copyright

internet-archive’s-big-battle-with-music-publishers-ends-in-settlement

Internet Archive’s big battle with music publishers ends in settlement

A settlement has been reached in a lawsuit where music publishers sued the Internet Archive over the Great 78 Project, an effort to preserve early music recordings that only exist on brittle shellac records.

No details of the settlement have so far been released, but a court filing on Monday confirmed that the Internet Archive and UMG Recordings, Capitol Records, Sony Music Entertainment, and other record labels “have settled this matter.” More details may come in the next 45 days, when parties must submit filings to officially dismiss the lawsuit, but it’s unlikely the settlement amount will be publicly disclosed.

Days before the settlement was announced, record labels had indicated that everyone but the Internet Archive and its founder, Brewster Kahle, had agreed to sign a joint settlement, seemingly including the Great 78 Project’s recording engineer George Blood, who was also a target of the litigation. But in the days since, IA has gotten on board, posting a blog confirming that “the parties have reached a confidential resolution of all claims and will have no further public comment on this matter.”

For IA—which strove to digitize 3 million recordings to help historians document recording history—the lawsuit from music publishers could have meant financial ruin. Initially, record labels alleged that damages amounted to $400 million, claiming they lost streams when IA visitors played Great 78 recordings.

But despite IA arguing that there were comparably low downloads and streams on the Great 78 recordings—as well as a music publishing industry vet suggesting that damages were likely no more than $41,000—the labels intensified their attacks in March. In a court filing, the labels added so many more infringing works that the estimated damages increased to $700 million. It seemed like labels were intent on doubling down on a fight that, at least one sound historian suggested, the labels might one day regret.

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Judge: Anthropic’s $1.5B settlement is being shoved “down the throat of authors”

At a hearing Monday, US district judge William Alsup blasted a proposed $1.5 billion settlement over Anthropic’s rampant piracy of books to train AI.

The proposed settlement comes in a case where Anthropic could have owed more than $1 trillion in damages after Alsup certified a class that included up to 7 million claimants whose works were illegally downloaded by the AI company.

Instead, critics fear Anthropic will get off cheaply, striking a deal with authors suing that covers less than 500,000 works and paying a small fraction of its total valuation (currently $183 billion) to get away with the massive theft. Defector noted that the settlement doesn’t even require Anthropic to admit wrongdoing, while the company continues raising billions based on models trained on authors’ works. Most recently, Anthropic raised $13 billion in a funding round, making back about 10 times the proposed settlement amount after announcing the deal.

Alsup expressed grave concerns that lawyers rushed the deal, which he said now risks being shoved “down the throat of authors,” Bloomberg Law reported.

In an order, Alsup clarified why he thought the proposed settlement was a chaotic mess. The judge said he was “disappointed that counsel have left important questions to be answered in the future,” seeking approval for the settlement despite the Works List, the Class List, the Claim Form, and the process for notification, allocation, and dispute resolution all remaining unresolved.

Denying preliminary approval of the settlement, Alsup suggested that the agreement is “nowhere close to complete,” forcing Anthropic and authors’ lawyers to “recalibrate” the largest publicly reported copyright class-action settlement ever inked, Bloomberg reported.

Of particular concern, the settlement failed to outline how disbursements would be managed for works with multiple claimants, Alsup noted. Until all these details are ironed out, Alsup intends to withhold approval, the order said.

One big change the judge wants to see is the addition of instructions requiring “anyone with copyright ownership” to opt in, with the consequence that the work won’t be covered if even one rights holder opts out, Bloomberg reported. There should also be instruction that any disputes over ownership or submitted claims should be settled in state court, Alsup said.

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Warner Bros. sues Midjourney to stop AI knockoffs of Batman, Scooby-Doo


AI would’ve gotten away with it too…

Warner Bros. case builds on arguments raised in a Disney/Universal lawsuit.

DVD art for the animated movie Scooby-Doo & Batman: The Brave and the Bold. Credit: Warner Bros. Discovery

Warner Bros. hit Midjourney with a lawsuit Thursday, crafting a complaint that strives to shoot down defenses that the AI company has already raised in a similar lawsuit filed by Disney and Universal Studios earlier this year.

The big film studios have alleged that Midjourney profits off image generation models trained to produce outputs of popular characters. For Disney and Universal, intellectual property rights to pop icons like Darth Vader and the Simpsons were allegedly infringed. And now, the WB complaint defends rights over comic characters like Superman, Wonder Woman, and Batman, as well as characters considered “pillars of pop culture with a lasting impact on generations,” like Scooby-Doo and Bugs Bunny, and modern cartoon characters like Rick and Morty.

“Midjourney brazenly dispenses Warner Bros. Discovery’s intellectual property as if it were its own,” the WB complaint said, accusing Midjourney of allowing subscribers to “pick iconic” copyrighted characters and generate them in “every imaginable scene.”

Planning to seize Midjourney’s profits from allegedly using beloved characters to promote its service, Warner Bros. described Midjourney as “defiant and undeterred” by the Disney/Universal lawsuit. Despite that litigation, WB claimed that Midjourney has recently removed copyright protections in its supposedly shameful ongoing bid for profits. Nothing but a permanent injunction will end Midjourney’s outputs of allegedly “countless infringing images,” WB argued, branding Midjourney’s alleged infringements as “vast, intentional, and unrelenting.”

Examples of closely matching outputs include prompts for “screencaps” showing specific movie frames, a search term that at least one artist, Reid Southen, had optimistically predicted Midjourney would block last year, but it apparently did not.

Here are some examples included in WB’s complaint:

Midjourney’s output for the prompt, “Superman, classic cartoon character, DC comics.”

