Epic and Microsoft issue DMCA takedowns against AI game clones while using AI internally

Tim Sweeney, Epic’s founder, clarified the company’s position in an October 27 X post. He emphasized that Epic prohibits unauthorized use of its intellectual property without permission or compensation. Sweeney also noted that while Epic’s current End User License Agreement (EULA) restricts AI training on Unreal Engine outputs and MetaHuman, the company is working to remove those restrictions. He disputed the idea that all AI training inherently constitutes theft, citing the Bartz v. Anthropic ruling, which distinguished between transformative fair use (e.g., training on copyrighted books) and unauthorized piracy. The ruling did not create a universal safe harbor for AI training, and the law remains fact-specific. Meanwhile, the enforcement gap disproportionately affects indie developers, who lack the resources to challenge takedowns or navigate legal hurdles. The industry now faces the question of whether companies leveraging AI for competitive advantage will apply the same rigorous standards to their own pipelines.