Artificial Intelligence and Trademark Infringement: Legal Interpretation of “Use” of AI-Generated signs in The European Union

Organizations are increasingly utilizing AI-powered tools to design signs and build brand identities. Technologies such as text-based generators Copy.AI and WriteSonic, along with image-based tools like MidJourney, LogoJoy, and HatchFul, are transforming the way signs are created. Trademark as an intellectual property right (IPR) essentially enables business owners to use their marks as a signal to consumers. These rights become exercisable when a third party’s use affects the functions of the mark, particularly its essential function of guaranteeing the origin of goods, services, quality and serving as a commercial communication tool. As more businesses adopt AI to create signs, recommend or make purchases for consumers, and promote competing offers, the traditional functions of trademarks are increasingly being challenged. AI platforms leverage algorithms trained on extensive datasets including registered trademarks to generate new designs for signs, sometimes successfully imitating or even duplicating registered trademarks owned by others. More infringing signs can be generated at a rapid speed, and its challenging to trace accountable entity in this situation. AI platforms for logo and sign generation are built to reproduce logos and signs as its service and the users only instruct the AI through prompts and keywords that the machine can recognize because it already has the protected data inputted in it. Third party users do not even know in advance the exact design the platform will produce, as this relies on mechanical processing of data patterns. It is therefore challenging to attribute ownership of the generated output solely to the user who provides the prompt. It is important to re-evaluate the role of AI platforms and provide a clear guideline for what constitutes use and who will bear responsibility for such use. This research investigates the evolving definition of “use” under European trademark law and analyzes how legal liability for trademark infringements involving AI-generated content may be allocated; among the AI developer, the user, and the platform hosting the tool.