AI & Copyright in Malaysia: Can You Own and Commercially Use AI-Generated Content in 2026?

Artificial intelligence (AI) is changing how businesses create content. From marketing copy and product images to videos, software and brand concepts, tools such as ChatGPT and generative AI image platforms can produce content in seconds. But a practical legal question remains: if AI creates the content, who owns it?

For Malaysian businesses, the answer is not as straightforward as simply saying “the person who entered the prompt owns the copyright”. Malaysia’s Copyright Act 1987 was enacted long before generative AI became mainstream, and the legislation does not expressly set out a comprehensive framework for AI-generated works.

At the same time, Malaysia is actively considering reforms to its copyright framework. In July 2026, MyIPO confirmed that proposed amendments to the Copyright Act 1987 are being considered in areas including artificial intelligence, online piracy, orphan works, artists’ resale rights and copyright dispute resolution. This makes AI and copyright an increasingly important issue for Malaysian companies, creators and employers.

Is AI-generated artwork protected by copyright in Malaysia?

Under the current Copyright Act 1987, copyright protection applies to eligible works including literary, musical and artistic works, provided the statutory requirements are satisfied. For literary, musical and artistic works, the Act requires sufficient effort to have been expended to make the work original in character, and the work must be recorded or otherwise reduced to material form. The more difficult question is authorship. Section 3 of the Copyright Act defines an “author” according to the type of work. For an artistic work other than a photograph, the author is the artist; for other cases, the Act generally refers to the person by whom the work was made. Copyright initially vests in the author under section 26(1).

The legislation does not expressly state whether an AI system can be an “author”. Therefore, a work produced entirely through automated AI generation may face uncertainty as to whether it has the necessary human authorship and originality to attract copyright protection. The safest approach is not to assume that pressing “generate” automatically creates exclusive copyright. What if a human substantially edits the AI output? The position becomes stronger when a person contributes meaningful creative input. For example, a designer may use an AI-generated image as a starting point but then:

• select and arrange particular elements;
• substantially redraw or modify the image;
• create original typography and composition;
• combine the AI output with original artwork;
• edit the work extensively using professional software; or
• make other creative decisions that materially shape the final result.

In such circumstances, the human contribution may itself attract copyright protection if the statutory requirements are satisfied. The key issue is therefore not simply whether AI was used, but the extent of human creative involvement in producing the final work. Businesses should retain evidence of this process, including prompts, drafts, source materials, editing files and records of human modifications. Such records can become useful evidence of the creative contribution if ownership or infringement is later disputed.

Who owns AI-generated content?

There is currently no simple Malaysian statutory rule saying that the person who prompts an AI tool automatically owns copyright in the resulting output. This distinction is important because contractual ownership and copyright ownership are not necessarily the same thing. For example, an AI platform’s terms may give a user contractual rights to use or own its output. OpenAI’s current terms, for example, state that, as between the user and OpenAI and to the extent permitted by applicable law, the user owns the Output. However, the terms also make clear that output may not be unique and that users remain responsible for ensuring that their inputs and use of outputs comply with applicable rights and laws.

This means a business should check both:

1. the terms of the AI platform; and
2. whether Malaysian copyright law actually gives protection to the resulting work.

A contractual right to use an output does not necessarily mean that the output enjoys copyright protection against third parties.

Can businesses commercially use AI-generated images?

Potentially yes, but commercial usability should not be confused with guaranteed copyright ownership. Before using an AI-generated image in advertising, packaging, websites, social media or other commercial materials, businesses should consider:

1. The AI platform’s terms

Check whether commercial use is permitted and whether there are restrictions on particular types of content.

2. Third-party rights

AI output could potentially resemble existing copyrighted artwork, photographs, characters, logos or other protected material.

3. Input rights

Businesses should not upload third-party copyrighted material into an AI system unless they have the necessary rights or permission.

4. Human contribution

Where possible, businesses should introduce meaningful human creative input and maintain evidence of that contribution.

5. Brand protection

If the AI-generated image is intended to function as a logo or brand identifier, copyright should not be the only IP consideration.

Can an AI-generated logo be trademarked in Malaysia?

This is a different question from copyright.Under Malaysia’s Trademarks Act 2019, a trademark can include various signs capable of distinguishing one undertaking’s goods or services from another’s. MyIPO’s current guidance recognises, among others, words, devices, colours, sounds, scents, holograms, positioning and sequences of motion. Therefore, the fact that a logo was generated using AI does not, by itself, mean that it cannot function as a trademark.

However, the business should still consider:

• whether the logo is distinctive;
• whether similar marks already exist;
• whether the logo contains elements belonging to someone else;
• whether the AI platform permits the intended commercial use; and
• whether the business can establish ownership and control of the brand.

A proper trademark search should therefore be conducted before investing heavily in an AI-generated brand identity.

Can AI training use copyrighted Malaysian works?

This is one of the most important developments for copyright owners in Malaysia.On 4 August 2026, Deputy Domestic Trade and Cost of Living Minister Datuk Dr Fuziah Salleh stated in the Dewan Negara that the use of copyrighted works to train AI models is subject to the copyright owner’s permission. She further stated that licensing arrangements and royalty payments would need to be agreed between the relevant parties under the Copyright Act 1987.

This is particularly significant for publishers, photographers, designers, writers, artists and other content owners whose works may be collected or processed as AI training data. The statement also highlights why companies should not assume that material available publicly online is automatically free for AI training. As Malaysia considers amendments to its copyright framework, AI training and data mining are likely to remain important areas of policy and legal development.

The Bottom Line

AI does not eliminate the need for intellectual property protection; it makes a clear IP strategy more important. In Malaysia, the current legal framework does not provide a definitive answer to every question surrounding AI-generated works. Copyright protection continues to depend on existing statutory requirements concerning eligible works, originality and authorship, while the government considers reforms to address AI and other digital developments.

For businesses, the safest approach is therefore to document human creative involvement, review AI platform terms and ownership provisions, obtain permission for third-party content where required, conduct appropriate IP clearance, and establish clear internal policies governing the use of AI.

As AI becomes increasingly embedded in marketing, product development and business operations, companies that treat AI output as a potential IP asset rather than simply free content, will be better positioned to identify and protect valuable rights, manage ownership risks and avoid costly disputes.

Frequently Asked Questions

1. Is AI-generated content copyrighted in Malaysia?

Not necessarily. Malaysia’s Copyright Act 1987 requires eligible works to satisfy statutory requirements including originality and material form, while the Act does not expressly establish a comprehensive rule for AI-generated works. The degree of human creative involvement is therefore important.

2. Can I commercially use AI-generated images?

Commercial use may be permitted under the AI platform’s terms, but businesses should still check for third-party copyright, trademark and other IP risks. Commercial permission from an AI provider does not automatically guarantee exclusive copyright protection under Malaysian law.

3. Can I trademark an AI-generated logo in Malaysia?

Potentially. Trademark protection is separate from copyright protection. An AI-generated logo may be capable of functioning as a trademark if it satisfies the requirements under the Trademarks Act 2019, including distinctiveness and the absence of conflicting rights.

4. Does ChatGPT automatically own the content I generate?

No. The contractual position depends on the applicable AI platform’s terms. OpenAI’s current terms state that, as between the user and OpenAI and to the extent permitted by applicable law, users own their Output. However, users remain responsible for their use of the Output and third-party rights.

5. Should Malaysian companies have an AI policy?

Yes. A clear internal policy can help employees understand which AI tools they may use, what information they may upload, how copyrighted materials should be handled and when human or legal review is required.