Copyright Law Cases: Fair Use, Music, Software, and AI

Copyright law cases are the decisions that fix the working rules of the field: what fair use covers, when a song crosses the line from inspiration to infringement, whether code can be freely reused, who owns a commissioned work, and how far back damages can reach. The cases below are the ones courts, lawyers, and creators cite most often, grouped by the question each one answers.

Fair Use: Campbell and Warhol

Fair use is the defense that keeps copyright from swallowing commentary, criticism, and new creative work. The statute lists four factors courts weigh together: the purpose of the use, the nature of the original work, how much was taken, and the effect on the original’s market.1Office of the Law Revision Counsel. 17 USC 107 – Limitations on Exclusive Rights: Fair Use Two Supreme Court decisions set the modern boundaries.

Campbell v. Acuff-Rose Music (1994)

2 Live Crew recorded a rap parody of Roy Orbison’s “Oh, Pretty Woman,” borrowing the original’s opening bass riff and first line before veering into new lyrics. Orbison’s publisher sued. The lower courts treated the parody’s commercial purpose as presumptively unfair, but the Supreme Court reversed. Commercial character is just one element in the fair use analysis and creates no automatic presumption against the defense.2Justia U.S. Supreme Court Center. Campbell v. Acuff-Rose Music, Inc. The Court also rejected the argument that 2 Live Crew took too much, reasoning that a parody has to borrow enough of the original for the audience to recognize what’s being mocked.

Campbell made transformative purpose the center of fair use analysis. For nearly three decades, lower courts applied that principle generously, often finding fair use whenever a new work could be described as doing something different with the original material.

Andy Warhol Foundation v. Goldsmith (2023)

The generous reading hit a limit. Lynn Goldsmith photographed Prince and licensed her portrait to Vanity Fair in 1984 as an artist reference. Andy Warhol used it to make a series of silkscreens. After Prince died in 2016, the Warhol Foundation licensed one of those silkscreens to Condé Nast for a magazine tribute, and Goldsmith argued the license infringed her copyright.

The Supreme Court focused on whether the specific commercial use of the Warhol print served a different purpose than Goldsmith’s photograph. Both works depicted Prince, and both had been licensed to magazines for stories about him. When the original and the secondary work share the same commercial purpose, the Court held, new expression alone doesn’t make the use transformative enough to win on fair use.3Supreme Court of the United States. Andy Warhol Foundation for the Visual Arts, Inc. v. Goldsmith Treating any new expression as automatically transformative, the ruling warned, would effectively erase the copyright owner’s exclusive right to create derivative works.4U.S. Copyright Office. Andy Warhol Foundation for the Visual Arts, Inc. v. Goldsmith – Fair Use Summary

After Goldsmith, anyone licensing adapted imagery into the same market as the original faces a much harder fair use argument. Transformative use is not dead, but courts now look at what the new work is used for rather than just what it looks like.

Music Infringement Cases

Music copyright disputes draw outsized attention because everyone has heard the songs. They also expose a real tension in the law. Melodies, rhythms, and chord progressions are built from a finite set of musical pieces, and courts have struggled to draw a clean line between homage and theft.

Williams v. Gaye

The estate of Marvin Gaye sued Pharrell Williams and Robin Thicke, arguing their 2013 hit “Blurred Lines” infringed Gaye’s 1977 track “Got to Give It Up.” The two songs had different melodies and lyrics, but the jury found that their overall groove and feel were too similar to be coincidental.5Justia. Williams v. Gaye, No. 15-56880 The Ninth Circuit upheld the verdict, including damages and 50 percent of all future royalties from the song. Many copyright scholars criticized the outcome for potentially granting ownership over a genre’s characteristic sound rather than specific musical expression.

Skidmore v. Led Zeppelin

A different case pushed the other direction. The estate of guitarist Randy Wolfe claimed the opening guitar figure of Led Zeppelin’s “Stairway to Heaven” was copied from “Taurus,” a 1968 instrumental by the band Spirit. The Ninth Circuit, sitting en banc, ruled for Led Zeppelin, holding that common musical elements like descending chromatic scales are not owned by anyone.6Justia. Skidmore v. Zeppelin Basic structural patterns remain available for every songwriter to use.

Bridgeport Music v. Dimension Films

Sampling raises a different question. When an artist digitally lifts a few seconds from someone else’s recording, does the small size of the sample excuse the copying? The Sixth Circuit said no. In a case involving a two-second guitar sample from a Funkadelic track used in the film “I Got the Hook Up,” the court announced a bright-line rule: any unauthorized copying of a sound recording, no matter how brief, infringes.7Justia. Bridgeport Music, Inc. v. Dimension Films Get a license or don’t sample. The rule applies only to sound recordings, not to underlying musical compositions, and it formally binds only courts within the Sixth Circuit, though it has shaped licensing practice industry-wide.

Software and Interoperability

When copyright principles written for books and paintings get applied to computer code, the results shape entire technology markets. Two cases define the current rules.

Google v. Oracle

Building the Android operating system, Google copied roughly 11,500 lines of declaring code from Oracle’s Java platform. Declaring code is the naming structure that lets programmers call up pre-built functions; it doesn’t perform tasks itself. Oracle sued, arguing any copying of its code required a license.8Supreme Court of the United States. Google LLC v. Oracle America, Inc.

