Copyright Chief Fired After Warning AI Firms on Fair Use

Crypto News Regulation

US Copyright Chief Fired After Warning AI Firms on Fair Use

Written by Aaron S.,

Editor-In-Chief

Last Updated: May 12, 2025

Key Takeaways

Shira Perlmutter was fired after her office released a report warning AI firms about limits on using copyrighted content;
The report says fair use does not cover large-scale commercial AI training and encourages companies to pay creators through licenses;
Representative Joe Morelle said that the firing was tied to her refusal to back Elon Musk’s AI data request.

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US Copyright Chief Fired After Warning AI Firms on Fair Use

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Shira Perlmutter, head of the US Copyright Office, was removed from her role by the Trump administration after releasing a report that questioned how artificial intelligence (AI) companies use copyrighted content to train their systems, according to a May 10 report by CBS News.

The Copyright Office’s newly released study warns that using protected material to make commercial products, especially if the content is accessed without permission, may fall outside the limits of fair use.

Instead of calling for immediate government action, the report suggests that the best path forward is for licensing systems to continue growing. It also mentions that if these systems fail to develop, other options like collective licensing could be considered so that rights holders are fairly paid.

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Representative Joe Morelle, a Democrat on the House Administration Committee, called the firing an "unjustified power grab" and suggested it was directly linked to Perlmutter’s refusal to approve Elon Musk’s request to use large volumes of copyrighted material for AI training.

Morelle said that it was “surely no coincidence” given the events that unfolded within 24 hours of the report’s release.

Lawyer Mike Davis, who appeared to disapprove of the firing, shared a post on Truth Social, President Donald Trump's social media platform. He warned that it might lead to creators’ rights being ignored by tech companies chasing profits through AI.

Perlmutter was originally appointed by Librarian of Congress Carla Hayden, who was also dismissed on May 9 by President Trump.

Meanwhile, the White House recently received more than 10,000 public comments on its proposed AI strategy. What did the feedback reveal? Read the full story.