Tag: Microsoft

By Matthew B. Harrison
TALKERS, VP/Associate Publisher
Harrison Media Law, Senior Partner
Goodphone Communications, Executive Producer

Imagine an AI trained on millions of books – and a federal judge saying that’s fair use. That’s exactly what happened this summer in Bartz v. Anthropic, a case now shaping how creators, publishers, and tech giants fight over the limits of copyright.

Judges in California have sent a strong signal: training large language models (LLMs) on copyrighted works can qualify as fair use if the material is lawfully obtained. In Bartz, Judge William Alsup compared Anthropic’s use of purchased books to an author learning from past works. That kind of transformation, he said, doesn’t substitute for the original.

But Alsup drew a hard line against piracy. If a dataset includes books from unauthorized “shadow libraries,” the fair use defense disappears. Those claims are still heading to trial in December, underscoring that source matters just as much as purpose.

Two days later, Judge Vince Chhabria reached a similar conclusion in Kadrey v. Meta. He called Meta’s training “highly transformative,” but dismissed the lawsuit because the authors failed to show real market harm. Together, the rulings show that transformation is a strong shield, but it isn’t absolute. Market evidence and lawful acquisition remain decisive.

AI training fights aren’t limited to novelists. The New York Times v. OpenAI case is pressing forward after a judge refused to dismiss claims that OpenAI and Microsoft undermined the paper’s market by absorbing its reporting into AI products. And in Hollywood, Disney and Universal are suing Midjourney, alleging its system lets users generate characters like Spider-Man or Shrek – raising the unsettled question of whether AI outputs themselves can infringe.

The lesson is straightforward: fair use is evolving, but not limitless. Courts are leaning toward protecting transformative uses of content—particularly when it’s lawfully sourced – but remain wary of piracy and economic harm.

That means media professionals can’t assume that sharing content online makes it free for training. Courts consistently recognize that free journalism, interviews, and broadcasts still carry market value through advertising, sponsorship, and brand equity. If AI systems cut into those markets, the fair use defense weakens.

For now, creators should watch the December Anthropic trial and the Midjourney litigation closely. The courts have blessed AI’s right to learn – but they haven’t yet decided how far those lessons can travel once the outputs begin to look and feel like the originals.

Matthew B. Harrison is a media and intellectual property attorney who advises radio hosts, content creators, and creative entrepreneurs. He has written extensively on fair use, AI law, and the future of digital rights. Reach him at Matthew@HarrisonMediaLaw.com