Tesla, Musk to Face Trimmed ‘Blade Runner 2049' AI Ad Suit

Tesla Inc. and CEO Elon Musk should try to settle claims brought by Alcon Entertainment LLC, a Los Angeles federal judge said in a Monday hearing, as the film finance company will be allowed to amend and refile some of its lawsuit.

The “Blade Runner 2049" producer can keep pursuing direct copyright infringement claims that Tesla “literally copied” using artificial intelligence an image from the movie to promote its Cybercab, Judge George H. Wu said. Attorneys for Musk and Tesla didn’t write a solid argument against the theory in court filings, he said.

“If you take a copyrighted image of ...