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Getty Images and Stability AI clash in UK copyright trial testing AI's future
Legal Business |
2025/06/11 20:39
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Getty Images is facing off against artificial intelligence company Stability AI in a London courtroom for the first major copyright trial of the generative AI industry.
Opening arguments before a judge at the British High Court began on Monday. The trial could last for three weeks.
Stability, based in London, owns a widely used AI image-making tool that sparked enthusiasm for the instant creation of AI artwork and photorealistic images upon its release in August 2022. OpenAI introduced its surprise hit chatbot ChatGPT three months later.
Seattle-based Getty has argued that the development of the AI image maker, called Stable Diffusion, involved “brazen infringement” of Getty’s photography collection “on a staggering scale.”
Tech companies have long argued that “fair use” or “fair dealing” legal doctrines in the United States and United Kingdom allow them to train their AI systems on large troves of writings or images. Getty was among the first to challenge those practices when it filed copyright infringement lawsuits in the United States and the United Kingdom in early 2023.
“What Stability did was inappropriate,” Getty CEO Craig Peters told The Associated Press in 2023. He said creators of intellectual property should be asked for permission before their works are fed into AI systems rather than having to participate in an “opt-out regime.”
Getty’s legal team told the court Monday that its position is that the case isn’t a battle between the creative and technology industries and that the two can still work together in “synergistic harmony” because licensing creative works is critical to AI’s success.
“The problem is when AI companies such as Stability AI want to use those works without payment,” Getty’s trial lawyer, Lindsay Lane, said.
She said the case was about “straightforward enforcement of intellectual property rights,” including copyright, trademark and database rights.
Getty Images “recognizes that the AI industry is a force for good but that doesn’t justify those developing AI models to ride roughshod over intellectual property rights,” Lane said.
Stability AI had a “voracious appetite” for images to train its AI model, but the company was “completely indifferent to the nature of those works,” Lane said.
Stability didn’t care if images were protected by copyright, had watermarks, were not safe for work or were pornographic and just wanted to get its model to the market as soon as possible, Lane said.
“This trial is the day of reckoning for that approach,” she said.
Stability has argued that the case doesn’t belong in the United Kingdom because the training of the AI model technically happened elsewhere, on computers run by U.S. tech giant Amazon.
The judge’s decision is unlikely to give the AI industry what it most wants, which is expanded copyright exemptions for AI training, said Ben Milloy, a senior associate at UK law firm Fladgate, which is not involved in the case.
But it could “strengthen the hand of either party ? rights holders or AI developers ? in the context of the commercial negotiations for content licensing deals that are currently playing out worldwide,” Milloy said.
In the years after introducing its open-source technology, Stability confronted challenges in capitalizing on the popularity of the tool, battling lawsuits, misuse and other business problems.
Stable Diffusion’s roots trace back to Germany, where computer scientists at Ludwig Maximilian University of Munich worked with the New York-based tech company Runway to develop the original algorithms. The university researchers credited Stability AI for providing the servers that trained the models, which require large amounts of computing power.
Stability later blamed Runway for releasing an early version of Stable Diffusion that was used to produce abusive sexual images, but also said it would have exclusive control of more recent versions of the AI model.
Stability last year announced what it described as a “significant” infusion of money from new investors including Facebook’s former president Sean Parker, who is now chair of Stability’s board. Parker also has experience in intellectual property disputes as the co-founder of online music company Napster, which temporarily shuttered in the early 2000s after the record industry and popular rock band Metallica sued over copyright violations.
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Supreme Court makes it easier to claim ‘reverse discrimination’ in employment
Legal Business |
2025/06/07 00:29
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A unanimous Supreme Court made it easier Thursday to bring lawsuits over so-called reverse discrimination, siding with an Ohio woman who claims she didn’t get a job and then was demoted because she is straight.
The justices’ decision affects lawsuits in 20 states and the District of Columbia where, until now, courts had set a higher bar when members of a majority group, including those who are white and heterosexual, sue for discrimination under federal law.
Justice Ketanji Brown Jackson wrote for the court that federal civil rights law draws no distinction between members of majority and minority groups.
