Copyright and artificial intelligence: innovation or infringement?

By Jean G. Vidal-Font, Senior Member Attorney at Ferraiuoli LLC

ChatGPT was the first platform made available to the general public whose interface was natural and accessible enough for anyone to use. Soon after, new platforms came out aimed at producing images created by AI using only basic instructions from users.

One of the most popular has been Stability.AI, which generates new photos based on a sample that the user uploads. For example, the user uploads several profile photos and Stability.AI generates countless new photos with different themes (cowboy, astronaut, anime, etc.).

But how do platforms like Stability.AI learn to generate new works and photographs?

According to a lawsuit filed by Getty Images, the platform learns at the expense of third-party art (Getty Images Inc v. Stability AI Inc, U.S. District Court for the District of Delaware, No. 1:23-cv-00135). In a current case at a Delaware Federal Court, Getty Images filed a copyright infringement lawsuit against Stability.AI, alleging that the platform "learns" to generate new images by capturing and reviewing pre-existing images, such as the Getty Images photobase. Getty Images argues that the artificial intelligence company misused more than 12 million Getty Images photos to train its Stable Diffusion AI image-generation system (1).

A similar allegation is found in the class action filed in a Court of California (Andersen v. Stability AI Ltd, U.S. District Court for the Northern District of California, No. 3:23-cv-00201).

Similar to the Getty Images case, the allegation focuses on the fact that Stability.AI uses the images of others to train its algorithm, and therefore, although the final work generated by the platform could be original, it can only be possible through the reproduction and derivative use of the works of others, without authorization.

Both cases are in the early stages of litigation, but how they conclude may be crucial for the progress of the next generation of AI for imaging.

As a general rule, no one can use the work of another without their permission, this being the basic rule behind copyright, either in its federal modality, under the Copyright Act, or its local modality in Puerto Rico, under the Law of Moral Rights.

But to what extent does the use of an image for "educational" purposes by an algorithm constitute an infringement?

Although the AI-generated work is not a properly derivative work of the original work, the AI-generated work would not be possible without the use of the original work.

Content creators and photographers, among others, are entering a new world where AI may replace them but at the same time depends on their pre-existing universe of images. A platform like Stability.AI might not be possible if you had to pay licenses or royalties for the photos you use, not to reproduce or adapt, but to process and learn.

Are we facing a case where current law prevents technological progress? Or are we facing a similar case to Napster, where at the end of the day, it was the technological and business model that was adapted to the applicable legislation?

Copyrights are there to encourage the creation of new arts and expressions, which will only be possible if artists feel safe at protecting their rights.

This article was originally published in Spanish in Microjuris on April 29, 2023

Ferraiuoli LLC

Ferraiuoli LLC (FLLC) was founded in 2003 by the late Blas Ferraiuoli-Martínez, Eugenio Torres-Oyola and María Marchand-Sánchez. This group was then joined in 2004 by Fernando J. Rovira-Rullán, thus forming the founding core of FLLC. FLLC has grown exponentially since its founding from a law firm with three attorneys and a support staff of three to its current size of 54 attorneys with a support staff of 38. Also, FLLC has grown from initially being known as an intellectual property and corporate law boutique law firm to a multiservice law firm that handles most matters relevant to a business while continuing to earn praise for its leading intellectual property and corporate practices.

FLLC has been ranked as a leading law firm in Puerto Rico by the professional publication Chambers Latin America in intellectual property, corporate, bankruptcy, labor & employment, real estate, and tax law. Moreover, 17 FLLC partners have been ranked as leaders in their field by the same publication. 4 FLLC partners are ranked as leaders in Intellectual Property, no other firm has more than 2. This recognition in such a short period of time is a tribute to FLLC’s business model.

FLLC prides itself in doing its work faster and more cost-efficiently yet with the same quality as that of its main competitors. The founding name partners are available at all times to attend to client matters. Their work ethic sets the tone for the rest of the firm. FLLC’s founders’ goal has been steady from the outset: become one of the premier multiservice law firms in Puerto Rico.

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