1. Introduction: The Real Legal Problem in AI Is Not the Output — It’s the Dataset

Most legal issues in AI do not originate from:

the AI-generated output,
style imitation,
or model errors.

The biggest legal risk begins before the model even produces anything —
during dataset collection and training.

If the dataset is illegal, it can make the entire AI model legally compromised:

❌ copyright infringement

❌ violation of moral rights

❌ privacy violations

❌ breach of publicity rights

❌ breach of platform Terms of Service

❌ misuse of licensed or contract-protected content

❌ inclusion of sensitive or illegal data

And because training is performed by the developer,
the developer — not the AI or the user — is legally responsible.

2. What Makes an AI Dataset Illegal?

A dataset becomes illegal when one or more of the following conditions apply:

A. Contains Copyrighted Works Without Permission

This is the most common and widely litigated violation.

If a dataset includes:

illustrations
photographs
comics
digital art
music
text
film frames
character designs

without the creator’s consent, the developer is committing:

→ unauthorized reproduction

→ unauthorized distribution

→ creation of derivative works

→ violation of moral rights

This is the core of lawsuits against Stability AI by Getty Images and multiple artists.

B. Dataset Obtained Through Unauthorized Web Scraping

Web scraping often violates:

website Terms of Service
licensing agreements
anti-scraping statutes (e.g., CFAA in the U.S.)

Datasets like LAION, Common Crawl, and others often scrape:

Instagram
DeviantArt
Pinterest
Tumblr
Shutterstock

without permission.

Scraping contract-protected content → illegal dataset.

C. Contains Personal Data Without Consent

Many AI datasets unintentionally include:

faces
personal photos
voice recordings
location data
sensitive medical information

Training on personal data without explicit consent violates:

❌ Indonesia’s PDP Law

❌ EU GDPR

❌ U.S. privacy & publicity rights

AI models can then generate lookalike images, creating further legal exposure.

D. Violates Creative Commons Licenses

Contrary to popular belief:

“CC license ≠ free for AI training.”

Each CC license has conditions:

CC-BY → attribution required
CC-NC → non-commercial use only
CC-SA → share-alike obligations
CC-ND → no derivative works

AI training always produces derivative works.
Therefore:

→ CC-ND cannot be used

→ CC-NC cannot be used for commercial AI

→ removing attribution violates CC-BY

Most AI companies violate these conditions at scale.

E. Contains Contract-Protected Content (e.g., Shutterstock, Getty)

Stock image platforms operate under strict licensing contracts.

Their content:

cannot be scraped
cannot be reused without payment
cannot be redistributed
cannot be transformed without permission

If a dataset contains:

✔ Getty images
✔ Shutterstock assets
✔ Adobe Stock content

the dataset is inherently illegal.

F. Contains Data From Leaked, Hacked, or Pirated Sources

Examples of illegally sourced data:

leaked celebrity photos
hacked private databases
pirated manga/anime scans
stolen corporate documents
darknet archives

Training AI on illegally obtained content makes the AI training inherently unlawful.

3. The Most Common Legal Violations in AI Datasets

The typical violations found in AI datasets include:

1️⃣ Mass copyright infringement

Millions of images copied without permission.

2️⃣ Moral rights violations

Attribution removed, artists uncredited.

3️⃣ Privacy violations

Faces, voices, and personal data included without consent.

4️⃣ Breach of website Terms of Service

Scraping prohibited by contract.

5️⃣ Creative Commons license violations

Ignoring attribution, NC, ND, or SA requirements.

6️⃣ Inclusion of sensitive data

Medical records, children’s photos, etc.

7️⃣ Criminal data-related violations

Some datasets accidentally include illegal content (e.g., CSAM), causing severe legal exposure.

4. Why Illegal Datasets Make AI Models Legally Defective

Because:

Training = reproduction under copyright law.

If the dataset itself is unlawful, then:

✔ the AI model is built on illegal reproductions

✔ every stage of training is unauthorized

✔ the entire model becomes a derivative work of infringing content

Consequences for developers:

❗ regulatory penalties

❗ civil lawsuits (e.g., copyright claims)

❗ potential criminal liability (especially in Indonesia)

❗ reputational harm

❗ forced model takedowns

Even AI outputs become risky because they may reflect illegal training data.

5. Real-World Lawsuits Demonstrating Dataset Illegality

1. Getty Images v. Stability AI

LAION dataset included millions of Getty images with watermarks.

Legal claims:

copyright infringement
trademark misuse (watermark reproduction)
moral rights violations
unjust enrichment
unlawful scraping

2. Andersen v. Midjourney & DeviantArt

Artists’ works were used in training without permission.

Claims include:

copyright infringement
derivative works
style mimicry
unfair competition

3. Privacy & Deepfake Cases

Datasets containing personal images and faces →
violations of GDPR, PDP, and privacy torts.

6. How Developers Can Build Legal AI Datasets

To ensure legality, AI developers must:

✔ use properly licensed datasets

✔ obtain explicit permissions

✔ keep metadata & documentation (EU AI Act requirement)

✔ exclude personal data unless consented

✔ provide artist opt-out mechanisms

✔ avoid scraping protected sites

✔ compensate creators when necessary

This is the new minimum standard for ethical AI.

7. Conclusion

A dataset becomes illegal when it:

❌ contains copyrighted works without permission

❌ violates Creative Commons terms

❌ breaches website Terms of Service

❌ includes personal data without consent

❌ contains contract-protected assets

❌ involves illegally obtained materials

❌ includes sensitive or criminal content

Since training = reproduction:

→ the developer is legally liable

→ the model is built on unlawful ground

→ the output becomes risky

→ the AI can be challenged or banned

Therefore:

**AI can only be legal if its dataset is legal.

The legality of the dataset determines the legality of the model.**

What Makes AI Training Data Illegal? A Breakdown of the Most Common Dataset Violations in AI Development