IL-2023-000007 - [2025] EWHC 2863 (Ch)

Fecha: 04-Nov-2025

Heading

Neutral Citation Number: [2025] EWHC 2863 (Ch)

Case No: IL-2023-000007

IN THE HIGH COURT OF JUSTICE

BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES

INTELLECTUAL PROPERTY LIST (ChD)

Royal Courts of Justice

Rolls Building, Fetter Lane,

London, EC4A 1NL

Date: 04/11/2025

Before :

MRS JUSTICE JOANNA SMITH DBE

Between:

(1) GETTY IMAGES (US) INC

(a company incorporated under the laws of the State of New York)

(2) GETTY IMAGES INTERNATIONAL U.C.

(a company incorporated under the laws of Ireland)

(3) GETTY IMAGES (UK) LIMITED

(4) GETTY IMAGES DEVCO UK LIMITED

(5) ISTOCKPHOTO LP

(a partnership incorporated under the laws of Canada)

(6) THOMAS M. BARWICK, INC

(a company incorporated under the laws of the State of Washington)

Claimants

- and -

STABILITY AI LIMITED

Defendant

Lindsay Lane KC, Jessie Bowhill and Joshua Marshall (instructed by Fieldfisher LLP) for the Claimants

Hugo Cuddigan KC, Edward Cronan and Henry Edwards (instructed by Bird & Bird LLP) for the Defendant

Hearing dates: 9-12, 17-20, 25-27 & 30 June 2025

Approved Judgment

FOR PUBLICATION

This judgment was handed down remotely at 10.00am on 4 November 2025 by circulation to the parties or their representatives by e-mail and by release to the National Archives.

.............................

MRS JUSTICE JOANNA SMITH DBE

(A) INTRODUCTION 1

(B) FACTUAL BACKGROUND 3

Getty Images and their business 3

Stability and Stable Diffusion 6

(C) PROCEDURAL BACKGROUND 11

The Strike Out/Summary Judgment Application 11

Relevant Copyright Works 12

Identification of the Licensing Issue 12

Notices of Experiments 13

Procedural Orders made in respect of the Trade Mark Infringement Claim 14

Confidentiality 15

Applications made at trial 15

The Issues for Trial 15

Representation at trial 16

(D) THE WITNESSES AND EVIDENCE 16

Getty Images’ Witnesses of Fact 16

Getty Images’ CEA Notices 17

Stability’s Witnesses of Fact 18

Stability’s CEA Notices 20

The Technical Experts 21

Evidence of New York Law 22

The Trial Bundle 22

(E) LEGAL RESPONSIBILITY FOR STABLE DIFFUSION v1.X 22

Conclusion on legal responsibility for v1.x 31

(F) THE TRADE MARK INFRINGEMENT CLAIM 31

Introduction 31

The Threshold Issue: Incidence of synthetically generated watermarks* 32

Conclusion on the Threshold Issue 62

The Average Consumer 68

Context 75

SECTION 10(1) INFRINGEMENT 83

The Law 83

Application of the law to the facts 89

Conclusion on section 10(1) Infringement 119

SECTION 10(2) INFRINGEMENT 120

The Law 120

Likelihood of confusion: the global assessment 121

Conclusion on section 10(2) Infringement 124

SECTION 10(3) INFRINGEMENT 124

The Law 124

Getty Images’ pleaded case 129

Change in Economic Behaviour 130

Detriment to Distinctive Character 132

Detriment to Reputation/Tarnishment 133

Unfair Advantage 142

Conclusion on section 10(3) Infringement 142

(G) PASSING OFF 142

(H) THE SECONDARY INFRINGEMENT CLAIM 143

The Statutory Framework 144

The key Issues between the parties 145

Preliminary points about the nature of Stable Diffusion 145

The Approach to Statutory Construction 149

The meaning of the terms “article” and “infringing copy” 152

The factual questions 162

(I) COPYRIGHT SUBSISTENCE AND OWNERSHIP 165

Legal Framework 165

The Disputed Works 167

(J) THE LICENSING ISSUE 171

Relevant Factual Background 172

Relevant Legal Principles: English law 172

Relevant Legal Principles: New York Law 176

Analysis of the outstanding issues of construction 179

(K) REMAINING OUTSTANDING ISSUES 196

Number of works used in training 196

Additional Damages 198

(L) CONCLUSION 199