The US Copyright Office has released a pre-publication version of Part 3 of its report series into AI and copyright in response to congressional inquiries and expressions of interest from stakeholders. A final version of Part 3 will be published in the near future, without any substantive changes expected in the analysis or conclusions. The Part 3 report concludes that the fair use exception likely does not apply to commercial AI training, noting that “making commercial use of vast troves of copyrighted works to produce expressive content that competes with them in existing markets, especially where this is accomplished through illegal access, goes beyond established fair use boundaries.” In terms of policy solution, the report notes that given the robust growth of voluntary licensing, as well as the lack of stakeholder support for any statutory change, government intervention would be premature at this time. Rather, licensing markets should continue to develop, extending early successes into more contexts as soon as possible. In those areas where remaining gaps are unlikely to be filled, alternative approaches such as extended collective licensing should be considered to address any market failure.
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