Introduction
President Trump’s recently unveiled ‘AI Action Plan’ emphasizes a fair use approach in AI training, sparking discussions about the legal implications of using copyrighted material. This plan highlights the tension between advancing AI technology and adhering to copyright laws, particularly in the face of international competition.
Description
President Trump has recently unveiled his ‘AI Action Plan,’ which notably emphasizes a fair use approach in the context of AI training. This plan has sparked discussions regarding the legal implications of training AI systems on copyrighted material [1], particularly as tech companies have faced significant legal challenges from various rights holders [1], including publishers and artists [1], over the use of copyrighted works without authorization or compensation [1]. Trump advocates for the national interest in advancing AI technology and maintaining a competitive edge over countries like China [4], which has weaker intellectual property protections and does not impose strict copyright licensing for data used in AI. He argues that it is unrealistic to expect AI companies to compensate for every piece of content utilized in training models [5], asserting that requiring licenses from copyright owners would disadvantage American firms compared to their Chinese counterparts. The expectation to pay for all copyrighted content is deemed impractical by Trump, who suggests that a common-sense application of intellectual property rules is necessary [4].
While acknowledging the value of knowledge gained from various sources [4], Trump insists that this should not be equated with copyright infringement or necessitate complex licensing agreements with content providers [4]. His remarks align with the tech sector’s perspective [3], as many in the AI community assert that their training practices fall under the ‘fair use’ doctrine of American copyright law [3], a position that has seen some judicial support in recent rulings [3]. However, major copyright holders [3], including those in the music and film industries, have initiated lawsuits against AI companies [3], challenging the notion of fair use and advocating for clearer regulations requiring AI firms to secure licenses [3].
In response to these concerns [1] [2], Senators Josh Hawley and Richard Blumenthal have proposed legislation mandating that AI companies secure consent from individuals before utilizing their content and data in AI development [2]. Notably, Trump’s plan does not clarify copyright issues [3], suggesting a distinct regulatory perspective on the intersection of AI development and copyright law [1]. His administration appears to anticipate that courts will favor the AI industry [3], as evidenced by recent rulings involving generative AI models that suggest AI training may qualify as fair use [3], albeit with caveats regarding the use of pirated content. The legal landscape remains complex and evolving [3], with significant cases likely to reach the US Supreme Court [3], prolonging the resolution of these issues [3].
The US Copyright Office has indicated that AI training could be considered fair use in certain contexts [3], but not universally [3]. This guidance was released amid political tensions surrounding the dismissal of the Copyright Office head [3], who was perceived as potentially favoring copyright owners [3]. Legislative proposals in Congress are emerging that would require AI companies to obtain permissions [3], but these may face challenges in garnering bipartisan support [3], particularly from Republicans aligned with Trump’s views [3]. In the European context [3], recent assessments highlight that existing copyright exceptions for text and data mining were not designed for AI training [3], underscoring the need for specific regulations addressing AI within EU law [3].
Conclusion
The ‘AI Action Plan’ underscores the ongoing debate between fostering AI innovation and respecting copyright laws. As the legal landscape evolves, the outcome of this debate will significantly impact the AI industry’s development and its competitive positioning on the global stage. The resolution of these issues will likely shape future regulations and influence international approaches to AI and intellectual property rights.
References
[1] https://www.wired.com/story/president-trump-ai-action-plan-speech/
[2] https://deadline.com/2025/07/trump-ai-action-plan-copyright-1236466617/
[3] https://completemusicupdate.com/getting-ai-companies-to-agree-to-licensing-deals-with-copyright-owners-is-not-doable-and-chinas-not-doing-it-rambles-trump/
[4] https://chatgptiseatingtheworld.com/2025/07/23/pres-trump-supports-fair-use-in-ai-training-notes-importance-to-national-interest/
[5] https://www.thewrap.com/donald-trump-ai-company-copyright-content-training-models/
