US Copyright Fair Use Dispute on Generative AI Reaches Crucial Year

A wave of copyright lawsuits against generative AI companies is set to see major US court rulings in 2026.

The legal question centers on whether fair use protects the copying of copyrighted material for AI training, or if copyright holders must be reimbursed, potentially costing billions.

In 2025, The New York Times, Disney, and other copyright owners filed new suits, and authors secured a $1.5-billion class action settlement with Anthropic, the largest reported copyright payout involving AI training in US history.

Early judicial decisions of US courts on fair use in generative AI training have been split, reflecting continuing uncertainty.