“By establishing the same protections for every ‘individual’ — without regard to that individual’s membership in a minority or majority group — Congress left no room for courts to impose special requirements on majority-group plaintiffs alone,” Jackson wrote.
The court ruled in an appeal from Marlean Ames, who has worked for the Ohio Department of Youth Services for more than 20 years.
Ames contends she was passed over for a promotion and then demoted because she is heterosexual. Both the job she sought and the one she had held were given to LGBTQ people.
Title VII of the Civil Rights Act of 1964 bars sex discrimination in the workplace. A trial court and the 6th U.S. Circuit Court of Appeals ruled against Ames.
The 6th circuit is among the courts that had required an additional requirement for people like Ames, showing “background circumstances” that might include that LGBTQ people made the decisions affecting Ames or statistical evidence of a pattern of discrimination against members of the majority group.
The appeals court noted that Ames didn’t provide any such circumstances.
But Jackson wrote that “this additional ‘background circumstances’ requirement is not consistent with Title VII’s text or our case law construing the statute.”
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Trump formally asks Congress to claw back approved spending targeted by DOGE
Legal Business |
2025/06/03 00:28
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The White House on Tuesday officially asked Congress to claw back $9.4 billion in already approved spending, taking funding away from programs targeted by Elon Musk’s Department of Government Efficiency.
It’s a process known as “rescission,” which requires President Donald Trump to get approval from Congress to return money that had previously been appropriated. Trump’s aides say the funding cuts target programs that promote liberal ideologies.
The request, if it passes the House and Senate, would formally enshrine many of the spending cuts and freezes sought by DOGE. It comes at a time when Musk is extremely unhappy with the tax cut and spending plan making its way through Congress, calling it on Tuesday a “disgusting abomination” for increasing the federal deficit.
White House budget director Russ Vought said more rescission packages and other efforts to cut spending could follow if the current effort succeeds.
“We are certainly willing and able to send up additional packages if the congressional will is there,” Vought told reporters.
Here’s what to know about the rescissions request:
Will the rescissions make a dent in the national debt?
The request to Congress is unlikely to meaningfully change the troublesome increase in the U.S. national debt. Tax revenues have been insufficient to cover the growing costs of Social Security, Medicare and other programs. The Congressional Budget Office estimates the government is on track to spend roughly $7 trillion this year, with the rescission request equaling just 0.1% of that total.
White House press secretary Karoline Leavitt told reporters at Tuesday’s briefing that Vought — a “well-respected fiscal hawk,” she called him — would continue to cut spending, hinting that there could be additional efforts to return funds.
“He has tools at his disposal to produce even more savings,” Leavitt said.
Members of the House Freedom Caucus, among the chamber’s most conservative lawmakers, said they would like to see additional rescission packages from the administration.
“We will support as many more rescissions packages the White House can send us in the coming weeks and months,” the group said in a press release. “Passing this rescissions package will be an important demonstration of Congress’s willingness to deliver on DOGE and the Trump agenda.”
Sen. Susan Collins, chair of the Senate Appropriations Committee, gave the package a less optimistic greeting.
“Despite this fast track, the Senate Appropriations Committee will carefully review the rescissions package and examine the potential consequences of these rescissions on global health, national security, emergency communications in rural communities, and public radio and television stations,” the Maine lawmaker said in a statement.
Vought said he can send up additional rescissions at the end of the fiscal year in September “and if Congress does not act on it, that funding expires.”
“It’s one of the reasons why we are not putting all of our expectations in a typical rescissions process,” he added.
What programs are targeted by the rescissions?
A spokesperson for the White House Office of Management and Budget, speaking on condition of anonymity to preview some of the items that would lose funding, said that $8.3 billion was being cut from the State Department and the U.S. Agency for International Development. NPR and PBS would also lose federal funding, as would the U.S. President’s Emergency Plan for AIDS Relief, also known as PEPFAR.
The spokesperson listed specific programs that the Trump administration considered wasteful, including $750,000 to reduce xenophobia in Venezuela, $67,000 for feeding insect powder to children in Madagascar and $3 million for circumcision, vasectomies and condoms in Zambia.
