Trump rejects AI copyright payments as impractical against China

President Trump rejected the idea of requiring AI companies to pay copyright holders for training data, arguing it would be impractical and put the U.S. at a competitive disadvantage against China. Speaking at an AI Summit in Washington, D.C., Trump called for a “common sense” approach that allows unfettered AI development, comparing AI learning to human reading where knowledge is gained without copyright violations.

What Trump said: The president drew parallels between human learning and AI training to justify his position on copyright compensation.

• “You can’t be expected to have a successful AI program when every single article, book or anything else that you’ve read or studied, you’re supposed to pay for,” Trump said. “You just can’t do it, because it’s not doable.”
• “When a person reads a book or an article, you’ve gained great knowledge. That does not mean that you’re violating copyright laws or have to make deals with every content provider,” he explained.
• “China’s not doing it… You have to play by the same set of rules… It just doesn’t work that way.”

The legal landscape: Federal courts have begun siding with AI companies on fair use arguments, though the issue remains unsettled.

• A couple of federal judges agreed with AI companies in June, siding with Meta and Anthropic in rulings that threw out artists’ infringement claims.
• The Supreme Court may ultimately have to settle whether AI training constitutes “fair use” or if rightsholders deserve compensation.
• Sens. Josh Hawley (R-Mo.) and Richard Blumenthal (D-Conn.) introduced legislation Monday to prohibit AI training on copyrighted works without permission.

Opposition voices: Creative industry groups and lawmakers are pushing for artist compensation and consent requirements.

• The Human Artistry Campaign—including Hollywood unions like SAG-AFTRA, the Directors Guild of America, the Writers Guild of America and IATSE—maintains that AI training should only be done with rightsholder consent.
• Some advocates envision a payment scheme similar to ASCAP or BMI, where AI companies could license copyright works and distribute royalties to rightsholders.
• “AI companies are robbing the American people blind while leaving artists, writers, and other creators with zero recourse,” said Sen. Hawley.

Industry positions: Major entertainment companies are taking a measured approach to the copyright debate.

• The Motion Picture Association, representing major studios and streaming companies, has argued for a case-by-case approach to AI and fair use.
• “As of now, there is no cause to believe the courts and existing law are not up to the task of applying existing copyright law to new technology,” the MPA said in March.
• The White House issued an AI Action Plan Thursday that called for further innovation but did not address the copyright issue.

Why this matters: Trump’s stance aligns with the AI industry’s argument that requiring copyright payments would create insurmountable barriers to development, potentially allowing countries like China to gain a competitive advantage in the global AI race.