{"id":7212,"date":"2026-10-05T10:50:48","date_gmt":"2026-10-05T01:50:48","guid":{"rendered":"https:\/\/en.ai-creators.tech\/media\/?p=7212"},"modified":"2026-10-05T10:50:48","modified_gmt":"2026-10-05T01:50:48","slug":"thomson-reuters-ross","status":"publish","type":"post","link":"https:\/\/en.ai-creators.tech\/media\/business\/thomson-reuters-ross\/","title":{"rendered":"Thomson Reuters v. ROSS: Appeals Court Rejects AI Fair Use"},"content":{"rendered":"<p>For the first time, a U.S. federal court of appeals has ruled on whether using copyrighted material to train an AI system is fair use. In <em>Thomson Reuters v. ROSS Intelligence<\/em>, the answer was no.<\/p>\n<p>In an opinion dated September 29, 2026, and released in full the following day, the U.S. Court of Appeals for the Third Circuit held that ROSS&#8217;s use of Westlaw headnotes to train its AI legal research tool was not fair use. The panel affirmed the district court&#8217;s partial summary judgment for Thomson Reuters on both questions certified for appeal: the headnotes are original enough to be protected by copyright, and ROSS&#8217;s copying was not excused as fair use.<\/p>\n<p>The decision will be cited in AI copyright disputes for years. It is also narrower than many headlines suggest. ROSS&#8217;s system did not generate text; it retrieved passages from court opinions. The court itself described the dispute as &#8220;no more than an ordinary copyright case,&#8221; and it took care to distinguish the generative AI cases now shaping the field.<\/p>\n<div class=\"box3\">\n<p><strong>Key takeaways<\/strong><\/p>\n<p>The ruling does not hold that AI training is infringement, nor that it is fair use. It holds that copying a competitor&#8217;s protected editorial work to build a substitute product is not made fair by the fact that the copies were used to train an AI, particularly when the underlying public-domain material was freely available.<\/p>\n<p>The court also found harm to a developing market for licensing Westlaw headnotes as AI training data. That finding is specific to this case, but it shows how courts may treat training-data licensing as those markets mature.<\/p>\n<p>For readers following Japan, the reasoning has a close parallel in the proviso to Article 30-4 of the Japanese Copyright Act, which excludes uses that would unreasonably prejudice the interests of the copyright owner.<\/p>\n<\/div>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/en.ai-creators.tech\/media\/business\/thomson-reuters-ross\/#The_dispute_headnotes_not_court_opinions\" >The dispute: headnotes, not court opinions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/en.ai-creators.tech\/media\/business\/thomson-reuters-ross\/#How_the_court_applied_the_four_fair_use_factors\" >How the court applied the four fair use factors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/en.ai-creators.tech\/media\/business\/thomson-reuters-ross\/#What_the_ruling_does_not_decide\" >What the ruling does not decide<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/en.ai-creators.tech\/media\/business\/thomson-reuters-ross\/#Editors_view_the_court_protected_the_editorial_layer\" >Editor&#8217;s view: the court protected the editorial layer<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/en.ai-creators.tech\/media\/business\/thomson-reuters-ross\/#The_shortcut_problem\" >The shortcut problem<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/en.ai-creators.tech\/media\/business\/thomson-reuters-ross\/#Licensing_markets_reinforce_themselves\" >Licensing markets reinforce themselves<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/en.ai-creators.tech\/media\/business\/thomson-reuters-ross\/#A_view_from_Japan_Article_30-4_and_its_proviso\" >A view from Japan: Article 30-4 and its proviso<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/en.ai-creators.tech\/media\/business\/thomson-reuters-ross\/#Conclusion_%E2%80%9CAI%E2%80%9D_does_not_decide_the_case\" >Conclusion: &#8220;AI&#8221; does not decide the case<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_dispute_headnotes_not_court_opinions\"><\/span>The dispute: headnotes, not court opinions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Judicial opinions are in the public domain in the United States. Westlaw headnotes are not. They are short summaries, written by Thomson Reuters editors, that state a point of law from an opinion clearly enough to stand on their own. Editors decide which points of law matter and how to express them, working within house guidelines that call for concise, self-contained statements.