Navigating Copyright Law in the Age of Generative AI: Insights from the U.S. Copyright Office’s 2025 Report
The use of copyrighted material to train generative AI models remains one of the most contentious and unsettled areas of copyright law. In May 2025, the U.S. Copyright Office released its third report addressing this evolving landscape, with particular focus on how copyrighted works are collected and used in generative AI training. The report highlights two primary areas of legal concern:
- The applicability of the fair use doctrine for AI training
The fair use doctrine permits unlicensed use of copyrighted works for purposes such as commentary, parody, education, and news reporting. While some stakeholders argue that it could apply to the training of AI models used in education or research, the Copyright Office concluded that using copyrighted works to train models that generate expressive works competing with human-created content is likely to exceed fair use boundaries.
- Whether current or proposed licensing models can protect copyright owners’ rights and ensure fair compensation
To promote innovation and help copyright owners recover lost revenue, the Office evaluated three licensing models:
- Voluntary licensing, involving negotiated agreements between rights holders and AI developers.
- Compulsory licensing, involving statutory compensation and mandated licenses without the owner’s consent.
- Extended Collective Licensing (ECL), involving a collective entity licensing on behalf of a class of owners unless an individual opts out, potentially under the oversight of the Office.
Given the complexity and diversity of content, the Office concluded it is best to allow the licensing market to evolve without premature intervention.
Considering the Office’s guidance, copyright owners should proceed with caution and seek legal counsel when negotiating AI licensing agreements to ensure they retain control over the use of their works and to secure fair compensation. If you require assistance with licensing or implementing monitoring and risk‑management tools, we are available to assist.
