Who Owns Copyright in AI-Assisted Software Code Under Australian Law?
- Raymond Duffy
- 5 days ago
- 3 min read
Artificial intelligence (AI) is now a standard part of modern software development. From generating code snippets to debugging logic and accelerating prototyping, tools like ChatGPT and other AI platforms are increasingly embedded in developer workflows.
This raises an important legal question for app developers, founders and technology businesses:- if AI helps write your software code, who owns the copyright? Under Australian law, the answer depends on how the AI was used — and getting it wrong can leave your business exposed.
Copyright in Software: The Legal Starting Point
Under the Copyright Act 1968 (Cth), copyright protects original works, including literary works.
Software code is treated as a literary work, meaning copyright can subsist in:
Source code
Object code
Program structure and logic
Copyright arises automatically when the code is created. There is no copyright registration system in Australia.
However, copyright law assumes there must be an identifiable human author.
Can AI Be an “Author” Under Australian Copyright Law?
At present, Australian copyright law does not recognise AI systems as authors.
The Copyright Act consistently assumes human authorship through:
copyright initially vesting in the author
moral rights applying only to natural persons
copyright duration being calculated by reference to the life of the author.
There is no provision that automatically assigns copyright in AI-generated works to the person who caused them to be created.
This creates risk where software code is generated autonomously by AI, without meaningful human intellectual effort.
When Copyright Can Subsist in AI-Assisted Code
The key issue is not whether AI was used — but how it was used.
Copyright can still subsist where there is sufficient human intellectual effort, even if AI tools are involved.
Factors supporting human authorship include:
You independently conceived the app’s idea, purpose and functionality
AI was used as an assistive tool responding to your prompts
You exercised control over:
what the app should do
which outputs were accepted, modified or rejected
how the code was structured and finalised
You integrated, tested and deployed the final code
In this context, AI functions like an advanced development tool (similar to an IDE or compiler), not an independent creator.
When Copyright May Not Exist at All
Problems arise where:
code is generated entirely by AI
there is minimal or no human creative decision-making
AI output is accepted without review or modification
In these circumstances:
there may be no recognised author, and
no copyright protection at all
This means competitors may be able to copy or reuse the code without infringing copyright.
Why This Matters for App Developers and Tech Startups
Copyright ownership underpins:
enforcement rights against copycats
licensing and commercialisation
investor confidence and due diligence
business valuations and exits
App Store and Google Play compliance
If copyright does not subsist, your app may have weaker IP protection and reduced commercial value.
Practical Steps to Protect Copyright in AI-Assisted Code
If you use AI in development, consider these best-practice steps:
Keep records of prompts, design decisions and revisions
Maintain source-control and version histories
Exercise real editorial control over AI outputs
Avoid fully autonomous generation
Ensure contracts clearly vest IP in the developer or business entity
These steps can be critical evidence if ownership is ever challenged.
Copyright Is Only One Layer of Protection
Even where copyright subsists, it does not protect:
app names or titles
short phrases or slogans
Logos generated entirely by AI may also struggle to attract copyright protection.
For software businesses, copyright should be supported by:
Trade mark registration for app names and branding
Clear Terms of Service
Platform-compliant Privacy Policies
How Greyson Legal Can Help
Greyson Legal advises software developers, startups and technology businesses on:
AI-assisted software development and IP ownership
copyright protection strategies for apps and code
trade mark registration for app names and logos
App Store and Google Play legal compliance
privacy and data protection obligations
If you are developing software using AI tools, early legal advice can help ensure your intellectual property is protected — not accidentally given away.
Contact us:
P: 0411 248 885
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