A groundbreaking ruling in the first major artificial intelligence copyright case in the United States has been issued, with potential widespread implications for the AI industry. U.S. Circuit Judge Stephanos Bibas ruled in favor of Thomson Reuters in its lawsuit against Ross Intelligence, a legal AI startup.
The case, initiated in 2020, centered on allegations that Ross Intelligence had improperly used materials from Thomson Reuters' Westlaw legal research database to create a competing AI-powered legal platform. Judge Bibas decisively rejected Ross Intelligence's fair use defense, a common argument employed by AI companies in copyright disputes.
The ruling focused specifically on non-generative AI technology, making it distinct from cases involving generative AI systems like large language models. Judge Bibas determined that Ross Intelligence's use of Westlaw's content was neither transformative nor protected under fair use doctrine.
"Ross took the headnotes to make it easier to develop a competing legal research tool," wrote Judge Bibas in his summary judgment, emphasizing the commercial and competitive nature of the startup's actions.
Legal experts suggest this decision could have major ramifications for ongoing copyright lawsuits against tech giants like OpenAI, Microsoft, and Meta Platforms. Cornell University professor James Grimmelmann noted to Wired that if this precedent is followed in other cases, it could pose serious challenges for generative AI companies.
The immediate impact of the legal battle has already been felt by Ross Intelligence, which ceased operations in 2021 due to mounting litigation costs. While larger tech companies may have the resources to sustain extended legal battles, this ruling sets a notable precedent in the evolving landscape of AI and copyright law.
The decision particularly highlights the tension between AI companies' use of copyrighted material for training purposes and content creators' rights to protect their intellectual property. This ruling may influence how courts approach similar cases in the future, potentially reshaping how AI companies access and utilize copyrighted content for development purposes.