USC's legal analysis explores landmark AI copyright litigation including Authors Guild v. OpenAI and NYT v. Microsoft, where publishers claim AI training violates copyright through unauthorized use of millions of articles. The piece contrasts China's progressive stance recognizing AI-generated content copyright with the U.S.'s unresolved fair use debates, highlighting how courts must balance AI innovation against creator rights. As proposed federal legislation like the Generative AI Copyright Disclosure Act advances, this analysis illuminates the critical legal battles shaping AI's future in creative industries.