Meta hopes SCOTUS piracy ruling will help it beat lawsuit over torrenting AI data

Meta is strategically positioning itself in the wake of a recent Supreme Court decision, which determined that internet service providers cannot be held liable for piracy occurring on their networks. This ruling could play a pivotal role in Meta's defense against claims related to its alleged torrenting of artificial intelligence training data. In a lawsuit filed by Entrepreneur Media, the plaintiffs argue that Meta should face liability under copyright law for contributory infringement, asserting that the company knowingly engaged in torrenting activities by seeding around 80 terabytes of pirated materials. They contend that Meta's actions effectively induced infringement by facilitating uploads that expedited its downloads. The legal landscape for Meta is complicated by another class action case, Kadrey v. Meta, initiated by book authors who claim that Meta’s torrenting practices render it liable for direct copyright infringement. The distinction is critical; the authors must provide evidence that Meta downloaded entire works, a challenging task given the nature of torrenting, where files are shared in fragments. This complexity makes the contributory infringement claim more straightforward, as it requires only proof that Meta aided in the transfer of files. The survival of the contributory infringement claim could have severe implications for Meta, especially since a recent ruling allows it to be included in the ongoing class action. As Meta aims to mitigate the risks from both lawsuits, the company is banking on the argument that the Supreme Court's ruling in the Cox case establishes clear guidelines that benefit its position regarding contributory infringement. In a forthcoming statement, Meta plans to submit an additional brief detailing how the Supreme Court’s decision could bolster its motion to dismiss the Entrepreneur Media lawsuit. The outcome of this legal battle could significantly impact the company's future operations and its approach to data sourcing.