AI copyright lawsuits heat up as Congress investigates how tech giants use copyrighted materials in training datasets.

As Congress takes aim at Big Tech’s use of copyrighted material to train AI models, a new Senate hearing could redefine how authors, artists, and businesses protect their work.


How AI Companies Use Copyrighted Works Without Permission

On October 22, 2025, the Senate Judiciary Subcommittee on Crime and Counterterrorism held a pivotal hearing titled “Too Big to Prosecute: Examining the AI Industry’s Mass Ingestion of Copyrighted Works for AI Training.” Chaired by Senator Josh Hawley, the session spotlighted what he called “the largest intellectual property theft in American history.”

With testimony from legal experts, authors, and academics, the hearing raised urgent questions about how AI giants such as Meta, Anthropic, and OpenAI allegedly use pirated copyrighted works to train their models. At Axenfeld Law Group, LLC, we’re closely following this evolving issue. Here’s what you need to know to protect your intellectual property.


Alleged Scale of AI Copyright Infringement

Senator Hawley opened the hearing with a stark claim: AI companies are training their models on “stolen material,” allegedly pirating billions of pages of copyrighted works—equivalent to 22 Libraries of Congress.

Witnesses, including an attorney suing Meta, alleged that the company obtained more than 200 terabytes of books and articles from illicit online repositories such as LibGen and Anna’s Archive. These included novels by bestselling authors like David Baldacci, academic papers, and even books by U.S. presidents and subcommittee members.

Testimony referenced internal Meta documents suggesting employees warned management about legal risks, with one engineer writing, “Using pirated material should be beyond our ethical threshold.” Witnesses claimed Meta’s leadership chose to torrent, rather than license, copyrighted material.


Impact on Authors, Artists, and the Creative Economy

The hearing underscored the human toll of these practices. Author David Baldacci shared how his son used ChatGPT to generate a plot in his signature style within seconds—drawing on novels allegedly ingested without permission.

“I felt like someone had backed up a truck to my imagination and stolen everything I’d ever created,” Baldacci testified.

He warned that AI’s ability to replicate his work threatens livelihoods and discourages new writers, as “cheap” AI-generated books flood the market.

Professor Michael Smith (Carnegie Mellon University) cited 25 years of research showing that digital piracy depresses creators’ sales, licensing markets, and incentives for innovation. Professor Bhumika Viswanathan called the practice “a crime compounding a crime,” noting that the U.S. Constitution’s IP clause—which supports over $1 trillion in creative-industry revenue—is at risk when piracy erodes creators’ rights.


The Fair-Use Debate in AI Training

A core legal question is whether using copyrighted works to train AI qualifies as fair use under the Copyright Act of 1976.

Professor Edward Lee (Santa Clara University) pointed to recent court rulings (by Judges Alsup and Chhabria in cases against Meta and Anthropic) finding some AI training transformative—enabling research, translation, and summarization. However, he noted that fair use is fact-specific: if an AI model reproduces expressive outputs, those uses might not qualify.

By contrast, Viswanathan argued that taking works from pirate sites is never fair use—likening it to buying a stolen car for drag racing. She urged that existing licensing mechanisms could ensure fair compensation while preserving innovation.


Legal Risks for Authors, Artists, and Businesses

If your copyrighted works—books, music, code, or visual art—have been used without consent in AI training, you may face lost revenue or brand dilution.

Key warning signs include:

  • Discovering your content reproduced in AI outputs
  • Finding your work on pirate sites like Anna’s Archive, which boasts of aiding AI development.

More than 44 lawsuits are now pending nationwide, including complaints by Baldacci and other creators. Courts are examining whether initial piracy nullifies fair-use claims; some, such as Judge Alsup, have already ruled that fair use cannot apply to pirated materials.

Criminal liability is also on the table—testimony suggested that willful infringement for commercial gain could trigger prosecution under federal copyright law.

Concerned your work was used to train AI?

Contact Axenfeld Law Group today for a free consultation.

How to Protect Your Intellectual Property from AI Misuse

  • Audit Your Works: Check if your content, including code or creative works, appears in AI-generated outputs or on illicit repositories.
  • Explore Licensing: Licensing agreements can ensure fair compensation for use in AI training.
  • Pursue Legal Options: Consider DMCA takedowns or infringement claims if your works are misused.
  • Stay Informed: Monitor legal developments, as courts and potentially Congress shape AI copyright rules.

Balancing Innovation and Fair Compensation

Creators are the foundation of the U.S. innovation economy. As Professor Viswanathan emphasized, “You cannot compromise the livelihood of creators for unchecked innovation.”

The future of AI must balance progress with fairness. Licensing-based frameworks offer a sustainable path, allowing technology to advance while ensuring artists, writers, and developers are paid for their work.


Partner with Axenfeld Law Group

At Axenfeld Law Group, LLC, we specialize in intellectual property litigation and counseling, helping creators and businesses protect their work in the age of artificial intelligence.

If you suspect your copyrighted material has been used without permission, schedule a consultation today to explore your legal options.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific guidance, consult a qualified attorney.