U.S. District Judge Vince Chhabria said in his decision the authors had not presented enough evidence that Meta's AI would dilute the market for their work to show that the company's conduct was illegal under U.S. copyright law.
"This ruling does not stand for the proposition that Meta's use of copyrighted materials to train its language models is lawful," Chhabria said. "It stands only for the proposition that these plaintiffs made the wrong arguments and failed to develop a record in support of the right one."
The authors sued Meta in 2023, arguing the company misused pirated versions of their books to train its AI system Llama without permission or compensation.
The legal doctrine of fair use allows the use of copyrighted works without the copyright owner's permission in some circumstances. It is a key defense for the tech companies.
AI companies argue their systems make fair use of copyrighted material by studying it to learn to create new, transformative content, and that being forced to pay copyright holders for their work could hamstring the burgeoning AI industry.
The judge said generative AI had the potential to flood the market with endless images, songs, articles and books using a tiny fraction of the time and creativity that would otherwise be required to create them.
"So by training generative AI models with copyrighted works, companies are creating something that often will dramatically undermine the market for those works, and thus dramatically undermine the incentive for human beings to create things the old-fashioned way," Chhabria said.
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