Artificial Intelligence Lawsuit: Stability AI Must Face Copyright Case

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Artificial Intelligence Lawsuit: Stability AI Must Face Copyright Case
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A judge dismissed parts of the case, but refused to toss out the all-important question: Whether it’s illegal to train AI models by using copyrighted content.

A federal judge in San Francisco ruled Monday that artificial intelligence firm Stability AI could not dismiss a lawsuit claiming it had “trained” its platform on copyrighted images, though he also sided with AI companies on key questions.found many defects in the lawsuit’s allegations, and he dismissed some of the case’s claims. But he allowed the case to move forward on its core allegation: That Stability AI built its tools by exploiting vast numbers of copyrighted works.

Rulings in the earlier AI copyright cases could provide important guidance on how such legal questions will be handled by courts, potentially impacting how UMG’s lawsuit and others like it play out in the future. The judge also cast doubt on the allegation that every “output” image produced by Stable Diffusion would itself be a copyright-infringing “derivative” of the images that were used to train the model — a ruling that could dramatically limit the scope of the lawsuit. The judge suggested that such images might only be infringing if they themselves looked “substantially similar” to a particular training image.

“Even Stability recognizes that determination of the truth of these allegations — whether copying in violation of the Copyright Act occurred in the context of training Stable Diffusion or occurs when Stable Diffusion is run — cannot be resolved at this juncture,” Orrick wrote in his decision.

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