Ai-generated Code and Copyright: Who owns Ai-written Software?

The rise of artificial intelligence has introduced groundbreaking tools that are transforming software development. From code autocompletion to full-function generation, AI-assisted programming is now a staple in many development environments. Tools like GitHub Copilot, Amazon CodeWhisperer, and ChatGPT’s coding capabilities enable developers to generate complex code with minimal manual input.

But with this innovation comes a critical—and largely unsettled—question: Who owns AI-generated code? And perhaps more importantly, who is liable when copyright claims arise over code written with the help of AI?

At Eureka Software, we’ve worked on the front lines of software development and litigation for over 38 years. As software expert witnesses, we help attorneys, companies, and courts navigate the rapidly evolving legal landscape of AI-generated intellectual property.

In this blog, we’ll explore the core issues surrounding AI-assisted code creation, copyright implications, and ownership rights and offer guidance on how businesses and developers can mitigate risk in this new era.

The Rise of AI-Generated Code

AI-based coding tools have revolutionized the development process. By leveraging massive datasets of public code, machine learning models can now:

Suggest autocompletion and syntax corrections

Generate functions based on comments or prompts

Refactor legacy code for efficiency or readability

Translate code between programming languages

This shift saves time, reduces errors, and empowers teams with limited resources. However, it also raises questions about the authorship, originality, and legal status of the resulting code.

Copyright Law and AI: A Legal Gray Area

Copyright law traditionally protects original works of authorship created by humans. U.S. law, for instance, does not extend copyright protection to works created by machines or non-human entities. This has significant implications for AI-generated software:

If no human authored the code, it may not be eligible for copyright protection.

If an AI tool generates code based on copyrighted training data, there’s a risk the output may inadvertently infringe on someone else’s intellectual property.

If multiple users receive similar outputs, questions arise about whether the code is truly original or even protectable.

The U.S. Copyright Office has stated that works created entirely by AI are not copyrightable unless significant human authorship is involved. However, in the context of collaborative development using AI tools, determining where human input ends and AI generation begins can be complex.

Who Owns the Code?

Ownership of AI-generated code depends on several factors, including the nature of the tool used, how it was employed, and the terms of service governing the platform. Here are a few common scenarios:

1. Fully AI-Generated Code (Minimal Human Input)

If a user prompts an AI tool to write an entire function or application with little to no editing, the code may not be protected by copyright—and, therefore, may not be "owned" in the traditional sense. This creates ambiguity for companies looking to preserve proprietary assets.

2. Human-AI Collaboration

In most cases, developers use AI-generated suggestions as a starting point and then modify or integrate the code into their projects. This human involvement may create sufficient originality for copyright to attach, but it still raises concerns if the base code was derived from copyrighted sources.

3. Use of Licensed or Open-Source Data

Some AI coding tools are trained on public repositories, including open-source code governed by licenses like GPL or MIT. If AI-generated code mirrors licensed material, users may unknowingly violate those licenses—potentially triggering compliance issues.

Legal and Technical Risks in the Real World

From a litigation perspective, AI-generated code introduces several areas of concern:

Infringement Claims: Plaintiffs may allege that AI-generated code in a product is derived from their copyrighted work. Proving or disproving this requires detailed source code analysis.

Licensing Violations: AI-generated code may unknowingly replicate open-source material under restrictive licenses, exposing companies to improper use or distribution liability.

Unclear Authorship: If ownership of a piece of code is contested, expert witnesses may be called upon to analyze development history, metadata, and code structure to determine its origin.

At Eureka Software, we assist clients in uncovering these risks before they escalate into litigation—or provide expert analysis when disputes arise.

How Eureka Software Supports AI-Related IP Disputes

Technical expertise is critical when legal questions arise around AI-generated or AI-assisted code. Our team provides:

Source Code Analysis

We conduct forensic comparisons between AI-generated code and claimed prior art or copyrighted materials. Using proprietary tools, we identify functional similarities, assess originality, and determine whether infringement may have occurred.

Authorship Validation

In collaborative environments, we analyze development workflows, version control histories, and commit logs to understand the extent of human versus AI contribution.

Licensing Compliance Audits

Our team reviews code for open-source dependencies and potential licensing violations. This is especially important in ensuring that AI-generated code doesn’t bring hidden risks into proprietary systems.

Expert Witness Testimony

Our expert witnesses translate technical findings into clear, legally relevant testimony in litigation. We help judges and juries understand how AI-generated software functions and whether it infringes existing IP rights.

Best Practices for Businesses Using AI in Development

While the legal framework continues to evolve, businesses can take proactive steps to reduce risk:

Document Human Contributions: Maintain precise records of how AI-generated code is used and edited to demonstrate authorship and originality.

Understand the Tool’s Training Data: Choose AI tools that are transparent about their datasets and compliant with licensing standards.

Review Terms of Use: Many AI coding tools include specific clauses about ownership and liability—read them closely.

Audit Your Codebase: Conduct regular reviews of your code for potential IP or licensing conflicts, especially when incorporating AI-generated components.

Conclusion: Navigating the AI Code Frontier with Confidence

AI-assisted programming is changing how software is built, offering powerful benefits and introducing legal uncertainties. As the courts begin to confront those who own AI-generated code, developers and businesses must be vigilant about how they use these tools and what risks they may carry.

Eureka Software is here to help. With decades of experience in software development and litigation support, we provide the expertise needed to analyze AI-generated code, assess intellectual property risks, and support plaintiffs and defendants in navigating this evolving landscape.

If you're facing questions about AI-generated software and copyright, contact Eureka Software to learn how we can help you clarify, defend, or protect your code.