The Fast-Moving Race Between Gen-AI and Copyright Law; Baker Donelson, July 10, 2024

 Scott M. Douglass and Dominic Rota, Baker Donelson ; The Fast-Moving Race Between Gen-AI and Copyright Law

"It is still an open question whether plaintiffs will succeed in showing that use of copyrighted works to train generative AI constitutes copyright infringement and be able to overcome the fair use defense or succeed in showing that generative AI developers are removing CMI in violation of the DMCA.

The government has made some moves in the past few months to resolve these issues. The U.S. Copyright Office started an inquiry in August 2023, seeking public comments on copyright law and policy issues raised by AI systems, and Rep. Adam Schiff (D-Calif.) introduced a new bill in April 2024, that would require people creating a training dataset for a generative AI system to submit to the Register of Copyrights a detailed summary of any copyrighted works used in training. These initiatives will most likely take some time, meaning that currently pending litigation is vitally important for defining copyright law as it applies to generative AI.

Recent licensing deals with news publishers appear to be anywhere from $1 million to $60 million per year, meaning that AI companies will have to pay an enormous amount to license all the copyrighted works necessary to train their generative AI models effectively. However, as potential damages in a copyright infringement case could be billions of dollars, as claimed by Getty Images and other plaintiffs, developers of generative AI programs should seriously consider licensing any copyrighted works used as training data."