Three artists are starting a class-action lawsuit against Stability.ai, Midjourney, and DeviantArt alleging direct copyright infringement, vicarious copyright infringement, DMCA violations, publicity rights violation, and unfair competition. DeviantArt appears to be included as punishment for “betrayal of its artist community,” so I will mostly ignore their part in this analysis for now. Specifically with regards to the copyright claims, the lawsuit alleges that Stability.ai and Midjourney have scraped the Internet to copy billions of works without permission, including works belonging to the claimants. They allege that these works are then stored by the defendants, and these copies are then used to produce derivative works. This is at the very core of the lawsuit. The complaint is very clear that the resulting images produced by Stable Diffusion and Midjourney are not directly reproducing the works by the claimants, no evidence is presented of even a close reproduction of one of their works.