AI companies spent years treating copyright like a Terms of Service box nobody reads. Now a court has suggested that »we copied it to build a competing product« may not magically become fair use because you sprinkle AI on top. Turns out disruption is slightly less fun when the disrupted people have lawyers.
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When peasants were able to copy 'intellectual property' for personal benefit and enjoyment, it was a massive crime. When the oligarchs can steal - everything - for the slight chance of paying less in wages, it is an innovation.
I think it is pretty much certain the model companies escape any penalty for their mass theft of IP. There will be some settlements and token penalties that sound big on paper, but are nothing compared to the market valuations.
It’s almost like rules are just made up
Not really. We had collage and training any kind of AI was fine before all this. There's blood in the water and copyright companies can smell it.
OpenAI is happy to give them a piece of the pie if that means they are the only ones allowed to sell it to consumers.
You are right about the penalty being pennys compared to their profits. It's not meant to punish them but help them build a moat, the one that got destroyed by China a few months ago.
I’m cynically believing that this is the beginning of enforcing a copywrite use tax; when anyone generates something that is visual or audible.
The tax will be collected by the government and put into a slush fund that mostly goes to corporations and wealthy, while ostensibly supposed to go fairly to all creators
I'm guessing it's going to be a system where a company like Spotify doesnt let you upload generated music unless it has the metadata from the "legal" music generators so they can automatically send most of the profits to the shareholders.
Universal already owns Udio, Suno will follow soon. I wish it was an actual tax.
I think this should be the reasoning politicians use to make AI companies owned by the public.
These AI models are nothing without all the data they were trained on. All this data is content produced by humans throughout history. AI is the ultimate product of thousands of years of human progress. Why should we allow corporations to be the primary beneficiaries of this?
Agreed... the problem is that the damage is already done and there's no way to really make it right to the copyright holders so mandating that all AI models and their weights should be treated as public domain would at least help a bit.
It actively prevents companies like Disney from using AI generation tools to stamp out movies like assembly line products. They can't afford to have their movies become public domain at release.
It won't protect jobs in advertising, because a lot of companies won't care if their ads become public domain. This might be a problem because a lot of actors get their start in ad bits, and a lot of graphic artists make a living on ad images.
Ii think it's an issue so long as private companies are profiting off the works of other people. If this is public (like a utility of some sort), I'm not sure the copyright claim means as much. I'm sure it would need to be handled in a way still.
AI companies are burning money pits... don't make me the tax payer the patsy who pays off the unimaginable debts of AI companies.
That's exactly why there's a chance of it happening.
Given the size of this bubble (WAY bigger than 2007), the taxpayers are going to hold the bag. We might as well force the companies to share the benefits (if any) as well.
Currently, there are no profits, tho.
Either the entire tech industry, and any business that relies on the tech industry (read: most businesses) explode and take modern human society with it... or every human the world over contributes in some part toward letting them continue their death march towards human extinction. What a choice.
but think of the CEOs for a minute, they still gotta run the AI, whether through predatory government contracts or predatory private business
how are they gunna afford their 4th house they visit one week a year?
The AI isn’t very useful, that’s a problem. The government will make them public, then the public will own their huge dept. the oligarchs will receive golden parachutes in the form of a buyout and we will get stuck with the bill. Fuck that, make the technofeudalists liquidate at reasonable prices. Give people their homes back. Make them pay to supply clean water everywhere an open-loop DC was constructed. Jail them for terrorism after polluting our skies and attempting to corner the market on information in order to control the populace.
Don't you mean "could be the reasoning"? AI companies aren't profitable, they would want to be "publicly owned" so that everyone else will be holding their bags. They're already trying to hedge it into everyone's retirement funds etc. It would not be in our best interests to be even more exposed to this.
Best case scenario but that's not the one we will be getting.
Copyright juggernauts and data brokers, the ones that actually own all the data like Reddit and universal records, will get paid.
Open weight models won't be allowed in business contexts or to be served online, OpenAI and company get a fat monopoly which suits them.