Midjourney could face devastating financial consequences in a loss. At trial, WB is hoping discovery will show the true extent of Midjourney’s alleged infringement, asking the court for maximum statutory damages, at $150,000 per infringing output. Just 2,000 infringing outputs unearthed could cost Midjourney more than its total revenue for 2024, which was approximately $300 million, the WB complaint said.

Warner Bros. hopes to hobble Midjourney’s best defense

For Midjourney, the WB complaint could potentially hit harder than the Disney/Universal lawsuit. WB’s complaint shows how closely studios are monitoring AI copyright litigation, likely choosing ideal moments to strike when studios feel they can better defend their property. So, while much of WB’s complaint echoes Disney and Universal’s arguments—which Midjourney has already begun defending against—IP attorney Randy McCarthy suggested in statements provided to Ars that WB also looked for seemingly smart ways to potentially overcome some of Midjourney’s best defenses when filing its complaint.

WB likely took note when Midjourney filed its response to the Disney/Universal lawsuit last month, arguing that its system is “trained on billions of publicly available images” and generates images not by retrieving a copy of an image in its database but based on “complex statistical relationships between visual features and words in the text-image pairs are encoded within the model.”

This defense could allow Midjourney to avoid claims that it copied WB images and distributes copies through its models. But hoping to dodge this defense, WB didn’t argue that Midjourney retains copies of its images. Rather, the entertainment giant raised a more nuanced argument that:

Midjourney used software, servers, and other technology to store and fix data associated with Warner Bros. Discovery’s Copyrighted Works in such a manner that those works are thereby embodied in the model, from which Midjourney is then able to generate, reproduce, publicly display, and distribute unlimited “copies” and “derivative works” of Warner Bros. Discovery’s works as defined by the Copyright Act.”

McCarthy noted that WB’s argument pushes the court to at least consider that even though “Midjourney does not store copies of the works in its model,” its system “nonetheless accesses the data relating to the works that are stored by Midjourney’s system.”

“This seems to be a very clever way to counter MJ’s ‘statistical pattern analysis’ arguments,” McCarthy said.

If it’s a winning argument, that could give WB a path to wipe Midjourney’s models. WB argued that each time Midjourney provides a “substantially new” version of its image generator, it “repeats this process.” And that ongoing activity—due to Midjourney’s initial allegedly “massive copying” of WB works—allows Midjourney to “further reproduce, publicly display, publicly perform, and distribute image and video outputs that are identical or virtually identical to Warner Bros. Discovery’s Copyrighted Works in response to simple prompts from subscribers.”

Perhaps further strengthening the WB’s argument, the lawsuit noted that Midjourney promotes allegedly infringing outputs on its 24/7 YouTube channel and appears to have plans to compete with traditional TV and streaming services. Asking the court to block Midjourney’s outputs instead, WB claims it’s already been “substantially and irreparably harmed” and risks further damages if the AI image generator is left unchecked.

As alleged proof that the AI company knows its tool is being used to infringe WB property, WB pointed to Midjourney’s own Discord server and subreddit, where users post outputs depicting WB characters and share tips to help others do the same. They also called out Midjourney’s “Explore” page, which allows users to drop a WB-referencing output into the prompt field to generate similar images.

“It is hard to imagine copyright infringement that is any more willful than what Midjourney is doing here,” the WB complaint said.

WB and Midjourney did not immediately respond to Ars’ request to comment.

Midjourney slammed for promising “fewer blocked jobs”

McCarthy noted that WB’s legal strategy differs in other ways from the arguments Midjourney’s already weighed in the Disney/Universal lawsuit.

The WB complaint also anticipates Midjourney’s likely defense that users are generating infringing outputs, not Midjourney, which could invalidate any charges of direct copyright infringement.

In the Disney/Universal lawsuit, Midjourney argued that courts have recently found that AI tools referencing copyrighted works is “a quintessentially transformative fair use,” accusing studios of trying to censor “an instrument for user expression.” They claim that Midjourney cannot know about infringing outputs unless studios use the company’s DMCA process, while noting that subscribers have “any number of legitimate, noninfringing grounds to create images incorporating characters from popular culture,” including “non-commercial fan art, experimentation and ideation, and social commentary and criticism.”

To avoid losing on that front, the WB complaint doesn’t depend on a ruling that Midjourney directly infringed copyrights. Instead, the complaint “more fully” emphasizes how Midjourney may be “secondarily liable for infringement via contributory, inducement and/or vicarious liability by inducing its users to directly infringe,” McCarthy suggested.

Additionally, WB’s complaint “seems to be emphasizing” that Midjourney “allegedly has the technical means to prevent its system from accepting prompts that directly reference copyrighted characters,” and “that would prevent infringing outputs from being displayed,” McCarthy said.

The complaint noted that Midjourney is in full control of what outputs can be generated. Noting that Midjourney “temporarily refused to ‘animate'” outputs of WB characters after launching video generations, the lawsuit appears to have been filed in response to Midjourney “deliberately” removing those protections and then announcing that subscribers would experience “fewer blocked jobs.”

Together, these arguments “appear to be intended to lead to the inference that Midjourney is willfully enticing its users to infringe,” McCarthy said.

WB’s complaint details simple user prompts that generate allegedly infringing outputs without any need to manipulate the system. The ease of generating popular characters seems to make Midjourney a destination for users frustrated by other AI image generators that make it harder to generate infringing outputs, WB alleged.

On top of that, Midjourney also infringes copyrights by generating WB characters, “even in response to generic prompts like ‘classic comic book superhero battle.'” And while Midjourney has seemingly taken steps to block WB characters from appearing on its “Explore” page, where users can find inspiration for prompts, these guardrails aren’t perfect, but rather “spotty and suspicious,” WB alleged. Supposedly, searches for correctly spelled character names like “Batman” are blocked, but any user who accidentally or intentionally mispells a character’s name like “Batma” can learn an easy way to work around that block.

