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Artificial Intelligence and IP Litigation

Artificial Intelligence and IP Litigation: Key Cases to Watch in 2025

Posted By: Eric Ludwig
Date: January 23, 2025

As artificial intelligence (AI) technologies become more pervasive, disputes over AI training data and copyright/trademark claims are increasingly making their way to the courts, especially in the last few years. In 2025, several of these cases are poised to shape the legal landscape of AI and intellectual property (IP). To help our clients navigate these complexities, Ludwig APC is closely monitoring various developments and rulings.

Generative AI and Copyright Infringement

One of the most contentious areas of AI-related IP litigation involves generative AI models, which create text, images, music, and other outputs that are often indistinguishable from human-generated works. These models typically require large datasets of existing, human-generated content for training, which raises questions about the use of copyrighted materials without proper authorization.

Getty Images vs. Stability AI

A high-profile case to watch is Getty Images vs. Stability AI. Filed in February 2023 (and ongoing), Getty Images has accused Stability AI of using millions of images from its library to train its generative AI model, Stable Diffusion, without permission. This case highlights the tension between AI developers who need vast amounts of data for training and content creators who seek to protect their IP rights.

Alter v. OpenAI

Another significant case is Alter v. OpenAI, where plaintiff Sarah Alter, former CEO and President of NextUp, alleges that OpenAI and Microsoft are liable for copyright infringement arising from the use of her literary works to train their AI models. Filed in November 2023, Alter claims that her copyrighted novels and essays were used without authorization, raising serious concerns about IP protection in the age of AI.

AI Training Data and Fair Use

The concept of fair use—the limited use of copyrighted material without permission for purposes such as education, research, commentary, and criticism in certain situations—is central to many AI-related IP disputes. AI companies often argue that their use of copyrighted materials falls under fair use, as it is necessary for training their models. However, content creators argue that this practice amounts to unauthorized use and undermines their livelihoods.

News Corp vs. Perplexity AI

News Corp, which owns The Wall Street Journal, New York Post, and other media properties, has renewed its IP complaint against Perplexity AI. Filed in December 2024, the lawsuit claims that Perplexity AI illegally scraped copyrighted news content from News Corp’s publications to create an AI-powered “answer engine.” This allegedly allows users to bypass the publishers’ websites, negatively impacting their advertising and subscription revenue.

Music Publishers vs. Anthropic

In late 2024, music publishers filed lawsuits against Anthropic, claiming that the company used copyrighted music lyrics to train its AI model, “Claude.” The outcome of this case is expected to set a precedent for how AI companies handle copyrighted content in their training datasets, especially the extent to which AI developers can use existing content. As of early January 2025, in an interim agreement while the case proceeds, Anthropic agreed to prevent its Claude AI chatbot from providing lyrics to songs owned by music publishers or creating new lyrics based on copyrighted material.

AI and Trademark Infringement

AI technologies can also lead to trademark infringement issues, particularly when AI-generated content replicates or mimics existing trademarks.

Stability AI and Getty Images

In addition to the copyright infringement claims noted earlier, Getty Images has also accused Stability AI of trademark infringement, alleging that AI-generated images created by Stability replicate Getty’s watermarks. This case underscores the potential for confusion among consumers who might mistake the AI-generated images for those produced by Getty Images.

UK/EU Regulatory and Legislative Responses

As AI-related IP disputes continue to mount in US courts, European regulatory bodies overseas are taking steps to address the legal challenges posed by AI technologies.

EU AI Liability Directive

In 2024, the European Union introduced the AI Liability Directive, which aims to clarify liability issues related to AI-driven decisions and address algorithmic bias. This directive is part of a broader effort to create a legal framework that balances innovation with IP protection.

UK Legislation

The UK government has pledged to introduce legislation in 2025 to tackle AI-related IP issues. The proposed legislation aims to extend the exception for text and data mining (TDM) to allow data mining for commercial purposes while providing rights holders the option to opt out. This move is expected to foster innovation and economic growth by enabling businesses to leverage AI technologies more effectively, while also ensuring that creators’ rights are respected.

Let’s Work Together: Global Experience, Personal Focus

AI and IP litigation is an evolving area of law and regulation. In 2025 and beyond, we expect to see more disputes over AI training data, copyright claims, and trademark infringements, as well as additional oversight in the UK and USA. The cases noted here, plus others already filed or to come, will undoubtedly influence how companies, individuals, and regulatory bodies navigate going forward. Working with a trusted IP and business litigation expert like Ludwig APC can help companies and individuals respond to complex intellectual property disputes, navigate regulatory challenges, and protect valuable assets and innovations from infringement.

Contact Ludwig APC today at (619) 929-0873 or [email protected] to arrange a free consultation to discuss your needs.

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