In the second landmark decision this week relating to whether use of copyrighted content for training generative AI qualifies as a fair use, Judge Chhabria, in the federal court for the Northern District of California, ordered summary judgment in favor of Meta Platforms Inc. (Meta), finding that Meta’s copying of a group of 13 bestselling authors’ books as training data for use in Meta’s large language training model (LLM) “Llama” was a fair use. Kadrey, et al. v. Meta Platforms, Inc., Case No. 23-cv-0317-VC. This groundbreaking decision out of the NDCA follows Judge Alsup’s ruling earlier this week that Anthropic’s use of legally obtained books for training its LLMs was a fair use, Bartz et al. v. Anthropic PBC, which we covered here.

The orders in both cases determined that the LLM’s use of copyrighted data for training generative AI was “highly transformative” and that the first copyright fair use factor therefore weighed heavily in favor of the AI developers. In both cases, the plaintiffs were unable to demonstrate sufficient market harm to overcome the heavy weight placed on the transformative nature of the AI models. The decisions, however, differed notably as to each judge’s consideration of the source of the copyrighted works and whether the works were obtained through authorized channels or from “pirate websites.”Continue Reading Back-to-Back Fair Use Decisions: Two NDCA Courts Find Fair Use for AI Training, Emphasizing That the Specific Facts Concerning Alleged Market Harm Will Be Critical in Overcoming AI’s “Highly Transformative” Technology