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AI-Training Ruling Finds No Fair Use

By Mason Lawlor
March 01, 2025

A recent AI copyright ruling out of federal court could have a sprawling impact on how companies, both big and small, use the technology responsibly, according to experts. In the ruling, Third Circuit appellate Judge Stephanos Bibas, sitting by designation in the U.S. District Court for the District of Delaware, found that tech startup ROSS Intelligence infringed on 2,443 case-decisions headnotes in Thomson’ proprietary legal database Westlaw.
The opinion found that ROSS’s use of the copyrighted content, obtained through LegalEase Solutions, was commercial, not transformative, and could not constitute fair use. Thomson Reuters Enterprise Centre GmbH v. ROSS Intelligence Inc., 1:20-cv-613.

“There is nothing that Thomson Reuters created that ROSS could not have created for itself or hired LegalEase to create for it without infringing Thomson Reuters’ copyrights,” Judge Bibas wrote.

Attorney Chris Mammen said the court decision was precedent-setting because it was the first to address the question of whether the use of copyrighted content as training data for artificial intelligence is fair use.
Mammen, the managing partner of Womble Bond Dickinson’s San Francisco, CA, office, has represented Silicon Valley clients in patent, intellectual property and technology litigation. According to him, while the Thomson Reuters ruling is the first to address the fair-use question, the template for determining fair use should remain simple.

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