People are cheering for their own doom. The handful of big AI company are going to end up owning a solid chunk of the economy. It's basically going to be an AI tax.
You will be replaced by an agent, OpenAI will only sell them to your employer in bulk at a stupid price so you can't turn around and compete. That bulk price per agent will still be cheaper than your monthly wage.
Find me one politician that even mentioned forcing these models public. It's a fantasy.
The headline isn't correct. This ruling is about a specific element of Fair Use, not a blanket declaration that copyrighted data cannot be used to train models as the headline suggests.
Fair Use requires some conditions be met. The one that wasn't met here was that the work you're creating can't compete with the copyright owner.
From the Reuters article:
"Ross took the headnotes to make it easier to develop a competing legal research tool," the judge said. "So Ross’s use is not transformative."
In other cases, for example the Author's Guild lawsuit against Meta/Anthropic/etc courts have ruled that using books to train LLMs is fair use because LLMs and books don't compete.
They were required to pay for the books, but not prevented by copyright from using them to train a model.
There's nothing novel happening in this case from a legal perspective. Maybe this is the first case where the defendant didn't clear the elements of fair use but those elements predate AI by decades and have been uses in thousands of cases.
In fact, as Copyright Lately‘s Aaron Moss points out, even the AI industry called the latest ruling a win, with tech industry group Chamber of Progress senior director of AI Adam Eisgrau tweeting that the ruling “implicitly confirms that highly transformative gen AI training to produce a hugely multi-purpose model with substantial public benefit is likely fair use!”
"We stole even more, so that makes it legal!"
Worth reading the original opinion appealed here: great technical writing and explanation of reasoning by the judge
All LLM code output is now copyleft because there was GPL stuff in the training data, LOL!
spoiler
(Actually it's probably all just copyright infringement and not usable at all because of all the conflicting licenses, but a guy can dream...)
I think LLM code output is already copyleft because non-humans legally can not hold copyrights.
Copyleft is a way of leveraging copyright against itself to ensure nobody else can make a proprietary version of the thing. It is not the same as Public Domain/lack of copyright.
LLM output doesn't automatically get a copyright. But, if it is (part of) a work that includes "human creative effort" (prompts don't count), the human(s) can hold a copyright on that work.
In addition, the output can still be a derivative work in violation of the copyrights of (some of) the training data, whether or not there are copyrights on that output. It would have to have sufficient similarity to some work in the training data, but that's not too uncommon.
And, GPL and CC-SA works are known to be in the training data of most models, including Apertus.
Betteridge's law of headlines in full effect.
As much as I hate AI, current copyright laws are out of control and are extended well beyond what they should be used for.
AI is way more out of control than copyright.
There's simply no way to justify what the AI compies have been doing. As that one Microsoft exec said, it's the "largest theft of labor" in modern history
I hate them too but AI is more of a threat to all of us. Any chance at stopping the madness is good enough for me.
Wouldn’t be funny if disneys fuckery did in AI?
As long as we live under capitalism, copyright protects small artists, writers, and creators as much as it protects large shitty corporations who weaponize it.
I’d love to be rid of all intellectual property, but we have a lot to fix before that can become reality without punishing people who rely on it.
I’m down with some huge reforms though.
No, not at all. Do you have any idea of how expensive it is to bring a lawsuit? What you are saying about protecting small artists is pure propaganda. Furthermore, this only matters for commercial artist as copyright is never used in 99.999% of real life cases
We will never move forward as long as we allow all of our modern culture and technology to be locked up by corporations through imaginary property rights.
This is your reminder that in 2026 absolutely ZERO court rulings matter long term except the Supreme Court, which is captured for life by conservatives.
No matter who wins the midterms or even the next election, that is with us for the rest of most of our lives.
What a time to be alive.
This is why the court MUST be packed. FDR threatened to do it 90 years ago, and the Dems better do it this time or else face another Trump again.
It very much is not. It is in effect until the end of the United States. This will be long before most of us die.
The future will be getting very bad very fast and most nation states will collapse in a few decades.
