Future of Internet Search Controversy Over Copyrights and AI Regulatory Decisions by the Court of Justice of the European Union
The legal framework governing Artificial Intelligence (AI) and its relationship with copyright and press publishers' rights in the European Union (EU) is currently undergoing significant changes. Key developments are taking place around the EU AI Act and EU copyright directives.
### EU AI Act and Copyright
The EU AI Act, set to come into force in August 2025, is a legally binding regulation that establishes rules for general-purpose AI models. The Act explicitly references Union law on copyright and related rights, demanding AI providers to implement copyright compliance policies, particularly addressing the use of protected content in training and respecting exceptions for text and data mining and opt-outs. Enforcement for new AI models begins in August 2026, and for existing ones in August 2027.
A Code of Practice published alongside the AI Act provides voluntary guidance to AI companies on compliance. The aim is to create a transparent ecosystem that balances innovation with intellectual property protection. However, the legal duties derive from the AI Act itself.
### Copyright Challenges with Generative AI
Generative AI technologies pose challenges to core EU copyright principles, particularly around AI training on copyrighted works and the uncertain status of AI-generated content. Current text and data mining exceptions do not fully align with AI training practices, raising risks to creators' rights and the sustainability of European cultural heritage.
The European Parliament anticipates leading reforms for clearer rules on input/output distinctions, transparency obligations, opt-out mechanisms, and fair licensing models to protect authors fairly while supporting innovation.
### Like Company v Google Case
The Like Company v Google case, a groundbreaking copyright lawsuit before the Court of Justice of the European Union (CJEU), challenges Google's use of Hungarian press publisher's journalistic editorial content in its Gemini chatbot without authorization. The forthcoming CJEU ruling in this case is expected to set a precedent defining how AI systems may lawfully access, process, and reproduce protected journalistic and other copyrighted content across the EU.
This case highlights a core problem: the lack of coherent mechanisms to ensure appropriate remuneration for rightsholders in the AI context, a policy gap that European legislators need to urgently address to balance innovation with authors' economic rights.
### Summary
The EU law mandates AI developers in the EU to comply with copyright laws. The Like Company v Google case will crucially frame the boundaries of AI’s lawful use of press publishers’ copyrighted content, specifically regarding reproduction and communication by generative AI systems. This sets the stage for future regulatory reforms to ensure rights holders are fairly compensated in the evolving AI landscape.
The case focuses on two main issues at the intersection of AI and existing copyright law: the use of copyrighted material for AI training, and the copyright status of AI-generated output. Article 15 of the CDSM Directive introduces a new related right for press publishers to protect their online publications, giving them control over the digital use of their press content by information society service providers.
- The EU AI Act, set to come into force in August 2025, requires AI providers to implement copyright compliance policies, acknowledging the influence of Union law on copyright and related rights.
- The Like Company v Google case, currently pending before the Court of Justice of the European Union, potentially sets a precedent for how AI systems may lawfully access, process, and reproduce protected journalistic and other copyrighted content across the EU, contributing to the need for future regulatory reforms that balance innovation and authors' economic rights.
