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Third Circuit Affirms Thomson Reuters Win Over ROSS in First Appellate AI Training Fair Use Case

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21

Why it matters

On a Tuesday in late September 2026, the U.S. Court of Appeals for the Third Circuit affirmed a ruling for Thomson Reuters against ROSS Intelligence, a legal AI startup. The panel upheld the District of Delaware's partial summary judgment that ROSS copied more than 2,000 copyrighted Westlaw headnotes, which are short case-law summaries, to train a tool that competed with Westlaw. It also affirmed the denial of summary judgment to ROSS on its fair use defense. Commentators describe it as the first major circuit-level ruling on whether training AI models on copyrighted content is fair use. The opinion was issued under seal, and a public version was unsealed in October 2026. This summary does not reflect a full review of that opinion's text.

Several points remain open. District Judge Bibas first sent originality to a jury, then revised his decision to hold that both the headnote compilation and individual headnotes met the low originality threshold, and that the Key Number System taxonomy was also original. Critics disagree on the ruling's significance. Brandon Butler of Re:Create called it a dead end for the broader AI fair use question. Authors Alliance argued that the court misapplied the merger analysis and accepted a derivative market for AI training data, a theory that favors copyright holders. Reports indicate the Third Circuit tried to limit its holding to these facts, so how far the decision reaches into other AI training cases is unsettled.

For attorneys, the priority is reading the unsealed opinion itself, particularly its fair use factor analysis, its treatment of market harm, and its reliance on a derivative market for training data. Pay attention to whether courts cite it outside the Third Circuit and whether later decisions treat it as limited to non-generative tools that compete directly with the copyrighted source. Clients who license or build on proprietary compilations, headnotes, or structured legal data should reassess their exposure now, and AI developers in the Third Circuit should expect plaintiffs to invoke the ruling in new filings.

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