Wire · regulatory
Third Circuit Addresses Fair Use in AI Training, But Leaves Generative AI Questions Unresolved
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Fusion42 · 3 October 2026 · Fusion42 review
The U.S. Third Circuit ruled that using Thomson Reuters’ copyrighted Westlaw headnotes to train ROSS Intelligence's AI legal research product does not qualify as fair use, citing harm to existing and emerging markets. However, the court left unresolved key questions about fair use in training generative AI models that create original content.
This Wire brief sits within Fusion42's coverage of AI & ML, and 7 sources have reported it between 29 Sep 2026 and 2 Oct 2026.
◆ ◆ The Wire takeaway
You face early regulatory limits on using copyrighted text to train AI that competes directly with existing products. Start reexamining your training data sourcing and licensing to avoid legal risks as courts begin to police AI training in legal and adjacent fields.
◆ Coverage
7 sources · first reported 29 Sep 2026 · latest 2 Oct 2026
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