The UK High Court has ruled that Stability AI’s Stable Diffusion model does not amount to an ‘infringing copy’ of Getty Images’ photographs, handing the AI firm a landmark victory in a closely watched copyright case. Mrs Justice Joanna Smith held that an AI model which does not store or reproduce any copyright works is not an infringing copy, dismissing Getty’s secondary copyright claim.

The ruling resolves only a narrow set of issues. Getty had already dropped its primary training claim during the summer trial because the training occurred outside the UK. It argued instead that Stability’s model itself should be treated as an infringing copy, and that the company infringed its trademarks through AI-generated images bearing Getty watermarks. The judge found in Getty’s favour on some trademark claims related to watermarks but declined to rule on passing off.

The judge said the question of balancing the interests of the creative industries and the AI industry is of very real societal importance. Getty said it remains deeply concerned about the lack of transparency requirements, which it said forces even well-resourced companies into costly legal battles. Stability AI’s general counsel, Christian Dowell, said the company is pleased with the court’s ruling on the remaining claims, adding that Getty’s decision to voluntarily dismiss most of its copyright claims ultimately resolved the copyright concerns that were the core issue.

The case has fuelled an ongoing debate over how the UK should legislate on copyright and AI, with the government consulting on a possible text and data mining exception.