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Third Circuit appeal pits ROSS against Thomson Reuters over Westlaw headnotes and AI use

Published
Score
12

Why it matters

ROSS Intelligence is appealing a Delaware federal court ruling that found it infringed Thomson Reuters' copyrights in Westlaw headnotes and related legal research materials. On February 11, 2025, Judge Stephanos Bibas granted summary judgment to Thomson Reuters, holding that ROSS had copied 2,243 headnotes without permission and that its fair use defense failed. The court determined that ROSS's AI-driven legal search product functioned as a market substitute for Westlaw rather than a transformative use. The case is now before the U.S. Court of Appeals for the Third Circuit under docket 1:20-cv-00613, which Thomson Reuters initiated in 2020.

The appeal will test whether intermediate copying of protected materials for AI training qualifies as fair use, and whether headnotes and the Key Number System merit copyright protection at all. The briefs on appeal are expected to sharpen the dispute over whether the district court correctly identified infringement or instead imposed an overbroad copyright restriction on AI development in the legal sector.

Attorneys should monitor this case closely. The Third Circuit's decision will likely establish binding precedent for how courts treat copyrighted legal research materials used to train competing AI products. The ruling could affect not only legal AI vendors but also the broader question of what data sources companies can use to develop machine learning tools in regulated industries. Amici filings from technology groups, publishers, and legal research companies suggest the decision will influence copyright doctrine well beyond this dispute.

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