Is the rescissions package likely to get passed?
House Speaker Mike Johnson, R-La., complimented the planned cuts and pledged to pass them.
“This rescissions package reflects many of DOGE’s findings and is one of the many legislative tools Republicans are using to restore fiscal sanity,” Johnson said. “Congress will continue working closely with the White House to codify these recommendations, and the House will bring the package to the floor as quickly as possible.”
Members of the House Freedom Caucus, among the chamber’s most conservative lawmakers, said they would like to see additional rescission packages from the administration.
“We will support as many more rescissions packages the White House can send us in the coming weeks and months,” the group said in a press release. “Passing this rescissions package will be an important demonstration of Congress’s willingness to deliver on DOGE and the Trump agenda.”
Sen. Susan Collins, chair of the Senate Appropriations Committee, gave the package a less optimistic greeting.
“Despite this fast track, the Senate Appropriations Committee will carefully review the rescissions package and examine the potential consequences of these rescissions on global health, national security, emergency communications in rural communities, and public radio and television stations,” the Maine lawmaker said in a statement.
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World financial markets welcome court ruling against Trump's tariffs
Legal Business |
2025/05/29 14:59
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Financial markets welcomed a U.S. court ruling that blocks President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law.
U.S. futures jumped early Thursday and oil prices rose more than $1. The U.S. dollar rose against the yen and euro.
The court found the 1977 International Emergency Economic Powers Act, which Trump has cited as his basis for ordering massive increases in import duties, does not authorize the use of tariffs.
The White House immediately appealed and it was unclear if Trump would abide by the ruling in the interim. The long term outcome of legal disputes over tariffs remains uncertain. But investors appeared to take heart after the months of turmoil brought on by Trump's trade war.
The future for the S&P 500 was up 1.5% while that for the Dow Jones Industrial Average gained 1.2%.
In early European trading, Germany's DAX gained 0.5% to 24,160.75. The CAC 40 in Paris jumped 0.9% to 7,860.67. Britain's FTSE was nearly unchanged at 8,722.63.
Japan's Nikkei 225 index jumped 1.9% to 38,432.98. American's largest ally in Asia has been appealing to Trump to cancel the tariffs he has ordered on imports from Japan and to also stop 25% tariffs on steel, aluminum and autos.
A U.S. Customs and Border Protection technician examines overseas parcels after they were scanned at the agency's overseas mail inspection facility at Chicago's O'Hare International Airport on Feb. 23, 2024.
The ruling also pushed the dollar sharply higher against the Japanese yen. It was trading at 145.40 yen early Thursday, up from 144.87 yen late Wednesday.
A three-judge panel ruled on several lawsuits arguing Trump exceeded his authority, casting doubt on trade policies that have jolted global financial markets, frustrated trade partners and raised uncertainty over the outlook for inflation and the global economy.
Many of Trump's double-digit tariff hikes are paused for up to 90 days to allow time for trade negotiations, but the uncertainty they cast over global commerce has stymied businesses and left consumers wary about what lies ahead.
"Just when traders thought they'd seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific," Stephen Innes of SPI Asset Management said in a commentary.
The ruling was, at the least, "a brief respite before the next thunderclap," he said.
Elsewhere in Asia, Hong Kong's Hang Seng added 1.3% to 23,561.86, while the Shanghai Composite index gained 0.7% to 3,363.45.
Australia's S&P/ASX 200 gained 0.2% to 8,409.80.
In South Korea, which like Japan relies heavily on exports to the U.S., the Kospi surged 1.9% to 2,720.64. Shares also were helped by the Bank of Korea's decision to cut its key interest rate to 2.5% from 2.75%, to ease pressure on the economy.
Taiwan's Taiex edged 0.1% lower, and India's Sensex lost 0.2%.
On Wednesday, U.S. stocks cooled, with the S&P 500 down 0.6% but still within 4.2% of its record after charging higher amid hopes that the worst of the turmoil caused by Trump's trade war may have passed. It had been roughly 20% below the mark last month.
The Dow industrials lost 0.6% and the Nasdaq composite fell 0.5%.
