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Understanding AI Model Licensing: Commercial Use Explained

Navigate the complex world of AI model licensing. Learn which models are safe for commercial use, what attribution is required, and how to stay compliant.

Emma Williams

Emma Williams

Head of Security

January 21, 202610 min read
Understanding AI Model Licensing: Commercial Use Explained

Understanding AI Model Licensing: Commercial Use Explained

Can you use AI-generated images commercially? What about for client work? The licensing landscape is confusing. Let's clear it up.

The Licensing Landscape

AI models fall into several licensing categories:

1. Fully Open Source (Apache 2.0, MIT)

Examples: Some Stable Diffusion variants

What you can do:

  • Use commercially without restrictions
  • Modify and redistribute
  • No attribution required (usually)
  • What you can't do:

  • Claim you created the model
  • Use trademarks
  • 2. Open Weights with Restrictions

    Examples: FLUX.1 [dev], Stable Diffusion (some versions)

    What you can do:

  • Use for personal projects
  • Use for research
  • Sometimes commercial use with conditions
  • What you can't do:

  • May have revenue thresholds
  • May require attribution
  • May prohibit certain use cases
  • 3. Commercial API Only

    Examples: DALL-E 3, Midjourney

    What you can do:

  • Use output commercially (per terms)
  • Create content for clients
  • What you can't do:

  • Access or distribute model weights
  • Train on outputs (usually)
  • Model-by-Model Breakdown

    FLUX Models

    | Model | License | Commercial Use |
    |-------|---------|---------------|
    | FLUX Schnell | Apache 2.0 | Yes, unrestricted |
    | FLUX Dev | FLUX.1-dev | Yes, with attribution |
    | FLUX Pro | Commercial API | Yes, per API terms |

    Stable Diffusion Family

    | Model | License | Commercial Use |
    |-------|---------|---------------|
    | SD 1.5 | CreativeML Open RAIL-M | Yes, with restrictions |
    | SDXL | SDXL License | Yes, with restrictions |
    | SD3 | Stability AI License | Check current terms |

    OpenAI Models

    | Model | Commercial Use | Notes |
    |-------|---------------|-------|
    | DALL-E 3 | Yes | You own the outputs |
    | DALL-E 2 | Yes | Per API terms |

    What "Commercial Use" Actually Means

    Clearly Commercial

  • Selling generated images
  • Using in paid products
  • Client work
  • Marketing materials for your business
  • Products for sale (merch, prints)
  • Gray Areas

  • Freemium apps with AI features
  • Educational content with ads
  • Non-profit organizations
  • Usually Not Commercial

  • Personal projects
  • Academic research
  • Open source projects (depends on license)
  • Abstrakt's Licensing Position

    When you use Abstrakt, licensing works like this:

    You → Abstrakt API → Provider API → Model
    
    Your rights depend on:
    1. Your agreement with Abstrakt (our Terms)
    2. The underlying model's license
    3. The provider's terms

    What We Guarantee

    1. Clear documentation — We indicate licensing for each model

    2. Commercial-safe defaults — Featured models are commercial-ready

    3. Indemnification — Enterprise plans include licensing protection

    What You Need to Verify

    1. Your specific use case — Some industries have additional rules

    2. Output modifications — Significantly altered works may have different status

    3. Jurisdiction — Laws vary by country

    Practical Compliance Guide

    Step 1: Check Before You Generate

    // Get model licensing info
    const model = await abstrakt.models.get('flux-dev');
    
    console.log(model.licensing);
    // {
    //   commercial: true,
    //   attribution: "Required",
    //   restrictions: ["No illegal content", "No deepfakes"],
    //   license: "FLUX.1-dev",
    //   licenseUrl: "https://..."
    // }

    Step 2: Keep Records

    // Log generation details for compliance
    const result = await abstrakt.run('flux-dev', { prompt });
    
    await complianceLog.save({
      generationId: result.id,
      model: 'flux-dev',
      prompt: prompt,
      timestamp: new Date(),
      license: 'FLUX.1-dev',
      intendedUse: 'marketing-materials',
      attribution: 'Created with FLUX.1-dev via Abstrakt'
    });

    Step 3: Add Attribution When Required

    <!-- Example attribution -->
    <img src="generated-image.jpg" alt="Product visualization" />
    <small>Image created with FLUX.1-dev</small>

    Step 4: Review Before Publishing

    Create a checklist:

  • [ ] Model license allows commercial use
  • [ ] Output doesn't contain copyrighted material
  • [ ] Content complies with platform policies
  • [ ] Attribution added if required
  • [ ] No prohibited content (deepfakes, etc.)
  • Common Questions

    "Can I use AI images for client work?"

    Yes, generally. When using Abstrakt with commercial-licensed models, you can deliver AI-generated content to clients. Best practice: disclose that AI was used.

    "Do I own the copyright on AI-generated images?"

    It's complicated. In many jurisdictions, AI-generated content may not be copyrightable. You have usage rights per the license, but "ownership" in the traditional sense is legally unclear.

    "Can I sell AI-generated art?"

    Yes, with the right models. Use commercially-licensed models. Some platforms (stock sites, marketplaces) have specific policies—check their terms.

    "What about AI-generated content of real people?"

    Generally not allowed. Most model licenses prohibit generating non-consensual imagery of real people. Even with permissive licenses, this creates legal liability.

    "Can I train models on AI-generated outputs?"

    Check the specific license. Some licenses explicitly prohibit this. Others allow it with restrictions.

    When to Get Legal Advice

    Consult an attorney if:

  • You're generating at very high volume (millions of images)
  • Your use case involves sensitive content
  • You're building a product where AI content is the core value
  • You're working in regulated industries
  • You're unsure about a specific use case
  • Staying Updated

    AI licensing is evolving rapidly. We recommend:

    1. Subscribe to our updates — We notify when licensing changes

    2. Review terms quarterly — Licenses can be updated

    3. Document everything — Keep records of what you generate and why

    Abstrakt's Commitment

    We're committed to making AI licensing clear:

  • Model cards with licensing info for every model
  • API responses include licensing metadata
  • Enterprise support with licensing guidance
  • Regular updates when terms change
  • Questions about licensing for your use case? Contact legal@abstrakt.one.

    #licensing#legal#commercial-use#compliance#copyright

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