So there's that I guess.
I think you are DRASTICALLY underestimating how durable fascist regimes are. Without external intervention they can continue for DECADES. Societies don't just collapse when people get fed up.
Maybe they meant the end of "the United States as we know it," which could be right. Or, arguably, already is.
But as a lifelong resident of the US, your point about how long regimes can last is extra scary. Two of the biggest facets of this country's identity have been that we have a lot of money/resources and that we have a lot of weapons. Plus we have our special brand of "fuck y'all; got mine" culture.
It seems like a nasty recipe for a fascist regime to isolate and turtle up and just grind along for half a century.
I don't mean when people are fed up. I mean when millions are starving to death and the firestorms are ravaging our croplands. When the hurricanes give us a Katrina level disaster 6 times a year. When it becomes literally impossible for organized society to maintain itself.
This is happening sooner than you think.
If it's any comfort, there's a good chance the sunlight won't be reaching the suface of the earth for much of 2027, so we won't be alive for too much longer.
Just like the tariffs, they will use this to steal our money ... they will use tax money to pay the crony companies that play victim.
If this could be upheld (though unfortunately it won't) then it could completely end the generation of new models and the companies that make them. The models that are already out would never go away and might as well be available for people to run locally but if they want new ones it should be done for the collective good with oversight. I.e. state run.
But again, just wishful thinking on my part.
If you think this will turn the tide I both envy how un- jaded you are and worry that you really aren't paying attention.
This is great progress. Curious to see how the Supreme Court eventually rules
This court finds AI guilty of copyright infringement.
The penalty will be... NOTHING!
Immediately made me think of Betteridge's law of headlines.
I will remain cautiously optimistic but until it makes it through Supreme Court it's not a done deal.
I don't care if copyright holders win I just want AI to lose.
I ficking hope so. Either all profits aren’t privatized and distributed socially or blow the whole thing up.
Let them fight
Still doesn't prevent data mining of forums for, "training." Still doesn't give people who's contributed on forums a check for being of value to big tech. If they cared at all they'd be paying us money to train AI until it's established. Google is offering points for data rather than money (https://deviceusagestudy.google/signup/invitecode) I only know that because I got a flier in the mail which means they're desperate to get people to sign up.
A law is useless unless it’s enforced. We live in an era where courts say a lot of shit but the legal system doesn’t back it up.
Now I feel bad for basing my programming career on material I apparently "stole" from books and other copyrighted sources. Hell, sometimes I even straight-up copypasted example code. I blame society.
are we finally seeing quadrillion dollars copyright claims?
I still see a future where we end up with legislation that forces royalties from AI-gen materials, which are funneled directly into the pockets of large corporate copyright holders. Meanwhile private individuals will get nothing while also not being allowed to use these tools anymore.
Not to be a downer about it, but this means they will pay a small fee in the large scheme of things, allowed to keep their products up and running and continue to profit off the theft of literally everything, and prevent others from creating new models. Basicially they can steal the whole library of Alexandria and lock away the key, but Disney wants to see my ass in a federal prison with a life sentence if I pirate a shitty 360p vhs quality torrent of the little mermaid.
If we where smart we would make it so if you are caught using a model that was trained off of stolen work the fine doubles each time. So the first time Claude or chattpt get a fine its only 25k, but the longer they keep it up and running the more it quickly exponentially grows. It doesn't take that many instances before it becomes a unobtainable dollar value.
This ensures everyone has to play by the rules and that if we had smaller third parties trying to make models by the rules and ethically then they have a fighting chance too. Also those businesses would likely be able to actually stand on their own two feet because it would be hyper specialized fields, or research funded through charity. Likely medical groups researching cancer, or something in robotics where they actually have a goal to achieve that's not just absorbing all capitol and building giant monoliths (data centers) for wealth and control.
Whether something is deemed fair use depends on several factors, including … whether the reproduction alters the market value of the original.
This alone should end the fair use defense for AI training immediately. But then, this would require a system where the law is upheld independently of how much money is involved.
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