Trained weights on pulic data don't have a copyright in most countries, they have to keep them a trade secret to protect them. As long as he didn't agree to the terms and acquired them through a leak he should be OK (not legal advice).
Untested in court but, at least in the EU, could be protected as a "database" https://copyrightblog.kluweriplaw.com/2024/01/18/are-ai-mode...
Also "Stable Diffusion" is a registered trademark so there's a possible infringement there too.
Re:Show HN: Free Stable Diffusion 3 Online
by samspenc on Thursday June 13, 2024 @06:25PM
(#40675534)
First I've heard of this restriction in the SD license. Curious why they would add something like this - wouldn't they want to encourage a network of self-hosted SD solutions providing the service to someone who couldn't host or run it themselves?
Interestingly, they did this for Stable Cascade as well. [1]
[1] https://huggingface.co/stabilityai/stable-cascade/blob/main/...
> You may not use the Software Products or Derivative Works to enable third parties to use the Software Products or Derivative Works as part of your hosted service or via your APIs
This is something we think about a lot on the open-sourced AI Horde distributed network -- we can't host this model due to these restrictions. [2]
[1] https://huggingface.co/stabilityai/stable-diffusion-3-medium...
[2] https://aihorde.net/