OpenAI and Microsoft face new lawsuits over copyright infringement filed by authors

Ethan

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Jul 17, 2023
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OpenAI and Microsoft face new lawsuits over copyright infringement filed by authors


Nonfiction authors Nicholas Basbanes and Nicholas Gage have filed a class-action lawsuit against Microsoft and OpenAI, accusing them of copyright infringement for their use of literary works in AI training.

The lawsuit, filed in Manhattan federal court, is the latest in a series of lawsuits challenging the AI industry’s practice of using existing creative content.

OpenAI announced it is considering a $5 million fund to compensate people for the use of their work through AI. But multiple lawsuits filed against the company are seeking a much larger sum.

last case


The authors, known for their achievements in journalism and nonfiction, allege that Microsoft and OpenAI used their copyrighted material to train large language models, including ChatGPT, without permission.

This legal action follows similar cases by other authors such as George R.R. Martin and Jonathan Franzen, and highlights growing concern in the literary community about artificial intelligence’s use of their works.

The two authors are seeking damages of up to $150,000 for each work infringed; This could mean compensation reaching millions, depending on the number of works. The lawsuit also seeks to represent a broader group of writers and creators. This could significantly expand the scope of the legal battle by involving thousands more people in the claim.

NYT case


Adding to the legal push, The New York Times filed a separate lawsuit against Microsoft and OpenAI. The newspaper claims its journalistic content was used without permission to train large language models.

The NYT case marks a rise in growing scrutiny of how tech giants leverage intellectual property to fuel AI algorithms. This legal action by one of the world’s most prominent news organizations underscores the potential scope of the issue, as it could cover a wide range of copyrighted content used in AI training.

The New York Times is seeking damages and an order that the companies stop using its content to train AI models and destroy all data already collected. The newspaper did not specify an exact amount, but estimated that the breach could cause billions of dollars in damage.

OpenAI and Microsoft have defended the use of copyrighted works for AI training as “fair use,” a legal doctrine that allows unlicensed use of copyrighted material under certain conditions.

But the NYT argues that the companies’ use of content is not transformative and puts it in direct competition with the newspaper, potentially reducing traffic and impacting advertising and subscription revenues.

The lawsuit also highlights examples where OpenAI and Microsoft chatbots provided users with nearly verbatim quotes from NYT articles. The newspaper expressed concern about the impact of this practice on high-quality journalism and the difficulties it creates for readers in separating fact from fiction; This includes examples of AI technology incorrectly attributing information to the newspaper.

OpenAI stated that the ongoing discussions with the new article were progressing constructively and stated that it was surprised and disappointed by the lawsuit. Microsoft has yet to address this issue in a public statement.


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