Copyright Office Released Pre-Publication of Part Three of its AI Report

On May 6th, 2025, the United States Copyright Office released pre-publication  Part Three of its report on generative artificial intelligence (AI) and copyright law. The 107-page document addresses the contentious issue of whether such use constitutes fair use under current U.S. copyright law. It could have very big implications for a fast-developing area of American copyright law. A final version of the guidance is expected in the near future with little or no material challenges. Here, our Florida copyright registration attorney provides a more comprehensive overview of the latest report.

Generative AI, the Fair Use Doctrine, and its Limitations

One key area of Part Three of the Copyright Office AI report focused on the application of the fair use doctrine to AI training. It is one of the most contentious, controversial issues related to the development of large language models (LLMs). In its report, the Copyright Office clarifies its view that the applicability of the fair use doctrine to AI training is highly context-dependent. While some uses, such as noncommercial research that doesn’t reproduce original works in outputs, may qualify as fair use, the commercial use of copyrighted materials to train AI models that generate expressive content competing with original works likely falls outside fair use protections. The report directly challenges some of the common defenses used by major AI companies—including the argument that AI training is analogous to human learning.

 Generative AI, Training, and Copyright Licensing 

Another major topic in Part Three of the copyright law and AI report is focused on licensing. Indeed, a significant concern highlighted is the potential market harm resulting from AI-generated content that substitutes for original works. The report suggests that these types of practices could dilute the market for copyrighted materials especially when AI outputs closely mimic the style or substance of the originals. To address this, the report advocates for the development of modernized licensing mechanisms, including voluntary and collective licensing models to facilitate the lawful use of copyright-protected materials in AI training.

An Acknowledgement of Continued Global Uncertainty

 The report also acknowledges that AI creates international copyright challenges. The global nature of AI development and the varying legal approaches to copyright and AI across jurisdictions. It notes that while some countries have implemented exceptions for text and data mining, the legal landscape remains extremely fragmented.

The Bottom Line: The Copyright Office’s Part Three report provides a nuanced examination of the intersection between AI training and copyright law. It highlights the complexities of applying fair use in this context, the potential market impacts, and the need for clear licensing frameworks.

Consult With Our Florida Copyright Lawyer Today

At Perkins Law — Brand Protection, our Florida copyright lawyer is standing by, ready to protect your rights and your interests. If you have any questions or concerns about AI and copyright law, please do not hesitate to contact us today for a fully confidential consultation. Our firm handles copyright law issues all across South Florida.

Source:

copyright.gov/ai/Copyright-and-Artificial-Intelligence-Part-3-Generative-AI-Training-Report-Pre-Publication-Version.pdf