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Judge Orrick lets artists' copyright claims, including induced infringement, proceed against Stability AI, Midjourney, DeviantArt and Runway, and dismisses the DMCA claims for good
Ruling on motions to dismiss the first amended complaint, which added Runway AI and seven new artist plaintiffs, Judge William H. Orrick on Aug. 12, 2024 denied every defendant's motion to dismiss the Copyright Act claims. He allowed the theory that Stability and Runway induce infringement by distributing Stable Diffusion, holding that whether the model works in a way that necessarily invokes copies of the plaintiffs' works, as they allege, will be tested on the evidence. He denied Midjourney's motion against the Lanham Act false endorsement and trade dress claims, which rest on a list of about 4,700 artists' names that Midjourney's CEO posted on Discord and on the use of artists' names as prompts. He dismissed the DMCA § 1202 claims against all defendants with prejudice, finding no plausible allegation that any output or copy was identical to a plaintiff's work or that false CMI was provided with intent to enable infringement. He dismissed the unjust enrichment claims as preempted, with one last chance to amend, and dismissed the breach of contract claims against DeviantArt with prejudice. The copyright claims then went into discovery, which continues in 2026.
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