Getty Images and Stability AI have begun a major courtroom battle in London, marking one of the first major legal tests over copyright in the rapidly growing generative AI industry.
The trial, which started Monday at the British High Court, is expected to run for about three weeks, with the judge issuing a written ruling afterward.
At the center of the dispute is Stable Diffusion, the AI-powered image generator developed by London-based Stability AI. Launched in August 2022, Stable Diffusion quickly gained attention for its ability to create detailed, photorealistic images from simple text prompts. Just months later, the AI boom intensified with the release of ChatGPT.
Seattle-based Getty Images argues that Stability built Stable Diffusion using its copyrighted photo library without permission or compensation, calling it a “brazen infringement” on a massive scale.
Tech companies have defended the use of copyrighted materials for AI training by citing “fair use” in the U.S. and “fair dealing” in the UK. However, Getty was among the first major companies to challenge this practice, filing lawsuits in both countries in early 2023.
Getty CEO Craig Peters has been outspoken on the issue, previously stating that intellectual property creators deserve to be asked for consent before their works are used to train AI systems. He criticized the prevailing “opt-out” model as unfair to content creators.
In court, Getty’s lawyer Lindsay Lane said the case is not about technology versus creativity, but rather about respecting intellectual property. “AI companies and creators can work in harmony,” she argued, “but not when companies like Stability want to use creative works without paying for them.”
Lane emphasized that the lawsuit is focused on enforcing copyright, trademark, and database rights. She accused Stability AI of having an insatiable demand for images, regardless of their copyright status, content, or appropriateness. “This trial is the day of reckoning for that approach,” she said.
Stability AI is expected to present its opening arguments on Tuesday. In a written statement submitted to the court, the company said Getty’s claims pose a direct threat to its business and to the wider generative AI sector.
Stability also argues the case shouldn’t be heard in the UK, noting that the training of Stable Diffusion took place on servers run by Amazon outside the country. The company further claims that only a small fraction of its AI-generated images resemble Getty’s content.
Legal experts say the trial’s outcome may not deliver the broad copyright clarity the AI industry is hoping for, especially on exemptions for training data. However, it could shape future licensing negotiations between AI companies and content creators worldwide.
So far, similar lawsuits in the U.S. have yet to go to trial.
Stability has struggled to fully capitalize on the popularity of its tool, facing legal challenges and other issues since launching. Stable Diffusion’s development began in Germany, where researchers from Ludwig Maximilian University of Munich collaborated with the New York-based company Runway on the original algorithms. Stability provided the powerful servers needed to train the model.
In the aftermath of controversy over harmful content, Stability blamed Runway for releasing an early version of the model that was used to create abusive imagery. Since then, Stability has taken exclusive control over newer versions.
The company last year secured significant funding from investors, including Sean Parker—Facebook’s former president and Napster co-founder—who now chairs Stability’s board. Parker brings experience from past legal battles over intellectual property in the music industry.
Also on the board is director James Cameron, known for blockbuster films like Titanic and Avatar.
The company has faced leadership turnover as well. Founder and CEO Emad Mostaque stepped down last year, and several senior researchers left to start a rival AI image firm in Germany called Black Forest Labs.
