The following is part of our annual publication Selected Issues for Boards of Directors in 2026. Explore all topics or download the PDF.
Overview of AI Copyright Litigation
In 2026, we can expect important developments in the legal landscape of generative AI and copyright. Dozens of copyright infringement lawsuits targeting the training and development of AI models—capable of generating text, images, video, music and more—are advancing toward dispositive rulings. The central issue remains whether training AI models using unlicensed copyrighted works is infringing or instead constitutes fair use under Section 107 of the U.S. Copyright Act. Courts consider four factors in determining whether a particular use is fair: (1) the purpose and character of the use, (2) the nature of the copyrighted work, (3) the amount and substantiality of the portion used and (4) the effect of the use upon the potential market for or value of the copyrighted work. The thrust of this inquiry is whether the use is transformative—serving a different purpose or function from the original work—or merely usurps the market for the original by reproducing its protected expression. As courts establish legal frameworks for AI training and protection of AI-generated outputs, companies and boards should closely monitor developments to fully understand the risks and opportunities of AI implementation.Continue Reading The Open Questions in U.S. Generative AI Copyright Litigation