From Music Business Worldwide · · 2m
US Court Rejects AI Fair Use Defense for Training Data
US appeals court rules AI training on copyrighted material isn't fair use, impacting music labels' battle with Suno AI.
In brief
US appeals court rules AI training on copyrighted material isn't fair use, impacting music labels' battle with Suno AI. US Third Circuit court rejected fair use defense for AI training data, setting precedent for music labels' legal fight with Suno AI platform. Originally reported by Music Business Worldwide.
US Court Rejects Fair Use Defense
A US federal appeals court rejected a fair use defense over AI training data in a ruling for Thomson Reuters and against ROSS Intelligence.
Case Involves Westlaw Headnotes
The case centered on Westlaw headnotes, short editorial summaries of court rulings written by Thomson Reuters attorneys.
ROSS Shut Platform in 2021
ROSS shut its platform down in 2021 after citing the cost of litigation.
RIAA and NMPA Back Thomson Reuters
The RIAA and NMPA filed a joint amicus brief supporting Thomson Reuters, noting the case's relevance to music industry AI lawsuits.
ROSS Argued for Necessity
ROSS claimed copying was an intermediate step toward a non-infringing product, similar to Sega and Google v. Oracle cases.
Third Circuit Rules Against ROSS
The court found ROSS could have built training memos from public judicial opinions, making copying unnecessary.
Each Headnote Counts as Copyrightable Work
The court held each Westlaw headnote is a separate copyrightable work, with statutory damages per infringed work.
Statutory Damages Could Reach $9 Billion
Universal and Sony's second suit against Suno claims 60,202 recordings, potentially costing up to $9 billion in statutory damages.
ROSS Used Bad Faith Tactics
ROSS tried to access Westlaw using fake credentials and student accounts while concealing its employment.
Suno's Models Are Generative AI
The Third Circuit noted Suno's models generate original content, unlike ROSS's non-generative platform.
Suno Case in Different Circuit
Universal and Sony's Suno case is in the First Circuit, so the Third Circuit ruling is persuasive but not binding.
Munich Court Also Rules Against Suno
A German court previously ruled Suno infringes copyright on six works, using the same legal reasoning as the US court.
Suno Faces Second Lawsuit
Universal and Sony sued Suno a second time over v6 models, claiming they are the same as previously infringed works.
Next Steps for Suno
Suno may appeal the Munich ruling and faces potential damages from both US and German courts.
In short
US Third Circuit court rejected fair use defense for AI training data, setting precedent for music labels' legal fight with Suno AI platform.
