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ARTICLE · 18 DECEMBER 2025

Data License Restrictions In The AI Spotlight: Careful Drafting Is More Important Than Ever

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A recently-filed federal court complaint tests the enforceability of restrictive terms in a data license against the use of licensed data for generative AI purposes.

United StatesTechnology
Jeffrey Neuburger
Jeffrey Neuburger
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A recently-filed federal court complaint tests the enforceability of restrictive terms in a data license against the use of licensed data for generative AI purposes. The outcome of this case may turn on interpreting broad terms such as training, internal research, distribution and publication.

On November 26, 2025, legal research platform Fastcase, Inc. ("Fastcase") sued legal AI company Alexi Technologies Inc. ("Alexi") in a District of Columbia district court, alleging that Alexi used licensed "Fastcase Data" (i.e., a sophisticated, extensively tagged legal research database) to train and power a commercial AI legal research product in violation of a 2021 data license agreement.(Fastcase, Inc. v. Alexi Technologies Inc., No. 25-04159 (D.D.C. Filed Nov. 26, 2025)).

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