Copyright Battle Over AI and Fair Use Will Shape the Future of Tech

Ina Fried reports in Axios that the debate over artificial intelligence (AI) and copyright law, particularly around fair use, is the central conflict among the interest groups aiming resources and advice at the White House to influence the Trump administration’s upcoming “AI Action Plan.”

AI developers, including OpenAI and Google, argue that limiting their access to copyrighted material would disadvantage the US in the global AI race, particularly against China.

Creative professionals and publishers push back, emphasizing the need for strong intellectual property protections. The ongoing legal battles and policy discussions highlight the tension between innovation and copyright enforcement.

AI companies claim that training their models on copyrighted materials falls under fair use and is essential for national security. In contrast, industry groups representing authors, artists, and publishers argue that such use undermines creative industries.

The News/Media Alliance, Hollywood entertainers, and startups like Vermillio have voiced strong opposition, warning that unrestricted AI training could threaten both economic and democratic values.

Lawsuits against AI companies, including OpenAI, Microsoft, and Google, are testing these claims in court. Some argue a middle ground exists, where AI firms pay for licensing agreements, a model that some companies have already adopted.

Law firms should closely monitor evolving AI copyright litigation, as rulings could set precedents affecting both tech companies and content creators. Clients in media, entertainment, and technology sectors may require strategic legal guidance on licensing, fair use, and potential regulatory changes.

The debate also underscores broader tensions between innovation, regulation, and global competition, making it essential for law firms to stay ahead of legislative and judicial developments.