Source: JD Supra

This legal analysis on JD Supra, provided by the firm Womble Bond Dickinson, delves into the critical and evolving application of the fair use doctrine to generative artificial intelligence. The article examines the central conflict between copyright holders and AI developers: whether the unauthorized use of vast amounts of copyrighted text, images, and code to train AI models constitutes copyright infringement or qualifies as a protected "fair use." The authors provide a detailed breakdown of the four statutory factors of fair use and how courts are beginning to interpret them in the context of AI. This includes analyzing the purpose and character of the use, the nature of the copyrighted work, the amount and substantiality of the portion used, and the effect of the use upon the potential market for the original work.

A key point of discussion is the concept of "transformative use." AI developers argue that using works for training is transformative because the goal is not to reproduce the original content but to enable the AI to learn patterns, styles, and facts, creating a new and different tool. However, copyright holders contend that if the AI's output can supplant the market for the original works, the use is not fair. The article highlights recent and ongoing litigation that is shaping the legal landscape, noting that courts are grappling with these novel issues. It concludes that while the legal framework is still developing, the outcomes of these cases will have profound implications for both the creative industries and the future of AI innovation.