It wasn't just a routine human resources shuffle. When the news broke that President Trump had fired the nation’s top copyright official, it felt like a niche legal spat. But honestly, it’s much bigger. We’re talking about a fundamental collision between the White House and the office that decides who owns the future of AI.
At the center of this storm is Shira Perlmutter, the Register of Copyrights. She was the one who oversaw the office when it dropped a massive report on artificial intelligence—a report that apparently didn't sit well with the administration. One day after that report's pre-publication release in May 2025, she got an email. "Effective immediately," it said. You're out.
Now, the Trump SCOTUS Copyright Office dispute has landed at the highest court in the land, and it’s getting messy.
The Firing That Sparked the Firestorm
Let’s back up. This wasn't just a sudden whim. The administration first moved to fire Carla Hayden, the Librarian of Congress. Since the Copyright Office sits inside the Library of Congress, the Librarian usually has the final say on the Register. Trump appointed Todd Blanche as the Acting Librarian, who then moved to oust Perlmutter.
The timing is what raised eyebrows. The Copyright Office had just suggested that certain AI-generated works might not be copyrightable and that using copyrighted data to train AI models could actually be infringement.
Basically, they weren't giving the tech world—or the administration's preferred policy path—a free pass.
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Perlmutter didn't just pack her desk. She sued. She argued that the Library of Congress is a Legislative Branch agency, not an Executive one. In her view, the President can’t just reach in and fire people whenever he wants. It’s a classic separation of powers fight.
Why the Supreme Court Is Hesitating
You might think a 6-3 conservative court would just side with the President’s "Unitary Executive" theory and be done with it. But it’s not that simple.
In November 2025, the Supreme Court issued a brief, unsigned order. They didn't rule for Trump. They didn't rule for Perlmutter. Instead, they deferred the decision. Why? Because they have two other massive cases on the docket: Trump v. Slaughter (about the FTC) and Trump v. Cook (about the Federal Reserve).
The justices are basically saying, "Wait. We need to decide if the President can fire any independent agency head before we touch the Copyright Office."
Justice Clarence Thomas was the lone voice who wanted to let Trump fire her right away. He didn't say why, but it's clear he's ready to expand presidential power. The rest of the court? They’re playing the long game.
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The AI Connection: What’s Really at Stake?
If you think this is just about some dusty office in Washington, think again. The Copyright Office is the gatekeeper for trillions of dollars in intellectual property.
- AI Training Data: Can companies like OpenAI or Meta use your books, photos, and code for free? The Copyright Office under Perlmutter was skeptical.
- AI Ownership: If you type a prompt into an AI and get a masterpiece, do you own it? Currently, the office says no—human authorship is required.
- The "Legislative Branch" Shield: If the Copyright Office is part of the Legislative branch, it stays independent. If it’s Executive, the President can turn it into a policy tool.
The administration’s lawyer, Solicitor General D. John Sauer, argues that because the Register issues regulations and enforces laws, she is exercising "executive power." Therefore, the President must be able to fire her.
Perlmutter’s team, led by Skye Perryman of Democracy Forward, says that’s a "lawless executive action" that ignores how Congress built the Library in the first place.
Where Things Stand Right Now
As of early 2026, Shira Perlmutter is technically back at work.
A lower court—the D.C. Circuit—ordered her reinstatement while the case plays out. The Supreme Court refused to block that order for now. So, she’s in her office, but she’s sitting on a legal landmine.
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Meanwhile, Congress is trying to fix the mess with the Legislative Branch Agencies Clarification Act. This bill would officially move the Copyright Office out of the Library and make it a standalone Executive agency. If that passes, the whole lawsuit might just vanish because the President would then have the clear power he's claiming.
It’s a high-stakes game of legal chicken.
What You Should Watch For
This isn't just "inside baseball" for lawyers. The outcome of the Trump SCOTUS Copyright Office dispute will change how every creator in America works.
- Watch the Slaughter Case: The SCOTUS ruling on the FTC (expected mid-2026) will be the blueprint for what happens to the Copyright Office.
- The AI Report Finalization: Perlmutter’s office is still working on the final parts of the AI report. If she gets fired again, expect that report to look very different.
- The "Back Pay" Argument: The government is arguing that even if the firing was wrong, the only remedy is giving her money—not her job back. If the Court agrees, no federal official is truly safe from a snap firing.
If you’re a creator, an artist, or a tech developer, you need to keep an eye on this. The rules of ownership are being rewritten in a courtroom, not a studio.
Actionable Insights for Creators and Businesses:
- Audit Your AI Use: Don't assume your AI-generated assets are protected by copyright. Until this dispute is settled, the "Human Authorship" rule is the only safe bet.
- Track the "Legislative Branch Agencies Clarification Act": If this moves through Congress, the Copyright Office will likely become more political and less independent.
- Document Everything: If you use AI tools, keep logs of your prompts and iterations. The more you can prove "human control," the better your chances of keeping your IP if the rules shift.
The battle over the Copyright Office is a battle over who controls the information economy. It's messy, it's complicated, and honestly, it's just getting started.