<\/p>\n<p>ROSS, founded by three University of Toronto computer science students, set out to build a tool that would answer plain-language legal questions with relevant passages from court opinions. Before building its training data, ROSS had asked Thomson Reuters for a license, which Thomson Reuters declined to grant to a competitor. ROSS then engaged the legal services company LegalEase, which produced roughly 25,000 training memos. Each memo posed a legal question and paired it with passages from opinions ranked by relevance. Memo drafters built those questions from Westlaw headnotes because, according to the record, the headnotes offered an easy way to frame them.<\/p>\n<p>ROSS made no secret of its ambitions. It advertised its platform in direct comparison with Westlaw, at prices in line with Westlaw&#8217;s, and some law firms switched.<\/p>\n<p>Two figures in the case are easy to confuse. The district court found, as a matter of law, that 2,243 specific headnotes had been copied and infringed; those are the works at issue on appeal. The figure of roughly 25,000 refers to the headnotes the court described as copied in full into the training memos, and it bears on the court&#8217;s analysis of how much ROSS took.<\/p>\n<p>The court held that all 2,243 headnotes clear copyright&#8217;s low bar for originality. Deciding which points of law to include and how to phrase them is a creative judgment, however modest. The court noted an amicus brief from RELX explaining that Lexis, a Westlaw competitor, uses its own process and produces different headnotes for the same opinions. When two editorial teams working from the same source produce different summaries, those summaries reflect choices, and choices are what copyright protects.<\/p>\n<p>Primary source: <a href=\"https:\/\/www2.ca3.uscourts.gov\/opinarch\/252153p.pdf\" target=\"_blank\" rel=\"noopener nofollow\">U.S. Court of Appeals for the Third Circuit, <em>Thomson Reuters Enterprise Centre GmbH v. ROSS Intelligence Inc.<\/em>, No. 25-2153<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_the_court_applied_the_four_fair_use_factors\"><\/span>How the court applied the four fair use factors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Section 107 of the Copyright Act directs courts to weigh four factors. The panel found that only the second favored ROSS, and only slightly.<\/p>\n<div class=\"scroll_table\">\n<table>\n<thead>\n<tr>\n<th>Factor<\/th>\n<th>What the court found<\/th>\n<th>Weighs<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1. Purpose and character of the use<\/td>\n<td>ROSS&#8217;s use was commercial and shared the same ultimate purpose as Westlaw: helping users find relevant legal material. The intermediate step of training an AI arguably made a slight difference, leaving the use &#8220;minimally transformative, at best.&#8221; Copying was a matter of convenience, not necessity.<\/td>\n<td>Against ROSS<\/td>\n<\/tr>\n<tr>\n<td>2. Nature of the copyrighted work<\/td>\n<td>The headnotes were published before ROSS used them and are largely factual, since they must accurately describe the law.<\/td>\n<td>Slightly for ROSS<\/td>\n<\/tr>\n<tr>\n<td>3. Amount and substantiality<\/td>\n<td>ROSS copied the full text of each headnote, and each headnote is a work in its own right. The court rejected ROSS&#8217;s argument that it had taken only about 0.08% of Thomson Reuters&#8217;s roughly 28 million headnotes. With the opinions freely available, ROSS took more than it needed.<\/td>\n<td>Against ROSS<\/td>\n<\/tr>\n<tr>\n<td>4. Effect on the market<\/td>\n<td>ROSS diminished the headnotes&#8217; value as a draw for Westlaw subscriptions and built a substitute in the same legal research market. The court also found harm to a rapidly developing market for licensing headnotes as AI training data, noting that Thomson Reuters already used its headnotes to train its own AI search products. ROSS&#8217;s claimed public benefits, including wider access to the law and national security, were unsupported by evidence.<\/td>\n<td>Against ROSS<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>Two threads run through the analysis. The first is competition: ROSS used Thomson Reuters&#8217;s work to build a substitute for Thomson Reuters&#8217;s product, and the training step in between did not change that. The second is necessity. The court distinguished <em>Google v. Oracle<\/em>, <em>Sega v. Accolade<\/em>, and <em>Sony v. Connectix<\/em>, where copying was needed to reach unprotected functional elements of software. Here, the unprotected material, the opinions themselves, was freely available. As the court put it, &#8220;Unlike necessity, ease is not a justification for copying.