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In a recent issue of IP Litigator, Marshall Gerstein Partner and patent attorney Ryan Phelan explores two recent rulings that offer the first merit-based guidance on how "fair use" applies to large AI training, particularly in the context of language model (LLM) training. The two cases – Bartz v. Anthropic PBC and Kadrey v. Meta Platforms Inc. – were heard in the U.S. District Court for the Northern District of California.
"The courts found that using lawfully obtained copyrighted texts for training LLMs can be considered 'highly transformative' and can fall under the copyright defense of 'fair use,' but that using pirated materials could lead to liability, particularly if the use affects the market for the original works," Ryan wrote in the publication. "These rulings shift the legal focus toward the source of training data and whether the AI model's output causes market harm, setting the stage for future litigation around this issue."
Ryan describes the four factors of the fair use copyright defense in the context of LLM training for each case, and concludes with related implications and takeaways for AI model developers, copyright owners, and AI model end-users.
Originally published by Marshall Gertstein's PatentNext blog
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