💥 Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

New York Times sues OpenAI and Microsoft for copyright infringement

Published 28/12/2023, 12:58 pm
© Reuters.  New York Times sues OpenAI and Microsoft for copyright infringement
MSFT
-

The New York Times has initiated a lawsuit against OpenAI, the creator of ChatGPT, and Microsoft, citing unauthorised use of its articles.

This legal action, filed in Manhattan federal court, marks the first major US media organisation to challenge both OpenAI and Microsoft over copyright issues.

The complaint alleges that OpenAI and Microsoft leveraged the newspaper's content to develop their chatbots, thereby benefiting from the Times's significant investment in journalism without proper authorisation or compensation.

The newspaper argues that this practice is not 'transformative' and constitutes a direct substitute for its offerings, potentially diverting its audience.

Defends "fair use"

While OpenAI and Microsoft defend their actions as 'fair use', the Times disputes this, pointing out the US Copyright Office's definition of transformative uses as those that add something new with a distinct purpose or character.

The Times has not specified a damages amount but estimates billions of dollars.

It also demands the destruction of chatbot models and training sets incorporating its content.

Mutual agreement unsuccessful

Attempts for a mutual agreement to avoid litigation were unsuccessful.

OpenAI expressed disappointment at this lawsuit, considering ongoing constructive discussions. Microsoft has yet to comment.

This lawsuit comes at a time when chatbots are increasingly impacting the media industry's struggle to attract and retain readership.

The Times itself reports a significant digital subscriber base, highlighting the ongoing relevance and value of its journalistic content amidst evolving digital landscapes.

Past disputes

Notably, the lawsuit follows a similar pattern to previous legal challenges against AI services, including a dismissed case involving comedian Sarah Silverman and other authors against OpenAI and Meta Platforms.

The NY Times action also echoes past disputes in the digital content realm, notably the US Supreme Court's refusal to revive a challenge against Google (NASDAQ:GOOGL)'s digital library project.

The case is New York Times Co v Microsoft Corp (NASDAQ:MSFT) et al, US District Court, Southern District of New York, No. 23-11195.

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.