The controversy has led to a widely-circulated clarification that copyright, in Indonesia (where the photos were taken), in the UK and US (where the images were reproduced “illegally”) can only be obtained for work that is “the product of a human hand…” and that has opened the proverbial can of worms for many contemporary artists. The website Techdirt is the best place I have found to follow the controversy. Their lead article is here.
Now, artists such as Cory Angel (who currently is showing at the Whitney Museum) and Nikki S. Lee are concerned about copyright protection for their work and for the work of other artists whose work is mechanically and/or randomly generated.
Slade's defence of claiming copyright is explained here on the Techdirt website.