Coming back to this thread because some important cases were decided in late 2025 that are reshaping the landscape.
Thaler v. Perlmutter was affirmed on appeal - the court confirmed that AI systems cannot be listed as "authors" for copyright purposes. This was the case where Stephen Thaler tried to register a work with his AI "DABUS" as the author. The appellate court agreed with the lower court that the Copyright Act requires a human author.
The Zarya of the Dawn appeal also wrapped up, and the Copyright Office's partial registration approach was upheld - human-selected arrangement of AI images can be copyrightable as a compilation, but individual AI-generated images within it are not.
What's emerging is a clear framework: copyright attaches to human creative decisions (selection, arrangement, modification) but NOT to the raw AI output itself. For practical purposes, this means your editing workflow is your copyright claim. The more documented creative judgment you exercise, the stronger your position.
@MarketingWiz_Sarah - on your watermarking question, the EU AI Act does require labeling of AI-generated content in certain contexts, but the interaction with copyright is still unclear. Labeling something as AI-generated doesn't automatically strip copyright if there's sufficient human authorship. It's a transparency requirement, not an IP determination.