Additionally, WB alleged, “the outputs often contain extensive nuance and detail, background elements, costumes, and accessories beyond what was specified in the prompt.” And every time that Midjourney outputs an allegedly infringing image, it “also trains on the outputs it has generated,” the lawsuit noted, creating a never-ending cycle of continually enhanced AI fakes of pop icons.

Midjourney could slow down the cycle and “minimize” these allegedly infringing outputs, if it cannot automatically block them all, WB suggested. But instead, “Midjourney has made a calculated and profit-driven decision to offer zero protection for copyright owners even though Midjourney knows about the breathtaking scope of its piracy and copyright infringement,” WB alleged.

Fearing a supposed scheme to replace WB in the market by stealing its best-known characters, WB accused Midjourney of willfully allowing WB characters to be generated in order to “generate more money for Midjourney” to potentially compete in streaming markets.

Midjourney will remove protections “on a whim”

As Midjourney’s efforts to expand its features escalate, WB claimed that trust is lost. Even if Midjourney takes steps to address rightsholders’ concerns, WB argued, studios must remain watchful of every upgrade, since apparently, “Midjourney can and will remove copyright protection measures on a whim.”

The complaint noted that Midjourney just this week announced “plans to continue deploying new versions” of its image generator, promising to make it easier to search for and save popular artists’ styles—updating a feature that many artists loathe.

Without an injunction, Midjourney’s alleged infringement could interfere with WB’s licensing opportunities for its content, while “illegally and unfairly” diverting customers who buy WB products like posters, wall art, prints, and coloring books, the complaint said.

Perhaps Midjourney’s strongest defense could be efforts to prove that WB benefits from its image generator. In the Disney/Universal lawsuit, Midjourney pointed out that studios “benefit from generative AI models,” claiming that “many dozens of Midjourney subscribers are associated with” Disney and Universal corporate email addresses. If WB corporate email addresses are found among subscribers, Midjourney could claim that WB is trying to “have it both ways” by “seeking to profit” from AI tools while preventing Midjourney and its subscribers from doing the same.

McCarthy suggested it’s too soon to say how the WB battle will play out, but Midjourney’s response will reveal how it intends to shift tactics to avoid courts potentially picking apart its defense of its training data, while keeping any blame for copyright-infringing outputs squarely on users.

“As with the Disney/Universal lawsuit, we need to wait to see how Midjourney answers these latest allegations,” McCarthy said. “It is definitely an interesting development that will have widespread implications for many sectors of our society.”

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

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NYT to start searching deleted ChatGPT logs after beating OpenAI in court


What are the odds NYT will access your ChatGPT logs in OpenAI court battle?

Last week, OpenAI raised objections in court, hoping to overturn a court order requiring the AI company to retain all ChatGPT logs “indefinitely,” including deleted and temporary chats.

But Sidney Stein, the US district judge reviewing OpenAI’s request, immediately denied OpenAI’s objections. He was seemingly unmoved by the company’s claims that the order forced OpenAI to abandon “long-standing privacy norms” and weaken privacy protections that users expect based on ChatGPT’s terms of service. Rather, Stein suggested that OpenAI’s user agreement specified that their data could be retained as part of a legal process, which Stein said is exactly what is happening now.

The order was issued by magistrate judge Ona Wang just days after news organizations, led by The New York Times, requested it. The news plaintiffs claimed the order was urgently needed to preserve potential evidence in their copyright case, alleging that ChatGPT users are likely to delete chats where they attempted to use the chatbot to skirt paywalls to access news content.

A spokesperson told Ars that OpenAI plans to “keep fighting” the order, but the ChatGPT maker seems to have few options left. They could possibly petition the Second Circuit Court of Appeals for a rarely granted emergency order that could intervene to block Wang’s order, but the appeals court would have to consider Wang’s order an extraordinary abuse of discretion for OpenAI to win that fight.

OpenAI’s spokesperson declined to confirm if the company plans to pursue this extreme remedy.

In the meantime, OpenAI is negotiating a process that will allow news plaintiffs to search through the retained data. Perhaps the sooner that process begins, the sooner the data will be deleted. And that possibility puts OpenAI in the difficult position of having to choose between either caving to some data collection to stop retaining data as soon as possible or prolonging the fight over the order and potentially putting more users’ private conversations at risk of exposure through litigation or, worse, a data breach.

News orgs will soon start searching ChatGPT logs

The clock is ticking, and so far, OpenAI has not provided any official updates since a June 5 blog post detailing which ChatGPT users will be affected.

While it’s clear that OpenAI has been and will continue to retain mounds of data, it would be impossible for The New York Times or any news plaintiff to search through all that data.

Instead, only a small sample of the data will likely be accessed, based on keywords that OpenAI and news plaintiffs agree on. That data will remain on OpenAI’s servers, where it will be anonymized, and it will likely never be directly produced to plaintiffs.

Both sides are negotiating the exact process for searching through the chat logs, with both parties seemingly hoping to minimize the amount of time the chat logs will be preserved.

For OpenAI, sharing the logs risks revealing instances of infringing outputs that could further spike damages in the case. The logs could also expose how often outputs attribute misinformation to news plaintiffs.

But for news plaintiffs, accessing the logs is not considered key to their case—perhaps providing additional examples of copying—but could help news organizations argue that ChatGPT dilutes the market for their content. That could weigh against the fair use argument, as a judge opined in a recent ruling that evidence of market dilution could tip an AI copyright case in favor of plaintiffs.

