The terms of the Artistic License 1.0 were at issue in Jacobsen v. Katzer in the initial 2009 ruling by the United States District Court for the Northern District of California declared that FOSS-like licenses could only be enforced through contract law rather than through copyright law, in contexts where contract damages would be difficult to establish. On appeal, a federal appellate court "determined that the terms of the Artistic License are enforceable copyright conditions".
The legal dispute surrounding the Artistic License 1.0 centered on its enforceability as a copyright condition or through contract law. The initial ruling in Jacobsen v. Katzer established that FOSS-like licenses could only be enforced through contract law, and this was based on the difficulty of proving damages under contract law. This decision was later upheld by an appellate court, which confirmed that the terms of the Artistic License are enforceable copyright conditions.