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What have courts ruled with respect to AI and copyright?

Can AI Models Use Copyrighted Content for Training?

  • Training AI models involves large-scale ingestion of data from across the internet, including:
    • Public domain content (free to use)
    • Copyrighted material, which raises legal and ethical concerns
  • The key legal question: Does using copyrighted data for training constitute copyright infringement?
  • Fair use doctrine (U.S.) and text and data mining exceptions (EU, U.K.) are invoked to justify such use
  • But unauthorised data scraping or pirated content remains a grey area with potential liability

Relevance : GS 3(IPR , AI Technology)

Key U.S. Court Judgments (2025)

Thomson Reuters v. Ross Intelligence

  • Ruled that AI training can be transformative and qualify for fair use
  • Recognised the right to learn from copyrighted works as part of AI development

Bartz v. Anthropic

  • Judge William Alsup ruled:
    • Training using copyrighted works was transformative (like human learning)
    • BUT, use of pirated content requires trial – fair use does not cover illegal sourcing

Kadrey v. Meta

  • Judge Vince Chhabria ruled in Meta’s favour:
    • Plaintiffs failed to prove market harm
    • Considered Meta’s AI use of copyrighted works under fair use
    • Monetization of AI models was acknowledged but not penalised under current law

Legal Distinction: Public Domain vs Copyrighted Content

CriteriaPublic DomainCopyrighted Material
Usage by AIFreely allowedNeeds permission or fair use defence
Ownership IssuesNo ownershipOwned by author/creator
Legal RisksNonePossible infringement, market dilution
Fair Use Defence Needed?NoYes, if used without licence

Implications for Indias IP Framework

  • Copyright Act, 1957:
    • Section 14: Grants exclusive rights to reproduce, adapt, and communicate work
    • Section 52: Lists fair dealing” exceptions (not identical to U.S. “fair use”)
  • No AI-specific copyright provisions, but courts may interpret existing law to cover AI training
  • India recognises legal persons (e.g. companies) as authors in certain IP cases, but AI-generated content’s authorship remains unclear
  • Enforcement includes civil and criminal remedies for infringement, including digital piracy
  • ANI vs OpenAI case may shape India’s policy stance on AI and copyright soon

Global Regulatory Ambiguity

  • No harmonised international framework yet on AI and IP
  • Differences in interpretation across jurisdictions (U.S., EU, India, U.K.)
  • Key issues lacking clarity:
    • Who owns AI-generated content?
    • Can data mining for AI be exempt from infringement?
    • Does AI output qualify as “original work” under IP law?

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