back
Get SIGNAL/NOISE in your inbox daily

The legal landscape surrounding AI-generated art is evolving as a federal judge allows key claims to proceed in a lawsuit against prominent AI art generators, potentially setting a precedent for how copyright law applies to AI systems trained on internet data.

Legal breakthrough for artists: A federal judge has permitted copyright infringement and trademark claims to move forward in a lawsuit filed by artists against AI art generators including Stability AI, Midjourney, and DeviantArt.

  • The lawsuit centers on the LAION dataset, which allegedly contains 5 billion scraped images used to train AI models like Stable Diffusion.
  • The judge found that Stable Diffusion may have been “built to a significant extent on copyrighted works” and created to “facilitate” infringement.
  • This ruling could have far-reaching implications for other AI companies that have utilized the Stable Diffusion model in their products.

Dismissed claims and next steps: While some claims were allowed to proceed, others were dismissed, setting the stage for the next phase of the legal battle.

  • Claims that were dismissed include breach of contract, unjust enrichment, and Digital Millennium Copyright Act violations.
  • The artists will now be able to pursue information in discovery about how the AI models and datasets were constructed, potentially uncovering crucial details about the training process.

Key plaintiffs and industry impact: The lawsuit involves prominent artists from the entertainment industry, highlighting the widespread concern over AI’s impact on creative professions.

  • Notable plaintiffs include concept artists like Karla Ortiz, who have contributed to major film productions.
  • The case is viewed as pivotal in determining how copyright law will be applied to AI systems that are trained on vast amounts of internet data.

AI training data under scrutiny: The LAION dataset, a cornerstone of the lawsuit, raises questions about the ethics and legality of using scraped images for AI training.

  • With an alleged 5 billion scraped images, the LAION dataset represents a massive collection of potentially copyrighted material.
  • The judge’s findings suggest that AI models trained on such datasets may be vulnerable to copyright infringement claims.

Potential ripple effects: The ruling could have significant implications beyond the immediate parties involved in the lawsuit.

  • Other AI companies that have incorporated or built upon the Stable Diffusion model may find themselves exposed to similar legal challenges.
  • The case may prompt a reevaluation of data collection and model training practices across the AI industry.

Legal precedent in the making: This case is poised to set important legal precedents in the rapidly evolving field of AI-generated content.

  • The outcome could influence how copyright law is interpreted and applied to AI systems in the future.
  • It may also impact how AI companies approach data collection and model training to avoid potential legal pitfalls.

Balancing innovation and rights: The case highlights the tension between technological advancement and the protection of intellectual property rights.

  • As AI technology continues to advance, courts and legislators will need to grapple with balancing the interests of innovators and content creators.
  • The outcome of this case could shape the future landscape of AI development and creative industries.

Broader implications for AI regulation: The lawsuit and its progression through the legal system underscore the growing need for clearer regulations surrounding AI technology and its applications.

  • This case may serve as a catalyst for more comprehensive legislation addressing AI’s use of copyrighted material.
  • It also raises questions about the responsibility of AI companies in ensuring their models do not infringe on intellectual property rights.

Recent Stories

Oct 17, 2025

DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment

The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...

Oct 17, 2025

Tying it all together: Credo’s purple cables power the $4B AI data center boom

Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...

Oct 17, 2025

Vatican launches Latin American AI network for human development

The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...