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AI-Created Art Isn’t Copyrightable, U.S. Judge Says in Ruling That Could Give Hollywood Studios Pause
(www.hollywoodreporter.com)
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If AI-created art isn't copyrightable then that means it's public domain. But it's entirely possible to create something that is copyrighted using public domain "raw materials", you just need to do some work with it. And if those "raw materials" are never published, only the copyrighted final product, it's going to be really hard for anyone else to make use of it. So I don't really see how this is a big deal, especially not to Hollywood.
You can also copyright the original character and make AI generate all the motions of that character. Since the originals was (human) created and copyrighted, it doesn’t matter that AI created art derived from that character isn’t copyrightable in of itself.
Plus there is also trademarks for character likeness.
All in all, I agree with you, this is a non issue for Hollywood studios.