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Former President Donald Trump has dismissed Shira Perlmutter, the director of the U.S. Copyright Office, just one day after the release of a government report that cast doubt on the legality of using copyrighted material to train AI models. The firing, first reported by CBS News and Politico, has sparked backlash from lawmakers and copyright advocates.
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Representative Joe Morelle, the top Democrat on the House Administration Committee, condemned the move as an “unprecedented power grab with no legal basis.” He linked the firing directly to Perlmutter’s refusal to endorse efforts—allegedly backed by Elon Musk—to use copyrighted content for AI development without proper licensing. “It is surely no coincidence he acted less than a day after she refused to rubber-stamp Elon Musk’s efforts to mine troves of copyrighted works,” Morelle said.
Perlmutter, who had served as Register of Copyrights since 2020, was appointed during Trump’s first term by Librarian of Congress Carla Hayden—who was also reportedly fired this week.
Trump appeared to acknowledge the firing on his platform, Truth Social, by “ReTruthing” a post from attorney Mike Davis that linked to the CBS News article. In a twist, Davis criticized the decision, writing, “Now tech bros are going to attempt to steal creators’ copyrights for AI profits.”
At the center of the controversy is a newly released report from the U.S. Copyright Office, part of an ongoing series on copyright and artificial intelligence. The latest installment takes a cautious stance on the legality of using copyrighted works to train AI models. While the report acknowledges that some applications—like research and analysis—may fall under “fair use,” it warns that using copyrighted content for commercial purposes, especially without authorization, likely crosses legal boundaries.
“Making commercial use of vast troves of copyrighted works to produce expressive content that competes with them in existing markets… goes beyond established fair use boundaries,” the report states.
Although the Office did not call for immediate legislation, it emphasized the importance of developing licensing systems that allow rights holders to be compensated when their work is used to train AI. It also encouraged exploring solutions like extended collective licensing to address gaps in the market.
AI companies such as OpenAI are already facing multiple lawsuits over alleged copyright infringement tied to training data. OpenAI and others have advocated for clearer government policy, seeking legal frameworks that offer AI developers more latitude under fair use.
Elon Musk—who co-founded OpenAI and now runs rival firm xAI, along with X (formerly Twitter)—has pushed for a far more radical approach. In April, he voiced support for Jack Dorsey’s call to “delete all IP law.”
The fallout from Perlmutter’s firing is likely to intensify the ongoing debate over copyright, AI, and the influence of tech billionaires on public policy.
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