AI training of copyrighted material not fair use: Third Circuit

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1. 1h ago

   Third Circuit Rejects AI Fair Use Defense in Thomson Reuters Win

   A United States federal appeals court ruled that training an artificial intelligence system on copyrighted material does not qualify as fair use. The Third Circuit delivered the decision in a copyright lawsuit won by Thomson Reuters against the now-shuttered legal research startup ROSS Intelligence. The appellate panel rejected the fair use defense after ROSS copied Westlaw headnotes to build training data for an artificial intelligence tool designed to answer legal questions. The ruling marks the first time a US appeals court has tested and rejected the fair use defense in the context of artificial intelligence training.

   Why it matters

   The copyright battle centers on how artificial intelligence developers source training data without infringing on protected works. Thomson Reuters accused ROSS Intelligence of misappropriating proprietary legal headnotes from Westlaw to build its competing platform. The outcome delivers a major victory for copyright holders and establishes a significant precedent that could impact other tech companies facing scrutiny over their data collection practices.

   What is confirmed

   • The Third Circuit ruled that training an AI on copyrighted material is not fair use.
   • Thomson Reuters won its copyright lawsuit against the legal research startup ROSS Intelligence.
   • The case involved an AI tool trained on proprietary Westlaw legal headnotes.
   • The decision marks the first time an appellate court has tested the fair use defense for AI training.

   Still unconfirmed

   • The specific legal reasoning detailed within the Third Circuit opinion will heavily influence ongoing copyright disputes involving generative AI models like Suno.

   What to watch next

   • Unsealing and public release of the complete Third Circuit opinion
   • Potential appeals or further legal actions from artificial intelligence companies facing similar copyright challenges
   Sources used for this update (18)

   1. Reuters — US appeals court upholds Thomson Reuters' landmark win in AI training lawsuit
   2. lawnext.com — 3rd Circuit Issues Opinion in Thomson Reuters v. ROSS Case, But For Now It Is Sealed
   3. Copyright Lately — Signed, Sealed, Affirmed: Third Circuit Backs Thomson Reuters over ROSS
   4. Courthouse News — AI training of copyrighted material not fair use: Third Circuit
   5. Forbes — AI Lost Its First Fair Use Appeal. Suno Should Be Worried.
   6. Music Business Worldwide — US appeals court rejects ‘fair use’ defense over AI training – as Thomson Reuters wins copyright case backed by RIAA and NMPA
   7. Nieman Journalism Lab — Federal appeals court upholds Thomson Reuters’ landmark AI copyright win
   8. LawSites — 3rd Circuit Rules For Thomson Reuters In Its Copyright Fight Against Legal Research Startup ROSS
   9. National Review — Copyright Protects Against Training AI on Legal Headnotes
   10. jen.jiji.com — Formula 1, Bahrain GP results and World Championship standings
   11. jen.jiji.com — Florence, the eighth edition of the National Festival of Civil Economy concludes
   12. www.musicbusinessworldwide.com — US appeals court rejects ‘fair use’ defense over AI training – as Thomson Reuters wins copyright ca....
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