AI training of copyrighted material not fair use: Third Circuit (www.courthousenews.com)

The Third Circuit has ruled that the AI company ROSS Intelligence infringed on Thomson Reuters' copyright by training its AI on Westlaw’s headnotes without permission, rejecting ROSS's defense of fair use. This decision stems from a lawsuit initiated by Thomson Reuters, which argued that ROSS exploited its legally protected editorial content to develop a competing product. The court found that Westlaw's selection and arrangement of headnotes showcased a “creative spark,” qualifying them as original works under copyright law, which ROSS's use fell short of transforming sufficiently. This ruling sets a significant precedent for the AI and machine learning community, highlighting the legal limitations surrounding the use of copyrighted material for training AI models. The court determined that ROSS's use of the headnotes did not transform the content in a way that could justify fair use and would negatively impact Westlaw's market position. Legal experts suggest that this decision could create ongoing uncertainty regarding how copyright law applies to AI training practices, as ROSS plans to seek further judicial review to clarify these complex issues that are crucial for AI innovation and development.