@cwebber
The third circuit issued a recent ruling in the opposite direction of the previously well cited federal ruling, that AI training on copyrighted material is NOT fair use: https://www.courthousenews.com/ai-training-of-copyrighted-material-not-fair-use-third-circuit/
It seems hard to generalise that ruling; training a model to produce headnotes and specifically headnotes on headnotes you acquired by inducing a third party to commit copyright infringement(!) is not really comparable to training an everything model on everything.
In fact the ruling takes pains to declare its non-applicability. The judgement starts with:
Under ROSS’s framing, this case appears to concern the
future of AI legal technology. But appearances can be deceiv-
ing. In truth, this is no more than an ordinary copyright case;
we must determine whether Thomson Reuters’s materials are
sufficiently original for copyright protection and whether
ROSS’s use of those materials was fair. The undisputed evi-
dence reflects that Thomson Reuters’s materials possess a cre-
ative spark, and ROSS aspired to be a direct competitor by us-
ing them for a highly similar purpose. We therefore hold that
Thomson Reuters’s materials are copyrightable and that
ROSS’s use was not fair. Thus, we will affirm the District
Court’s order granting Thomson Reuters partial summary
judgment.
and possess the footnote:
7 We note that the United States Department of Justice (“DOJ”)
filed a statement of interest relating to generative AI in a pend-
ing case in the Southern District of New York. Statement of
Interest of the United States, In re: OpenAI, Inc. Copyright In-
fringement Litig., No. 1:25-md-3143 (S.D.N.Y. Sept. 1, 2026)
(hereinafter “DOJ Statement __”). The concerns raised in that
separate case do not apply here. The DOJ relied on Bartz v.
Anthropic PBC, 787 F. Supp. 3d 1007, 1014 (N.D. Cal. 2025)
to contend that training an AI large language model, which can
“generate original responses,” is a transformative use. DOJ
Statement at 10; see also Kadrey v. Meta Platforms, Inc., 788
F. Supp. 3d 1026, 1034 (N.D. Cal. 2025) (exploring whether
generative AI programs transformatively use training materi-
als). Unlike the AI models in Bartz and In re: OpenAI, ROSS’s
AI platform cannot generate original expression, and the evi-
dence here supports the opposite conclusion about transforma-
tiveness. The DOJ also argued that the large language model
training in OpenAI did not result in “substitutive competition.”
DOJ Statement at 13 (citation modified). Here, ROSS trained
its AI for the purpose of creating a commercial substitute for
Westlaw. In any event, the DOJ’s filing in In re: OpenAI
demonstrates that the DOJ is tracking these issues and knows
how to assert its interests, but the DOJ notably did not do so
here.