The liability issue of who infringes intellectual property rights through AI applications—users or providers—has gained importance, especially for retailers increasingly implementing AI tools. The recent Getty Images vs. Stability AI case highlights this complexity. Traditionally, courts have ruled that intermediaries are not liable for trademark infringement if they lack active knowledge or control. Stability AI argued that users control the output by providing prompts. However, the court found Stability AI liable as it trained the AI on proprietary data, indicating that providers may share responsibility.
Retailers should take proactive measures to limit their liability by screening training data for potential infringements and implementing robust guardrails to prevent users from engaging in infringing activities. Establishing efficient takedown procedures can further mitigate risks. Ultimately, the Getty ruling emphasizes that once an AI application is deemed to be using infringing material commercially, liability may shift to the AI provider, including retailers.
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