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EU-Sponsored Report Questions “Fair Use” Applicability for Generative AI
A recent report, sponsored by the European Union, has raised significant questions about whether the existing legal concept of “fair use” can adequately accommodate the complex needs and operations of generative artificial intelligence (GenAI) systems. Published by The Register on July 14, 2025, the findings suggest that current legal frameworks may be ill-equipped to address the novel challenges posed by technologies that learn from and create content based on vast datasets.
Generative AI, the technology behind tools capable of producing text, images, music, and code, operates by being trained on enormous quantities of existing data, much of which is protected by copyright. The “fair use” doctrine, a legal principle in copyright law, traditionally allows limited use of copyrighted material without permission for purposes such as criticism, comment, news reporting, teaching, scholarship, or research.
However, the EU-sponsored report argues that the traditional interpretation and application of fair use may not align with the fundamental mechanisms of GenAI. The core of the issue lies in the sheer scale of data ingestion and processing involved in training these models. While fair use often considers factors like the amount and substantiality of the portion used, and the effect of the use upon the potential market for or value of the copyrighted work, the report suggests that GenAI’s training process often involves consuming entire works or substantial portions thereof, which can blur the lines of what constitutes permissible “fair” use.
Furthermore, the report highlights the potential for GenAI systems to produce outputs that are derivative of or substantially similar to existing copyrighted works, raising concerns about market harm and infringement. The report’s examination implies that the “transformative” nature, often a key element in fair use arguments, might be difficult to establish when the primary purpose of data consumption is to replicate or generate similar styles and content.
The implications of this report are far-reaching for the burgeoning GenAI industry and the creators whose works form the bedrock of its training data. It signals a potential need for re-evaluation and possibly the development of new legal or licensing frameworks specifically tailored to the unique characteristics of generative AI. This could involve exploring new licensing models, establishing clearer guidelines for data usage in AI training, or even reinterpreting existing copyright exceptions to better suit the digital age.
The EU’s initiative in commissioning such a report underscores its commitment to understanding and regulating the rapidly evolving landscape of artificial intelligence. The findings are likely to stimulate further discussion and debate among policymakers, legal experts, technology developers, and copyright holders across the EU and globally, as stakeholders seek to strike a balance between fostering innovation and protecting intellectual property rights.
EU-sponsored report says GenAI’s ‘fair use’ defense does not compute
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The Register published ‘EU-sponsored report says GenAI’s ‘fair use’ defense does not compute’ at 2025-07-14 13:15. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with t he article only.