GenAI Just Got a Huge Legal Win—But There's a Catch
Anthropic’s landmark ruling opens doors for generative AI training. Here's what it means for visual creators.
Disclaimer:
This post is for informational and educational purposes only and does not constitute legal advice. If you have questions about your rights, copyright registration, or the legal use of AI tools, please consult a qualified attorney familiar with intellectual property and emerging technology law.
On June 24, 2025, we saw a huge moment in the generative AI world.
U.S. District Judge William Alsup ruled that Anthropic training its Claude language model on copyrighted books was fair use.
He called AI training "exceedingly transformative"—basically comparing it to how you or I might learn from a book.
But here's the important detail: the ruling didn't give the green light to storing entire copyrighted works. Learning is okay; hoarding—not so much.
First reported by Blake Brittain at Reuters Legal, this decision is a big deal for anyone working creatively with AI.
Why Visual Creators Should Care
Even though this case revolves around text, it gives us a pretty clear signal about visual AI tools as well:
1. Training is (Mostly) Fair Game
If you're using Midjourney, Runway, Stable Diffusion, or similar tools, this is good news.
The court’s basically acknowledging what creators already know: AI is more like a creative collaborator than a photocopier—as long as the results are genuinely transformative.
2. Storage is Where Things Get Tricky
This ruling draws a clear line on storage. Studios and creators need to rethink how we handle our training datasets.
3. A Potential Ripple Effect for Other Big Lawsuits
Expect this to influence ongoing cases, including:
Getty Images vs. Stability AI
Disney and Universal vs. Midjourney
"Transformative use" is going to be the central argument here, so stay tuned.
My Take: Cautiously Optimistic, but Keep Your Guard Up
As someone who lives and breathes AI filmmaking, this feels like a step in the right direction.
Courts are starting to get it—AI isn’t some digital copy-paste machine. It’s a creative partner that learns, adapts, and makes something new.
But let’s be real: we’re not completely out of the woods.
This means studios and creators have some homework to do. Smarter dataset management, clear metadata tagging, artist credits, and responsible licensing practices aren't just nice-to-haves—they’re critical.
IP concerns aren't going anywhere, especially for visual AI.
Expect more court battles and legislative changes ahead.
If you're diving deeper into these waters, check out my earlier article Navigating the Generative AI Copyright Maze.
How does this ruling shape your comfort level with AI in your creative process? Any changes you're planning in your workflow?
Drop your take in the comments—I especially want to hear from artists, directors, and anyone navigating these complicated (but fascinating) waters.
The future of AI creativity is unfolding fast, and we all get to shape it together.
Be Well, Do Good and Make Awesome Things.
-Gabe Michael
Credit: Case reporting by Blake Brittain for Reuters Legal, June 24, 2025.
About the Author
Gabe Michael is an award-winning AI filmmaker and creative technologist shaping the future of production with AI. He currently serves as VP and Executive Producer of AI at Edelman, where he consults internal and external teams, enhances production workflows and explores new creative possibilities with AI.
As an early adopter of AI technology in film, video and creative production, Gabe’s work has earned accolades for ‘Best Odyssey’ at Project Odyssey, ‘Best Character’ and ‘Best Art Direction’ at the Runway Gen:48 AI Film Competitions, leading to his entry into many creative partner programs with top AI video tools.
With extensive experience as a director and producer in the creator economy, Gabe collaborates with top film studios, brands, and digital platforms, and shares his expertise on LinkedIn, YouTube, and in classrooms at UCLA.
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