IT and New Technologies Law

On March 18, 2025, the U.S. Court of Appeals for the District of Columbia Circuit rendered an impactful decision in the case of Thaler v. Perlmutter, reinforcing the principle that copyright protection is exclusively reserved for works created by human authors. This ruling has significant implications for the intersection of artificial intelligence (AI) and intellectual property law.

Introduction

The rapid advancement of artificial intelligence has revolutionized various sectors, including the creative industries. However, this technological evolution has raised complex legal questions, particularly concerning the eligibility of AI-generated works for copyright protection. The recent decision in Thaler v. Perlmutter addresses these issues head-on, providing clarity on the necessity of human authorship in copyright law.

Background of the case

Dr. Stephen Thaler, a pioneer in AI research, developed an artificial intelligence system known as the “Creativity Machine.” This system autonomously produced an artwork titled “A Recent Entrance to Paradise.” In 2019, Dr. Thaler sought to register this AI-generated artwork with the United States Copyright Office, listing the Creativity Machine as the sole author and himself as the copyright claimant.

Legal proceedings and arguments

A – Initial application and denial

The Copyright Office denied Dr. Thaler’s application, citing its longstanding policy that copyright protection extends only to works created by human authors. The Office emphasized that non-human entities, such as machines, cannot be recognized as authors under the Copyright Act.

B – District Court proceedings

Challenging the Copyright Office’s decision, Dr. Thaler filed a lawsuit in the U.S. District Court for the District of Columbia. He argued that the human authorship requirement was neither mandated by the Copyright Act nor the Constitution. The district court upheld the Copyright Office’s decision, affirming that human authorship is a fundamental prerequisite for copyright eligibility.

C – Appeal to the D.C. circuit

Undeterred, Dr. Thaler appealed to the U.S. Court of Appeals for the District of Columbia Circuit. He contended that the term “author” in the Copyright Act should encompass non-human creators, especially in the context of advanced AI systems capable of independent creativity.

Court’s analysis and rationale

A – Interpretation of author in the Copyright Act

The appellate court conducted a thorough analysis of the term “author” as used in the Copyright Act of 1976. Notably, the Act does not explicitly define “author.” However, the court examined various provisions within the Act that implicitly require human authorship:​

• Ownership and transfer provisions: The Act presupposes that authors have the legal capacity to own property and transfer rights, capacities that machines inherently lack.​
• Duration of copyright: Copyright protection is tied to the life of the author, a concept inapplicable to non-human entities.
• Termination rights: The Act provides for termination rights exercisable by the author’s heirs, underscoring the human-centric framework of copyright law.

Based on these considerations, the court concluded that the Copyright Act necessitates human authorship for a work to qualify for copyright protection.​

B – Rejection of non-human authorship arguments

Dr. Thaler proposed that the work-for-hire doctrine allows non-human entities to be considered authors. The court rejected this argument, clarifying that the doctrine permits employers to be deemed authors of works created by human employees within the scope of their employment, but it does not extend authorship to machines or AI systems.

Implications for AI-Generated works

A – Human involvement in creative processes

The court’s decision reaffirms that copyright protection is reserved for works with identifiable human authorship. This does not preclude the use of AI in the creative process; however, there must be substantial human involvement and creative contribution for a work to be eligible for copyright protection.

B – Future considerations

As AI technology continues to evolve, the delineation between human and machine contributions may become increasingly complex. Future legal frameworks may need to adapt to address these challenges, ensuring that copyright law remains relevant in the age of artificial intelligence.

Conclusion

The Thaler v. Perlmutter decision underscores the enduring principle that human creativity is at the heart of copyright protection. While AI can serve as a valuable tool in the creative process, the law currently requires a human touch to confer copyright.

Need expert guidance on AI and intellectual property? Dreyfus Law Firm specializes in intellectual property law, including trademark, copyright, and AI-related legal matters.

Dreyfus Law Firm collaborates with a global network of IP attorneys to provide tailored legal solutions in the evolving field of AI and copyright.

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FAQ

1 – Does AI have copyright?
No. Under current legal frameworks in the United States, France, and most jurisdictions worldwide, artificial intelligence cannot hold copyright. Copyright law recognizes only natural persons (human beings) as authors. The recent ruling in Thaler v. Perlmutter (2025) reaffirmed that a work created autonomously by an AI system without human authorship is not eligible for copyright protection. Machines are regarded strictly as tools, not as legal subjects.

2 – Why does AI pose a threat to copyright law?
AI challenges the fundamental principles of copyright, particularly authorship, originality, and legal accountability. When a work is generated autonomously without substantial human input, it becomes difficult to assess whether it qualifies for protection and, if so, who owns the rights. Additionally, generative AI systems are often trained on protected datasets without authorization, raising significant risks of massive infringement, bypassing of creators, and erosion of intellectual property value. The mass production of AI-generated content also complicates the detection and protection of authentic human works.

3 – What is the impact of artificial intelligence on the law?
Artificial intelligence has a transformative effect on legal systems, presenting both challenges and opportunities:

• In intellectual property law, it compels a re-evaluation of the concepts of authorship, ownership, and originality.
• In contract law, it raises issues regarding the validity of agreements negotiated or executed by autonomous agents.
• In liability law, it prompts questions about assigning responsibility for harm caused by AI systems.
• In data protection law, it intersects with privacy regulations and the governance of algorithmic decisions.

