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Third Circuit Judges Question ROSS and Thomson Reuters on AI Training Fair Use

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16

Why it matters

On June 11, 2026, the U.S. Court of Appeals for the Third Circuit heard oral arguments in Philadelphia in a copyright dispute that will define the boundaries of AI training in legal tech. The three-judge panel—Judges L. Felipe Restrepo, Tamika R. Montgomery-Reeves, and Emil J. Bove—pressed ROSS Intelligence and Thomson Reuters on whether ROSS's use of Westlaw headnotes to train its AI legal-research tool qualifies as fair use. The questioning centered on two critical fair-use factors: whether ROSS's use was transformative and whether it damaged Thomson Reuters' market for those copyrighted works.

ROSS Intelligence built its natural-language search platform in 2015 by converting over 2,200 Westlaw headnotes into training questions for its AI system. Thomson Reuters, which owns the copyright in those headnotes, denied ROSS's license request and sued for infringement. A Delaware federal court granted summary judgment to Thomson Reuters in February 2025, finding the use non-transformative and commercially harmful. ROSS appealed. The Third Circuit is expected to rule in late 2026.

Attorneys should monitor this case closely. It is the first federal appellate decision squarely addressing whether using copyrighted works to train AI models qualifies as fair use. The panel's focus on market harm—including potential substitution for Westlaw, Thomson Reuters' own exclusive training rights, and a licensing market for headnotes—suggests the court is treating this as a test case for the entire legal-AI sector. The outcome will likely govern how legal-tech companies can use third-party content to develop new research tools.

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