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.
For further reading on this topic, see the article “Generativna UI in avtorske pravice” by Mark Bauer and Dr. Maja Bogataj Jančič, LL.M., LL.M., published in Pravna praksa, issue No. 42–43/2024.
ODIPI is organizing ERA KR21 Conference: Barriers and Incentives for Open Science in the Copyright Law that will take place on 2 December, 2024 at Hotel Four Points by Sheraton (Mons) in Ljubljana and also online.
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.
“Can copyright bring artificial intelligence to its knees? Which other circumstances may cause that the “making” of generative AI can dramatically change in the (near) future. This short paper presents potential challenges that copyright poses to the training of the machines on large amount of data. Different jurisdictions address these issues differently. In the USA the legality of these activities is tested in several court cases. Do gentlemen’s agreements and pragmatic symbiosis known from the “search engines business model” provide sufficient basis and/or incentive for the business model of “making” generative AI business model as well?