Ninth Circuit Courts Narrow Ruling Favors OpenAI and Microsoft in AI Copyright Case

The US Court of Appeals for the Ninth Circuit has made a narrow ruling in favor of OpenAI Inc. and Microsoft Corp., potentially limiting damages in copyright cases involving AI platforms.

The ruling, issued on September 17, 2026, shuts down a claim that AI platforms illegally strip data attached to creative works, such as their creators and owners.

The court's decision was based on the fact that the open source model used by OpenAI and Microsoft is exempt from copyright infringement claims due to its license agreement.

This ruling has significant implications for the tech industry, which has been grappling with the existential uncertainty surrounding AI-generated content and intellectual property rights.