Generative AI and Copyright: The First Court Case in Europe

The District Court of Hamburg ruled in the case of Kneschke v. LAION e.V. that LAION did not infringe the copyright of photographer Kneschke, as the use of his photograph was covered by the exception for text and data mining (TDM) for scientific purposes.

The Hamburg court ruled that LAION had not infringed Kneschke’s copyright because the use of his photo was permitted under the exception for Text and data mining (TDM) for scientific research purposes, as regulated by German copyright law. This exception was introduced into the German Act on Copyright and Related Rights  (German: Urheberrechtsgesetz, UrhG) in line with Article 3 of the Directive 2019/790 on copyright and related rights in the Digital Single Market (the DSM Directive).

This is the first case of judicial review of the legal basis for TDM introduced by the European Union (EU) in the DSM Directive. It presents a legal basis for the collection of big data for AI models and might also serve as a legal basis for AI model training. Aside from the positive outcome for LAION, the case is also a significant milestone for those interested in the transparency of data sets.

The ruling clearly confirms that the exceptions for TDM introduced by the DSM Directive in 2019 also apply to the use of copyrighted works in connection with generative AI models. The case highlighted the important role that non-profit organizations can play in making data sets publicly available, by recognising LAION as a research organisation. This is crucial for ensuring transparency of the data used in the training and building of AI models.