characters, Disney, etc.) create obvious infringement risk if you sell those outputs
• Celebrity LoRAs: Right of publicity issues - can't sell images of real people's likenesses without consent

Safer approaches:

• Use LoRAs trained on public domain or properly licensed images
• Create your own LoRAs from your own photos/artwork
• Stick to base models without character/artist-specific LoRAs
• Generic style LoRAs ("oil painting style", "watercolor") are generally safer than artist-specific ones

The base SD license allows commercial use, but that doesn't protect you from copyright infringement if your LoRA was trained on protected content.

Since this comes up a lot, here's how Stable Diffusion commercial licensing compares to other AI image tools:

Stable Diffusion (SD 1.5/SDXL):

• License: CreativeML Open RAIL-M
• Commercial use: Yes, with ethical restrictions
• Cost: Free (you run it locally)
• Ownership: You own outputs
• Key advantage: No subscription, maximum control, can fine-tune

Midjourney: (see full thread on MJ commercial rights)

• Commercial use: Yes on paid plans
• Cost: $10-60/month depending on plan
• Revenue limit: Companies over $1M need Corporate plan
• Key advantage: Higher quality out of the box, less technical setup

DALL-E 3 (OpenAI):

• Commercial use: Yes on paid plans
• Cost: ChatGPT Plus subscription or API credits
• More restrictive content policy - blocks many prompts

Adobe Firefly:

• Commercial use: Yes
• Trained on licensed/Adobe Stock images - "safest" from liability perspective
• Some enterprise clients require Firefly specifically for legal review

For selling prints, SD is arguably the best option because: no subscription costs, no revenue thresholds, full control over your workflow. The trade-off is more technical setup and responsibility to avoid problematic LoRAs.

This is incredibly helpful. So let me make sure I understand:

• SDXL with CreativeML Open RAIL-M license = commercial use allowed
• Don't use LoRAs trained on copyrighted artist work or characters
• Avoid SD 3.0+ for commercial unless I check the new license terms
• Still no copyright protection on pure AI outputs (same as all AI tools)
• Modify outputs in Photoshop to add copyrightable human creativity

@Marcus_IPCounsel - quick follow-up: I have a few LoRAs I trained myself on my own paintings. Those should be fine commercially right?

@PrintMaker_Jess - Yes, LoRAs trained on your own original artwork are the safest approach. You own the training data, so there's no copyright issue with the input side.

The only caveat is that your LoRA still inherits the CreativeML Open RAIL-M license restrictions from the base model (SD/SDXL), meaning outputs can't be used for the prohibited purposes (illegal activity, deception, exploitation, etc.). But for selling art prints, you're completely fine.

Documentation tip: Keep records of your training images and the LoRA creation process. If anyone ever challenges your commercial use, you can demonstrate clean provenance of your training data. This is good practice generally - document your creative workflow, save prompts, etc.

For more context on AI-generated content and copyright issues, check the AI Content Ownership FAQ - it covers the broader copyright landscape for all AI tools.

Late to the thread but wanted to add one more consideration that bit me:

Platform-hosted SD services have their own terms:

If you're not running SD locally and instead using hosted services like Automatic1111 on cloud platforms, or services like Civitai's image generation, Leonardo AI, or NightCafe - they each have their own Terms of Service that may add restrictions beyond the base SD license.

I was using a cloud SD service and didn't realize their TOS required attribution for commercial use. Had to go back and update all my Etsy listings.

Running locally with the official Stability AI checkpoints is cleanest from a licensing perspective. You only have the CreativeML Open RAIL-M to worry about.

Also +1 to everything Marcus said about LoRAs. I got a DMCA takedown on Etsy for a print made with a "anime style" LoRA. Wasn't even a specific character, just the style, but the LoRA creator had used copyrighted screenshots as training data. Lesson learned - vet your LoRAs carefully or train your own.