Jay Edelson, a leading consumer privacy lawyer, told Ars that he’s concerned that judges don’t seem to be considering that any evidence in the ChatGPT logs wouldn’t “advance” news plaintiffs’ case “at all,” while really changing “a product that people are using on a daily basis.”

Edelson warned that OpenAI itself probably has better security than most firms to protect against a potential data breach that could expose these private chat logs. But “lawyers have notoriously been pretty bad about securing data,” Edelson suggested, so “the idea that you’ve got a bunch of lawyers who are going to be doing whatever they are” with “some of the most sensitive data on the planet” and “they’re the ones protecting it against hackers should make everyone uneasy.”

So even though odds are pretty good that the majority of users’ chats won’t end up in the sample, Edelson said the mere threat of being included might push some users to rethink how they use AI. He further warned that ChatGPT users turning to OpenAI rival services like Anthropic’s Claude or Google’s Gemini could suggest that Wang’s order is improperly influencing market forces, which also seems “crazy.”

To Edelson, the most “cynical” take could be that news plaintiffs are possibly hoping the order will threaten OpenAI’s business to the point where the AI company agrees to a settlement.

Regardless of the news plaintiffs’ motives, the order sets an alarming precedent, Edelson said. He joined critics suggesting that more AI data may be frozen in the future, potentially affecting even more users as a result of the sweeping order surviving scrutiny in this case. Imagine if litigation one day targets Google’s AI search summaries, Edelson suggested.

Lawyer slams judges for giving ChatGPT users no voice

Edelson told Ars that the order is so potentially threatening to OpenAI’s business that the company may not have a choice but to explore every path available to continue fighting it.

“They will absolutely do something to try to stop this,” Edelson predicted, calling the order “bonkers” for overlooking millions of users’ privacy concerns while “strangely” excluding enterprise customers.

From court filings, it seems possible that enterprise users were excluded to protect OpenAI’s competitiveness, but Edelson suggested there’s “no logic” to their exclusion “at all.” By excluding these ChatGPT users, the judge’s order may have removed the users best resourced to fight the order, Edelson suggested.

“What that means is the big businesses, the ones who have the power, all of their stuff remains private, and no one can touch that,” Edelson said.

Instead, the order is “only going to intrude on the privacy of the common people out there,” which Edelson said “is really offensive,” given that Wang denied two ChatGPT users’ panicked request to intervene.

“We are talking about billions of chats that are now going to be preserved when they weren’t going to be preserved before,” Edelson said, noting that he’s input information about his personal medical history into ChatGPT. “People ask for advice about their marriages, express concerns about losing jobs. They say really personal things. And one of the bargains in dealing with OpenAI is that you’re allowed to delete your chats and you’re allowed to temporary chats.”

The greatest risk to users would be a data breach, Edelson said, but that’s not the only potential privacy concern. Corynne McSherry, legal director for the digital rights group the Electronic Frontier Foundation, previously told Ars that as long as users’ data is retained, it could also be exposed through future law enforcement and private litigation requests.

Edelson pointed out that most privacy attorneys don’t consider OpenAI CEO Sam Altman to be a “privacy guy,” despite Altman recently slamming the NYT, alleging it sued OpenAI because it doesn’t “like user privacy.”

“He’s trying to protect OpenAI, and he does not give a hoot about the privacy rights of consumers,” Edelson said, echoing one ChatGPT user’s dismissed concern that OpenAI may not prioritize users’ privacy concerns in the case if it’s financially motivated to resolve the case.

“The idea that he and his lawyers are really going to be the safeguards here isn’t very compelling,” Edelson said. He criticized the judges for dismissing users’ concerns and rejecting OpenAI’s request that users get a chance to testify.

“What’s really most appalling to me is the people who are being affected have had no voice in it,” Edelson said.

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

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In a wild time for copyright law, the US Copyright Office has no leader


Rudderless Copyright Office has taken on new prominence during the AI boom.

It’s a tumultuous time for copyright in the United States, with dozens of potentially economy-shaking AI copyright lawsuits winding through the courts. It’s also the most turbulent moment in the US Copyright Office’s history. Described as “sleepy” in the past, the Copyright Office has taken on new prominence during the AI boom, issuing key rulings about AI and copyright. It also hasn’t had a leader in more than a month.

In May, Copyright Register Shira Perlmutter was abruptly fired by email by the White House’s deputy director of personnel. Perlmutter is now suing the Trump administration, alleging that her firing was invalid; the government maintains that the executive branch has the authority to dismiss her. As the legality of the ouster is debated, the reality within the office is this: There’s effectively nobody in charge. And without a leader actually showing up at work, the Copyright Office is not totally business-as-usual; in fact, there’s debate over whether the copyright certificates it’s issuing could be challenged.

The firing followed a pattern. The USCO is part of the Library of Congress; Perlmutter had been appointed to her role by Librarian of Congress Carla Hayden. A few days before Perlmutter’s dismissal, Hayden, who had been in her role since 2016, was also fired by the White House via email. The White House appointed Deputy Attorney General Todd Blanche, who had previously served as President Trump’s defense attorney, as the new acting Librarian of Congress.

Two days after Pelmutter’s firing, Justice Department official Paul Perkins showed up at the Copyright Office, along with his colleague Brian Nieves. According to an affidavit from Perlmutter, they were carrying “printed versions of emails” from Blanche indicating that they had been appointed to new roles within the Copyright Office. Perkins, the email said, was designated as Acting Register of Copyrights. In other words, he was Perlmutter’s replacement.

