[1]: https://felixreda.eu/2021/07/github-copilot-is-not-infringin...
[1]: https://felixreda.eu/2021/07/github-copilot-is-not-infringin...
The US Copyright Office did make a ruling that might suggest that recently[1], but crucially, in that case, the AI "didn't include an element of human authorship." The board might rule differently about DALL-E because the prompts do provide an opportunity for human creativity.
And there's another important caveat that the felixreda.eu link seems to miss. DALL-E output, whether or not it's protected by copyright, can certainly infringe other copyrights, just like the output of any other mechanical process. In short, Disney can still sue if you distribute DALL-E generated images of Marvel characters.
1: https://www.theverge.com/2022/2/21/22944335/us-copyright-off...
Of course it's unlikely to produce the exact same image, or if it does, you've also discovered an incredible image compression algorithm.
A lawyer could argue that the algorithm is producing a derivative work of the copyrighted input.
While nothing has been commercialized yet on the DALLE2 subreddit, I know that it can do Dave Choe's work remarkably well. I also saw Alex Gray's work to be close, but not really identical either. It wasn't as intricate as his work is.
It will be interesting if this takes off and you have a sort of Banksy effect take over where unless it's a physical piece of art it doesn't have much value and is only made all the better because of some sort polemic attached to it, eg Girl with balloon.
There will be outliers of course but I would be shocked if there's much of a market in it for at least the present.