EU Court to Consider Lawfulness of AI Training on Copyrighted Works
The Court of Justice of the European Union registered its first preliminary reference directly concerning the permissibility of using copyright-protected works in artificial intelligence training processes.
Background
The case originated from a dispute between Hungarian publisher Like Company and Google Ireland Limited over the use of copyright-protected content in the responses generated by the Gemini/Bard chatbot. The specific query involved Hungarian singer Kozsó and his plans related to dolphins in Lake Balaton.
The case revolves around the interpretation of Article 4 of Directive (EU) 2019/790, which allows text and data mining without consent under certain conditions.
The Budapest Regional Court referred the case to the CJEU, questioning the legality of using copyrighted works in AI training processes.
Legal Context
AI developers in the EU heavily rely on the provisions of Directive 2019/790, especially Article 4, which permits text and data mining without explicit consent from the rightholder, provided certain criteria are met.
However, the interpretation of these laws in the context of AI training is crucial. The EU AI Act explicitly refers to TDM exceptions and outlines responsibilities for providers of AI models.
Case C-250/25
The case being considered by the CJEU marks a significant milestone in the legal landscape concerning AI and copyright law in the EU.
The outcome of the case will have far-reaching consequences for AI developers, rightholders, and general-purpose model providers.
Significance for the Industry
The ruling in Case C-250/25 is expected to set a precedent for the regulation of AI model training on copyrighted works in the EU.
The decision will impact how AI developers and rightholders navigate copyright laws and opt-out mechanisms.
International Implications
The CJEU's decision may influence global standards for AI development, as many major AI companies operate in the European market.
Notably, different jurisdictions have varying approaches to TDM exceptions, with the EU's stance potentially shaping international norms.
For more information on legal risks related to AI applications using copyrighted content in light of Case C-250/25, contact our Arbitration & IT Disputes team.
