Finding Creative Solutions For Complex Intellectual Problems

From electronic databases to AI scrapers: lessons from an $18 million copyright win

On Behalf of | Apr 13, 2026 | Civil Litigation, Copyright Law |

Back in 2013, major publishers treated freelance articles like inventory. Big publishers thought they could take freelance articles and put them into “electronic databases” without paying the authors. They were wrong. Attorney Gary Fergus served as co-lead counsel in the case that held these major publishers accountable, In re Literary Works in Electronic Databases. Ultimately resolved through an $18 million settlement, the outcome remains a practical reference point for today’s creators facing similar issues with artificial intelligence.

The label may have changed, but the conduct looks familiar. Mass copying at scale for someone else’s profit.

The 2026 reality: the “Thaler” decision and your rights

As of March 2, 2026, the Supreme Court in Thaler v. Perlmutter confirmed a core rule: only humans can be authors for US copyright purposes – not AI. That clarity does not end the business dispute. It reframes it. If an AI system cannot be the author, the economic upside still lands somewhere else: developers, deployers, platforms, distributors.

From a litigation perspective, the question becomes measurable harm. Consider public-facing markets such as an auction sale of AI-generated artworks. If a work is built from unlicensed training on identifiable human outputs, the theory of damage is not philosophical. It is likely “stolen” human creativity from the original artist. 

The “big fish” filter: proving the damage

Fergus, A Law Office focuses on economic value, not exposure. Cases like the electronic database litigation turned on proof, not outrage. The same discipline applies to AI disputes.

These cases require evidence that a business was hurt. Take an artist or publisher with a million-dollar portfolio, for example. If that artist now sees their own work replicated by AI software, they may have an actionable claim for loss of profits. 

Why conflict counsel matters

Big firms may be unable to offer counsel in these matters if they face conflicts due to existing relationships with big tech companies or the publishers involved. In such critical situations, Gary Fergus can use his over 40 years of complex litigation experience leading massive class actions to help protect your interests while fighting for legal remedies.

The battle of the numbers

Creators are wise to focus on profits lost. Attorney Fergus has experience fighting the “Battle of the Numbers” – the high-level math and legal discovery needed to establish how much is at risk. Those who own a high-value portfolio devalued by unauthorized AI use are wise to seek legal counsel from a litigator who has experience with these complicated cases. Contact our copyright and civil litigation attorney, Gary Fergus, to discuss your case today at 866-256-5487

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