On Wednesday, the New York Times filed a lawsuit against OpenAI and Microsoft. This latest legal battle adds to the growing number of content creators claiming copyright violations within the generative AI sector.

It claims the unauthorized use of millions of Times-owned articles to train powerful AI GPT models.

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Copyright Violations

In the Federal District Court in Manhattan, the lawsuit emphasizes that the works were used “without permission.”

While the suit does not specify a monetary demand, it contends that the companies are responsible for billions in damages.

The New York Times demands the dismantling of chatbot models and data that incorporated copyrighted content from The Times.

The Times alleges that Microsoft and OpenAI "likely used millions of Times-owned works in full to train the GPT models" and repeatedly copied copyrighted content without any compensation. 

The companies collaborated to develop a complex supercomputing system dedicated to housing and reproducing copies of the training dataset, including Times-owned content. 

The heart of the matter lies in the AI chatbots developed by these companies, which, according to the lawsuit, aim to leverage The Times' substantial journalism investment to build substitutive products without permission or payment. 

Copyright issues have become a focal point in the generative AI sector, with publishers, musicians, and artists increasingly seeking legal action to ensure compensation for the use of their content in AI technologies.

News organizations seek damages

In contrast to media groups like Germany's Axel Springer and the Associated Press, which have entered content deals with OpenAI, The New York Times has taken a confrontational stance. 

The lawsuit suggests that if news organizations cannot protect their independent journalism, there will be a void that no AI can fill, leading to a reduction in journalism production with enormous societal costs.

The Times seeks damages, and an order to cease using its content for AI model training. It is also demanding the destruction of already harvested data.

 While a specific sum is not mentioned, The Times claims the infringement could amount to billions of dollars in statutory and actual damages. 

Microsoft, a major investor in OpenAI, has swiftly incorporated AI into its products, making it the world's second-largest company by market capitalization.

The lawsuit challenges the assumption that using internet content without compensation is fair, especially when it creates potential rivals to traditional news publishers. 

“Transformative” technology

The Times claims that attempts to negotiate a content deal with OpenAI were disrupted by the argument that the technology was "transformative" and did not require a commercial arrangement.

"There is nothing 'transformative' about using The Times' content without payment to create products that substitute for The Times and steal audiences away from it," the lawsuit alleges.

Furthermore, the lawsuit alleges that content generated by ChatGPT and Copilot closely mimicked New York Times style. It contends that the output received privileged status due to its reliability. 

This echoes a trend where AI giants face legal challenges over using internet content to train systems generating content on simple prompts.

The emerging AI giants find themselves in a legal quagmire, with notable figures like "Game of Thrones" author George RR Martin filing lawsuits against OpenAI for violating copyrights. Music publishers, photo distributors, and news publishers are all taking a stand against unauthorized use of their content in AI systems.

 As lawsuits accumulate, Microsoft and Google have announced plans to cover legal fees for corporate customers facing copyright violations and infringement suits over AI-generated content.