The New York Times (NYT) has initiated a landmark legal battle against OpenAI and Microsoft, accusing the companies of copyright infringement by training AI models using information sourced from the publication's archive. OpenAI defends its actions, claiming "fair use" as a broad interpretation necessary for AI advancement. Legal experts, including Bryan Sterba and Matthew Kohel, share insights on the case, highlighting potential implications for AI developers, content creators, and the evolving legal landscape surrounding AI regulations.


Key Points:

  • Landmark Legal Battle: The New York Times (NYT) has filed a lawsuit against OpenAI and Microsoft, alleging copyright infringement related to the training of AI models using information from the NYT's archive.

  • OpenAI's Defense: OpenAI argues for a broad interpretation of the "fair use" defense, claiming it is necessary for the progress of generative AI. The company asserts that the NYT's claims are meritless and calls for a public policy argument in favor of fair use.

  • Legal Expert Insights: Bryan Sterba, partner at Lowenstein Sandler, and Matthew Kohel, partner at Saul Ewing, provide insights into the legal intricacies of the case. Sterba notes OpenAI's advocacy for a broad fair use defense as a public policy argument, while Kohel emphasizes the potential stakes involved.

  • Stakes and Potential Outcomes: The NYT is seeking billions of dollars in damages, alleging that OpenAI is providing valuable content for free. Kohel suggests that a ruling in favor of OpenAI could allow providers of AI technologies to use and reproduce valuable content freely.

  • Current Legal Framework: Kohel notes that there is currently no specific legal framework governing the use of training data for AI models. Content creators rely on the Copyright Act to protect intellectual property rights, and potential changes may result from the proposed AI Foundation Model Transparency Act.

  • Opt-out Concept: OpenAI's introduction of the opt-out concept, allowing publishers to opt out of data collection, is acknowledged. However, Sterba comments that this may provide limited comfort to publishers as they lack insight into the data already scraped.

  • Broader Implications: The lawsuit prompts discussions on AI regulation, the balance between technological innovation and intellectual property rights, and the ethical considerations surrounding AI model training with publicly available data.

  • Importance of Awareness: Kohel emphasizes the importance of AI developers understanding the implications of AI models on society, particularly in areas beyond intellectual property rights, extending to national security matters. Content creators are advised to protect their interests by registering their works with the Copyright Office.

The lawsuit between The New York Times, OpenAI, and Microsoft brings attention to the evolving legal landscape surrounding AI, raising important considerations for AI developers, content creators, and the broader discussions on AI regulations and ethical considerations.


(SAVANNAH FORTIS, COINTELEGRAPH, 2024)