Legal Framework for AI & Copyright

Understanding the evolving legal landscape governing artificial intelligence and copyright law in 2025

The Current Legal Landscape

The legal framework governing AI and copyright is rapidly evolving through a combination of court decisions, Copyright Office guidance, and ongoing litigation. While existing copyright law provides the foundation, courts and regulators are actively interpreting how these principles apply to AI technology.

Key Legal Authorities & Developments

January 2025

Copyright Office Report - Part 2: Copyrightability

The U.S. Copyright Office released a comprehensive report on January 29, 2025, addressing the copyrightability of outputs created using generative AI. The report concluded that existing copyright law principles are flexible enough to apply to AI technology and that AI outputs can be protected by copyright only where a human author has determined sufficient expressive elements.

March 2025

Thaler v. Perlmutter - Human Authorship Required

The U.S. Court of Appeals for the D.C. Circuit affirmed the district court's decision, holding that the Copyright Act "requires all eligible work to be authored in the first instance by a human being." This landmark decision established that AI systems cannot be listed as authors on copyright applications.

May 2025

Copyright Office Report - Part 3: AI Training & Fair Use

The Copyright Office released Part 3 of its AI report on May 9, 2025, examining whether unauthorized use of copyrighted materials to train generative AI systems is defensible as fair use. The report concluded that "some uses of copyrighted works for generative AI training will qualify as fair use, and some will not."

Key Conclusion: AI developers who use copyrighted works to train models that generate "expressive content that competes with" original works are going beyond the scope of the fair use doctrine.

Foundation: Existing Copyright Law

The legal framework for AI copyright builds upon well-established copyright principles:

Copyright Act of 1976

The primary federal statute governing copyright protection in the United States. Courts and the Copyright Office have consistently applied this existing framework to AI-related issues rather than calling for new legislation.

Human Authorship Requirement

Long-standing precedent requires that copyrightable works be created by human authors. This principle, established in cases like Burrow-Giles Lithographic Co. v. Sarony (1884), has been applied to exclude AI-generated works from copyright protection.

Originality Standard

Works must possess "at least some minimal degree of creativity" to be copyrightable (Feist Publications, Inc. v. Rural Telephone Service Co.). This standard applies when evaluating whether human contributions to AI-assisted works are sufficient for copyright protection.

Fair Use Doctrine (17 U.S.C. § 107)

Permits certain uses of copyrighted material without authorization. Courts are actively determining whether and when AI training on copyrighted works qualifies as fair use, considering factors like purpose, nature, amount, and market effect.

Reproduction Rights

Copyright owners have the exclusive right to reproduce their works (17 U.S.C. § 106). This right is central to claims that AI companies infringe copyright by copying works into training datasets.

Derivative Works Rights

Copyright owners control the creation of derivative works. Courts are examining whether AI-generated outputs that are similar to training data constitute infringing derivative works.

Key Legal Questions Being Addressed

1

Is AI training on copyrighted works fair use?

Actively Litigated

Courts have issued conflicting rulings. Some have found AI training to be transformative fair use, while others have rejected fair use defenses. The Copyright Office has stated that this question must be answered on a case-by-case basis.

2

How much human input makes AI-assisted work copyrightable?

Case-by-Case Analysis

The Copyright Office requires fact-specific examination of each work. Mere prompt entry is generally insufficient, but substantial human creative control over expressive elements may qualify for protection.

3

Must AI companies obtain licenses for training data?

Unresolved

No definitive legal requirement exists yet, but momentum is building toward requiring licensing. Some companies are proactively entering licensing agreements, and the Copyright Office's guidance suggests unlicensed use may not qualify as fair use when creating competitive outputs.

4

What remedies are available to creators?

Emerging Precedents

The $1.5 billion Anthropic settlement in 2025 established precedent for significant damages ($3,000 per work). Courts are determining the scope of statutory damages, injunctive relief, and other remedies available to copyright holders.

International Legal Frameworks

Different jurisdictions are developing varied approaches to AI copyright issues:

European Union

The EU is developing comprehensive AI regulation through the AI Act, which includes provisions affecting copyright. EU copyright law generally requires human authorship, similar to the U.S. The EU has also been proactive in requiring transparency about AI training data.

United Kingdom

UK law contains unique provisions for "computer-generated works" where the author is considered "the person who made the necessary arrangements" for creation. This provides more flexibility than U.S. law for AI-generated content.

Japan

Japanese copyright law allows copyrighted works to be used for AI training if it doesn't "unreasonably harm the interests of the copyright holder," providing a statutory exception broader than U.S. fair use doctrine.

Other Jurisdictions

Countries including China, India, Canada, and Australia are developing their own approaches. International harmonization efforts are ongoing but the legal landscape remains fragmented.

The Legal Framework Is Actively Developing

AI copyright law is one of the most rapidly evolving areas of intellectual property law. New court decisions, Copyright Office guidance, and potential legislation are expected in 2025 and beyond. Multiple cases are working their way through federal courts, and their outcomes will significantly shape the legal framework.

What this means for you: If you're a creator whose work may have been used to train AI, or if you're using AI tools to create content, it's important to consult with attorneys who stay current on these developments.

Official Legal Resources

U.S. Copyright Office

The Copyright Office maintains a dedicated AI page with reports, guidance, and updates on AI copyright issues.

Visit Resource

Congressional Research Service

CRS provides regular reports on generative artificial intelligence and copyright law for policymakers.

Visit Resource

Federal Courts

Court decisions are shaping AI copyright law in real-time. Key cases are being decided in multiple federal districts.

See Case Studies

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