The Use of Copyrighted Material in AI Development: A Legal Perspective

NMR Legal
3 min readSep 19, 2023

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As artificial intelligence (AI) continues to transform industries and revolutionize our lives and work, a critical issue has emerged: the use of copyrighted material in AI development. The question of whether and how to balance copyright holders’ interests with AI innovators’ needs has become increasingly pressing.

In recent years, various international organizations and governments have issued policy recommendations to address this issue. For example, the Organization for Economic Cooperation and Development (OECD), the G7, and the G20 have all released guidelines to balance these competing interests. WIPO is holding a series of Conversations with stakeholders to overcome the hardship. Additionally, the European Union has proposed the Artificial Intelligence Act, which includes provisions related to using copyrighted material in AI development.

Despite these efforts, the handling of copyrights in AI development remains to be seen. While no explicit regulations govern the use of copyrighted material in AI development, policy recommendations suggest that fair use doctrines should be applied. However, the interpretation and implementation of these doctrines vary widely, leading to confusion and uncertainty among stakeholders.

Clash of Rights and Innovations

Despite these efforts, the intersection of copyright law and AI development remains shrouded in ambiguity. The lack of clear regulations and divergent interpretations of fair use doctrines create confusion and uncertainty among stakeholders. This article will delve into several scenarios where copyrighted material is used in AI development, analyzing the legal implications and offering insights into navigating these complex issues.

To provide clarity, let’s examine several scenarios involving the use of copyrighted material in AI development:

  1. Data mining: Using copyrighted material for the purpose of training AI models shall be considered lawful/fair unless the rightsholder has explicitly reserved the right to prevent such use. It’s crucial to note that any such reservation must be made in a machine-readable format in German law.
  2. Database adaptation or reproduction: Many jurisdictions allow for the transformation or reproduction of databases without requiring a commercial license, provided that the resulting dataset does not mirror its source. Ensuring it doesn’t simply reflect its source is essential if the database is published or redistributed.
  3. Model development: A commercial license is required when a model is based on a single dataset. However, if the underlying model is one of many underlying analyses or parameters, the necessity of a commercial license depends on the specific circumstances.
  4. Output publication: Publishing the output of an AI model may raise concerns about copyright infringement, particularly if the output reflects the original work and could be detected as plagiarism. In such cases, the likelihood of licensability of the original works may be reduced.

What to expect?

Recent legal disputes, such as those involving OpenAI Codex and GitHub Copilot, highlight the importance of considering these issues carefully. Their models, which are based on and substitute copyrighted material, have raised allegations of plagiarism and reduction of licensability for the original works. Audio/visual generative AI models may also be sued because outputs reflect the original work and reduce the licensability of the original works. These generative AI models, which reduce the probability of original work, will likely vanish.

While the legal landscape surrounding the use of copyrighted material in AI development continues to evolve, it’s crucial for stakeholders to stay informed and adapt their strategies accordingly. At the same time, it’s important to recognize that not all AI applications pose the same copyright challenges. Data analysis and text-generative AI models, for instance, may not necessarily reduce the likelihood of licensability for the original works, making them less likely to face legal scrutiny.

Ultimately, finding a balance between promoting AI innovation and protecting the rights of copyright holders requires ongoing dialogue, collaboration, and regulatory developments. As AI technology advances, so too must our understanding of the legal frameworks that govern its use. By fostering greater certainty and clarity in this area, we can ensure that AI development continues to thrive while respecting the intellectual property rights of creators and innovators alike.

The ongoing conversation regarding this matter suggests that there may be changes in the legal system's interpretation and application. It remains to be seen how these changes will affect the current jurisprudence.

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NMR Legal

NMR Legal is LLP of attorneys at law in Turkey. We represent clients in the video game, animation, audio production, Web3, Artificial Intelligence industries.