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Just the act of drawing something trademarked isn't illegal by itself though?
Yes, it is.
Copyright literally is the right to make copies. If little Timmy draws a picture of Mario for his fridge, it’s within Nintendo’s legal rights to issue Timmy with a takedown notice and threats of legal action if he does not comply.
Now nobody does that, because you’d have to be nuts, but copyright law is way more extensive than you’d think.
Copyright law is truly insane and makes criminals of us all.
From "Infringement Nation: Copyright Reform and the Law/Norm Gap" by John Tehranian (h/t: @naraburns):
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It'd be within Nintendo's legal rights to do such a thing, but it'd also be pretty easy for Timmy to defend himself with the Fair Use defense in the USA. Fair Use used to only be something that could be invoked defensively, but in 2015, the US 9th circuit court of appeals ruled that it was an expressly authorized right and exception to copyright (IANAL, so I don't know the exact difference this makes in practice), according to the Fair Use Wiki page.
There are 4 primary factors to consider when determining if some unauthorized copying falls under Fair Use, though other factors may also be considered:
1 and 4 would be the most relevant for Timmy. It's not for nonprofit educational purposes, but neither is it commercial, and Timmy could argue that it served the educational purpose of him getting practice in drawing. And it's also almost certain not to have any effect on the potential market or value of any Mario property owned by Nintendo.
In the case of drawing fanart of Mario (versus recreating a specific official art of Mario), I believe trademark law, not copyright law, would apply, and Timmy would have an even stronger defense, since trademark infringement is based largely around the likelihood to confuse the audience or a customer, and Timmy's picture hanging on his fridge will almost certainly not do that.
The law can be bizarre and counterintuitive, but I believe it's not so rigid that someone drawing fanart of a famous character to hang on his fridge can be considered legally infringing just because of some technicalities. In the US, the people who write the laws and the justices who interpret them generally tend to understand that the purpose of copyright isn't to give creators exclusive rights to create copies, but rather to incentivize creators to create more and better things by giving them greater ability to monetize their creations through granting them certain exclusive rights to create copies, and this plays out with Fair Use. With trademark law, the purpose isn't to give companies exclusive rights to produce copies of certain logos or characters or etc., it's to help consumers avoid confusion by making sure that only certain companies get to publish certain logos or characters or etc., and since some unpublished fanart of a trademarked character simply can't cause customer confusion, there's no way that Timmy would lose a case against Nintendo in this.
Of course, the mere threat of lawsuit could be enough in many cases.
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I see. In Sweden you have the explicit right to make private copies of publicly available material.
There's some protection for that in the US (see e.g. the RIAA vs Diamond) but not unambiguously enough (hence the RIAA vs Diamond).
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Disney has done stuff like that in the past though, IIRC.
Yeah, they’re notably aggressive about enforcing their copyright. The fact that most companies don’t have the resources or don’t prioritize enforcing their copyright as much has led to a lot of people underestimating how extensive copyright actually is.
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Im not a lawyer. But i think selling a subscription service for something explicitly marketed with pics like mario drinking beer, is very different from just drawing it. They're making money with these drawings, and also damaging the brands.
Obviously they can't use trademarked stuff in the marketing but the model being able to produce trademarked characters isn't meaningfully different from Photoshop or internet browsers dreaded by NTF-fans feature "right-click save as" unless we consider the model to be agentic.
I wouldn't consider the model agentic, but it seems meaningful that every other AI image generator specifically blocks this kind of stuff, whereas this one not only allows it, but seems to encourage it, with a sort of "wink wink, nudge nudge, there are no rules!" marketing. And in fact it still has rules, lots of them, it's just this one rule that it bypasses. So it seems like they intentionally built a tool that has "trademark violation" as its main use case. If nothing else, they're distributing images that violate trademark, since all those images come off of their web servers.
So is every cloud service.
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It seems incredibly likely that after the cease and desist goes out later this week, Grok is neutered, but in the meantime everyone has heard about Grok.
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It is if they want to monetize it (and presumably copyright lawyers would argue it serves some kind of promotional purpose for for-profit Musk businesses even if they don’t).
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