But was Blanche actually the acting Librarian, and thus able to appoint Perkins as such? Within the Library of Congress, someone else had already assumed the role—Robert Newlen, Hayden’s former second-in-command, who has worked at the LOC since the 1970s. Following Hayden’s ouster, Newlen emailed LOC staff asserting that he was the acting Librarian—never mentioning Blanche—and noting that “Congress is engaged with the White House” on how to proceed.

In her lawsuit, Perlmutter argues that only the Librarian of Congress can fire and appoint a new Register. In a filing on Tuesday, defendants argued that the president does indeed have the authority to fire and appoint the Librarian of Congress and that his appointees then have the ability to choose a new Copyright Register.

Neither the Department of Justice nor the White House responded to requests for comment on this issue; the Library of Congress declined to comment.

Perkins and Nieves did not enter the USCO office or assume the roles they purported to fill the day they showed up. And since they left, sources within the Library of Congress tell WIRED, they have never returned, nor have they assumed any of the duties associated with the roles. These sources say that Congress is in talks with the White House to reach an agreement over these personnel disputes.

A congressional aide familiar with the situation told WIRED that Blanche, Perkins, and Nieves had not shown up for work “because they don’t have jobs to show up to.” The aide continued: “As we’ve always maintained, the President has no authority to appoint them. Robert Newlen has always been the Acting Librarian of Congress.”

If talks are happening, they remain out of public view. But Perlmutter does have some members of Congress openly on her side. “The president has no authority to remove the Register of Copyrights. That power lies solely with the Librarian of Congress. I’m relieved that the situation at the Library and Copyright Office has stabilized following the administration’s unconstitutional attempt to seize control for the executive branch. I look forward to quickly resolving this matter in a bipartisan way,” Senator Alex Padilla tells WIRED in a statement.

In the meantime, the Copyright Office is in the odd position of attempting to carry on as though it wasn’t missing its head. Immediately after Perlmutter’s dismissal, the Copyright Office paused issuing registration certificates “out of an abundance of caution,” according to USCO spokesperson Lisa Berardi Marflak, who says the pause impacted around 20,000 registrations. It resumed activities on May 29 but is now sending out registration certificates with a blank spot where Perlmutter’s signature would ordinarily be.

This unusual change has prompted discussion amongst copyright experts as to whether the registrations are now more vulnerable to legal challenges. The Copyright Office maintains that they are valid: “There is no requirement that the Register’s signature must appear on registration certificates,” says Berardi Marflak.

In a motion related to Perlmutter’s lawsuit, though, she alleges that sending out the registrations without a signature opens them up to “challenges in litigation,” something outside copyright experts have also pointed out. “It’s true the law doesn’t explicitly require a signature,” IP lawyer Rachael Dickson says. “However, the law really explicitly says that it’s the Register of Copyright determining whether the material submitted for the application is copyrightable subject matter.”

Without anyone acting as Register, Dickson thinks it would be reasonable to argue that the statutory requirements are not being met. “If you take them completely out of the equation, you have a really big problem,” she says. “Litigators who are trying to challenge a copyright registration’s validity will jump on this.”

Perlmutter’s lawyers have argued that leaving the Copyright Office without an active boss will cause dysfunction beyond the registration certificate issue, as the Register performs a variety of tasks, from advising Congress on copyright to recertifying organizations like the Mechanical Licensing Collective, the nonprofit in charge of administering royalties for streaming and download music in the United States. Since the MLC’s certification is up right now, Perlmutter would ordinarily be moving forward with recertifying the organization; as her lawsuit notes, right now, the recertification process is not moving forward.

The MLC may not be as impacted by Perlmutter’s absence as the complaint suggests. A source close to the MLC told WIRED that the organization does indeed need to be recertified but that the law doesn’t require the recertification process to be completed within a specific time frame, so it will be able to continue operating as usual.

Still, there are other ways that the lack of a boss is a clear liability. The Copyright Claims Board, a three-person tribunal that resolves some copyright disputes, needs to replace one of its members this year, as a current board member, who did not reply to a request for comment, is leaving. The job posting is already live and says applications are being reviewed, but as the position is supposed to be appointed by the Librarian of Congress with the guidance of the Copyright Register, it’s unclear how exactly it will be filled. A source familiar at the Library of Congress tells WIRED that Newlen could make the appointment if necessary, but they “expect there to be some kind of greater resolution by then.”

As they wait for the resolution, it remains an especially inopportune time for a headless Copyright Office. Perlmutter was fired just days after the office released a hotly contested report on generative AI training and fair use. That report has already been heavily cited in a new class action lawsuit against AI tools Suno and Udio, even though it was technically a “prepublication” version and not finalized. But everyone looking to see what a final report will say—or what guidance the office will issue next—can only keep waiting.

This story originally appeared on wired.com.

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Judge: Pirate libraries may have profited from Meta torrenting 80TB of books

It could certainly look worse for Meta if authors manage to present evidence supporting the second way that torrenting could be relevant to the case, Chhabaria suggested.

“Meta downloading copyrighted material from shadow libraries” would also be relevant to the character of the use, “if it benefitted those who created the libraries and thus supported and perpetuated their unauthorized copying and distribution of copyrighted works,” Chhabria wrote.

Counting potential strikes against Meta, Chhabria pointed out that the “vast majority of cases” involving “this sort of peer-to-peer file-sharing” are found to “constitute copyright infringement.” And it likely doesn’t help Meta’s case that “some of the libraries Meta used have themselves been found liable for infringement.”

However, Meta may overcome this argument, too, since book authors “have not submitted any evidence” that potentially shows how Meta’s downloading may perhaps be “propping up” or financially benefiting pirate libraries.

Finally, Chhabria noted that the “last issue relating to the character of Meta’s use” of books in regards to its torrenting is “the relationship between Meta’s downloading of the plaintiffs’ books and Meta’s use of the books to train Llama.”

