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Dropping Epic Loot, Not Lawsuits: An AI Art Seller’s Guide

AI art feels like unlocking a goblin mage capable of conjuring any custom art I desire – from gilded chalices glimmering with +5 charisma to vicious battleaxes bursting with dark psychic energy. As a passionate gamer, I love experimenting with AI art generators like MidJourney to upgrade my Twitch stream designs, RPG handbooks or TTRPG character portraits. Yet my bard’s cautionary tales warn that treading too greedily through these nascent creative forests courts disaster…or at least whopping lawsuits.

So before you sling dozens of AI-generated t-shirt designs on Etsy hoping to cash in on the gold rush, let’s cover how not to epically fail in the legal dungeon known as “intellectual property infringement.”

When does AI art qualify as fair use?

The ambiguous fair use doctrine lets us reuse copyrighted materials without permission under certain conditions, like commentary, critique or education. But its grayness leaves much open to interpretation by bloodthirsty copyright lawyers armed with lawsuits.

When your MidJourney prompt remixes someone else’s art style, does the output qualify as commentary or an entirely new creation? Unfortunately, the law provides no definitive loot tables.

However, clues suggest AI art evading legal pitfalls needs flaunting its transformative nature. If the prompt simply regurgitates whole passages or characters from Lord of the Rings, lawyers can (rightfully) accuse you of plagiarism. But subtly weaving inspirations from Tolkien’s opus to output a uniquely quirky, AI-generated landscape passes as permissible fair use.

How AI art lawsuits are testing the law’s limits

Recent legal battles underscore the risks of pushing fair use too far. In 2021, comic artist Jim Starlin sued Marvel (and won) over an Avengers comic containing AI-generated images clearly derived from his signature cosmic characters. The judge sided with Starlin, ordering Marvel to pay damages for copyright infringement.

However, the case left unresolved exactly who created the infringing AI art since no human composed the images pixel-by-pixel. Prominent IP lawyer Stephen McArthur argues this legally exonerates Marvel, stating:

"If the images were created autonomously by AI, without creative input by a human ‘author,’ there is no copyrighted work and therefore no infringement under the Copyright Act."

So by this logic, art EA’s like MidJourney output lies beyond copyright law, existing in a legal no man’s land! But don’t get cocky – more battles on this front loom ahead.

For example, in late 2022 stock art juggernaut Shutterstock preemptively sued rival company Zoomba for its AI image generator, claiming it will inevitably infringe Shutterstock’s massive copyrighted image library. Instead of targeting specific infringing works, Shutterstock aims to stop Zoomba’s tech before it launches.

This untested legal tactic means courts must soon issue judgements clarifying if AI art qualifies as transformative fair use – or instead overpowered plagiarism awaiting nerfing.

Safely selling AI art on Etsy without legal grief

Despite lawsuit-slinging companies like DeviantArt and Shutterstock muddying the waters, correctly utilizing MidJourney’s enchantments for your Etsy shop only requires basic wisdom.

Tip #1: Don’t invite lawsuits by fixing errors or inconsistencies.

MidJourney’s terms forbid sellers creating derivative works. So if your AI-generated dragon art contains wonky horns that displease perfectionist you, resist “fixing it” since lawyers can claim your file revisions crossed into derivative territory. Simply generate another image instead.

Tip #2: Steer clear of overt trademark or copyright infringement.

Copying symbols like the Nike swoosh or Disney mouse ears risks not just an Etsy takedown but actual litigation. Even borrowing unique character names or story elements from franchises like Harry Potter can trigger protective IP holders. While no law forbids generative art inspired by pop culture, directly replicating IP invites legal retaliation.

Tip #3: Favor original compositions over celebrity faces or fame references.

Namining AI art after pop stars or memes might appear clever marketing but associates the art too closely with the referenced IP, weakening fair use claims. For instance, an AI portrait of “Dwayne ‘The Rock’ Johnson” or “Distracted Boyfriend meme” likely crosses the line while a conceptual image titled “Strong Athlete” does not.

The future of legally monetizing AI images

As generative AI art evolves from wonky beta releases to seamless tools rivaling Adobe Creative Cloud, expect legal wrangling to continue before the law crystallizes. But by responsibly generating – not plagiarizing – creations flaunting AI’s emergent style, your Etsy shop should thrive not dive.

And if in doubt over IP issues, remember the iconic wizarding motto: “play nice, don’t cheat, and use common sense.” Just hopefully without needing witch lawyers…

A crystal ball held by an elderly witch shows an hourglass and gold coins, representing visions of potential future wealth from legally selling AI art