09/03/2026
SENSITIVE/EMOTIONALLY CHARGED POST - Do not read if you are not interested in the legal basis for a recent 7th Federal Circuit Court of Appeals opinion involving AI created images.
7th Circuit's Anderegg Ruling: The Legal Reasoning, Explained
On August 25, 2026, the U.S. Court of Appeals for the 7th Circuit issued its decision in United States v. Anderegg — and the legal reasoning behind it is more narrow and precedent-bound than headlines suggest.
The core legal question: Can the government criminalize private, in-home possession of obscene AI-generated images that don't depict a real child?
The two precedents that controlled the outcome:
Stanley v. Georgia (1969) — established that the First Amendment protects an individual's right to possess obscene material privately in their own home.
Ashcroft v. Free Speech Coalition (2002) — struck down a federal ban on "virtual" child po*******hy that doesn't involve real children, reasoning that such images, however disturbing, don't carry the same government interest in preventing harm to an actual victim.
The court's holding: Because Anderegg's images (created with Stable Diffusion) didn't depict a real, identifiable child, the panel found itself bound by these two precedents. It ruled the possession statute — 18 U.S.C. § 1466A(b)(1) — unconstitutional as applied to this specific charge.
This is a narrow, "as-applied" ruling, not a broad one:
The statute itself wasn't struck down.
Only the possession charge was affected.
The three other charges against Anderegg — production, distribution, and transferring the material to a minor — remain pending and untouched by this decision.
The notable concurrence: Two of the three judges (Lee and Kolar) wrote separately to flag that the legal landscape has shifted since 2002. They noted that modern AI-generated images are now "virtually indistinguishable" from real abuse material, and that some training datasets have been linked to real CSAM — potentially undermining the assumptions Free Speech Coalition relied on. They explicitly invited the Supreme Court to revisit the issue, writing that lower courts aren't free to redraw precedent on their own.
Bottom line: The panel felt legally compelled by binding Supreme Court precedent, even while expressing discomfort with where that precedent leads in the age of generative AI. This sets up a strong candidate for Supreme Court review.
It is important to note that Arkansas criminalizes AI generated CSAM. Arkansas is not in the 7th circuit, so this is not binding law on Arkansas. It will be interesting to note whether the U.S. Supreme Court takes up the issue.
This post is only to educate people on how our Courts are dealing with Aritficial Intelligence in real world scenarios.