⚖️ Meta's AI Copyright lawsuit

Author

Liam Gill
March 20, 2025

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AI Copyright Lawsuits: What Startups Need to Know

A federal judge has ruled that a copyright lawsuit against Meta, brought by authors including Richard Kadrey and Sarah Silverman, can proceed, though some claims were dismissed. The case alleges that Meta used copyrighted books to train its Llama AI models and intentionally removed copyright management information (CMI) to conceal infringement. While Meta argues its use falls under fair use, the judge found that the authors have standing to sue and that their allegations raise a plausible inference of deliberate copyright violation. This ruling adds to a growing wave of AI copyright litigation, including a high-profile case from The New York Times against OpenAI.

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Implications for Startups

For AI startups, this case underscores the legal risks of training models on copyrighted content without clear licensing agreements. While fair use remains a debated defense, courts are increasingly scrutinizing how AI companies handle copyrighted data. Startups developing AI models—especially those involving text, images, or other creative works—must carefully assess their data sources to avoid potential legal exposure. Additionally, removing copyright metadata, whether intentional or accidental, could invite further legal scrutiny under the Digital Millennium Copyright Act (DMCA).

Navigating the Uncertain Legal Landscape

As more lawsuits test the boundaries of AI and copyright law, startups should proactively implement risk mitigation strategies. This includes securing proper licensing agreements, using publicly available or explicitly permitted data, and ensuring AI-generated outputs do not replicate protected works. With regulators and courts shaping the rules in real time, startups should stay updated on legal developments and consider legal counsel when designing data pipelines. While AI innovation is moving fast, the legal framework surrounding content usage is catching up—and companies that fail to adapt could face significant liability.

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