The US Copyright Office is wrong about artificial intelligence

Navigating the AI Frontier: Why Fair Use Is Indispensable for Innovation

The dawn of Artificial Intelligence has ushered in an era of unprecedented technological advancement, promising to revolutionize countless aspects of our lives. Yet, as AI models grow in sophistication, a critical debate has emerged, threatening to impede this progress: the application of copyright law, specifically the principle of "fair use," to AI training data. Recently, the U.S. Copyright Office issued a report concluding that the use of copyrighted materials to train generative AI models does not constitute fair use. This conclusion, we argue, is not only legally misinformed but profoundly detrimental to America's leadership in the global tech landscape.

Fair Use: A Cornerstone of Innovation, Not a Loophole

Fair use is a vital defense in copyright law, designed to permit the limited use of copyrighted material without requiring permission from the rights holder, especially when such use is transformative or serves a broader public interest. Historically, fair use has been the unseen backbone of major technological leaps. Consider Google's search engine: it operates by reproducing vast amounts of web content to index it. Without fair use protection, Google would face insurmountable liability, crippling its ability to provide the invaluable service we rely on daily.

Generative AI systems, in their developmental stages, engage in what is termed "backend copying." This process mirrors how humans learn: by observing how words, facts, and ideas are used across a multitude of texts. Just as a person reading a book to learn new concepts is not committing copyright infringement, AI models learn to generate coherent and relevant outputs by processing enormous datasets. To classify this fundamental learning process as infringement would be a radical departure from established legal precedent and common understanding of how knowledge is acquired.

The argument that allowing backend copying as fair use would stifle human creativity or impoverish artists is a common misconception. Creators retain their right to monetize their original works through direct sales, and the notion of individual payments for every piece of data used in training billions-strong datasets is logistically and economically unfeasible. Moreover, fair use explicitly protects the ability for AI systems to produce original and transformative outputs; if an AI system generates a direct replica of a copyrighted work, that output remains subject to infringement claims.

The Real Stakes: American Competitiveness and Societal Progress

Denying fair use for AI training carries immense economic and strategic risks. Imagine the prohibitive costs and the bureaucratic nightmare of negotiating licenses for hundreds of millions, or even billions, of copyrighted works. Such a burden would disproportionately crush nascent AI startups, solidifying the dominance of existing tech giants who alone might possess the resources to navigate such a complex licensing labyrinth. This outcome would stifle healthy competition and innovation precisely where it's most needed.

Furthermore, AI is not merely about chatbots. It is a foundational technology poised to revolutionize critical sectors: medical diagnostics and drug discovery, advanced scientific research, personalized education, and even national defense. Impeding its development through overly restrictive copyright interpretations directly threatens America's status as the world leader in AI. Geopolitical competitors, such as China, are rapidly advancing their AI capabilities, as evidenced by developments like DeepSeek. To surrender our lead due to a misguided legal interpretation would have profound implications for our economic prosperity and national security.

Beyond Construction: The Transformative Uses of AI

A crucial aspect often overlooked in this debate is how AI systems are ultimately used. Generative AI is increasingly deployed in contexts that traditionally fall under fair use. For instance, AI can be used to simulate complex surgical procedures for medical students, conduct large-scale academic research by summarizing vast amounts of information, or power next-generation search engines that offer richer, more tailored results than traditional methods. To condemn all AI training as beyond fair use is to short-circuit a vital inquiry: how will this technology ultimately benefit society?

Many important AI models are released as "open-source" or "open-weight," meaning they are freely available for anyone to download and use. The potential for innovation stemming from these models is virtually limitless, extending far beyond the initial intentions of their creators. While some downstream applications might produce infringing works, many others will lead to purely non-infringing facts and ideas, or be used in contexts that clearly qualify as fair use. Curtailing the foundational training process would arbitrarily block these diverse and beneficial applications.

Like the VCR or traditional search engines before it, generative AI is a technology with both infringing and non-infringing capabilities. Its assessment under fair use must be contextual, focusing on its ultimate application and transformative value, rather than an blanket prohibition on its learning phase. To halt the fair use inquiry at the training stage is to ignore the remarkable possibilities AI offers and to risk impairing what many consider the most significant information technology since the printing press.

Charting a Pragmatic Course

The U.S. Copyright Office's report reflects a shortsighted perspective that could have far-reaching negative consequences. Embracing a pragmatic interpretation of fair use for AI training is not only consistent with the historical spirit of copyright law, which aims to promote progress, but it is also strategically imperative for maintaining American technological leadership. Policymakers must recognize AI's unique learning paradigm and its immense potential. By fostering an environment where AI can learn and evolve responsibly, we ensure that this powerful technology continues to serve as a catalyst for innovation, societal benefit, and global competitiveness.