In the age of AI, image creation has never been easier. With tools like ChatGPT, Gemini, Midjourney, and DALL·E, anyone can generate a hyper-realistic photo of themselves next to their favorite celebrity — shaking hands, launching a product, or even appearing together in a fake campaign.
At first glance, it looks fun and harmless. But in business? It’s a potential legal minefield. That’s where the concept of image merchandising (also called personality merchandising) becomes crucial.
What “Image Merchandising” Really Means
Image merchandising refers to the commercial use of a person’s image, likeness, name, or identity to promote a product, service, or brand — often without their explicit consent.
This right is considered part of a person’s personality rights (or right of publicity), and in many countries, it’s legally protected just like trademarks or copyrights.
For example:
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✅ Legal: A celebrity signs a contract to endorse your clothing line. Their photo appears in your ads with consent.
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❌ Illegal: You generate an AI image of that celebrity wearing your clothing and post it online to promote your store — without any agreement.
Even if the photo is AI-generated or labeled as “fan art,” if it’s used to sell something or enhance a business image, you may be violating their rights.
Real-World Legal Consequences
Many people assume, “It’s just a picture — I’m not using their name.” But courts around the world have ruled otherwise:
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Using a celebrity’s likeness (even digitally altered or AI-generated) without permission can lead to lawsuits.
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Damages can include not only financial penalties but also injunctions, forcing you to remove all content and compensate for lost endorsement deals.
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In some jurisdictions (like the U.S.), posthumous rights still apply — meaning even the image of a deceased celebrity can be legally protected.
Business Tip:
If you want to use a famous face for marketing — even with AI — you need written consent, a licensing agreement, or a publicity rights waiver. Otherwise, what seems like a viral marketing trick can become a very expensive mistake.
we saw how using celebrity images without permission — even AI-generated ones — can land you in legal trouble. Now, let’s explore practical strategies to legally leverage image merchandising for your business.
Work With Licensing Agreements
If you want to feature a celebrity or influencer, always secure a formal licensing contract. This can include:
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Permission to use their likeness in ads, social media, or product packaging
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Duration of usage rights (how long you can use the images)
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Territory restrictions (where the images can be published or sold)
Without this, even AI-generated images can be considered unauthorized commercial use.
Use Generic or Stock Personas
Instead of real celebrities, consider:
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Professional models: Hire them and photograph them for your products
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Stock photos: Websites like Unsplash, Pexels, or Adobe Stock offer royalty-free images
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AI-generated personas: Use AI to create unique, fictional faces — but ensure they don’t resemble real people.
This method avoids legal complications entirely.
Clear Disclaimers for AI-Generated Content
If you do generate images near famous personalities or public figures, always include:
This can reduce risk, but it doesn’t replace actual permission — it’s just a protective layer.
Understand Personality Rights in Your Region
Laws vary:
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U.S.: Right of publicity protects the commercial use of a person’s image
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EU: GDPR and privacy rights may restrict likeness usage
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Asia: Some countries protect posthumous celebrity rights, while others do not
Before posting AI images commercially, consult local law to avoid jurisdictional surprises.
Protect Yourself With Contracts and Releases
If you hire someone to create images for your brand, ensure contracts include:
This ensures that even if the image resembles someone, you have legal cover.
AI and image merchandising are powerful tools — but consent and legality are key. The easiest way to avoid lawsuits is to create fictional personas, hire models, or obtain proper licensing. What seems like a viral marketing hack can otherwise turn into a costly legal nightmare.
