While artificial intelligence (“AI”) as we know it today has only been mainstream for several years due to the rapid advancement of generative AI platforms like ChatGPT, AI’s warp speed development and low barrier to entry, both for everyday consumers and businesses, have created a legal landscape reminiscent of the dot-com boom of the 1990s where the legal system was slow to keep pace with fast-moving technologies. Simply put, the legal system has struggled to apply 20th Century legal principles governing copyright law to AI while the leading platforms have been allowed to grow seemingly unchecked.

However, two recent summary judgment decisions by U.S. Federal District Court judges in the Northern District of California, one by Judge William Alsup in Bartz et al. v. Anthropic PBC (June 23, 2025), and another by Judge Vince Chhabria in Richard Kadrey et al. v. Meta Platforms, Inc. (June 25, 2025), are beginning to establish a framework for how federal courts will address the intersection of copyright, AI training, and the boundaries of fair use. Together, these rulings offer valuable insight into how courts may balance the protection of creative works with the need to foster rapid AI innovation.

This alert breaks down these pivotal decisions, highlights other key cases and regulatory developments, and outlines what it all means for clients across industries. While innovation will always outpace regulation, understanding the evolving legal landscape is essential for managing risk and seizing opportunity.

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