Interesting case, IANAL but sounds legal and legit. The AI did not have expose to the backend it re-implemented. The API itself is public and not protectable.
AI can't be the author of the work. Human driving the AI can, unless they zero-shotted the solution with no creative input.
"For example, when an AI technology receives solely a prompt from a human and produces complex written, visual, or musical works in response, the 'traditional elements of authorship' are determined and executed by the technology—not the human user."
"In other cases, however, a work containing AI-generated material will also contain sufficient human authorship to support a copyright claim. For example, a human may select or arrange AI-generated material in a sufficiently creative way that 'the resulting work as a whole constitutes an original work of authorship.'"
"Or an artist may modify material originally generated by AI technology to such a degree that the modifications meet the standard for copyright protection. In these cases, copyright will only protect the human-authored aspects of the work, which are 'independent of' and do 'not affect' the copyright status of the AI-generated material itself."
IMO this is pretty common sense. No one's arguing they're authoring generated code; the whole point is to not author it.
If the AI code isn't copyrightable, I don't have any obligations to acknowledge it.
There's close enough to zero enforcement of infringement, it's all self policing or violation.
Actually this is very much how people think for code.
Consider the following consequence. Say I work for a company. Every time I generate some code with Claude, I keep a copy of said code. Once the full code is tested and released, I throw away any code that was not working well. Now I leave the company and approach their competitor. I provide all of the working code generated by Claude to the competitor. Per the new ruling, this should be perfectly legal, as this generated code is not copyrightable and thus doesn't belong to anyone.
The core feature of generative AI is the human isn't the author of the output. Authoring something and generating something with generative AI aren't equivalent processes; you know this because if you try and get a person who's fully on board w/ generative AI to not use it, they will argue the old process isn't the same as the new process and they don't want to go back. The actual output is irrelevant; authorship is a process.
But, to your point, I think you're right: companies super think their engineers have the rights to the output they assign to them. If it wasn't clear before it's clear now: engineers shouldn't be passing off generated output as authored output. They have to have the right to assign the totality of their output to their employer (same as using MIT code or whatever), so that it ultimately belongs to them or they have a valid license to use it. If they break that agreement, they break their contract with the company.
I still don't think this is fully accurate.
The view I'm noticing is that people consider that they have a right to the programs they produce, regardless of whether they are writing them by hand or by prompting an LLM in the right ways to produce that output. And this remains true both for work produced as an employee/company owner, and for code contributed to an OSS project.
Also, as an employee, the relationship is very different. I am hired to produce solutions to problems my company wants resolved. This may imply writing code, finding OSS code, finding commercial code that we can acquire, or generating code. As part of my contract, I relinquish any rights I may have to any of this code to the company, and of course I commit to not use any code without a valid license. However, if some of the code I produce for the company is not copyrightable at all, that is not in any way in breach of my contract - as long as the company is aware of how the code is produced and I'm not trying to deceive them, of course.
In practice, at least in my company, there has been a legal analysis and the company has vetted a certain suite of AI tools for use for code generation. Using any other AI tools is not allowed, and would be a breach of contract, but using the approved ones is 100% allowed. And I can guarantee you that our lawyers would assert copyright to any of the code generated in this way if I was to try to publish it or anything of the kind.
I'm not really convinced; I think if I vibe code an app, and you vibe code an app that's very, very similar, and we're both AI believers, we probably both go "yup, AI is amazing; copyright is useless." You know this because people are actively trying to essentially un-GPL things with vibe coding. That's not authoring, that's laundering, and people only barely argue about it. See: this chardet situation, where the guy was like "I'm intimately familiar with the codebase, I guided the LLM, and I used GPL code (tests and API definitions, which are all under copyright) to ensure the new implementation behaved very similarly to the old one." Anything in the new codebase is either GPL'd or LLM generated, which according to the copyright office, isn't copyrightable. If he's right, nothing prevents me from doing the exact same thing to make a new public domain chardet. It's facially absurd.
I think we didn't even began to consider all the implications of this, and while people ran with that one case where someone couldn't copyright a generated image, it's not that easy for code. I think there needs to be way more litigation before we can confidently say it's settled.
If "generated" code is not copyrightable, where do draw the line on what generated means? Do macros count? Does code that generates other code count? Protobuf?
If it's the tool that generates the code, again where do we draw the line? Is it just using 3rd party tools? Would training your own count? Would a "random" code gen and pick the winners (by whatever means) count? Bruteforce all the space (silly example but hey we're in silly space here) counts?
Is it just "AI" adjacent that isn't copyrightable? If so how do you define AI? Does autocomplete count? Intellisense? Smarter intellisense?
Are we gonna have to have a trial where there's at least one lawyer making silly comparisons between LLMs and power plugs? Or maybe counting abacuses (abaci?)... "But your honour, it's just random numbers / matrix multiplications...
But for this type of copyright laundering, it doesn't really matter. The goal isn't really about licensing it, it's about avoiding the existing licence. The idea that the code ends up as public domain isn't really an issue for them.
Its also US only. Other countries will differ. This means you can only rely on this ruling at all for something you are distributing only in the US. Might be OK for art, definitely not for most software. Very definitely not OK for a software library.
For example UK law specifically says "In the case of a literary, dramatic, musical or artistic work which is computer-generated, the author shall be taken to be the person by whom the arrangements necessary for the creation of the work are undertaken."
This seems extremely vague. One could argue that any part of the pipeline counts as an "arrangement necessary for the creation of the work", so who is the author? The prompter, the creator of the model, or the creator of the training data?
They can't waive their liability from being identified as an infringer though.