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Third Circuit Rejects ROSS Intelligence’s Fair-Use Defense

By Drooid · Oct 1, 2026, 6:11 PM UTC · How we work

Summary

Third Circuit Rejects Fair-Use

The U.S. Third Circuit Court of Appeals rejected ROSS Intelligence’s fair-use defense, siding with Thomson Reuters.
The sealed ruling affirmed a Delaware judgment that ROSS copied over 2,000 Westlaw headnotes.
Thomson Reuters sued ROSS in 2020, alleging misuse of about 2,243 headnotes for its AI tool.
Re:Create executive Brandon Butler warned the decision could limit AI firms’ fair-use defenses.

Summary

Udio Secures Licenses

The RIAA and NMPA filed an amicus brief supporting Thomson Reuters, saying AI training is not fair use.
Disney Enterprises, Paramount Pictures, Sony Pictures Entertainment, Universal City Studios, and Warner Bros. joined the brief.
CISAC and PMP Strategy project AI-generated music will reach $42 billion by 2028, causing a 24% revenue loss for creators.
Udio secured licensing deals with Universal Music Group, Warner Music Group, Merlin, Kobalt, Believe, and the NMPA.

History

Historical Context

In 1984 the Supreme Court’s Sony Corp. v. Universal City Studios decision declared home VCRs a lawful “staple article of commerce” with substantial non-infringing uses, a rule later applied in MGM v. Grokster (2005). Building on that precedent, the Third Circuit in 2024 held that ROSS Intelligence’s AI-generated copies of 2,243 Thomson Reuters Westlaw headnotes exceeded fair use, signaling tighter limits for AI content.

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Third Circuit Rejects Fair-Use

The U.S. Third Circuit Court of Appeals rejected ROSS Intelligence’s fair-use defense, siding with Thomson Reuters.
The sealed ruling affirmed a Delaware judgment that ROSS copied over 2,000 Westlaw headnotes.
Thomson Reuters sued ROSS in 2020, alleging misuse of about 2,243 headnotes for its AI tool.
Re:Create executive Brandon Butler warned the decision could limit AI firms’ fair-use defenses.

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