Recent U.S. court rulings  in cases involving generative AI (Anthropic, Meta, and Ross Intelligence) have addressed whether training AI models on copyrighted datasets constitutes copyright infringement or qualifies as ‘fair use’.

What is Copyright?

• Copyright, also known as author’s right, is a legal right granted to creators over their original literary and artistic works. 
• It covers a wide range of creations including books, music, paintings, sculptures, films, computer programs, databases, advertisements, maps, and technical drawings.

Legal Concerns

• Key Question: Does this reproduction for training violate copyright, or is it protected under fair use (U.S.), or text and data mining exceptions (EU, U.K.)?
• Output Concerns: If AI-generated content closely mimics original copyrighted works, it may infringe upon market value and legal protections.

Major Recent U.S. Court Rulings

• Two major U.S. court decisions have supported the idea that using copyrighted material for AI training can fall under the fair use doctrine.
• In Anthropic’s case, The court found that using copyrighted data for training AI could be considered “transformative,” likening it to a writer learning from reading books.
• In Meta’s case, the court held that the plaintiffs failed to show that Meta’s AI diluted the market for the original works, ruling in Meta’s favor under the fair use doctrine.

What is the Doctrine of Fair Use?

• Fair use is a legal doctrine that permits limited use of copyrighted material without needing to obtain permission from the copyright holders. Fair Use balances copyright protection with public interest.

• Key factors considered in determining fair use:
• • The purpose and character of the use, including whether such use is of commercial nature or is for nonprofit educational purposes.
  • The nature of the copyrighted work.
  • The amount and substantiality of the portion used in relation to the copyrighted work as a whole.
  • The effect of the use upon the potential market for, or value of, the copyrighted work.

Indian Context and Legal Stance

• No Separate Category: No separate legal category for AI-generated content in Indian IPR laws.
• Exclusive Rights: Copyright Act, 1957 grants copyright holders exclusive rights over reproduction, adaptation, and translation.
• Permissions: Commercial use of copyrighted works by Generative AI requires permission from the rights holder.
• Fair dealing exceptions under Section 52 of the Copyright Act apply to limited, non-commercial use.
• Legal Remedies: IPRs are private rights, enforced by the right holders. Civil and criminal remedies are available against infringement, including digital misuse or circumvention.

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