Authors had tried to argue that these elements were distinct. But Chhabria said there’s no separating the fact that Meta downloaded the books to serve the “highly transformative” purpose of training Llama.

“Because Meta’s ultimate use of the plaintiffs’ books was transformative, so too was Meta’s downloading of those books,” Chhabria wrote.

AI training rulings may get more authors paid

Authors only learned of Meta’s torrenting through discovery in the lawsuit, and because of that, Chhabria noted that “the record on Meta’s alleged distribution is incomplete.”

It’s possible that authors may be able to show evidence that Meta “contributed to the BitTorrent network” by providing significant computing power that could’ve meaningfully assisted shadow libraries, Chhabria said in a footnote.

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Key fair use ruling clarifies when books can be used for AI training

“This order doubts that any accused infringer could ever meet its burden of explaining why downloading source copies from pirate sites that it could have purchased or otherwise accessed lawfully was itself reasonably necessary to any subsequent fair use,” Alsup wrote. “Such piracy of otherwise available copies is inherently, irredeemably infringing even if the pirated copies are immediately used for the transformative use and immediately discarded.”

But Alsup said that the Anthropic case may not even need to decide on that, since Anthropic’s retention of pirated books for its research library alone was not transformative. Alsup wrote that Anthropic’s argument to hold onto potential AI training material it pirated in case it ever decided to use it for AI training was an attempt to “fast glide over thin ice.”

Additionally Alsup pointed out that Anthropic’s early attempts to get permission to train on authors’ works withered, as internal messages revealed the company concluded that stealing books was considered the more cost-effective path to innovation “to avoid ‘legal/practice/business slog,’ as cofounder and chief executive officer Dario Amodei put it.”

“Anthropic is wrong to suppose that so long as you create an exciting end product, every ‘back-end step, invisible to the public,’ is excused,” Alsup wrote. “Here, piracy was the point: To build a central library that one could have paid for, just as Anthropic later did, but without paying for it.”

To avoid maximum damages in the event of a loss, Anthropic will likely continue arguing that replacing pirated books with purchased books should water down authors’ fight, Alsup’s order suggested.

“That Anthropic later bought a copy of a book it earlier stole off the Internet will not absolve it of liability for the theft, but it may affect the extent of statutory damages,” Alsup noted.

Key fair use ruling clarifies when books can be used for AI training Read More »

openai-is-retaining-all-chatgpt-logs-“indefinitely”-here’s-who’s-affected.

OpenAI is retaining all ChatGPT logs “indefinitely.” Here’s who’s affected.

In the copyright fight, Magistrate Judge Ona Wang granted the order within one day of the NYT’s request. She agreed with news plaintiffs that it seemed likely that ChatGPT users may be spooked by the lawsuit and possibly set their chats to delete when using the chatbot to skirt NYT paywalls. Because OpenAI wasn’t sharing deleted chat logs, the news plaintiffs had no way of proving that, she suggested.

Now, OpenAI is not only asking Wang to reconsider but has “also appealed this order with the District Court Judge,” the Thursday statement said.

“We strongly believe this is an overreach by the New York Times,” Lightcap said. “We’re continuing to appeal this order so we can keep putting your trust and privacy first.”

Who can access deleted chats?

To protect users, OpenAI provides an FAQ that clearly explains why their data is being retained and how it could be exposed.

For example, the statement noted that the order doesn’t impact OpenAI API business customers under Zero Data Retention agreements because their data is never stored.

And for users whose data is affected, OpenAI noted that their deleted chats could be accessed, but they won’t “automatically” be shared with The New York Times. Instead, the retained data will be “stored separately in a secure system” and “protected under legal hold, meaning it can’t be accessed or used for purposes other than meeting legal obligations,” OpenAI explained.

Of course, with the court battle ongoing, the FAQ did not have all the answers.

Nobody knows how long OpenAI may be required to retain the deleted chats. Likely seeking to reassure users—some of which appeared to be considering switching to a rival service until the order lifts—OpenAI noted that “only a small, audited OpenAI legal and security team would be able to access this data as necessary to comply with our legal obligations.”

OpenAI is retaining all ChatGPT logs “indefinitely.” Here’s who’s affected. Read More »

judge-on-meta’s-ai-training:-“i-just-don’t-understand-how-that-can-be-fair-use”

Judge on Meta’s AI training: “I just don’t understand how that can be fair use”


Judge downplayed Meta’s “messed up” torrenting in lawsuit over AI training.

A judge who may be the first to rule on whether AI training data is fair use appeared skeptical Thursday at a hearing where Meta faced off with book authors over the social media company’s alleged copyright infringement.

Meta, like most AI companies, holds that training must be deemed fair use, or else the entire AI industry could face immense setbacks, wasting precious time negotiating data contracts while falling behind global rivals. Meta urged the court to rule that AI training is a transformative use that only references books to create an entirely new work that doesn’t replicate authors’ ideas or replace books in their markets.

At the hearing that followed after both sides requested summary judgment, however, Judge Vince Chhabria pushed back on Meta attorneys arguing that the company’s Llama AI models posed no threat to authors in their markets, Reuters reported.

“You have companies using copyright-protected material to create a product that is capable of producing an infinite number of competing products,” Chhabria said. “You are dramatically changing, you might even say obliterating, the market for that person’s work, and you’re saying that you don’t even have to pay a license to that person.”

Declaring, “I just don’t understand how that can be fair use,” the shrewd judge apparently stoked little response from Meta’s attorney, Kannon Shanmugam, apart from a suggestion that any alleged threat to authors’ livelihoods was “just speculation,” Wired reported.

