Do AI-Generated Images Have Copyright? Production Company Files Lawsuit Over "Theft and Modification"

WISECODE Take

A lawsuit filed by Japanese company Sai on August 21, 2026, over unauthorized modification of its AI-generated images, highlights the legal gray area of AI copyright. Many business owners mistakenly believe that AI outputs are automatically copyrighted. This case is like using an automatic ball machine; a ball launched by merely pressing a button is hard to claim as an athletic achievement. If courts rule these images lack copyright, competitors could copy them legally. To mitigate such risks, we recommend documenting human modification processes and clearly defining AI rights in contracts.