Getty Defeat and Meta Fair Use Win Signal Shift in AI Copyright Battles

Telegraph Law Pages — Copyright & AI

Two landmark rulings one in London, one in San Francisco have reshaped the immediate legal landscape for artificial intelligence developers and rights holders. The High Court in the UK has rejected the “model-as-copy” theory, finding that trained model weights do not themselves constitute infringing copies. In California, judges have extended fair use protection to AI training on lawfully acquired books, while warning that market-harm arguments remain alive. For lawyers and policymakers, the transatlantic picture is now one of narrow technical comfort for AI firms and open questions for creators.

Key Holding — Getty v Stability AI (UK):
“An AI model … which does not store or reproduce any Copyright Works (and has never done so) is not an ‘infringing copy’.”
— Mrs Justice Joanna Smith

Mrs Justice Smith’s reasoning was tightly drawn but highly consequential. The High Court held that, for secondary infringement under the CDPA, an “infringing copy” must embody a material reproduction of a protected work. Getty’s claim that the trained Stable Diffusion model contained infringing images collapsed because, in its final state, the model’s parameters neither stored nor reproduced any copyright works. The ruling turned purely on what the model is, not how it was trained. Primary infringement was not reached: Getty had withdrawn those allegations once it became clear that training did not occur in the UK.

The court did, however, uphold a limited trademark claim where AI-generated images displayed the Getty watermark. That was a narrow finding of unauthorised brand use, not a statement on copyright law. The broader issue — whether the acts of crawling, copying, and processing millions of images to train an AI system constitute primary infringement — remains legally unanswered in Britain.

From the other side’s Bar table
  • Future claimants must produce a factual record showing UK-based training or fine-tuning; otherwise, jurisdiction will bar a primary infringement claim.
  • Consider authorisation or joint-tortfeasor liability where a UK developer directs or benefits from copying performed abroad.
  • Test database-right extraction where scraping targets protected datasets the statutory elements differ from copyright.
  • Extend trademark and passing-off theories to style, get-up, or indicia confusion, not just watermarks.
  • Develop robust market-harm evidence; without proof of substitution, economic loss claims will fail in both jurisdictions.

Across the Atlantic, the same week delivered two fair-use victories for AI developers. In Kadrey v Meta, Judge Vince Chhabria ruled that training Meta’s Llama models on large corpora of books qualified as fair use, emphasising that the decision rested on the plaintiffs’ poor pleading rather than on any blanket approval of AI training. He explicitly warned that “market dilution” the prospect of generative systems flooding the market with near-substitutable works — could yet prove a winning argument in future litigation.

Days earlier, Judge Alsup in San Francisco held that Anthropic’s scanning of lawfully purchased physical books amounted to a “mere format change” and was fair use, but drew a bright line against maintaining any central repository of pirated digital texts. The distinction is practical: provenance and lawfulness of acquisition now define the boundary of permissible training in US law.

The litigation frontier has shifted from metaphysics — whether weights are copies — to logistics: where, under what licence, and with what market impact the training occurs.

For AI companies, the combined rulings provide a defensive map. They can point to the UK decision as authority that model weights are not copies and to the US cases as confirmation that transformative use on lawful data may be fair use. The strategy is already visible: geofenced training outside the UK, contractual provenance attestations from data suppliers, and watermark filters to prevent brand contamination. The legal safe harbour, however, extends only to the trained artefact, not to the process that produced it.

For creators and publishers, the task is evidential and legislative. Without proof of domestic copying, courts will not reach the primary infringement question. That may drive renewed lobbying for a UK statutory framework akin to the EU’s text-and-data-mining regime, which allows machine learning on protected works unless the rightsholder opts out. The IPO’s current consultation will determine whether Britain codifies that approach or leaves it to piecemeal litigation.

Practitioner Takeaways
  1. Treat the model-as-copy theory as settled for secondary liability in the UK; refocus on training conduct and localisation.
  2. Audit and document data provenance; non-UK regions may provide jurisdictional shields if properly recorded.
  3. Quantify market harm early through economic evidence; it will be the next decisive issue.
  4. Reinforce brand-protection filters to avoid trademark or passing-off exposure from AI outputs.
  5. Consider database-right and contractual-breach pleadings alongside copyright claims.
Sources & Notes
  • High Court Judgment: Getty Images (US), Inc v Stability AI Ltd — Mrs Justice Joanna Smith (2025).
  • Case Notes: Practitioner commentary summarising secondary-infringement findings and the limited trademark ruling.
  • Meta (Kadrey v Meta Platforms): N.D. Cal., Judge Vince Chhabria, June 2025 — fair-use decision with warning on market dilution.
  • Anthropic (US District Court, N.D. Cal.): Judge Alsup, June 2025 fair-use finding for scanning lawfully purchased books, not for pirated digital copies.
  • Policy Context: EU Digital Single Market Directive (Articles 3-4, Text-and-Data-Mining exceptions); UK IPO consultation on TDM and transparency.

Analysis A barrister style assessment that the “model-as-copy” theory is exhausted, and the next battleground will be evidence, provenance, and market harm.

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Sources and Case Materials

This analysis draws exclusively on public court records, statutory instruments, and official consultations. No proprietary or third-party journalism is cited.

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