Authors may need to sharpen their case, which Chhabria warned could be “taken away by fair use” if none of the authors suing, including Sarah Silverman, Ta-Nehisi Coates, and Richard Kadrey, can show “that the market for their actual copyrighted work is going to be dramatically affected.”

Determined to probe this key question, Chhabria pushed authors’ attorney, David Boies, to point to specific evidence of market harms that seemed noticeably missing from the record.

“It seems like you’re asking me to speculate that the market for Sarah Silverman’s memoir will be affected by the billions of things that Llama will ultimately be capable of producing,” Chhabria said. “And it’s just not obvious to me that that’s the case.”

But if authors can prove fears of market harms are real, Meta might struggle to win over Chhabria, and that could set a precedent impacting copyright cases challenging AI training on other kinds of content.

The judge repeatedly appeared to be sympathetic to authors, suggesting that Meta’s AI training may be a “highly unusual case” where even though “the copying is for a highly transformative purpose, the copying has the high likelihood of leading to the flooding of the markets for the copyrighted works.”

And when Shanmugam argued that copyright law doesn’t shield authors from “protection from competition in the marketplace of ideas,” Chhabria resisted the framing that authors weren’t potentially being robbed, Reuters reported.

“But if I’m going to steal things from the marketplace of ideas in order to develop my own ideas, that’s copyright infringement, right?” Chhabria responded.

Wired noted that he asked Meta’s lawyers, “What about the next Taylor Swift?” If AI made it easy to knock off a young singer’s sound, how could she ever compete if AI produced “a billion pop songs” in her style?

In a statement, Meta’s spokesperson reiterated the company’s defense that AI training is fair use.

“Meta has developed transformational open source AI models that are powering incredible innovation, productivity, and creativity for individuals and companies,” Meta’s spokesperson said. “Fair use of copyrighted materials is vital to this. We disagree with Plaintiffs’ assertions, and the full record tells a different story. We will continue to vigorously defend ourselves and to protect the development of GenAI for the benefit of all.”

Meta’s torrenting seems “messed up”

Some have pondered why Chhabria appeared so focused on market harms, instead of hammering Meta for admittedly illegally pirating books that it used for its AI training, which seems to be obvious copyright infringement. According to Wired, “Chhabria spoke emphatically about his belief that the big question is whether Meta’s AI tools will hurt book sales and otherwise cause the authors to lose money,” not whether Meta’s torrenting of books was illegal.

The torrenting “seems kind of messed up,” Chhabria said, but “the question, as the courts tell us over and over again, is not whether something is messed up but whether it’s copyright infringement.”

It’s possible that Chhabria dodged the question for procedural reasons. In a court filing, Meta argued that authors had moved for summary judgment on Meta’s alleged copying of their works, not on “unsubstantiated allegations that Meta distributed Plaintiffs’ works via torrent.”

In the court filing, Meta alleged that even if Chhabria agreed that the authors’ request for “summary judgment is warranted on the basis of Meta’s distribution, as well as Meta’s copying,” that the authors “lack evidence to show that Meta distributed any of their works.”

According to Meta, authors abandoned any claims that Meta’s seeding of the torrented files served to distribute works, leaving only claims about Meta’s leeching. Meta argued that the authors “admittedly lack evidence that Meta ever uploaded any of their works, or any identifiable part of those works, during the so-called ‘leeching’ phase,” relying instead on expert estimates based on how torrenting works.

It’s also possible that for Chhabria, the torrenting question seemed like an unnecessary distraction. Former Meta attorney Mark Lumley, who quit the case earlier this year, told Vanity Fair that the torrenting was “one of those things that sounds bad but actually shouldn’t matter at all in the law. Fair use is always about uses the plaintiff doesn’t approve of; that’s why there is a lawsuit.”

Lumley suggested that court cases mulling fair use at this current moment should focus on the outputs, rather than the training. Citing the ruling in a case where Google Books scanning books to share excerpts was deemed fair use, Lumley argued that “all search engines crawl the full Internet, including plenty of pirated content,” so there’s seemingly no reason to stop AI crawling.

But the Copyright Alliance, a nonprofit, non-partisan group supporting the authors in the case, in a court filing alleged that Meta, in its bid to get AI products viewed as transformative, is aiming to do the opposite. “When describing the purpose of generative AI,” Meta allegedly strives to convince the court to “isolate the ‘training’ process and ignore the output of generative AI,” because that’s seemingly the only way that Meta can convince the court that AI outputs serve “a manifestly different purpose from Plaintiffs’ books,” the Copyright Alliance argued.

“Meta’s motion ignores what comes after the initial ‘training’—most notably the generation of output that serves the same purpose of the ingested works,” the Copyright Alliance argued. And the torrenting question should matter, the group argued, because unlike in Google Books, Meta’s AI models are apparently training on pirated works, not “legitimate copies of books.”

Chhabria will not be making a snap decision in the case, planning to take his time and likely stressing not just Meta, but every AI company defending training as fair use the longer he delays. Understanding that the entire AI industry potentially has a stake in the ruling, Chhabria apparently sought to relieve some tension at the end of the hearing with a joke, Wired reported.

 “I will issue a ruling later today,” Chhabria said. “Just kidding! I will take a lot longer to think about it.”

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

Judge on Meta’s AI training: “I just don’t understand how that can be fair use” Read More »

judge-calls-out-openai’s-“straw-man”-argument-in-new-york-times-copyright-suit

Judge calls out OpenAI’s “straw man” argument in New York Times copyright suit

“Taken as true, these facts give rise to a plausible inference that defendants at a minimum had reason to investigate and uncover end-user infringement,” Stein wrote.

