Shira Perlmutter, the former head of the U.S. Copyright Office, has appealed her dismissal to the U.S. Circuit Court of Appeals, arguing that her removal was unlawful and motivated by her office’s report on AI and copyright. Released on May 9, 2025, the report challenged the “fair use” defense used by AI companies to train models on copyrighted material, asserting that such use often exceeds legal boundaries, particularly when it involves commercial applications that compete with original works. Perlmutter’s firing came just one day after the report’s release, following the dismissal of Librarian of Congress Carla Hayden, who appointed her.
Perlmutter’s legal team contends that the Trump administration’s claim of authority to remove her—a position appointed by the Librarian of Congress, not the president—lacks legal grounding and represents an overreach into the legislative branch, where the Copyright Office resides. Critics, including Rep. Joe Morelle, have called the move a “brazen power grab,” suggesting it was retaliation for Perlmutter’s refusal to align with tech industry interests, particularly those of Elon Musk, who has publicly criticized intellectual property laws. The report’s findings, which question the mass use of copyrighted data by AI firms, have been seen as a setback for tech companies advocating for broader access to training data.
The appeal highlights broader tensions between AI innovation and copyright protection, with Perlmutter’s report arguing that training AI on copyrighted works can harm creators by diluting markets or substituting for original content. While the report acknowledges potential for voluntary licensing, it emphasizes that unauthorized use often infringes on creators’ rights. The Trump administration, which has supported AI development through initiatives like a $500 billion investment with OpenAI, SoftBank, and Oracle, has faced accusations of undermining the Copyright Office’s independence to favor tech interests. Whether the report will remain official policy under new leadership remains uncertain, as does the outcome of Perlmutter’s appeal.