Key Takeaways:
OpenAI, the company behind ChatGPT, must face a lawsuit brought by The Intercept, which alleges the AI firm improperly used its news articles for AI training by removing copyright management information.
U.S. District Judge Jed Rakoff ruled that The Intercept “plausibly argued it was harmed by OpenAI’s alleged removal of copyright management information from its articles,” allowing that part of the lawsuit to move forward.
However, the judge dismissed The Intercept’s claim that OpenAI unlawfully distributed its articles after removing copyright information.
The ruling marks a rare legal development in the wave of lawsuits against AI companies, as previous cases from other media outlets have been dismissed.
Microsoft Removed from the Case
“The Intercept’s case against Microsoft should be dismissed because its claims only concerned OpenAI’s AI training.”
This decision shields Microsoft from direct involvement, limiting the case solely to OpenAI’s data practices.
Legal Landscape: AI and Copyright Battles Continue
The case is part of a broader legal battle involving AI companies and the use of copyrighted content.
ver the past year, several organizations, including The New York Times, have sued OpenAI, arguing that their content was used without permission to train AI models.
Unlike traditional copyright infringement claims, The Intercept, Raw Story, and AlterNet accused OpenAI of removing copyright management information under the Digital Millennium Copyright Act (DMCA).
“Even though the specific right created by the DMCA may be comparatively new, the injury experienced by The Intercept because of the violation of that right sounds in the same kind of harm long recognized in copyright suits.”
This sets a precedent for AI-related copyright claims under the DMCA, potentially opening doors for similar lawsuits in the future.
OpenAI’s Response: Defending Fair Use
Following the ruling, OpenAI reiterated its stance that its AI models are trained on publicly available data in accordance with fair use principles.
While OpenAI has frequently defended its AI training practices, this case highlights a specific legal challenge under the DMCA rather than traditional copyright infringement claims.
The case, The Intercept Media Inc. v. OpenAI Inc., will proceed in the U.S. District Court for the Southern District of New York under case number 1:24-cv-01515.
The court’s decision could influence how AI companies handle copyrighted materials, particularly regarding the removal of copyright management information.
If The Intercept prevails, it may lead to increased scrutiny over AI training practices and possibly new legal obligations for AI developers.
As AI-generated content continues to rise, this case will be closely watched for its potential impact on AI regulation, content licensing, and copyright law.
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