To Stein, the fact that OpenAI maintains an “ongoing relationship” with users by providing outputs that respond to users’ prompts also supports contributory infringement claims, despite OpenAI’s argument that ChatGPT’s “substantial noninfringing uses” are exonerative.

OpenAI defeated some claims

For OpenAI, Stein’s ruling likely disappoints, although Stein did drop some of NYT’s claims.

Likely upsetting to news publishers, that included a “free-riding” claim that ChatGPT unfairly profits off time-sensitive “hot news” items, including the NYT’s Wirecutter posts. Stein explained that news publishers failed to plausibly allege non-attribution (which is key to a free-riding claim) because, for example, ChatGPT cites the NYT when sharing information from Wirecutter posts. Those claims are pre-empted by the Copyright Act anyway, Stein wrote, granting OpenAI’s motion to dismiss.

Stein also dismissed a claim from the NYT regarding alleged removal of copyright management information (CMI), which Stein said cannot be proven simply because ChatGPT reproduces excerpts of NYT articles without CMI.

The Digital Millennium Copyright Act (DMCA) requires news publishers to show that ChatGPT’s outputs are “close to identical” to the original work, Stein said, and allowing publishers’ claims based on excerpts “would risk boundless DMCA liability”—including for any use of block quotes without CMI.

Asked for comment on the ruling, an OpenAI spokesperson declined to go into any specifics, instead repeating OpenAI’s long-held argument that AI training on copyrighted works is fair use. (Last month, OpenAI warned Donald Trump that the US would lose the AI race to China if courts ruled against that argument.)

“ChatGPT helps enhance human creativity, advance scientific discovery and medical research, and enable hundreds of millions of people to improve their daily lives,” OpenAI’s spokesperson said. “Our models empower innovation, and are trained on publicly available data and grounded in fair use.”

Judge calls out OpenAI’s “straw man” argument in New York Times copyright suit Read More »

music-labels-will-regret-coming-for-the-internet-archive,-sound-historian-says

Music labels will regret coming for the Internet Archive, sound historian says

But David Seubert, who manages sound collections at the University of California, Santa Barbara library, told Ars that he frequently used the project as an archive and not just to listen to the recordings.

For Seubert, the videos that IA records of the 78 RPM albums capture more than audio of a certain era. Researchers like him want to look at the label, check out the copyright information, and note the catalogue numbers, he said.

“It has all this information there,” Seubert said. “I don’t even necessarily need to hear it,” he continued, adding, “just seeing the physicality of it, it’s like, ‘Okay, now I know more about this record.'”

Music publishers suing IA argue that all the songs included in their dispute—and likely many more, since the Great 78 Project spans 400,000 recordings—”are already available for streaming or downloading from numerous services.”

“These recordings face no danger of being lost, forgotten, or destroyed,” their filing claimed.

But Nathan Georgitis, the executive director of the Association for Recorded Sound Collections (ARSC), told Ars that you just don’t see 78 RPM records out in the world anymore. Even in record stores selling used vinyl, these recordings will be hidden “in a few boxes under the table behind the tablecloth,” Georgitis suggested. And in “many” cases, “the problem for libraries and archives is that those recordings aren’t necessarily commercially available for re-release.”

That “means that those recordings, those artists, the repertoire, the recorded sound history in itself—meaning the labels, the producers, the printings—all of that history kind of gets obscured from view,” Georgitis said.

Currently, libraries trying to preserve this history must control access to audio collections, Georgitis said. He sees IA’s work with the Great 78 Project as a legitimate archive in that, unlike a streaming service, where content may be inconsistently available, IA’s “mission is to preserve and provide access to content over time.”

Music labels will regret coming for the Internet Archive, sound historian says Read More »

meta-claims-torrenting-pirated-books-isn’t-illegal-without-proof-of-seeding

Meta claims torrenting pirated books isn’t illegal without proof of seeding

Just because Meta admitted to torrenting a dataset of pirated books for AI training purposes, that doesn’t necessarily mean that Meta seeded the file after downloading it, the social media company claimed in a court filing this week.

Evidence instead shows that Meta “took precautions not to ‘seed’ any downloaded files,” Meta’s filing said. Seeding refers to sharing a torrented file after the download completes, and because there’s allegedly no proof of such “seeding,” Meta insisted that authors cannot prove Meta shared the pirated books with anyone during the torrenting process.

Whether or not Meta actually seeded the pirated books could make a difference in a copyright lawsuit from book authors including Richard Kadrey, Sarah Silverman, and Ta-Nehisi Coates. Authors had previously alleged that Meta unlawfully copied and distributed their works through AI outputs—an increasingly common complaint that so far has barely been litigated. But Meta’s admission to torrenting appears to add a more straightforward claim of unlawful distribution of copyrighted works through illegal torrenting, which has long been considered established case-law.

Authors have alleged that “Meta deliberately engaged in one of the largest data piracy campaigns in history to acquire text data for its LLM training datasets, torrenting and sharing dozens of terabytes of pirated data that altogether contain many millions of copyrighted works.” Separate from their copyright infringement claims opposing Meta’s AI training on pirated copies of their books, authors alleged that Meta torrenting the dataset was “independently illegal” under California’s Computer Data Access and Fraud Act (CDAFA), which allegedly “prevents the unauthorized taking of data, including copyrighted works.”

Meta, however, is hoping to convince the court that torrenting is not in and of itself illegal, but is, rather, a “widely-used protocol to download large files.” According to Meta, the decision to download the pirated books dataset from pirate libraries like LibGen and Z-Library was simply a move to access “data from a ‘well-known online repository’ that was publicly available via torrents.”

Meta claims torrenting pirated books isn’t illegal without proof of seeding Read More »