Getty Images wins trademark ruling against Stability AI in UK case

LONDON - Getty Images (NYSE:GETY) has secured a partial legal victory against Stability AI in a UK court ruling that determined Stable Diffusion’s inclusion of Getty Images’ trademarks in AI-generated outputs constituted trademark infringement. The stock, which has fallen over 51% in the past year and currently trades at $1.96, faces significant volatility as it navigates these legal challenges.

The court rejected Stability AI’s attempt to shift responsibility to users, ruling that model providers bear liability for trademark infringements appearing in AI-generated content. The ruling also confirmed that Getty Images’ copyright-protected works were used to train Stable Diffusion.

A significant precedent was established in the decision, determining that intangible articles such as AI models are subject to copyright infringement claims in the same way as tangible articles.

Getty Images plans to leverage findings from the UK ruling in its ongoing U.S. case against Stability AI. The company expressed concerns about the challenges content creators face in protecting intellectual property rights despite the legal victory. According to InvestingPro data, Getty Images reported $946.83 million in revenue over the last twelve months, with a solid 73% gross profit margin, though it remains unprofitable with negative earnings per share of -$0.28.

"We remain deeply concerned that even well-resourced companies such as Getty Images face significant challenges in protecting their creative works given the lack of transparency requirements," Getty Images stated in its press release.

The visual content marketplace is advocating for stronger government transparency rules to prevent costly legal battles and help creators protect their rights. Getty Images reported it invested millions of pounds to pursue this single case against one AI provider.

The company serves as a global visual content creator and marketplace through its Getty Images, iStock and Unsplash brands, working with approximately 600,000 content creators and more than 355 content partners worldwide. Investors should note that Getty Images is scheduled to report earnings on November 10, with InvestingPro analysis showing the stock is currently trading slightly below its Fair Value. Two analysts have recently revised earnings upward, though net income is expected to decline this year. For deeper insights into Getty Images’ financial health and more exclusive tips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Getty Images Holdings Inc. and Shutterstock Inc. are facing an in-depth investigation by the UK Competition and Markets Authority (CMA) over their proposed $3.7 billion merger. The CMA is concerned that the merger could lead to higher prices and reduced quality in stock imagery services, prompting a Phase 2 review. Despite the setback, Getty Images remains committed to the merger, having offered remedies to avoid this extensive investigation.

In another development, Getty Images has entered a multi-year global licensing agreement with AI search company Perplexity. This partnership will allow Perplexity to integrate Getty’s creative and editorial imagery into its AI-powered search and discovery tools. The agreement includes enhanced image attribution practices, with Perplexity displaying image credits and links to sources. These recent developments highlight significant activity within the visual content sector, attracting attention from both investors and regulatory bodies.

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