This would have far reaching consequences way beyond Stable Diffusion. Most larger commercial models are based on some version of it, so it would mean trouble for DallE and Midjourney as well. SD would still be around in some form, because it is impossible to shut down all the merges and versions floating around the internet. It would also be a herculean task to attempt to prove if any of these models contain copyrighted material.
Fascinating. Thanks for the insight. I guess the question was more: would it make the use of SD unlawful? I appreciate there is no disposing of the model now.
Most likely not. And even then, it would be very hard to prove which model was used to generate an image. Nobody has the resources to deal with this at scale.