The intersection between generative AI and copyright law has reached a critical juncture in Europe. For the first time, the Court of Justice of the European Union (CJEU) will weigh in on how EU copyright rules apply to large language models (LLMs), with implications for AI developers, digital platforms, and content-driven businesses.

At issue is Like Company v. Google Ireland (Case C-250/25), a reference from the Budapest District Court. Like Company, a Hungarian press publisher, alleges that Gemini – Google’s AI chatbot – reproduced and summarised significant portions of its online news content without prior authorisation.

The case raises four key legal questions for interpretation under the InfoSoc Directive and the DSM Directive:

• Whether the training of an LLM on protected works constitutes reproduction
• Whether AI-generated outputs that echo or closely resemble original content qualify as communication to the public
• Whether the text and data mining (TDM) exception in Article 4 of the DSM Directive applies to commercial AI training
• And whether AI providers can be held liable for such outputs

Google contests the claims, arguing that Gemini produces outputs probabilistically rather than storing or reproducing content, and that any resemblance is incidental or the result of generative “hallucinations.” It also relies on existing copyright exceptions, including the TDM exception and allowances for temporary reproduction.

Although a ruling is not expected before 2027, commercial stakeholders should begin assessing potential exposure and adapting their strategies now, as the CJEU’s decision will have a lasting impact on how businesses in Europe approach AI development, copyright licensing, and IP risk management.

It will define the scope of publisher rights in the era of machine learning, may impose new compliance obligations on AI providers, and is likely to carry global significance for rights holders – a development aera is following closely and is fully prepared to support stakeholders in navigating.

Need assistance?
For a better understanding of how upcoming legal developments may impact your business operations, please don’t hesitate to contact us. aera supports commercial entities with IP strategies and compliance, as well as other commercial aspects of intellectual property.