Business

The Real Issue with Big Tech’s Approach to AI Development

Published March 19, 2025

Recently, major tech companies like Google and OpenAI contacted the White House with a significant request. They urged for a revision of copyright laws to boost the United States' advancement in artificial intelligence (AI). However, this push raises serious concerns about the intentions behind it.

The main issue revolves around the use of copyrighted material to train AI systems. The existing laws are straightforward: if tech companies want to use someone else's work for their AI training, they are required to pay for it. This is not a new concept; it has always been understood within the legal framework.

In fact, a recent federal court case, Thomson Reuters v. ROSS, confirmed this principle when Ross Intelligence, a company that develops legal research AI, tried to argue that its use of Thomson's Westlaw for training was permissible under the "fair use" doctrine. The court disagreed, explaining that fair use applies in scenarios like quoting a New York Times editorial for critique, but does not include using someone's intellectual property to compete against them.

Following this ruling, Google and OpenAI claimed that not revising copyright laws could lead to an unbalanced race in AI development, particularly against China. Their argument seems more about wanting to circumvent legal requirements than truly acting in a national interest.

Big Tech's demand for exemptions from copyright laws reads like a list of unreasonable wishes—akin to asking for free use of electricity and real estate—all under the guise of needing to outperform Beijing.

Despite the administration’s appointments, like bringing in Silicon Valley insider David Sacks as the AI czar, we hope that decision-makers realize the importance of protecting intellectual property. With substantial investment pouring into AI development, companies can and should afford to pay for the resources they require.

For instance, last year, News Corp entered into a $250 million deal with OpenAI to license content, ensuring that there are agreements in place to respect intellectual property rights. Meanwhile, companies like The New York Times have initiated legal action against AI firms for copyright infringement. This indicates a clear stance on the importance of intellectual property in the digital age.

The bottom line is that considerable funds are being directed towards AI research and development. Big Tech has the means to compensate for the use of other people's work. They should not be granted special rights to utilize intellectual property without appropriate compensation.

AI, copyright, business