Observed Signal · Feb 29, 2024 · Regulation · Source: OnlineMarketing.de · Impact: 3/5 · Sentiment: Negative
Copyright suits pressure OpenAI and Microsoft
Three publishers—The Intercept, Raw Story, and AlterNet—filed separate copyright lawsuits in the Southern District of New York against OpenAI and Microsoft, claiming their AI training used copyrighted journalistic works and that author, title, and other rights data were removed. The suits argue that if training materials contained copyright information, ChatGPT would be expected to reflect it in its responses, and that such implications could reduce popularity and revenue. Plaintiffs point to OpenAI’s opt-out system for web crawlers as evidence of awareness of potential copyright issues. The filings underscore rising publisher concern about AI-generated content and reference broader industry activity, including OpenAI’s December 2023 collaboration with Axel Springer and other industry cases like Getty Images v Stability AI and Universal Music Group v Anthropic.
Lawsuits by major publishers highlight IP risk in AI training and have potential industry-wide implications.
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Key Takeaways & Evidence Grounding
- The Intercept, Raw Story, and AlterNet filed separate SDNY copyright lawsuits against OpenAI and Microsoft.
- Plaintiffs allege training data removal of author, title, and other copyright information from journalistic works.
- Suits claim ChatGPT would have to include copyright information in responses if trained on such materials, potentially affecting popularity and revenue.
- OpenAI's opt-out system for web crawlers is cited as evidence of awareness of copyright issues.
- The article notes broader publisher concerns and cites Axel Springer’s December 2023 partnership with OpenAI and other industry cases (Getty Images v Stability AI; Universal Music Group v Anthropic).
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Newly unsealed documents in The New York Times' lawsuit against OpenAI and Microsoft reveal internal admissions that AI products are 'largely substitutive' and pose an 'existential threat' to publishers. Legal experts say this eviscerates the fair-use defense, especially given evidence of paywall circumvention, which may violate the DMCA. The filings could catalyze more publisher lawsuits and force AI companies into paid licensing markets. Executives from OpenAI, Microsoft, and other AI firms are shown acknowledging the commercial value of news content while using it without permission. The case, presided over by Judge Sidney Stein, may set precedent for AI training on copyrighted works, reshaping the terms of trade between AI and publishing.
Seattle Times and Newsday sue OpenAI and Microsoft over AI training
The Seattle Times and Newsday have filed a lawsuit against OpenAI and Microsoft, alleging that the companies used their copyrighted journalistic content without authorization to train AI models. The publishers claim that the companies systematically scraped articles, bypassing paywalls, to feed their systems, thereby diverting traffic and digital ad revenue. The lawsuit also raises concerns about AI-generated 'hallucinations' falsely attributed to the newspapers and the removal of copyright management information. It describes generative AI as 'a snake eating its own tail' that could destroy journalism. This case follows a similar lawsuit by The New York Times in 2023 and adds to the growing legal battles between media companies and AI firms. Notably, Microsoft and OpenAI have previously funded journalism projects at The Seattle Times. Microsoft expressed surprise but a willingness to resolve the dispute. The lawsuit was filed on September 7, 2026.
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