AI Copyright: Training-Data Lawsuits and Licences — 2026-10-11
The US Court of Appeals for the Federal Circuit has issued a landmark ruling rejecting "fair use" for AI training on copyrighted material in *Thomson Reuters v. Ross Intelligence*, setting a dangerous precedent for generative AI defendants. Simultaneously, USA Today filed a new copyright lawsuit against OpenAI, while the European Commission launched a targeted consultation on AI copyright compliance, signaling a shift toward stricter regulatory frameworks in Europe.
AI Copyright: Training-Data Lawsuits and Licences — 2026-10-11
Top developments
Federal Circuit Rejects Fair Use for AI Training Data
In a pivotal decision reported on October 6, 2026, a US federal appeals court upheld a ruling that Ross Intelligence’s use of copyrighted legal material to train its AI model did not constitute fair use. This marks the first time an appellate court has explicitly rejected the fair use defense for AI training on copyrighted works, overturning earlier district court logic that favored technological innovation over copyright claims. The ruling significantly weakens the legal position of AI companies like Suno and Udio, who rely on similar fair use arguments in music and text generation cases.

USA Today Files New Copyright Suit Against OpenAI
On October 8, 2026, USA Today Co. and its affiliated newspaper companies filed a federal lawsuit against OpenAI in New York, alleging that the company trained its GPT models on hundreds of thousands of their copyrighted articles without permission or compensation. The suit argues that OpenAI’s use of these works directly competes with USA Today’s own products, undermining the market value of original journalism. This filing adds significant pressure to the ongoing New York Times v. OpenAI case, potentially creating a consolidated front among major media publishers.

European Commission Launches AI Copyright Consultation
On September 29, 2026, the European Commission opened a targeted consultation to gather stakeholder views on how AI affects copyright protection, specifically focusing on generative AI training data compliance. The consultation tests whether new binding EU copyright measures are needed, addressing issues such as transparency, fair remuneration for creators, and the scope of text and data mining exceptions. This move signals a potential tightening of the EU’s regulatory environment for AI developers operating in Europe.
Japanese Media Analyzes Anthropic Settlement Implications
Japanese business media is closely analyzing the implications of the Bartz v. Anthropic settlement, which saw final judgment entered in July 2026. Recent articles from October 9, 2026, discuss how the US fair use rulings contrast with Japan’s Copyright Act Article 30-4, which currently permits AI training if it does not harm the rights holders' interests. Analysts warn that as US courts draw stricter lines around "market harm," Japanese companies may face increased pressure to adopt similar licensing models to avoid international legal risks.
Local view
German media continues to reference the landmark GEMA v. OpenAI ruling from late 2025 as a benchmark for European copyright enforcement, with recent analyses focusing on the compliance burden for SMEs using AI tools. In Japan, outlets like JBpress and MAGMOE are debating whether Article 30-4 of the Copyright Act provides sufficient protection for authors against large-scale AI training, noting that the lack of clear "opt-out" mechanisms could leave creators vulnerable despite the law's flexibility.
Context & numbers
The landscape of AI licensing deals remains dominated by OpenAI, which has signed approximately 24 publicly announced agreements, nearly double that of competitors like Microsoft and Meta. The largest disclosed deal remains News Corp’s agreement with OpenAI, valued at up to $250 million over five years. As of mid-2026, there are projected to be 36 major content licensing deals in the sector, indicating a shift from experimental partnerships to infrastructure-level agreements.
On the radar
- Suno and Udio Litigation: Following the Thomson Reuters appellate ruling, legal experts are watching for immediate responses from music AI companies Suno and Udio, whose fair use defenses may now face higher hurdles in US courts.
- EU Consultation Deadlines: Stakeholders have until the end of the consultation period to submit views on the EU's proposed copyright updates, with industry groups expected to lobby heavily against stricter transparency requirements for training data.
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