Trading was relatively quiet ahead of a quarterly earnings release for Nvidia, which came after markets closed.
The bellwether for artificial intelligence overcame a wave of tariff-driven turbulence to deliver another quarter of robust growth thanks to feverish demand for its high-powered chips that are making computers seem more human. Nvidia's shares jumped 6.6% in afterhours trading.
Like Nvidia, Macy's stock also swung up and down through much of the day, even though it reported milder drops in revenue and profit for the latest quarter than analysts expected. Its stock ended the day down 0.3%.
The bond market showed relatively little reaction after the Federal Reserve released the minutes from its latest meeting earlier this month, when it left its benchmark lending rate alone for the third straight time. The central bank has been holding off on cuts to interest rates, which would give the economy a boost, amid worries about inflation staying higher than hoped because of Trump's sweeping tariffs. |
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Justice Dept. moves to cancel police reform settlements reached with Minneapolis
Legal Topics |
2025/05/24 05:34
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The Justice Department moved Wednesday to cancel a settlement with Minneapolis that called for an overhaul of its police department following the murder of George Floyd, as well as a similar agreement with Louisville, Kentucky, saying it doesn’t want to pursue the cases.
Following a scathing report by the Justice Department in 2023, Minneapolis in January approved a consent decree with the federal government in the final days of the Biden administration to overhaul its training and use-of-force policies under court supervision.
The agreement required approval from a federal court in Minnesota. But the Trump administration was granted a delay soon after taking office while it considered its options, and on Wednesday told the court it does not intend to proceed. It planned to file a similar motion in federal court in Kentucky.
“After an extensive review by current Department of Justice and Civil Rights Division leadership, the United States no longer believes that the proposed consent decree would be in the public interest,” said the Minnesota motion, signed by Andrew Darlington, acting chief of the special litigation section of the Justice Department’s Civil Rights Division. “The United States will no longer prosecute this matter.”
The Justice Department announced its decision just before the five-year anniversary of the murder of George Floyd. Then-officer Derek Chauvin used his knee on May 25, 2020, to pin the Black man to the pavement for 9 1/2 minutes in a case that sparked protests around the world and a national reckoning with racism and police brutality.
However, no immediate changes are expected to affect the Minneapolis Police Department, which is operating under a similar consent decree with the Minnesota Human Rights Department.
Minneapolis Police Chief Brian O’Hara reiterated at a news conference Tuesday that his department would abide by the terms of the federal agreement as it was signed, regardless of what the Trump administration decided.
The city in 2023 reached a settlement agreement with the state Human Rights Department to remake policing, under court supervision, after the agency issued a blistering report in 2022 that found that police had long engaged in a pattern of racial discrimination.
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Arizona prosecutors ordered to send fake elector case back to grand jury
Legal Business |
2025/05/20 05:34
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Arizona prosecutors pressing the case against Republicans who are accused of trying to overturn the 2020 election results in President Donald Trump’s favor were dealt a setback when a judge ordered the case be sent back to a grand jury.
Arizona’s fake elector case remains alive after Friday’s ruling by Maricopa County Superior Court Judge Sam Myers, but it’s being sent back to the grand jurors to determine whether there’s probable cause that the defendants committed the crimes.
The decision, first reported by the Washington Post, centered on the Electoral Count Act, a law that governs the certification of a presidential contest and was part of the defendants’ claims they were acting lawfully.
While the law was discussed when the case was presented to the grand jury and the panel asked a witness about the law’s requirements, prosecutors didn’t show the statute’s language to the grand jury, Myers wrote. The judge said a prosecutor has a duty to tell grand jurors all the applicable law and concluded the defendants were denied “a substantial procedural right as guaranteed by Arizona law.”
Richie Taylor, a spokesperson for Arizona Attorney General Kris Mayes, a Democrat whose office is pressing the case in court, said in a statement that prosecutors will appeal the decision. “We vehemently disagree with the court,” Taylor said.
Mel McDonald, a former county judge in metro Phoenix and former U.S. Attorney for Arizona, said courts send cases back to grand juries when prosecutors present misleading or incomplete evidence or didn’t properly instruct panel members on the law.