&#8221;<\/p>\n<p>The court also rejected ROSS&#8217;s reliance on <em>Authors Guild v. Google<\/em>. Google Books helped readers find books they might then buy; ROSS, by its own account, aimed to replace Westlaw.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_the_ruling_does_not_decide\"><\/span>What the ruling does not decide<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The opinion is explicit about its limits. ROSS&#8217;s AI could not create new expression; it could only return passages from existing opinions. In a footnote, the court addressed the Justice Department&#8217;s statement of interest in <em>In re OpenAI<\/em>, the consolidated copyright litigation in the Southern District of New York, which relied on <em>Bartz v. Anthropic<\/em> to argue that training a large language model is transformative. The court said those concerns do not apply here, because ROSS&#8217;s system cannot generate original expression and was trained to serve as a commercial substitute for Westlaw. <em>Bartz<\/em> itself has since been resolved through a $1.5 billion class settlement, which received final approval in July 2026.<\/p>\n<p>The facts also set the case apart. The copying took place before the current wave of generative AI, and ROSS has since shut down. The record also contains evidence of bad faith: ROSS attempted to access Westlaw using an investor law firm&#8217;s credentials after being told the terms of service prohibited it, and employees sought access while concealing that they worked for a competitor. The court noted that, to the extent good faith remains relevant to fair use, this evidence weighs against ROSS.<\/p>\n<p>Procedurally, this was an interlocutory appeal under 28 U.S.C. \u00a7 1292(b). The Third Circuit affirmed the district court&#8217;s partial summary judgment on the two certified questions. That is a significant win for Thomson Reuters, but it is not the end of the litigation.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Editors_view_the_court_protected_the_editorial_layer\"><\/span>Editor&#8217;s view: the court protected the editorial layer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Read as a contest between an AI company and a rights holder, this case looks like a win for publishers. Read from an editor&#8217;s desk, it says something more precise. What the court protected was not the information, which was free, but the judgment of the people who selected, condensed, and framed it.<\/p>\n<p>That distinction maps directly onto AI training data. Raw material and a curated dataset are not the same thing. A dataset that someone has selected, labeled, ranked, or annotated carries that person&#8217;s choices, and this ruling treats those choices as worth protecting, at least where they meet copyright&#8217;s threshold of originality.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_shortcut_problem\"><\/span>The shortcut problem<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>ROSS could have drafted its training questions from the opinions themselves. It used the headnotes because that was faster. Creators who build their own fine-tuning or LoRA datasets face the same temptation. Third-party captions, tag sets, curated collections, prompt libraries, and preset packs are often more convenient than working from source material, and they are exactly the kind of editorial layer this case is about.<\/p>\n<p>We think good data practice now means asking two questions instead of one: where did this material come from, and who organized it, on what terms? Whether a particular caption set or classification scheme is protected will depend on the facts and on the jurisdiction. The point is not that every annotation is copyrightable. It is that convenience, on its own, is not a defense.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Licensing_markets_reinforce_themselves\"><\/span>Licensing markets reinforce themselves<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>At oral argument, ROSS warned that letting Thomson Reuters claim a lost licensing market would be circular: any copyright owner could say it would have licensed the very use being challenged. The court relied instead on evidence that a market for licensing headnotes as AI training text was developing quickly and that Thomson Reuters was already using its headnotes to train its own AI products. It added that Thomson Reuters&#8217;s decision not to license headnotes to others did not show that no such market existed.