> In fact, go to far as to argue your example of Authors Guild v. Google is a good indication that most cases will probably go an AI platform's way.

The more recent Warhol decision argues quite strongly in the opposite direction. It fronts market impact as the central factor in fair use analysis, explicitly saying that whether or not a use is transformative is in decent part dependent on the degree to which it replaces the original. So if you're writing a generative AI tool that will generate stock photos that it generated by scraping stock photo databases... I mean, the fair use analysis need consist of nothing more than that sentence to conclude that the use is totally not fair; none of the factors weigh in favor it.

I think that decision is much narrower than "market impact". It's specifically about substitution, and to that end, I don't see a good argument that Co-Pilot substitutes for any of the works it was trained on. No one is buying a license to co-pilot to replace buying a license to Photoshop, or GIMP, or Linux, or Tux Racer. Nor is Github selling co-pilot for that use.

To the extent that a user of co-pilot could induce it to produce enough of a copyrighted work to both infringe on the content (remember that algorithms are not protected by copyright) and substitute for the original by licensing in lieu of, I would expect the courts to examine that in the ways it currently views a xerox machine being used to create copies of a book. While the machine might have enabled the infringement, it is the person using the machine to produce and then distribute copies that is doing the infringing not the xerox machine itself nor Xerox the company.

Specifically in the opinion the court says:

>If an original work and a secondary use share

>the same or highly similar purposes, and the secondary use

>is of a commercial nature, the first factor is likely to

>weigh against fair use, absent some other justification for

>copying.

I find it difficult to come up with a good case that any given work used to train co-pilot and co-pilot itself share "the same or highly similar purposes". Even in the case of say someone having a code generator that was used in training of co-pilot, I think the courts would also be looking at the degree to which co-pilot is dependent on that program. I don't know off hand if there are any court cases challenging the use of copyright works in a large collage of work (like say a portrait of a person made from Time Magazine covers of portraits), but again my expectation here is that the court would find that while the entire work (that is the magazine cover) was used and reproduced, that reproduction is a tiny fraction of the secondary work and not substantial to its purpose.

Similarly we have this line:

>Whether the purpose and character of a use weighs in favor

>of fair use is, instead, an objective inquiry into what use

>was made, i.e., what the user does with the original work.

Which I think supports my comparison to the xerox machine. If the plaintiffs against Co-Pilot could have shown that a substantial majority of users and uses of Co-Pilot was producing infringing works or producing works that substitute for the training material, they might prevail in an argument that co-pilot is infringing regardless if the intent of github. But I suspect even that hurdle would be pretty hard to clear.

Of the various recent uses of generative AI, Copilot is probably the one most likely to be found fair use and image generation the least likely.

But in any case, Authors Guild is not the final word on the subject, and anyone trying to argue for (or against) fair use for generative AI who ignores Warhol is going to have a bad day in court. The way I see it, Authors Guild says that if you are thoughtful about how you design your product, and talk to your lawyers early and continuously about how to ensure your use is fair and will be seen as fair in the courts, you can indeed do a lot of copying and still be fair use.

I agree. Nothing is going to be the final word until more of these cases are heard. But I still don't think Warhol is as strong even against other uses of generative AI, and in fact I think in some ways argues in their favor. The court in Warhol specifically rejects the idea that the AWF usage is sufficiently transformed by the nature of the secondary work being recognizably a Warhol. I think that would work the other way around too, that a work being significantly in a given style is not sufficient for infringement. While certainly someone might buy a license to say, Stable Diffusion and attempt to generate a Warhol style image, someone might also buy some paints and a book of Warhol images to study and produce the same thing. Provided the produced images are not actually infringements or transformations of identifiably original Warhol works, even if they are in his style, I think there's a good argument to be made that the use and the tool are non-infringing.

Or put differently, if the Warhol image had used Goldsmith's image as a reference for a silk screen portrait of Steve Tyler, I'm not sure the case would have gone the same way. Warhol's image is obviously and directly derived from Goldsmith's image and found infringing when licensed to magazines, yet if Warhol had instead gone out and taken black and white portraits of prince, even in Goldsmith's style after having seen it, would it have been infringing? I think the closest case we have to that would have been the suit between Huey Lewis and Ray Parker Jr. over "I Want a New Drug"/"Ghostbusters" but that was settled without a judgement.

I do agree that Warhol is a stronger argument against artistic AI models, but it would very much have to depend on the specifics of the case. The AWF usage here was found to be infringing, with no judgement made of the creation and usage of the work in general, but specifically with regard to licensing the work to the magazine. They point out the opposite case that his Campbell paintings are well established as non-infringing in general, but that the use of them licensed as logos for soup makers might well be. So as is the issue with most lawsuits (and why I think AI models in general will win the day), the devil is in the details.

A key finding that the judge said in the Authors Guild v. Google case was that the authors benefited from the tool that google created. A search tool is not a replacement for a book, and are much more likely to generate awareness of the book which in turn should increase sales for the author.

AI platforms that replaces and directly compete with authors can not use the same argument. If anything, those suing AI platforms are more likely to bring up Authors Guild v. Google as a guiding case to determine when to apply fair use.