from Part III - Legal
Published online by Cambridge University Press: 24 July 2026
This chapter explores the escalating legal battles that could force AI companies to pay billions in damages and radically restructure how their models are built. At the heart of the dispute is the use of vast troves of copyrighted material, often pirated from sources like LibGen, to train powerful AI models.
The primary legal defense for generative AI (GenAI) companies against copyright infringement claims is fair use. This defense revolves around four key factors, with the concepts of transformative use and the effect on the potential market being the most critical. The outcome of this litigation will determine the future landscape of both AI development and the creative industries. If courts rule broadly for fair use, AI companies will maintain free rein; if they rule against it, the industry will be compelled to adopt licensing or new, noncopying technical approaches. Ultimately, a legal framework conceived in the era of the printing press must now establish the ground rules for the relationship between human and machine creativity in the digital age.
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