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Jon Keegan

Thomson Reuters victorious in first major AI copyright case in US

The first battle in the war between publishers and AI companies is over, and a big publisher has emerged victorious.

News and legal publisher Thomson Reuters has won its lawsuit in the US District Court of Delaware against AI startup and competitor Ross Intelligence.

The original complaint said that Thomson Reuters’ Westlaw legal research database was “illicitly and surreptitiously used... to acquire access to and copy Plaintiffs’ valuable content” to create Ross Intelligence’s AI-powered tool, an alleged violation of the publisher’s copyright.

In a summary judgment, the judge found that Ross Intelligence’s claim of the “fair use” doctrine did not pass all of the four tests. The judge emphasized that Ross Intelligence failed the “most important element of fair use” — the fact that it was using Thomson Reuters’ data to develop a competing product.

Circuit judge Stephanos Bibas wrote:

“Even taking all facts in favor of Ross, it meant to compete with Westlaw by developing a market substitute... It does not matter whether Thomson Reuters has used the data to train its own legal search tools; the effect on a potential market for AI training data is enough. Ross bears the burden of proof. It has not put forward enough facts to show that these markets do not exist and would not be affected.”

But the case may not apply to some of the biggest, thorniest issues with the biggest AI copyright lawsuits still working their way through the courts. Ross Intelligence’s tool was not using generative AI (like ChatGPT), which takes a user’s query and synthesizes answers derived from vast amounts of training data that often includes copyrighted material.

Major cases brought by authors, artists, and news publishers, such as The New York Times’ lawsuit against OpenAI and partner Microsoft, have yet to settle such alleged copyright violations, which could have massive implications for the entire AI industry.

The original complaint said that Thomson Reuters’ Westlaw legal research database was “illicitly and surreptitiously used... to acquire access to and copy Plaintiffs’ valuable content” to create Ross Intelligence’s AI-powered tool, an alleged violation of the publisher’s copyright.

In a summary judgment, the judge found that Ross Intelligence’s claim of the “fair use” doctrine did not pass all of the four tests. The judge emphasized that Ross Intelligence failed the “most important element of fair use” — the fact that it was using Thomson Reuters’ data to develop a competing product.

Circuit judge Stephanos Bibas wrote:

“Even taking all facts in favor of Ross, it meant to compete with Westlaw by developing a market substitute... It does not matter whether Thomson Reuters has used the data to train its own legal search tools; the effect on a potential market for AI training data is enough. Ross bears the burden of proof. It has not put forward enough facts to show that these markets do not exist and would not be affected.”

But the case may not apply to some of the biggest, thorniest issues with the biggest AI copyright lawsuits still working their way through the courts. Ross Intelligence’s tool was not using generative AI (like ChatGPT), which takes a user’s query and synthesizes answers derived from vast amounts of training data that often includes copyrighted material.

Major cases brought by authors, artists, and news publishers, such as The New York Times’ lawsuit against OpenAI and partner Microsoft, have yet to settle such alleged copyright violations, which could have massive implications for the entire AI industry.

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Google uses an AI-generated ad to sell AI search

Google is using AI video to tell consumers about its AI search tools, with a Veo 3-generated advertisement that will begin airing on TV today. In it, a cartoonish turkey uses Google’s AI Mode to plan a vacation from its farm before it’s eaten for Thanksgiving.

Like other AI ad campaigns that have opted to depict yetis or famous artworks rather than humans, Google chose a turkey as its protagonist to avoid the uncanny valley pitfall that happens when AI is used to generate human likenesses.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

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Amazon, Alphabet, Meta, and Microsoft combined spent nearly $100 billion on capex last quarter

The numbers are in and tech giants Amazon, Alphabet, Meta, and Microsoft spent a whopping $97 billion last quarter on purchases of property and equipment. That’s nearly double what it was a year earlier as AI infrastructure costs continue to balloon and show no sign of stopping. Amazon, which reported earnings and capital expenditure spending that beat analysts’ expectations yesterday, continued to lead the pack, spending more than $35 billion on capex in the quarter that ended in September.

Note that the data we’re using here is from FactSet, which strips out finance leases when calculating capital expenditures. If those expenses were included the total would be well over $100 billion last quarter.

Apple Store in China

Apple reports Q4 earnings and revenue slightly above Wall Street estimates

The iPhone maker reported its FY 25 fourth-quarter earnings Thursday.

#10
Rani Molla

Tesla just recalled its beleaguered Cybertruck for the 10th time since the vehicle was introduced two years ago. This time the company recalled about 6,000 of the “apocalypse-proof” vehicles due to what the National Highway Traffic Safety Administration says is an improperly installed “optional off-road light bar accessory” that could become disconnected from the windshield while driving, and could “create a road hazard for following motorists and increase their risk of a collision.”

CEO Elon Musk once said he could sell up to 500,000 of the stainless steel behemoths a year. In the first three quarters of this year, the company has sold only about 16,000.

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