AI Copyright & Training Data w/ Chris Paniewski | Wilson Sonsini Startup Legal Basics

What It Covers

Wilson Sonsini partner Chris Paniewski explains AI copyright law for startups, covering training data legality, fair use defenses, investor due diligence requirements, and licensing strategies.

Key Questions Answered

• •Investor Due Diligence: Every AI financing now includes forensic examination of training data sources, license agreements, and fair use claims, which can kill deals if founders circumvented paywalls or terms of service.
• •Fair Use Defense: Fair use requires transformative purpose—training books in multiple languages for translation apps qualifies, but creating summaries or substitutes for original works fails the four-factor legal test.
• •Licensing Strategy: Scraping content for proof-of-concept before licensing may work defensively, but open source and Creative Commons share-alike licenses require derivative outputs be freely shared, preventing commercial protection.