AI and Copyright: Where Do We Go From Here?
If you’ve been following the whirlwind of artificial intelligence, you know it’s evolving faster than most laws can keep up. Courts are still figuring out how AI fits into copyright, and the rules are constantly changing. In this article, we’ll explore two pivotal cases that set the stage, explain how courts are deciding fair use, discuss what this means for creators and small businesses, and share guidance for AI developers navigating the legal landscape while advancing technology.
The Copyright Puzzle
AI tools are avid learners. They absorb knowledge from books, articles, art, and music, and much of what is learned is protected by copyright. The key question is: when an AI 'learns' from someone else’s work, is that fair use, or does it cross into infringement? This is at the heart of the current legal debate.
Two Cases, Two Lessons
In February 2025, a federal court addressed this matter in Thomson Reuters v. Ross Intelligence. Ross had trained its AI using Westlaw’s editorial summaries (Thomson Reuters own Westlaw). Still, the court found this use wasn’t innovative enough and that how the AI was being used threatened Westlaw’s business. Bottom line: you can’t build a competitor by relying too heavily on someone else’s copyrighted material (Reuters, Davis & Gilbert).
In August 2025, AI company Anthropic faced a class-action lawsuit from authors claiming that some of their books, even from pirated sources, were used to train Anthropic’s models. Rather than risk a costly trial and possibly lose, Anthropic settled (Reuters, Wired).
Both cases highlight an important point: using pirated content or directly competing with copyrighted work can put you in a legal minefield.
How Courts Decide Fair Use
Judges generally consider four primary factors when evaluating fair use:
Purpose: Is the AI utilizing the material in a new and transformative manner, or is it simply copying it?
Type of work: Creative works like novels and art are more protected than factual material.
Amount used: It's possible to pass if you only use a small portion, but copying large sections is usually not a good idea.
Market effect: Does the AI’s use harm the creator’s ability to make money?
Currently, courts focus most on whether the AI’s use is transformative and whether it negatively impacts the original creator’s market.
Implications for Creators and Small Businesses
For creators, writers, artists, and musicians, this news should be encouraging. If an AI tool competes directly with your work, courts are increasingly supportive of protecting your rights.
For smaller companies and startups, the landscape is more challenging. Big tech can afford lawyers, licensing, and settlements; smaller players often cannot. Unclear rules may hinder competition and innovation, leaving the AI space dominated by a few large companies.
How Developers Can Stay Ahead
AI developers can take several practical steps to reduce legal risk:
Train models on licensed or open-source content.
Be transparent about the data used.
Allow creators to opt out of their work being included.
Document everything, showing a good-faith effort that there is no deception was used.
While these measures don’t guarantee immunity, they demonstrate responsibility and can help mitigate legal challenges.
The Bottom Line
Copyright and AI are coming together in exciting new ways that are still being figured out. For creators, this means enjoying stronger protection. For small businesses, it’s a gentle reminder to keep up with the evolving rules. And for developers, it’s a nudge to always be mindful of the law, as it’s more than just a good idea - it's essential.
While the story is still unfolding, it's clear that the decisions made today will shape how AI and creativity will evolve together in the future.
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Stay safe out there!
