What happened
The US Court of Appeals for the 7th Circuit ruled that the First Amendment protected Steven Anderegg from criminal charges related to the possession of AI-generated child sexual abuse material (CSAM). This decision conflicts with Wisconsin Act 224, a state law enacted in 2024 that explicitly criminalizes the possession, production, and distribution of AI-generated depictions of minors in sexually explicit conduct, regardless of whether the child is real. While the federal ruling does not invalidate the state law, it creates a significant legal conflict that could lead to the case being reviewed by the US Supreme Court.
In August, the US Court of Appeals for the 7th Circuit issued a ruling in the case of Steven Anderegg, a resident of Holmen, Wisconsin, who was arrested in 2024 and charged with producing, distributing, and possessing thousands of images depicting minors in sexually explicit conduct. According to Up North News, Anderegg allegedly used an open-source AI text-to-image generator to create these images. Circuit Judge John Z. Lee ruled that the First Amendment protected Anderegg’s right to possess the materials, citing two US Supreme Court decisions: one from 1969 regarding the private possession of obscene materials and another from 2022 establishing that CSAM not depicting real children is not defined as 'child pornography' under federal law.
The federal ruling creates a direct conflict with Wisconsin Act 224, which was introduced by state Republicans in 2023 and signed into law by Governor Tony Evers in 2024. This state law explicitly criminalizes the possession, production, and distribution of 'obscene material' containing a 'depiction of a purported child,' including material generated by AI technology, regardless of whether the child depicted is real. Under Wisconsin law, violations are felonies carrying a minimum three-year prison sentence, mandatory sex offender registration, and fines of $500 per image.
Although the 7th Circuit ruling protected the possession of the materials, it did not dismiss the charges related to the production and distribution of the AI-generated images, meaning Anderegg still faces prosecution on those counts. Legal experts and federal judges involved in the case noted that the ruling illuminates how evolving technology complicates existing legal lines but emphasized that lower courts are not free to redraw those lines themselves. The case is now positioned for potential review by the US Supreme Court, which could take it up in October.
Source details: upnorthnewswi.com ↗
Why it matters
This ruling highlights a critical gap in current legal frameworks regarding synthetic media. As AI tools become more accessible, the distinction between real and synthetic child exploitation material is blurring, challenging existing statutes that rely on the depiction of real children. The potential for Supreme Court review could set a national precedent that either reinforces state authority to ban synthetic CSAM or limits such bans under First Amendment protections, directly impacting how law enforcement and courts handle AI-generated exploitation cases across the country.
The legal conflict between the 7th Circuit’s First Amendment interpretation and Wisconsin’s statutory ban on AI-generated CSAM represents a significant test for the regulation of synthetic media. If the Supreme Court upholds the federal ruling, it could limit the ability of states to criminalize the possession of synthetic child exploitation material, potentially creating a safe harbor for such content in jurisdictions that follow the federal precedent. Conversely, if the Court sides with the state law, it would affirm the authority of states to regulate AI-generated content that depicts minors, even if no real child was involved.
This issue has practical implications for law enforcement and child safety organizations. The National Center for Missing and Exploited Children (NCMEC) has reported an uptick in AI-generated CSAM reports to their tipline since 2023, indicating that the technology is being actively used for exploitation. The legal ambiguity surrounding the possession of such material may complicate investigations and prosecutions, particularly in cases where the primary evidence is synthetic. The outcome of the Anderegg case could influence how prosecutors approach similar cases nationwide, potentially requiring a reevaluation of charging strategies and statutory definitions.
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Impossibility results in algorithmic fairness (e.g. Kleinberg et al., Chouldechova) show what?
What to watch next
Monitor whether the US Supreme Court grants certiorari in the Anderegg case, which could provide a definitive ruling on the constitutionality of state laws banning AI-generated CSAM. Additionally, track legislative responses in Wisconsin and other states that may seek to amend their statutes to align with federal constitutional interpretations or to clarify the scope of their prohibitions on synthetic media.
The most immediate development to watch is whether the US Supreme Court grants certiorari in the Anderegg case. A Supreme Court review would provide a definitive interpretation of the First Amendment’s application to AI-generated CSAM, potentially resolving the conflict between federal constitutional protections and state criminal laws. The timing of this decision, potentially in October, could have far-reaching effects on pending cases and future legislation.
Legislative responses in Wisconsin and other states will also be critical. Lawmakers may seek to amend existing statutes to clarify their scope or to address the specific legal challenges raised by the 7th Circuit ruling. Additionally, advocacy groups and legal scholars may push for federal legislation that provides a uniform standard for the regulation of synthetic child exploitation material, reducing the patchwork of state laws and ensuring consistent enforcement across the country.