The first appeals court to rule on AI training says it is not fair use
On September 30 the US Court of Appeals for the Third Circuit upheld the ruling in Thomson Reuters v. Ross Intelligence: copying copyrighted material to build an AI training set was not fair use. It is the first time a federal appeals court has decided the question, and the AI company lost.
The caveat matters and the court made it itself. Ross built a non-generative legal research tool, and the trial judge wrote that "only non-generative AI is before me today." Suno, Udio, and the general-purpose model companies will argue that generation is different. But the RIAA and NMPA filed a brief in this case precisely because the reasoning carries over. Their position: training a model on copyrighted works "to compete with and substitute for those copyrighted works can never be fair use." The court's focus on market substitution is the argument every music suit is built on.
The music groups also put a number on the harm. Deezer now receives close to 90,000 fully AI-generated tracks a day, more than half of its uploads, each one diluting the royalty pool that human artists are paid from.
A fair use loss shifts the question from whether consent was needed to whether consent was given. That is a question of records, and the AIAPS registry is built to answer it: a perceptual fingerprint of each recording, a public timestamp, and a machine-readable declaration that the work is not authorized for AI training, all established before anyone asks.