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.