On Wednesday, the Supreme Court heard oral argument in Warner Chappell Music, Inc. v. Nealy, an appeal of the Eleventh Circuit’s determination that a copyright plaintiff can recover damages for infringement occurring more than three years prior to filing suit. The Eleventh Circuit’s decision was based on the discovery accrual rule, which begins the limitations period at the moment a plaintiff becomes aware of or should reasonably learn of the infringement upon which a claim is based.

Sherman Nealy and Music Specialist, Inc. brought the underlying lawsuit against Warner and others based upon the alleged unauthorized licensing and use of songs owned by the plaintiffs. Much of alleged infringement occurred while Nealy was incarcerated, and he alleged that he did not become aware of the infringement until 2016. Nealy filed suit in 2018, within three years of the date he allegedly discovered the infringement.  The district court held that Nealy’s claims were timely, but that he could only obtain damages for the three years prior to the filing of his lawsuit. The Eleventh Circuit overturned the finding that such a limit on damages existed, holding that Nealy could potentially recover damages outside the three-year period.Continue Reading Skeptical of the Second Circuit: U.S. Supreme Court Hears Arguments on Copyright Damages

This blog has been cross-posted on Seyfarth’s California Peculiarities Employment Law blog.

Seyfarth Synopsis: Collaborations with athletes, actors, and singers have always been a great way for companies to grow their brand recognition and create profitable products. Similar to celebrity-filled ads in the Super Bowl, collaborative relationships between influencers and companies on social media

The class of plaintiff authors seeking to hold OpenAI liable for copyright infringement has faced yet another setback. The U.S. District Court for the Northern District of California has knocked out the majority of their claims, refusing to accept the blanket allegation that “every output of the OpenAI Language Model is an infringing derivative work.” However, the court has allowed the plaintiffs another chance to cure many of the deficiencies in their pleadings, so the battle is not yet over.

As we’ve previously reported, named plaintiffs including Paul Tremblay, Sarah Silverman, and Michael Chabon have filed class action lawsuits against several companies associated with popular Large Language Model tools like ChatGPT. The lawsuits claim that because the defendants copied their original works of authorship to use as training material for the LLMs, the AI companies are liable under the federal Copyright Act and various state tort laws. For a quick recap of the theories they are asserting, check out our recent AI Update.Continue Reading The Latest Chapter in Authors’ Copyright Suit Against OpenAI: Original Pleadings Insufficient

In a relatively scathing opinion finding the plaintiffs’ Complaint “defective in numerous respects,” a district court judge has thrown out most of the claims a group of artists has asserted against AI platforms that allegedly used the artists’ copyrighted works without permission. The order in Andersen et al. v. Stability AI Ltd. provides an important preview on courts’ tolerance for AI-related copyright lawsuits moving forward—including a similar class action filed by actor/comedian Sarah Silverman and other authors.

As we previously wrote, the Andersen case relates to “Stable Diffusion,” an AI platform that generates images in response to user prompts. According to Plaintiffs, Stable Diffusion scraped the internet to copy and store billions of copyrighted images without consent or licenses to train the programs.  (For another good summary of the case and the claims, check out this post from The Fashion Law).  Continue Reading Some Stability For AI Defendants: Judge Dismisses All But One Claim in Andersen et. al., v. Stability AI LTD., et. al.

As our colleagues reported in this Seyfarth Shaw Legal Update, President Biden signed a comprehensive Executive Order addressing AI regulation across a wide range of industries and issues. Intellectual property is a key focus. The Order calls on the U.S. Copyright Office and U.S. Patent and Trademark Office to provide guidance on IP risks and related regulation to address emerging issues related to AI.Continue Reading White House Directs Copyright Office and USPTO to Provide Guidance on AI-Related Issues

The latest briefing in Silverman v. OpenAI reads like that old REM song, “The End of the World as We Know It.” OpenAI has responded to the Plaintiffs’ claims that OpenAI’s popular platform ChatGPT has infringed their copyright with disaster-laden references to Michael Jordan and “the future of artificial intelligence.”

As we’ve previously written

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