Winston Cho, The Hollywood Reporter ; Scraping or Stealing? A Legal Reckoning Over AI Looms
"Engineers build AI art generators by feeding AI systems, known as large language models, voluminous databases of images downloaded from the internet without licenses. The artists’ suit revolves around the argument that the practice of feeding these systems copyrighted works constitutes intellectual property theft. A finding of infringement in the case may upend how most AI systems are built in the absence of regulation placing guardrails around the industry. If the AI firms are found to have infringed on any copyrights, they may be forced to destroy datasets that have been trained on copyrighted works. They also face stiff penalties of up to $150,000 for each infringement.
AI companies maintain that their conduct is protected by fair use, which allows for the utilization of copyrighted works without permission as long as that use is transformative. The doctrine permits unlicensed use of copyrighted works under limited circumstances. The factors that determine whether a work qualifies include the purpose of the use, the degree of similarity, and the impact of the derivative work on the market for the original. Central to the artists’ case is winning the argument that the AI systems don’t create works of “transformative use,” defined as when the purpose of the copyrighted work is altered to create something with a new meaning or message."
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