Scenario Library / Intellectual property
Intellectual property

Business publishes AI-generated image or copy that copies a protected work

A company's marketing team uses a generative AI tool to create an image or copy and publishes it. The output closely reproduces a protected character, logo or text, and the rights-holder sues the business rather than the AI vendor.

Professional Services Not dated Hypothetical; built from a precedent

Insurance products that may respond

Media / IP liabilityCGL (advertising injury)Cyber (media liability)

Why it matters for insurance

Most relevant to insureds who deploy rather than build AI. Check advertising-injury and AI exclusions. Market note: general liability Coverage B (personal and advertising injury) can now be excluded by ISO endorsements CG 40 47 or CG 40 48 (Jan 2026).

Source

Derived scenario; see studio v. Midjourney output claims (Business Insurance)

More Intellectual property scenarios

$1.5B settlement over pirated books used to train an LLM News publisher sues OpenAI and Microsoft over training and output copying Studios sue Midjourney over character images generated on demand UK court rejects Getty's core copyright claim against Stability AI German court holds OpenAI liable for reproducing song lyrics Fair use rejected for a non-generative legal-AI training set Record labels sue AI music generators, then move to licensing deals Music publishers allege an LLM outputs their lyrics Visual artists' class action against image generators: trial date keeps slipping Meta wins fair-use ruling on training with books Ninth Circuit upholds dismissal of claims that a code assistant strips open-source licences University sues an AI developer for patent infringement Voice actors sue over cloned voices Encyclopedia publishers sue over training, output copying and false attribution Warner Bros. Discovery sues Midjourney over Superman, Scooby-Doo and other characters

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This is an educational research summary built from public information. Allegations in pending cases are unproven, and the insurance notes above are for discussion, not coverage advice. Whether any policy responds depends on its specific wording, exclusions, endorsements, the facts, and applicable law.

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Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994