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Third Circuit Addresses Fair Use In AI Training, But Leaves Generative AI Questions Unresolved

Published

5 October 2026

Topic

regulatory

◆ Sectors

AI & ML

◆ Geography

United States

◆ Source

Read at mondaq.com →

◆ Verified

Fusion42 · 5 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 did not qualify as fair use, emphasizing harm to existing and emerging licensing markets. However, the court left unresolved whether training generative AI models on copyrighted expressive works constitutes fair use.

This Wire brief sits within Fusion42's coverage of AI & ML, and 8 sources have reported it between 29 Sep 2026 and 5 Oct 2026.

◆ ◆ The Wire takeaway

Legal AI founders must reassess their training data to avoid copyright infringement given this new ruling. The gap on generative AI leaves a regulatory uncertainty that could reshape product design and licensing soon.

◆ Coverage

8 sources · first reported 29 Sep 2026 · latest 5 Oct 2026

◆ Related on Wire

◆ Topics

AI & MLcopyrightfair-useai-traininglegal-techthird-circuit