Insights

Washington – January 10, 2024: Crowell & Moring has published Litigation Forecast 2024: What Corporate Counsel Need to Know for the Coming Year. The 12th-annual Litigation Forecast focuses on trends in intellectual property, regulatory and other U.S. litigation, with special coverage of supply chain recovery and international litigation.

Judge William Orrick in the Northern District of California has dismissed some claims in a lawsuit brought by visual artists Sarah Andersen, Kelly McKernan, and Karla Ortiz against Stability AI, Midjourney, and DeviantArt. The artists allege that the companies misused the artist’s copyrighted works in connection with the companies’ generative artificial intelligence systems and products. Judge Orrick dismissed all allegations against Midjourney and DeviantArt, but gave Plaintiffs leave to amend their complaint. Judge Orrick also dismissed copyright infringement claims brought by McKernan, Ortiz, and others in the artists’ class who had not obtained copyright registrations, a prerequisite to filing a copyright claim, but is allowing Andersen to pursue her claim that Stability AI's use of her work to train Stable Diffusion infringed her copyrights.

The U.S. Supreme Court has granted review of an 11thCircuit ruling in the case of Nealy et al. v. Warner Chappell Music Inc. et al. The issue at hand is whether a copyright plaintiff can recover damages for acts that allegedly occurred more than three years before filing the case. Specifically, the court will examine the application of the discovery accrual rule, which determines when the clock starts ticking for the statute of limitations in copyright infringement cases. Warner Chappell Music argues that a copyright plaintiff should not be able to recover damages for acts that occurred outside the three-year statute of limitations. The company aims to establish a precedent that would limit the timeframe in which copyright plaintiffs can seek additional damages.

Navigating copyright-based legal disputes through traditional federal court options can be a costly and time-consuming process. Historically, federal court was the only venue for copyright lawsuits of all sizes, big and small. The Copyright Claims Board (“CCB”), however, now offers a streamlined and cost-effective alternative for smaller copyright disputes in the United States. This client alert expands on previous news about the CCB, explores the usefulness of the Copyright Claims Board after its first year in existence, and explains why the CCB could be the right forum for copyright litigants.

After the recent barrage of lawsuits filed by copyright owners against artificial intelligence platforms, it will likely take a few years for the dust to settle on multiple legal issues surrounding the new technology and intellectual property rights, says Crowell & Moring partner David Ervin, who co-leads the firm’s Advertising & Brand Protection Group.