It depends on how much of a knock-off the model's output is, no different than a human artist. Taking Disney's Aladdin and putting a cyborg eye on him probably

It depends on how much of a knock-off the model's output is, no different than a human artist. Taking Disney's Aladdin and putting a cyborg eye on him probably will be a legal issue that the user of the art and seller of the AI output both would be liable for. AI is a tool, and it can be used for good and evil.