“They get granted at times. It’s not often,” said McDonald, who isn’t involved in the case.
In all, 18 Republicans were charged with forgery, fraud and conspiracy. The defendants consist of 11 Republicans who submitted a document falsely claiming Trump won Arizona, two former Trump aides and five lawyers connected to the former president, including Rudy Giuliani.
Two defendants have already resolved their cases, while the others have pleaded not guilty to the charges. Trump wasn’t charged in Arizona, but the indictment refers to him as an unindicted coconspirator.
Most of the defendants in the case also are trying to get a court to dismiss their charges under an Arizona law that bars using baseless legal actions in a bid to silence critics.
They argued Mayes tried to use the charges to silence them for their constitutionally protected speech about the 2020 election and actions taken in response to the race’s outcome. Prosecutors said the defendants didn’t have evidence to back up their retaliation claim and that they crossed the line from protected speech to fraud.
Eleven people who had been nominated to be Arizona’s Republican electors met in Phoenix on Dec. 14, 2020, to sign a certificate saying they were “duly elected and qualified” electors and claimed Trump had carried the state in the 2020 election.
President Joe Biden won Arizona by 10,457 votes. A one-minute video of the signing ceremony was posted on social media by the Arizona Republican Party at the time. The document later was sent to Congress and the National Archives, where it was ignored.
Prosecutors in Michigan, Nevada, Georgia and Wisconsin have also filed criminal charges related to the fake electors scheme. |
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Supreme Court could block Trump’s birthright citizenship order
Legal Topics |
2025/05/15 19:02
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The Supreme Court seemed intent Thursday on keeping a block on President Donald Trump’s restrictions on birthright citizenship while looking for a way to scale back nationwide court orders.
It was unclear what such a decision might look like, but a majority of the court expressed concerns about would happen if the Trump administration were allowed, even temporarily, to deny citizenship to children born to people who are in the United States illegally.
The justices heard arguments in the Trump administration’s emergency appeals over lower court orders that have kept the citizenship restrictions on hold across the country. Nationwide, or universal, injunctions have emerged as an important check on Trump’s efforts to remake the government and a mounting frustration to the Republican president and his allies.
Judges have issued 40 nationwide injunctions since Trump began his second term in January, Solicitor General D. John Sauer told the court at the start of more than two hours of arguments.
Birthright citizenship is among several issues, many related to immigration, that the administration has asked the court to address on an emergency basis.
The justices are also considering the Trump administration’s pleas to end humanitarian parole for more than 500,000 people from Cuba, Haiti, Nicaragua and Venezuela and to strip other temporary legal protections from another 350,000 Venezuelans. The administration remains locked in legal battles over its efforts to swiftly deport people accused of being gang members to a prison in El Salvador under an 18th century wartime law called the Alien Enemies Act.
Trump signed an executive order on the first day of his second term that would deny citizenship to children who are born to people who are in the country illegally or temporarily.
The order conflicts with a Supreme Court decision from 1898 that held that the Citizenship Clause of the 14th Amendment made citizens of all children born on U.S. with narrow exceptions that are not at issue in this case.
States, immigrants and rights group sued almost immediately, and lower courts quickly barred enforcement of the order while the lawsuits proceed. The court’s liberal justices seemed firmly in support of the lower court rulings that found the changes to citizenship that Trump wants to make would upset the settled understanding of birthright citizenship that has existed for more than 125 years.
Birthright citizenship is an odd case to use to scale back nationwide injunctions, Justice Elena Kagan said. “Every court has ruled against you,” she told Sauer.
But if the government wins on today’s arguments, it could still enforce the order against people who haven’t sued, Kagan said. “All of those individuals are going to win. And the ones who can’t afford to go to court, they’re the ones who are going to lose,” she said
Several conservative justices who might be open to limiting nationwide injunctions also wanted to know the practical effects of such a decision as well as how quickly the court could reach a final decision on the Trump executive order. |
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Headline Legal News for You to Reach America's Best Legal Professionals. The latest legal news and information - Law Firm, Lawyer and Legal Professional news in the Media. |
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