In 2025, artificial intelligence (AI) copyright cases were prominent, alongside several significant traditional copyright issues impacting a variety of stakeholders, including copyright owners, internet service providers (ISPs), media companies, and social media users. Although the U.S. Supreme Court did not rule on a copyright case this year, it engaged in arguments regarding secondary liability and willfulness in Cox v. Sony. Lower courts continued to address fair use factors, two years after the Supreme Court’s decision in Warhol v. Goldsmith. The debate over the “server test” for embedded works intensified and remains unresolved, while the Ninth Circuit refined standards for accessing online works.
The most noteworthy case of the year, Cox Communications, Inc. v. Sony Music Entertainment, could potentially reshape interpretations of secondary liability and willfulness under the Copyright Act. Music companies sued Cox for contributory and vicarious infringement due to its alleged failure to end accounts of repeat offenders. After a jury deemed Cox liable with a $1 billion judgment, the Fourth Circuit upheld the willful contributory infringement ruling but called for a new damages trial. Both parties sought a writ of certiorari from the U.S. Supreme Court, which is considering whether ISPs can be liable for failing to terminate infringing accounts and if mere knowledge of infringement constitutes willfulness.
During the December oral arguments, the music companies accused Cox of prioritizing profits over compliance, while Cox defended its service provision without intent to infringe. The decision could significantly influence copyright enforcement online and affect industries like AI, where systems often create infringing works unknowingly.
Lower courts are still navigating fair use amid the implications of Warhol v. Goldsmith. In one case, the Second Circuit found a photograph of a Russian woman with snakes used in an article on pet photo trends did not qualify as fair use, lacking distinct commentary or critique. Conversely, in Wilder v. Hoiland, fair use was recognized when a faculty member used another’s text for educational commentary, as it was deemed transformative.
The Southern District of New York ruled embedding a Michael Jordan video in an article constituted fair use, adding new context to the content. Similarly, the Northern District of California ruled that livestreams featuring commentary on a video game were fair use due to their transformative nature.
The “server test,” which determines liability based on whether a copyrighted work is copied on a server, remains contentious. The Ninth Circuit supports the server test, while other courts like the Southern District of New York reject it, stating that unauthorized display of content can be infringement regardless of server storage. This division could lead to continued uncertainty for media companies and content creators.
In Woodland v. Hill, the Ninth Circuit dealt with allegations by a freelance artist against Lil Nas X regarding semi-nude photos. The court dismissed the case, noting a lack of evidence for access, such as direct interaction between the parties. This ruling emphasizes the challenge of proving access and similarity in copyright claims within online platforms.
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