Question 2 – 9 Points StudyForge, Inc. is a for-profit Madi…
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Questiоn 2 – 9 Pоints StudyFоrge, Inc. is а for-profit Mаdison stаrtup that sells an Artificial Intelligence (“AI”) study app to college students for $14.99 per month. StudyForge trained its AI model on approximately 40,000 copyrighted college textbooks. It obtained them by scanning used copies, without licenses from the publishers. A student can type a prompt such as “Summarize Chapter 7 of Principles of Business Law, 12th edition.” The app then produces a detailed, section-by-section summary that follows the chapter’s organization, uses the textbook’s own examples and hypotheticals, and sometimes reproduces several paragraphs word-for-word. StudyForge’s advertising campaign on campus uses the slogan “Why pay $250 for the textbook? Skip it.” In the two semesters since StudyForge launched, sales of the publishers’ textbooks at participating universities fell sharply. The publishers’ own licensed digital study guides lost subscribers as well. Several textbook publishers sued StudyForge for copyright infringement. StudyForge concedes that it copied the books but argues that its use is a fair use because it is “educational,” because AI training is transformative, and because textbooks are mostly factual. REQUIRED – 9 Points: Will StudyForge’s fair use defense likely succeed? Identify each of the fair use factors, discuss each factor separately, and explain how a court would likely weigh each factor on these facts.