The Anthropic Copyright Ruling Exposes Blind Spots on AI; Bloomberg, June 26, 2025

Dave Lee , Bloomberg; The Anthropic Copyright Ruling Exposes Blind Spots on AI

[Kip Currier: It's still early days in the AI copyright legal battles underway between AI tech companies and everyone else whose training data was "scarfed up" to enable the former to create lucrative AI tools and products. But cases like this week's Anthropic lawsuit win and another suit won by Meta (with some issues still to be adjudicated regarding the use of pirated materials as AI training data) are finally now giving us some more discernible "tea leaves" and "black letter law" as to how courts are likely to rule vis-a-vis AI inputs.

This week being the much ballyhooed 50th anniversary of the so-called "1st summer blockbuster flick" Jaws ("you're gonna need a bigger boat"), these rulings make me think we the public may need a bigger copyright law schema that sets out protections for the creatives making the fuel that enables stratospherically profitable AI innovations. The Jaws metaphor may be a bit on-the-nose, but one can't help but view AI tech companies akin to rapacious sharks that are imperiling the financial survival and long-standing business models of human creators.

As touched on in this Bloomberg article, too, there's a moral argument that what AI tech folks have done with the uncompensated use of creative works, without permission, doesn't mean that it's ethically justifiable simply because a court may say it's legal. Or that these companies shouldn't be required by updated federal copyright legislation and licensing frameworks to fairly compensate creators for the use of their copyrighted works. After all, billionaire tech oligarchs like Zuckerberg, Musk, and Altman would never allow others to do to them what they've done to creatives with impunity and zero contrition.

Are you listening, Congress?

Or are all of you in the pockets of AI tech company lobbyists, rather than representing the needs and interests of all of your constituents and not just the billionaire class.] 

[Excerpt]

"In what is shaping up to be a long, hard fight over the use of creative works, round one has gone to the AI makers. In the first such US decision of its kind, District Judge William Alsup said Anthropic’s use of millions of books to train its artificial-intelligence model, without payment to the sources, was legal under copyright law because it was “transformative — spectacularly so.”...

If a precedent has been set, as several observers believe, it stands to cripple one of the few possible AI monetization strategies for rights holders, which is to sell licenses to firms for access to their work. Some of these deals have already been made while the “fair use” question has been in limbo, deals that emerged only after the threat of legal action. This ruling may have just taken future deals off the table...

Alsup was right when he wrote that “the technology at issue was among the most transformative many of us will see in our lifetimes.”...

But that doesn’t mean it shouldn’t pay its way. Nobody would dare suggest Nvidia Corp. CEO Jensen Huang hand out his chips free. No construction worker is asked to keep costs down by building data center walls for nothing. Software engineers aren’t volunteering their time to Meta Platforms Inc. in awe of Mark Zuckerberg’s business plan — they instead command salaries of $100 million and beyond. 

Yet, as ever, those in the tech industry have decided that creative works, and those who create them, should be considered of little or no value and must step aside in service of the great calling of AI — despite being every bit as vital to the product as any other factor mentioned above. As science-fiction author Harlan Ellison said in his famous sweary rant, nobody ever wants to pay the writer if they can get away with it. When it comes to AI, paying creators of original work isn’t impossible, it’s just inconvenient. Legislators should leave companies no choice."