Over the weekend, President Donald Trump dismissed the head of the U.S. Copyright Office, Register of Copyrights Shira Perlmutter, shortly after the office released a contentious report on artificial intelligence.
The report concluded that AI companies using copyrighted materials for training might not be shielded by the fair use doctrine. Although the report’s findings are advisory, they may influence forthcoming court cases on the matter. Additionally, on Thursday, May 8, President Trump removed the Librarian of Congress, Dr. Carla Hayden, who was responsible for overseeing the U.S. Copyright Office, citing the Library’s DEI initiatives as the reason for the dismissal.
The timing and circumstances of these dismissals have raised concerns among copyright attorneys. Cornell H. Winston, President of the American Association of Law Libraries, expressed in a statement to AALL members on Monday his “deep concern” over the dismissals, though he did not specifically mention the AI report.
President Trump has promised to adopt a business-friendly stance on artificial intelligence and enacted two executive orders in April to promote U.S. leadership in the AI sector.
The Copyright Office’s report poses challenges for the AI industry
The U.S. Copyright Office has been developing a significant three-part report on copyright law and AI, with notable implications for AI companies. Currently, legal issues surrounding AI and copyright law remain unresolved, with major cases involving OpenAI and Meta under judicial consideration.
The third report, “Copyright and Artificial Intelligence Part 3: Generative AI Training,” specifically addresses fair use arguments relevant to these cases. The report evaluates whether training AI models on copyrighted content, such as books, movies, and images, infringes copyright law or is protected by fair use. The report’s early release, titled a “pre-publication version,” occurred on Friday.
The preliminary version questions the fair use defense’s viability, potentially complicating legal scenarios for companies like Meta and OpenAI. Part 3 also highlights potential financial harms to artists from AI-generated works that mimic their styles, including loss of licensing opportunities if AI firms can use copyrighted content without payment.
A concerning sequence of events
On Thursday, the Librarian of Congress was dismissed, followed by the release of a pre-publication version of the report on Friday, and on Saturday, the leader of the Copyright Office was fired.
Blake E. Reid, a copyright lawyer and Associate Professor of Law, speculated on Bluesky that a dismissal of copyright staff might be underway. Reid noted the “Pre-Publication” status seemed unusual and conspicuously timed with the Librarian of Congress’s firing.
Hours later, the White House terminated Perlmutter. A U.S. Copyright Office spokesperson stated: “On Saturday afternoon, May 10, 2025, the White House sent an email to Shira Perlmutter stating that her position as Register of Copyrights and Director was terminated effective immediately.” The office offered no further comments on the timing of the report’s release.
Reid described the AI report as particularly detrimental to AI companies. In an interview, Reid noted the report’s unexpected release seemed linked to administrative actions concerning AI, although the exact reasoning remains unclear.
The discontent surrounding the AI report illustrates a major challenge for AI companies, whose hopes for support in litigation have been hindered by findings that certain practices may not be considered fair use.
While some copyright attorneys show concern, the alignment of events does not necessarily confirm a direct connection. The pre-publication version of Part 3 of the report is available online at the U.S. Copyright Office website.
