The claim filed in January 2023 against Stability AI Ltd., Stability AI, Inc., Midjourney, Inc., and DeviantArt, Inc, further highlights the capacity for AI to disrupt conventional intellectual property disputes. Those who bring the claim allege unauthorised use of copyrighted images to train AI image generators, which infringes upon the rights of millions of artists. This case, if successful, could pave the way for group litigation on an unprecedented scale.

 Stable Diffusion is a text-to-image software product owned by Stability, where new images are created based on user prompts. These images are created based on  “Training Images,” which are used to train the AI, allowing it to produce new images based on the originals. It is the use of the original images in the training phase, without the creators permission, which is the centre of this issue. 

The Claimants consider that the AI-generated images are considered derivative works, essentially competing in the marketplace with the original artworks. The claim alleges that AI Image Products, like Stable Diffusion, profit from the use of copyrighted images without compensating the original artists. This has led to AI-generated artworks being sold online, potentially taking away commissions from the original artists, and threatening their profession. 

This process, while technologically advanced, raises significant legal and ethical questions about copyright infringement and the rights of original creators. Determining the extent to which an AI’s output is a derivative work, and whether it infringes upon the original, and who is ultimately responsible is a complex issue that the legal system is still grappling with.