<\/p>\n<p>In our view, this dynamic will compound. Every training-data license that gets signed makes the next market-harm argument easier to prove. Rights holders with the scale to negotiate those deals gain leverage, while individual creators who never state their terms risk being left outside a market that others are defining. Publishing terms does not create rights the law does not already provide. It does make clear which uses are welcome, which require permission, and which should be paid for.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_view_from_Japan_Article_30-4_and_its_proviso\"><\/span>A view from Japan: Article 30-4 and its proviso<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Japan has no general fair use doctrine. Instead, Article 30-4 of the Copyright Act permits the use of works for purposes that do not involve enjoying the thoughts or sentiments they express, including data analysis such as AI training. For this reason, Japan is often described abroad as one of the most permissive jurisdictions for AI training.<\/p>\n<p>That description is incomplete. Article 30-4 does not apply where a use would unreasonably prejudice the interests of the copyright owner. The Agency for Cultural Affairs&#8217; <em>General Understanding on AI and Copyright in Japan<\/em> (2024) gives, as an example, reproducing a database work for data analysis such as AI training where licenses for that kind of analysis are available in the market. The guidance also discusses cases in which technical measures against AI training, together with other facts, indicate that such a database is likely to be offered for sale.<\/p>\n<p>The legal tests differ, and a U.S. appellate decision carries no authority in Japan. Yet the two systems converge on the same pressure point. When data has been organized for analysis and a licensing market for it exists or is emerging, unlicensed copying is where the protection for AI training is weakest. For global companies training models on Japanese content, and for Japanese creators whose work is collected abroad, Article 30-4 should not be read as blanket permission.<\/p>\n<p>Reference: <a href=\"https:\/\/www.bunka.go.jp\/english\/policy\/copyright\/\" target=\"_blank\" rel=\"noopener nofollow\">Agency for Cultural Affairs, Government of Japan: Copyright<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion_%E2%80%9CAI%E2%80%9D_does_not_decide_the_case\"><\/span>Conclusion: &#8220;AI&#8221; does not decide the case<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Third Circuit did not decide the future of generative AI training. It decided that a company may not copy a competitor&#8217;s editorial work to build a substitute product and then point to machine learning as the reason the copying was fair. The questions that decided this case will decide others: what was copied, who shaped it, why it was used, which market the result competes in, and whether a licensing market was bypassed.<\/p>\n<div class=\"box3\">\n<p><strong>Editor&#8217;s note<\/strong><\/p>\n<p>The source was free; the editing was not. That, in one line, is what this ruling says. The debate over AI training data is shifting from what a model learned to whose judgment it learned from. Creators who understand that shift will be better placed both to protect their work and to license it.<\/p>\n<p>Sato Seiichi, Editor-in-Chief, AI Creators<\/p>\n<\/div>\n<hr \/>\n<p><strong>Key references<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www2.ca3.uscourts.gov\/opinarch\/252153p.pdf\" target=\"_blank\" rel=\"noopener nofollow\">U.S. Court of Appeals for the Third Circuit: <em>Thomson Reuters Enterprise Centre GmbH v. ROSS Intelligence Inc.<\/em>, No. 25-2153<\/a><\/li>\n<li><a href=\"https:\/\/law.justia.com\/cases\/federal\/appellate-courts\/ca3\/25-2153\/25-2153-2026-09-30.html\" target=\"_blank\" rel=\"noopener nofollow\">Justia: <em>Thomson Reuters Enterprise Centre GmbH v. ROSS Intelligence Inc.