The Supreme Court held that Google’s copying was fair use. The declaring code was functional rather than purely creative, Google took only what was needed for compatibility, and letting programmers use existing Java skills on a new platform served the public interest in innovation.9U.S. Copyright Office. Google LLC v. Oracle Am., Inc. – Fair Use Summary The ruling blocks companies from using copyright over interface code to lock developers into a single ecosystem. For anyone building software that needs to work with existing platforms, this is the central precedent.

Sega v. Accolade

Before Oracle, the foundational software fair use case involved video games. Accolade, a third-party game developer, disassembled Sega’s object code to figure out how to make its cartridges run on the Sega Genesis console. Sega sued. The Ninth Circuit held that when disassembly is the only way to reach the functional ideas inside a program, and the person doing it has a legitimate reason, that intermediate copying is fair use as a matter of law.10Justia. Sega Enterprises, Ltd. v. Accolade, Inc. The decision is still cited in interoperability disputes and remains good law.

Artificial Intelligence

Generative AI has opened two separate fights: whether AI-created works deserve any protection, and whether training AI on copyrighted material without permission is legal.

Thaler v. Perlmutter

Stephen Thaler applied to register a visual work generated entirely by his AI system, the “Creativity Machine,” listing the machine as the author. The Copyright Office refused. In 2025, the D.C. Circuit affirmed, holding that the Copyright Act requires every eligible work to be authored by a human being.11United States Court of Appeals for the District of Columbia Circuit. Thaler v. Perlmutter A work created entirely by a machine with no human creative input cannot be copyrighted under current law.

Works that use AI as a tool rather than a sole creator sit in grayer territory. The Copyright Office has issued registration guidance and decided individual cases finding that human selection, arrangement, and creative direction can make portions of an AI-assisted work registrable, while purely machine-generated elements within the same work are not protected.12U.S. Copyright Office. Copyright and Artificial Intelligence

Training Data Lawsuits

The commercially bigger fight is over what AI companies consumed to build their models. The New York Times sued Microsoft and OpenAI, alleging that millions of its copyrighted articles were used to train large language models without permission or payment.13United States District Court Southern District of New York. The New York Times Company v. Microsoft Corporation – Complaint The Times argues the AI tools function as substitutes for its journalism, letting users get the substance of its reporting without visiting the site. In a separate suit, Getty Images alleges Stability AI copied more than 12 million photographs, with captions and metadata, to train the Stable Diffusion image generator.

These cases will likely turn on whether mass ingestion of copyrighted content for AI training qualifies as fair use. AI companies argue training is transformative because the models learn patterns rather than storing copies. Plaintiffs counter that the models can reproduce their work nearly verbatim and compete in the same markets. No court has issued a definitive ruling on the core fair use question, and the outcomes will determine whether AI companies need licenses for the content that powers their systems.

Who Owns the Work: Community for Creative Non-Violence v. Reid

Not every copyright dispute is about copying. Some decide who owns the work in the first place. Under the Copyright Act, a “work made for hire” belongs to the employer or commissioning party rather than the person who actually created it.14Office of the Law Revision Counsel. 17 USC 101 – Definitions The statute covers two situations: works created by employees within the scope of their jobs, and certain specially commissioned works where both parties signed a written agreement designating the work as made for hire.

The landmark decision involved sculptor James Earl Reid, hired by a nonprofit to create a statue depicting homelessness. When both sides claimed the copyright, the Supreme Court held that courts must use general agency-law principles to decide whether the creator was an employee or an independent contractor.15Justia U.S. Supreme Court Center. Community for Creative Non-Violence v. Reid Relevant factors include who provides the tools, where the work is done, how payment is structured, whether the hiring party controls the schedule, and whether the creator receives employee benefits like health insurance or tax withholding. No single factor decides the question.

Reid matters because it stops companies from claiming ownership of a freelancer’s work just because they paid for it. If you’re an independent contractor creating something for a client, the client doesn’t automatically own the copyright unless your work falls into one of nine narrow statutory categories and you both signed a written agreement. Getting that classification right before work begins saves everyone a lawsuit.

How Far Damages Reach: Warner Chappell Music v. Nealy

You have three years to file a copyright infringement lawsuit after your claim accrues.16Office of the Law Revision Counsel. 17 USC 507 – Limitations on Actions Most federal circuits apply a discovery rule, meaning the three-year clock begins when you learn about the infringement or reasonably should have, not necessarily when it occurred. Whether that discovery rule is correct under the statute remains an open question the Supreme Court has not definitively resolved.

In 2024, the Court addressed a related question: assuming a claim is timely, can you recover damages for infringement that happened more than three years before you filed? Yes. The Copyright Act’s statute of limitations creates one clock for filing suit, and the remedial provisions contain no separate time limit on monetary recovery.17Supreme Court of the United States. Warner Chappell Music, Inc. v. Nealy If your claim is timely under the discovery rule, you can seek damages going back to when the infringement began, even if that was decades ago.

The ruling matters most for creators who didn’t know their work was being used. A songwriter who discovers in 2026 that a company has been licensing a cover of their song without authorization since 2015 can potentially recover over a decade of lost royalties, as long as they file within three years of discovering the infringement.