Lauren Gregory Leipold

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As we’ve previously written, the rise of generative AI has led to a spate of copyright suits across the country. One major target of these suits has been OpenAI. Actor/comedian Sarah Silverman and author Paul Tremblay are among the plaintiffs to bring suit in California, while authors George R.R. Martin, John Grisham, and others have filed in New York. The lawsuits allege that OpenAI used the plaintiffs’ creative content without permission to train OpenAI’s generative AI tool in violation of the U.S. Copyright Act. OpenAI moved to dismiss the majority of claims in the Silverman and Tremblay cases on several bases: (1) the Copyright Act does not protect ideas, facts, or language; (2) the plaintiffs cannot show that outputs from OpenAI’s large language model (“LLM”) tool are substantially similar to the original content used to train the tool; and (3) any use of copyright-protected content by OpenAI’s tool constitutes fair use, and thus is immune to liability under the Act. Yesterday, Plaintiffs hit back, noting that OpenAI hasn’t moved to dismiss the “core claim” in the lawsuits—direct infringement.…

Continue Reading Famous Authors Clap Back at OpenAI’s Attempt to Dismiss Claims Regarding Unauthorized Use of Content for Training LLM Models

The deal market reached historic levels in recent years, with record-setting merger and acquisition activity in 2021. Markets have since cooled, with capital becoming harder to find. But any company preparing to sell within the next five years should consider the more common IP issues that arise during the legal due diligence process.

IP Ownership

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The U.S. Supreme Court’s end-of-term decision in Abitron v. Hetronic seems to have created more questions than answers about U.S. brand owners’ ability to leverage the federal Lanham Act in global trademark disputes. In the few weeks since the Court issued its opinion, parties and courts alike are already struggling with exactly how to apply it.

Tenth Circuit Prompts Question As to Statute’s Reach

The Hetronic case originated in the Tenth Circuit. Oklahoma-based Hetronic, a manufacturer of remote controls for construction equipment, sued its former EU distributor for infringing trademarks and trade dress associated with authentic Hetronic products. A jury awarded Hetronic more than $115 million in damages, $96 million of which related to Lanham Act violations. The district court then granted Hetronic a worldwide injunction against defendant Abitron. Abitron appealed, arguing that the award was improper because 97 percent of the sales at issue occurred abroad. The Tenth Circuit tailored the injunction to apply only to markets where Hetronic was actually selling products, but upheld the damage award, reasoning that even activity occurring abroad had a “substantial effect” on U.S. commerce.…

Continue Reading Courts and Brand Owners Struggling With SCOTUS Decision Limiting Ability to Police Against Foreign Trademark Infringement

Several U.S. courts are addressing lawsuits brought by artists alleging that AI-generated art infringes on copyrights held by the artists for their artwork. In one of those cases, a California federal judge recently indicated that he would dismiss the bulk of the plaintiffs’ complaint, while giving them a chance to re-plead their claims. A written decision from the court is forthcoming, and that decision could be an important one for plaintiffs and defendants alike in current and future AI-related copyright cases.

In Andersen, et al. v. Stability AI Ltd., et al., Case No. 3:23-cv-00201-WHO (N.D. Cal.), three artists—Sarah Andersen, Kelly McKernan, and Karla Ortiz—brought suit against Stability AI Ltd., Stability AI, Inc., Midjourney, Inc., and DeviantArt, Inc. Plaintiffs alleged that Stability AI “copied and scraped” billions of images to train an AI tool called “Stable Diffusion.” These images allegedly included those originally created by the plaintiff artists. Meanwhile, the other two defendants created programs allowing users to access Stability AI’s tool, which generates images in response to text prompts entered by users. Plaintiffs asserted that the defendants’ conduct resulted in, among other things, copyright infringement of the plaintiffs’ artwork. Plaintiffs also argued that the defendants engaged in vicarious copyright infringement by permitting their users to enter text prompts that resulted in infringing images.…

Continue Reading California Court Casts Doubt on Copyright Claims Relating to AI Images

The new social media platform Threads was launched on July 5, 2023. Reports indicate that within the first day of launch, more than 30 million users have signed up. The app is designed for text-based conversations instead of photo updates. As users rush to join the platform, brands should also prioritize claiming accounts in order…

The U.S. Supreme Court has unanimously rejected the Ninth Circuit’s opinion that a poop-themed dog toy should be protected as parody under the First Amendment. SCOTUS ruled today in Jack Daniel’s Properties Inc. v. VIP Products, Inc. that the right to free expression does not excuse “trademark law’s cardinal sin”—use of another’s trademark “as a…

Don’t worry, machines haven’t completely replaced humans as artists—at least, not yet. But the U.S. Copyright Office is considering the possibility.

The Copyright Office recently declared that it will not grant protection over AI-generated works, upholding its longstanding rule that non-human authors cannot own copyright. At the same time, the Office is well aware that…

The Supreme Court heard oral argument this week in not one, but two trademark cases with huge implications on commercial activity in the U.S. and abroad. The justices had a bit of fun—and even laughed at points when hypotheticals highlighted the absurdity of what consumers might encounter in today’s online marketplace—but at the end of…

A recent motion for preliminary approval of a class action settlement filed in federal court in Georgia will bring to a close claims asserted on behalf of a class of Porsche owners for a purportedly botched over-the-air (“OTA”) software update sent to their vehicles. But a recent decision by a California federal court suggests that…