<\/em><\/a><\/li>\n<li><a href=\"https:\/\/www.lawnext.com\/2026\/09\/3rd-circuit-rules-for-thomson-reuters-in-its-copyright-fight-against-legal-research-startup-ross.html\" target=\"_blank\" rel=\"noopener nofollow\">LawNext: 3rd Circuit Rules for Thomson Reuters in Its Copyright Fight Against Legal Research Startup ROSS<\/a><\/li>\n<li><a href=\"https:\/\/www.lawnext.com\/2026\/06\/at-3rd-circuit-judges-press-ross-and-thomson-reuters-on-fair-use-ai-training-and-market-harm.html\" target=\"_blank\" rel=\"noopener nofollow\">LawNext: At 3rd Circuit, Judges Press ROSS and Thomson Reuters on Fair Use, AI Training and Market Harm<\/a><\/li>\n<li><a href=\"https:\/\/ipwatchdog.com\/2026\/09\/30\/third-circuit-affirms-revised-fair-use-ruling-against-ross-ai-legal-research-platform-in-sealed-opinion\/\" target=\"_blank\" rel=\"noopener nofollow\">IPWatchdog: Third Circuit Affirms Revised Fair Use Ruling Against ROSS&#8217; AI Legal Research Platform<\/a><\/li>\n<li><a href=\"https:\/\/www.debevoise.com\/insights\/publications\/2025\/02\/an-early-win-for-copyright-owners-in-ai-cases-as\" target=\"_blank\" rel=\"noopener nofollow\">Debevoise &amp; Plimpton: An Early Win for Copyright Owners in AI Cases as Court Rejects Fair Use Defense<\/a><\/li>\n<li><a href=\"https:\/\/authorsguild.org\/news\/court-grants-final-approval-anthropic-copyright-settlement\/\" target=\"_blank\" rel=\"noopener nofollow\">Authors Guild: Court Grants Final Approval of $1.5 Billion Anthropic Copyright Settlement<\/a><\/li>\n<li><a href=\"https:\/\/www.bunka.go.jp\/english\/policy\/copyright\/\" target=\"_blank\" rel=\"noopener nofollow\">Agency for Cultural Affairs, Government of Japan: Copyright<\/a><\/li>\n<\/ul>\n<div class=\"linkcardcontainer\"><div class=\"linkcard\"><div class=\"lkc-external-wrap\"><a class=\"lkc-link no_icon\" href=\"https:\/\/en.ai-creators.tech\/enterprise\/\" target=\"_blank\" rel=\"external noopener\"><div class=\"lkc-card\"><div class=\"lkc-info\"><div class=\"lkc-favicon\"><img decoding=\"async\" src=\"https:\/\/favicon.hatena.ne.jp\/?url=https%3A%2F%2Fen.ai-creators.tech%2Fenterprise%2F\" alt=\"\" width=\"16\" height=\"16\" \/><\/div><div class=\"lkc-domain\">en.ai-creators.tech<\/div><\/div><div class=\"lkc-content\"><figure class=\"lkc-thumbnail\"><img decoding=\"async\" class=\"lkc-thumbnail-img\" src=\"\/\/en.ai-creators.tech\/media\/wp-content\/uploads\/pz-linkcard\/cache\/d871a3ef797d54c73a3bdb94ebb0fae0dd74f7ee858c667ae0b0b346cfc05435.jpeg\" width=\"100px\" height=\"100px\" alt=\"\" \/><\/figure><div class=\"lkc-title\">Generative AI Creative Services for Business<\/div><div class=\"lkc-url\" title=\"https:\/\/en.ai-creators.tech\/enterprise\/\">https:\/\/en.ai-creators.tech\/enterprise\/<\/div><div class=\"lkc-excerpt\">AI Creators supports companies with generative AI creative production, AI creator matching, corporate training, strategic advisory, PR, and partnerships.<\/div><\/div><div class=\"clear\"><\/div><\/div><\/a><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>For the first time, a U.S. federal court of appeals has ruled on whether using copyrighted material to train an AI system is fair use. In Thomson Reuters v. ROSS Intelligence, the answer was no. In an opinion dated September 29, 2026, and released in full the following day, the U.S. Court of Appeals for<\/p>\n","protected":false},"author":2,"featured_media":7213,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[443],"tags":[],"class_list":["post-7212","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"acf":[],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/en.ai-creators.tech\/media\/wp-json\/wp\/v2\/posts\/7212","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.ai-creators.tech\/media\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ai-creators.tech\/media\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ai-creators.tech\/media\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ai-creators.tech\/media\/wp-json\/wp\/v2\/comments?post=7212"}],"version-history":[{"count":1,"href":"https:\/\/en.ai-creators.tech\/media\/wp-json\/wp\/v2\/posts\/7212\/revisions"}],"predecessor-version":[{"id":7214,"href":"https:\/\/en.ai-creators.tech\/media\/wp-json\/wp\/v2\/posts\/7212\/revisions\/7214"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ai-creators.tech\/media\/wp-json\/wp\/v2\/media\/7213"}],"wp:attachment":[{"href":"https:\/\/en.ai-creators.tech\/media\/wp-json\/wp\/v2\/media?parent=7212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ai-creators.tech\/media\/wp-json\/wp\/v2\/categories?post=7212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ai-creators.tech\/media\/wp-json\/wp\/v2\/tags?post=7212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}