Legal frameworks will need to evolve significantly while preserving their core principles, to provide a fair and effective regulatory response to AI-driven innovation.

Thomson Reuters Enterprise Centre GmbH et al v. ROSS Intelligence Inc., Docket No. 1:20-cv-00613 

In the rapidly evolving landscape of artificial intelligence (AI), the intersection of AI development and intellectual property rights has become a focal point of legal discourse. The case of Thomson Reuters Enterprise Centre GmbH and West Publishing Corp. v. Ross Intelligence Inc. dated February 11, 2025 serves as a landmark in this context, addressing critical questions about the use of copyrighted materials in AI training processes.

Background of the case

Parties involved

Thomson Reuters Enterprise Centre GmbH and its subsidiary, West Publishing Corp., are prominent providers of legal research and information services, notably through their Westlaw platform. Ross Intelligence Inc., on the other hand, was an AI startup aiming to revolutionize legal research by developing an AI-powered platform to provide efficient legal information retrieval.

Nature of the dispute

The dispute arose when Thomson Reuters alleged that Ross Intelligence had unlawfully utilized content from Westlaw’s proprietary database to train its AI system. Specifically, Thomson Reuters contended that Ross had copied headnotes and other editorial enhancements from Westlaw without authorization, constituting copyright infringement. Ross Intelligence countered by asserting that their use of the materials fell under the fair use doctrine, a legal principle permitting limited use of copyrighted works without permission under certain circumstances.

Legal issues presented

Copyright infringement allegations

Thomson Reuters claimed that Ross Intelligence’s actions amounted to direct and willful copyright infringement. The crux of their argument was that the headnotes and editorial content in Westlaw are original works protected under copyright law, and Ross’s reproduction of these elements for commercial gain violated their exclusive rights.

Fair use defense

In response, Ross Intelligence invoked the fair use defense, arguing that their use of Westlaw’s content was transformative and served the public interest by fostering innovation in legal research. They posited that their AI system did not merely replicate the original content but utilized it to develop a novel tool that enhanced legal information accessibility.

Court’s analysis and decision

Evaluation of copyright claims

The court meticulously examined whether the materials in question were subject to copyright protection. It affirmed that the headnotes and editorial content produced by Thomson Reuters involved sufficient creativity and originality to warrant copyright protection, thereby recognizing them as protected works under the law.

Assessment of fair use doctrine

The court then evaluated the applicability of the fair use doctrine by analyzing the following factors:

1. Purpose and character of the use: The court determined that Ross’s use was commercial and not sufficiently transformative, as it replicated the original content’s purpose.
2. Nature of the popyrighted work: The works used were factual but included creative elements, weighing against fair use.
3. Amount and substantiality of the portion used: Ross had used a substantial portion of the protected content, which was central to Thomson Reuters’ offerings.
4. Effect on the market: The court found that Ross’s use could potentially supplant the market for Westlaw’s services, adversely affecting Thomson Reuters’ revenue.

Based on this analysis, the court concluded that Ross Intelligence’s use did not qualify as fair use and constituted copyright infringement.

Broader implications for AI and copyright

Impact on AI training practices

This ruling underscores the necessity for AI developers to exercise caution when using copyrighted materials for training purposes. It highlights that unauthorized use of protected content, even for innovative applications, may lead to legal repercussions. Developers are encouraged to seek licenses or utilize public domain data to mitigate infringement risks.

Future legal considerations

The case sets a precedent for how courts may approach similar disputes involving AI and copyrighted content. It emphasizes the importance of balancing technological advancement with the protection of intellectual property rights. Stakeholders in the AI industry should closely monitor legal developments and consider proactive measures, such as developing internal guidelines for content use and engaging in policy discussions to shape future regulations.

Conclusion

The Thomson Reuters v. Ross Intelligence case serves as a pivotal reference point in the ongoing dialogue between AI innovation and copyright law. It illustrates the complexities inherent in applying traditional intellectual property principles to modern technological contexts and signals a call to action for both legal professionals and AI developers to navigate these challenges collaboratively.

Need expert guidance on AI and intellectual property? Dreyfus Law Firm specializes in intellectual property law, including trademark, copyright, and AI-related legal matters. Our experts stay ahead of AI and copyright developments!

Dreyfus Law Firm collaborates with a global network of IP attorneys.

Join us on social media !

FAQ

1. What was the main issue in the Thomson Reuters v. Ross Intelligence case?
   The primary issue was whether Ross Intelligence’s use of Thomson Reuters’ copyrighted materials to train its AI system constituted fair use or copyright infringement.

1. What is the fair use doctrine?
   Fair use is a legal principle that allows limited use of copyrighted material without permission for purposes such as criticism, comment, news reporting, teaching, scholarship, or research.

1. How did the court rule on the fair use defense in this case?
   The court ruled against Ross Intelligence, determining that their use of the copyrighted materials did not meet the criteria for fair use and thus constituted infringement.

1. What are the implications of this ruling for AI developers?
   AI developers must be cautious when using copyrighted content for training purposes and should consider obtaining licenses or using public domain data to avoid legal issues.

1. Does this case affect all AI applications using copyrighted materials?
   While this case sets a significant precedent, each situation may differ based on specific facts. It’s advisable for AI developers to consult legal experts when dealing with copyrighted materials.

1. Can AI systems use any copyrighted material under fair use?
   Not necessarily. The applicability of fair use depends on factors such