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“Piracy is piracy”: Disney and Universal sue AI image generator Midjourney in a Hollywood first
(www.niemanlab.org)
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The argument could be made that because the image generator is essentially a regurgitator with no artistic interpretation, there is no transformative artistic value in it. It's like applying a filter with extra steps.
Also the generators charge for access, so they are profiting off of the IP. That's quite different to making something for personal use or releasing it for free.