If your business discovered that its revenue covered only 70% of its costs, it would be time for a re-examination of operations, both in terms of revenues and costs. The Copyright Office has issued some rule changes affecting both.

New Fees

According to the U.S. Copyright Office’s notice in the February 19, 2020 Federal Register (85 Fed. Reg. 9374, 9375), historically, the fees collected by the Copyright Office covered only 60% of its costs, and, more recently, only 70% of its costs. It has announced a new fee schedule, which includes many higher fees, some lower or unchanged fees, and some new fees. The new fee schedule goes into effect on Friday, March 20, 2020.

Artificial Intelligence, or AI, refers to the capability of a machine to imitate intelligent human behaviour. Though it sounds like something out of a sci-fi film, the reality is that AI is quickly becoming a norm in our everyday lives, from the simple AI systems used to sort email inboxes, to complex AI systems known as “Generative Adversarial Networks” (GANs), which can be trained to autonomously produce new products without human input. This has resulted in a new type of intellectual property: AI-generated IP.

On May 23, 2019, a federal jury unanimously found that the Houston Independent School District willfully infringed 36 of DynaStudy’s copyrighted study guides, and awarded $9.2 million dollars. (DynaStudy, Inc. v. Houston Independent School District, Case No. 4:16-cv-01442 (S.D. Tex. May 23, 2019) (verdict, document #316). As this case illustrates, “educational” use is a very narrow exception to the copyright laws. New technologies make copying easier than ever, but the jury verdict demonstrates the damages can be unlimited.